HomeMy WebLinkAbout09-19-06
.
REV-I500 EX'~
COMMONWEALTH OF
PENNSYLVANIA
. DEPARTMENT OF REVENUE
DEPT. 280601
HARRISBURG, PA 17128-0601
REV-1500
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FILE NUMBER
06
INHERITANCE TAX RETURN
RESIDENT DECEDENT
COUNTY CODE YEAR
NUMBER
00487
DECEDENTS NAME (LAST, FIRST, AND MIDDLE INITIAL)
Hanna, Joseph P.
DATE OF DEATH (MM-DD-YEAR)
12/13/05
SOCIAL SECURITY NUMBER
166-36-1559
DATE OF BIRTH (MM-DD-YEAR)
04/16/46
THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
REGISTER OF WILLS
SOCIAL SECURITY NUMBER
(IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL)
Hanna, Audrey A.
[i] 1. Original Return
o 4. Limited Estate
o 6. Decedent Died Testate (Anach copy of Will)
o 9. Litigation Proceeds Received
D 2. Supplemental Return
D 4a. Future Interest Compromise (dale of death alter 12-12-82)
o 7. Decedent Maintained a Living Trust (Attach copy of Trust)
o 10. Spousal Poverty Credit (date of death between 12-31-91 and 1-1-95)
o 3. Remainder Return (date of death prior to 12-13-82)
D 5. Federal Estate Tax Retum Required
Jl 8. Total Number of Safe Deposit Boxes
D 11. Election to tax under Sec. 9113(A) (Attach Sch 0)
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NAME
Heather D. Royer, Esquire
FIRM NAME (If Applicable)
Smigel, Anderson & Sacks
TELEPHONE NUMBER
(717) 234-2401
COMPLETE MAILING ADDRESS
4431 North Front Street, Third Floor
Harrisburg,PA 17110
(1 )
(2)
(3)
(4)
(5)
95,240.00
1. Real Estate (Schedule A)
2. Stocks and Bonds (Schedule B)
3. Closely Held Corporation, Partnership or Sole-Proprietorship
4. Mortgages & Notes Receivable (Schedule D)
5. Cash, Bank Deposits & Miscellaneous Personal Property
(Schedule E)
6. Jointly Owned Property (Schedule F)
D Separate Billing Requested
7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property
(Schedule G or L)
8. Total Gross Assets (total Lines 1-7)
9. Funeral Expenses & Administrative Costs (Schedule H)
10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I)
11. Total Deductions (total Lines 9 & 10)
12. Net Value of Estate (line 8 minus Line 11)
13. Charitable and Governmental Bequests/See 9113 Trusts for which an election to tax has not been
made (Schedule J)
(6)
(7)
95,072.10
(9)
(10)
(8)
12,520.98
190,312.10
(11)
(12)
(13)
12,520.98
177,791.12
14. Net Value Subject to Tax (Line 12 minus line 13)
(14)
177,791.12
SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES
15. Amount of Line 14 taxable at the spousal tax
rate, or transfers under Sec. 9116 (a)(1.2)
__----.J 772J!1J,g_. x .0 00_ (15)
0.00
16. Amount of Line 14 taxable at lineal rate
x .0 _ (16)
x .12 (17)
17. Amount of Line 14 taxable at sibling rate
18. Amount of Line 14 taxable at collateral rate
x .15
(18)
(19)
0.00
19. Tax Due
20.0
CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT
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Decedent's Complete Address:
SffiEET ADDRESS
6 Truffle Glen Road
CITY M h . b I STATEpA I ZIP 17050
ec amcs urg
Tax Payments and Credits:
1. Tax Due (Page 1 Line 19)
2. Credits/Payments
A. Spousal Poverty Credit
8. Prior Payments
C. Discount
(1 )
0.00
Total Credits (A + B + C ) (2)
3. Interest/Penalty if applicable
D. Interest
E. Penalty
Total Interest/Penalty ( D + E ) (3)
4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT.
Check box on Page 1 Line 20 to request a refund (4)
5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5)
A. Enter the interest on the tax due.
(5A)
8. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (58)
Make Check Payable to: REGISTER OF WILLS, AGENT
PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS
No
[KJ
[i]
[i]
[iJ
1. Did decedent make a transfer and: Yes
a. retain the use or income of the property transferred;.......................................................................................... 0
b. retain the right to designate who shall use the property transferred or its income; ............................................ 0
c. retain a reversionary interest; or.......................................................................................................................... 0
d. receive the promise for life of either payments, benefits or care? ...................................................................... 0
2. If death occurred after December 12, 1982, did decedent transfer property within one year of death
without receiving adequate consideration? .............................................................................................................. 0
3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? .............. 0
4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which
contains a beneficiary designation? ........................................................................................................................ [KJ
[i]
[KJ
o
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN.
Under penalties of pe~ury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete.
Declaration of preparer other than the personal representative is based on all information of which preparer has any knowledge.
SIGNATUR PERS~N RESPO(J~E~~__________q:::~ZH h ____
~~-- ~--
ADDRESS
4431 North Front St., Third Floor, Harri
For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3%
[72 P.S. 39116 (a) (1.1) (i)].
For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 0% [72 P.S. 99116 (a) (1.1) (iill.
The statute does not exemot a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if
the surviving spouse is the only beneficiary.
For dates of death on or after July 1, 2000:
The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the use of a natural parent, an adoptive parent,
or a stepparent of the child is 0% [72 P.S. 99116(a)(1.2)].
The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is 4.5%, except as noted in 72 P.S. 99116(1.2) [72 P.S. 99116(a)(1 )J.
The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12% [72 P.S. 99116(a)(1.3)1. A sibling is defined, under Section 9102, as an
individual who has at least one parent in common with the decedent, whether by blood or adoption.
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REV-1504 EX+ (6-98)
, *'
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE C
CLOSELY-HELD CORPORATION,
PARTNERSHIP OR
SOLE-PROPRIETORSHIP
ESTATE OF
Joseph P. Hanna
FILE NUMBER
2006-00487
Schedule C-1 or C-2 (including all supporting information) must be attached for each closely-held corporation/partnership interest of the decedent, other than a
sole-proprietorship. See instructions for the supporting information to be submitted for sole-proprietorships.
ITEM NUMBER
NUMBER DESCRIPTION
1. 95,240 shares of common voting stock in Oak Tech, Inc. with par value of $0.001 per share
VALUE AT DATE
OF DEATH
95,240.00
TOTAL (Also enter on line 3, Recapitulation) $
(If more space is needed, insert additional sheets of the same size)
95,240.00
,
. REV-1505 EX+ 16-98*
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE C-'
CLOSELY-HELD CORPORATE
STOCK INFORMATION REPORT
ESTATE OF
Joseph P. Hanna
1. Name of Corporation Dak Tech. Inc.
FILE NUMBER
2006-00487
_____ State of Incorporation North Dakota
Address 3502 36th Street SW Date of Incorporation 04/30/90
City Faroo ___________ State_t-!12_ Zip Code 581 ~_ Total Number of Shareholders 25
2. Federal Employer 1.0. Number 45-0416933 Business Reporting Year
3. Type of Business Manufacturing and Sales ProducVService Computers
4.
STOCK
TYPE
Voting/Non.Voting
TO NUMBER OF
SHA UTSTANDING
PAR VALUE
NUMBER OF SHARES
OWNED BY THE DECEDENT
VALUE OF THE
DECEDENT'S STOCK
Common Votin
1,921,712
$0.001
95,240 $
$
95 240.00
Preferred
Provide all rights and restrictions pretaining to each class of stock.
5. Was the decedent employed by the Corporation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 0 Yes II No
If yes, Position ____________ Annual Salary $_______ Time Devoted to Business
6. Was the Corporation indebted to the decedent? ................................. 0 Yes ID No
If yes, provide amount of indebtedness $
7. Was there life insurance payable to the corporation upon the death of the decedent? . . . .. 0 Yes 11 No
If yes, Cash Surrender Value $ Net proceeds payable $
Owner of the policy
8. Did the decedent sell or transfer stock in this company within one year prior to death or within two years
if the date of death was prior to 12-31-82?
DYes i:I No If yes, 0 Transfer 0 Sale Number of Shares
Transferee or Purchaser _____________ Consideration $ Date
Attach a separate sheet for additional transfers and/or sales.
9. Was there a written shareholder's agreement in effect at the time of the decedent's death? ....11I Yes 0 No
If yes, provide a copy of the agreement.
10. Was the decedent's stock sold? .................................................. 0 Yes iii No
If yes. provide a copy of the agreement of sale, etc.
11. Was the corporation dissolved or liquidated after the decedent's death? ................... 0 Yes iii No
If yes, provide a breakdown of distributions received by the estate, including dates and amounts received.
12. Did the corporation have an interest in other corporations or partnerships? . . . . . . . . . . . .. 0 Yes IllI No
If yes, report the necessary information on a separate sheet, including a Schedule C-1 or C-2 for each interest.
THE FOllOWING INFORMATION MUST BE SUBMITTED WITH THIS SCHEDULE
A. Detailed calculations used in the valuation of the decedent's stock.
B. Complete copies of financial statements or Federal Corporate Income Tax returns (Form 1120) for the year of death and 4 preceding years.
C. If the corporation owned real estate, submit a list showing the complete address/es and estimated fair market value/s. If real estate appraisals have
been secured, attach copies.
D. List of principal stockholders at the date of death, number of shares held and their relationship to the decedent.
E. List of officers, their salaries, bonuses and any other benefits received from the corporation.
F. Statement of dividends paid each year. List those declared and unpaid.
G. Any other information relating to the valuation of the decedent's stock.
(If more space is needed, insert additional sheets of the same size)
. REV-1508 EX. (6-98) ..
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE E
CASH, BANK DEPOSITS, & MISC.
PERSONAL PROPERTY
ESTATE OF
Joseph P. Hanna
FILE NUMBER
2006-00487
Include the proceeds of litigation and the date the proceeds were received by the estate.
All property jointly-owned with right of survivorship must be disclosed on Schedule F.
ITEM
NUMBER
DESCRIPTION
VALUE AT DATE
OF DEATH
1. The Estate of Joseph P. Hanna may be involved in potential
litigation. At this time, the lawsuit has not been filed.
The Estate asks that assessment be suspended until such time
as the value has been detennined.
TOTAL (Also enter on line 5, Recapitulation) $
(If more space is needed, insert additional sheets of the same size)
0.00
. REV-1510EX+(6-...
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE G
INTER-VIVOS TRANSFERS &
MISC. NON-PROBATE PROPERTY
ESTATE OF
Joseph P. Hanna
FILE NUMBER
2006-00487
This schedule must be completed and filed if the answer to any of questions 1 through 4 on the reverse side of the REV-1500 COVER SHEET is yes.
DESCRIPTION OF PROPERTY DATE OF DEATH
ITEM INCLUOE THE NAME OF THE TRANSFEREE. THEIR RELATIONSHIP TO DECEDENT AND I % OF DECD'S EXCLUSION TAXABLE
NUMBER THE DATE OF TRANSFER. ATTACH A COPY OF THE DEED FOR REAL ESTATE. VALUE OF ASSET INTEREST (IF APPLICABLE) VALUE
1. 401(k) Plan through Oak Tech, Inc. with State Bank and Trust 95,072.10 100 95,072.10 95,072.10
TOTAL (Also enter on line 7 Recapitulation) $ 95,072.10
(If more space is needed, insert additional sheets of the same size)
. REV-1511 EX. 112-991.
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE H
FUNERAL EXPENSES &
ADMINISTRATIVE COSTS
ESTATE OF
Joseph P. Hanna
FILE NUMBER
2006-00487
Debts of decedent must be reported on Schedule I.
ITEM
NUMBER
A.
DESCRIPTION
AMOUNT
1.
FUNERAL EXPENSES:
Neill Funeral Home
Stephen's Springfield Country Club (Luncheon)
8,585.80
1,147.37
2.
B. ADMINISTRATIVE COSTS:
1. Personal Representative's Commissions
Name of Personal Representative(s)
Social Security Number(s)/EIN Number of Personal Representative(s)
Street Address
City State Zip
Year(s) Commission Paid:
2. Attomey Fees 2,500.00
3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation)
Claimant
Street Address
City State .Zip
Relationship of Claimant to Decedent
4. Probate Fees 54.00
5. Accountant's Fees
6. Tax Return Preparer's Fees
7. Cumberland Law Journal - Legal Advertisement 75.00
8. The Sentinel - Legal Advertisement 158.81
TOTAL (Also enter on line 9, Recapitulation) $
(If more space is needed, insert additional sheets of the same size)
12,520.98
REV-1513 EX+ (9-00)
'*
SCHEDULE J
BENEFICIARIES
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
Joseph P. Hanna
FILE NUMBER
2006-00487
RELATIONSHIP TO DECEDENT AMOUNT OR SHARE
NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE
I TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under
Sec. 9116 (a) (1.2)]
1. Audrey A. Hanna, 6 Truffle Glen Rd., Mechanicsburg, PA 17050 Spouse 95,072.10
2. Fulton Bank, Trustee, Trust Dept., P.O. Box 1189, Harrisburg, PA 17108, I Trustee 95,240.00
ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 18, AS APPROPRIATE, ON REV-1500 COVER SHEET
II NON-TAXABLE DISTRIBUTIONS:
A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE
B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS
TOTAL OF PART 11- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET $ 0.00
(If more space is needed, insert additional sheets of the same size)
7J410
LAST WILL AND TESTAMENT
OF
JOSEPH P. HANNI\.
I, JOSEPH P. HANNA, of Cumberland County, Pennsylvania,
being of sound and disposing mind and memory, do make, publish and
declare this to be my Last Will and Testament, hereby revoking all
Wills and Codicils by me at any time previously made.
1. TANGIBLE PERSONALTY. I give and bequeath all of my
household furniture and furnishings, automobiles, other motor
vehicles, books, pictures, jewelry, china, crystal, appliances,
silverware, wearing apparel, articles of household or personal use
or adornment, collections, artworks, boats and recreational
equipment and vehicles, together with all policies of insurance
thereon, to my wife, AUDREY A. HANNA ("My Spouse"), if My Spouse
survives me. If My Spouse does not survive me, I give such
articles to my children living at my death in as nearly equal
shares as they shall select under the supervision of my Executor.
l~y Executor shall select such articles, if any, as such Executor
deems appropriate for any minor and deliver the articles to the
minor or to any person or persons chosen by My Executor whose
receipt shall be a complete acquittance therefor. If any such
articles cannot be fairly divided or distributed in kind in the
opinion of my Executor, such articles shall be sold and the
proceeds thereof shall pass as a part of my residuary estate.
Page 1 of 12 pages
2 .
UNIFIED CREDIT TRUST.
I give, devise and bequeath
to my Trustee hereinafter named, IN TRUST NEVERTHELESS, to be
held, administered and disposed of in accordance with this ITEM
for the benefit of My Spouse and my issue (herein referred to as
the "Unified Credit Trust") an amount equal to the sum of (i) the
balance of the dollar amount not taxed in my estate due to the
application to my estate of the unified credit against federal
estate tax (the "Unified Credit"), after deducting therefrom the
value, for federal estate tax purposes, of (a) assets included in
my federal gross estate which pass or have passed other than under
the terms of this will and which will utilize a portion of the
Unified Credit, (b) any bequests under the preceding ITEM of this
Will which will utilize a portion of the Unified Credit and (c)
adjusted taxable gifts not included in my federal gross estate but
included in the computation of the tentative federal estate tax in
my estate; and (ii) the state death tax credit allowed for federal
estate tax purposes (but only to the extent its use will not
increase any Death Taxes owing by my estate). My Trustee shall
have, hold, manage, invest and reinvest the assets of the Unified
Credit Trust, collect the income and
(a) If My Spouse survives me, beginning at my
death, my Trustee shall pay over the net income of the
Unified Credit Trust to My Spouse during My Spouse's
lifetime, in installments not less frequently than
quarterly. In addition, my Trustee shall pay to My
Spouse such amounts of the principal of such trust as,
in the sole discretion of my Trustee, shall be necessary
for the maintenance, support. and medical and nursing
care of My Spouse, taking into consideration any other
means readily available for such purposes.
(b) Upon the death of the survivor of My Spouse
and me, my Trustee shall distribute the principal and
Page 2 of 12 pages
any undistributed income of the Unified Credit Trust to
my issue then living, per stirpes; provided, however,
that (i) should any such issue be a child of mine who
has not then attained the age of thirty-five years, such
child's share shall be retained by my Trustee, IN TRUST
NEVERTHELESS, to be held, administered and disposed of
as a separate trust estate in accordance with ITEM 4 for
the benefit of such child (the "Child's Trust"); or (ii)
should any such issue be the issue of a deceased child
of mine and shall not then have attained the age of
twenty-one years, each such issue's share shall be
retained by my Trustee, IN TRUST NEVERTHELESS, each to
be held, administered and disposed of as a separate
trust estate in accordance with ITEM 5 for the benefit
of each such issue (the "Grandchild's Trust").
3 .
RESIDUE.
I give, devise and bequeath all of the
rest, residue and remainder of my property, real, personal and
mixed, not disposed of in the preceding portions of this Will,
including all property over which I hold a power of appointment
(which powers of appointment I hereby exercise in favor of my
estate), to My Spouse, if My Spouse survives me.
If My Spouse
does not survive me, I give and bequeath said residue to my issue
living at my death, per stirpes; provided, however, that (i)
should any such issue be a child of mine who has not then attained
the age of thirty-five years, such child's share shall be retained
by my Trustee, INTRUST NEVERTHELESS, to be held, administered and
disposed of as a separate trust estate in accordance with ITEM 4
for the benefit of such child (the "Child's Trust"); or (ii)
should any such issue be the issue of a deceased child of mine and
shall not then have attained the age of twenty-one years, each
such issue's share shall be retained by my Trustee, IN TRUST
NEVERTHELESS, each to be held, administered and disposed of as a
separate trust estate in accordance with ITEM 5 for the benefit of
each such issue (the "Grandchild's Trustl1).
Page 3 of 12 pages
4. CHILD'S TRUST. My Trustee shall have, hold,
manage, invest and reinvest the assets of each Child's Trust,
collect the income and
(a) Until the beneficiary of the Child's Trust
(the "Child") shall have attained the age of twenty-one
years, my Trustee shall from time to time pay to or for
the benefit of the Child such amounts of the net income
and principal of the Child's Trust as, in the sole
discretion of my Trustee, shall be necessary for the
Child's maintenance, support, medical and nursing care
and education, including college and graduate education,
taking into consideration any other means readily
available for such purposes. At the end of each year
any unexpended income shall be added to the principal of
the Child's Trust.
(b) After the Child shall have attained the age of
twenty-one years, my Trustee shall pay to the Child the
net income derived from the Child's Trust in
installments not less frequently than quarterly and such
amounts of the principal as, in the sole discretion of
my Trustee, shall be necessary for the Child's
maintenance, support, medical and nursing care and
education, including college and graduate education,
taking into consideration any other means readily
available for such purposes.
(c) If at the time of the creation of the Child's
Trust the Child shall have then attained the age set
forth below or if the Child shall thereafter attain that
age, upon receipt by my Trustee of a written request
from the Child, my Trustee shall distribute outright to
the Child the fractional portion of the then remaining
principal of -the Child's Trust set forth below:
Aqe
Fractional Share
Twenty-five years
Thirty years
Thirty-five years
One-third
One-half
Balance then remaining
(d) If a Child shall die before final distribution
of the assets of the Child's Trust is made, the then
remaining principal and any undistributed income of the
Child's Trust shall be distributed to the Child's issue
then living, per stirpes; provided, however, that if any
such issue shall not then have attained the age of
twenty-one years, each such issue's share shall be
retained by my Trustee as a separate trust estate, IN
TRUST NEVERTHELESS, each to be held, administered and
Page 4 of 12 pages
disposed of in accordance with the provisions of ITEM 5
for the benefit of each such issue (the "Grandchild's
Trust"); or if the Child has no issue then living, then
to my issue then living, per stirpes; provided, however,
that if any such beneficiary is then a beneficiary of a
Child's Trust or Grandchild's Trust hereunder, the share
of such beneficiary shall be added to the principal of
such Child's Trust or Grandchild's Trust as if an
integral part thereof, to be held, administered and
disposed of in accordance with the terms thereof.
5. GRANDCHILD'S TRUST. My Trustee shall have, hold,
manage, invest and reinvest the assets of each Grandchild's Trust,
collect the income and
(a) Until the beneficiary of the Grandchild's
Trust (the "Grandchild") shall have attained the age of
twenty-one years, my Trustee shall from time to time pay
to or for the benefit of the Grandchild such amounts of
the net income and principal of the Grandchild's Trust
as, in the sole discretion of my Trustee, shall be
necessary for the Grandchild's maintenance, support,
medical and nursing care and education, including
college and graduate education, taking into
consideration any other means readily available for such
purposes. At the end of each year any unexpended income
shall be added to the principal of the Grandchild's
Trust.
(b) After the Grandchild shall have attained the
age of twenty-one years, my Trustee shall distribute the
remaining principal and any undistributed income of the
Grandchild's Trust outright to the Grandchild. If the
Grandchild shall have died before attaining that age, my
Trustee shall distribute the then remaining principal
and any undistributed income to the issue then living of
the parent of the Grandchild who was a child of mine,
per stirpes, or, if such parent shall have no issue then
living, to my issue then living, per stirpes; provided,
however, in either event, if any such beneficiary is
then a beneficiary of a Child's Trust or Grandchild's
Trust hereunder, the share of such beneficiary shall be
added to the principal of such Child's Trust or
Grandchild's Trust as if an integral part thereof, to be
held, administered and disposed of in accordance with
the terms thereof.
6. PERPETUITIES PROVISIONS. Nothing herein is
intended to, nor shall it be construed to, postpone the vesting of
Page 5 of 12 pages
any part of the assets of any separate trust estate hereunder for
more than twenty-one years after the death of the survivor of me,
My Spouse and my issue living at the time of my death. At the
expiration of such period the assets of all the separate trust
estates hereunder shall immediately vest in fee simple absolute In
and be distributed outright to the person or persons then entitled
to receive the income therefrom, whether in my Trustee's
discretion or otherwise.
7. SPENDTHRIFT PROVISION. No interest in income or
principal of my estate or any trust created hereunder shall be
subject to attachment, levy or seizure by any creditor, spouse,
assignee or trustee or receiver in bankruptcy of any beneficiary
of my estate or of any trust created hereunder prior to the
beneficiary's actual receipt thereof. My Executor or Trustee
shall pay over the net income and the principal to the
beneficiaries herein designated, as their interests may appear,
without regard to any attempted anticipation (except as may be
specifically provided herein), pledging or assignment by any
beneficiary of my estate or of any trust created hereunder and
without regard to any claim thereto or attempted levy, attachment,
seizure or other process against said beneficiary.
8. SURVIVAL PRESUMPTIONS. Any person, other than My
Spouse, who shall have died at the same time as I or under such
circumstances that it is difficult or impossible to determine who
shall have died first, shall be deemed to have predeceased me. If
My Spouse and I shall have died at the same time or under such
circumstances that it is difficult or impossible to determine who
Page 6 of 12 pages
shall have died first, My Spouse shall be deemed to have
predeceased me. Any person other than me who shall have died at
the same time as any then beneficiary of income of my estate or a
trust created hereunder or under such circumstances that it is
difficult or impossible to determine who shall have died first,
shall be deemed to have predeceased such beneficiary.
9.
FIDUCIARY POWERS.
In the settlement of my estate
and during the continuance of any trust created hereunder, my
Executor and my Trustee shall possess, among others, the following
powers, exercisable without prior court approval, but in all cases
to be exercised for the best interests of the beneficiaries:
(a) To retain any investments I may have at my
death so long as my Executor or Trustee may deem it
advisable to my estate or trust so to do, including
securities owned, issued or underwritten by any
corporate Executor or Trustee or any of their
affiliates.
(b) To vary investments, when deemed desirable by
my Executor or Trustee, and to invest in such bonds,
stocks, notes, real estate mortgages or other securities
or in such other real or personal property, including
securities owned, issued or underwritten by any
corporate Executor or Trustee or any of their
affiliates, as my Executor or Trustee shall deem wise,
without bein~ restricted to so called "legal
investments".
(c) In order to effect a division of the principal
of my estate or trust or for any other purpose,
including any final distribution of my estate or trust,
my Executor or Trustee is authorized to make said
divisions or distributions of the personalty and realty
partly or wholly in kind. If such division or
distribution is made in kind, said assets shall be
divided or distributed at their respective values on the
date or dates of their division or distribution. In
making any division or distribution in kind, my Executor
or Trustee shall divide or distribute said assets in a
manner which will fairly allocate any unrealized
appreciation among the beneficiaries.
Page 7 of 12 pages
(d) To sell either at public or private sale and
upon such terms and conditions as my Executor or Trustee
may deem advantageous to my estate or trust, any or all
real or personal estate or interest therein owned by my
estate or trust severally or in conjunction with other
persons or acquired after my death by my Executor or
Trustee, and to consummate said sale or sales by
sufficient deeds or other instruments to the purchaser
or purchasers, conveying a fee simple title, free and
clear of all trust and without obligation or liability
of the purchaser or purchasers to see to the application
of the purchase money or to make inquiry into the
validity of said sale or sales; also, to make, execute,
acknowledge and deliver any and all deeds, assignments,
options or other writings which may be necessary or
desirable in carrying out any of the powers conferred
upon my Executor or Trustee in this paragraph or
elsewhere in this will.
(e) To mortgage real estate and to make leases of
real estate for any term.
(f) To borrow money from any party, including my
Executor or Trustee, to pay indebtedness of mine or of
my estate or trust, expenses of administration, Death
Taxes or other taxes.
(g) To pay all costs, expenses, legally
enforceable debts, funeral expenses and charges in
connection with the administration of my estate or
trust.
(h) To vote any shares of stock which form a part
of my estate or trust and to otherwise exercise all the
powers incident to the ownership of such stock and to
actively manage and operate any incorporated or
unincorporated business, including any joint ventures
and partnerships, and to incorporate any such
unincorporated business, with all the rights and powers
of any owner thereof.
(i) In the discretion of my Executor or Trustee,
to unite with other owners of similar property in
carrying out any plans for the reorganization of any
corporation or company whose securities form a part of
my estate or trust.
(j) To assign to and hold In my estate or trust an
undivided portion of any asset.
(k) To hold investments in the name of a nominee.
(1) To compromise controversies.
Page 8 of 12 pages
(m) To disclaim, in whole or in part, any and all
interests in property owned by me at the time of my
death, including those passing to me by Will, intestacy,
contract, joint ownership, operation of law or
otherwise.
(n) To employ and compensate from income or
principal, in the discretion of my Executor or Trustee,
investment and legal counsel, accountants, brokers and
other specialists, and, whenever there shall be no
corporate Executor or Trustee in office, a corporate
custodian, and to delegate to investment counsel
discretion with respect to the investment and
reinvestment of any or all of the assets held hereunder.
10. EXCULPATORY CLAUSES. In the settlement of my
estate:
(a) My Executor shall not be personally liable for
any loss to my estate or to any beneficiary of my estate
resulting from an election made in good faith to claim a
deduction as an income tax deduction or as an estate tax
deduction.
(b) In valuing property in my gross estate for the
purposes of any Death Tax, my Executor shall not be
personally liable for any loss to my estate or to any
beneficiary of my estate resulting from my Executor's
decision made in good faith to use a particular valua-
tion date.
11. TAX CLAUSE. All inheritance, estate and similar
taxes becoming due by reason of my death, except any taxes
relating to generation skipping transfers imposed under Chapter 13
of Subtitle B of the Internal Revenue Code, as amended ("Death
Taxes"), whether such Death Taxes shall be payable by my estate or
by any recipient of any property, shall be paid by my Executor out
of the property passing under ITEM 2 of this will as an expense
and cost of administration of my estate; provided, however, that
if any property held in any testamentary or inter vivos trust
created by My Spouse is includable in my estate for purposes of
any Death Tax, then any Death Tax attributable to the inclusion of
Page 9 of 12 pages
, '
any such property in my estate for the purposes of that Death Tax
shall be paid out of such property or by the recipients of such
property; and, if such Death Taxes are nevertheless paid by my
Executor, I direct my Executor to obtain reimbursement or
contribution for any such taxes paid by my Executor. Except to
the extent above provided, my Executor shall have no duty or
obligation to obtain reimbursement for any Death Taxes paid by my
Executor, even though paid with respect to proceeds of insurance
or other property not passing under this will.
12. GUARDIAN OF MINOR PERSONS. If My Spouse does not
survive me, I appoint my sister-in-law, DAYNA WINAND, of West
Chester, Pennsylvania, as the Guardian of the person of each of my
minor children.
13. CUSTODIAN OF ESTATES OF MINORS.
If at any time any
person under the age of twenty-one years shall be entitled to
receive any assets free of trust by reason of my death, whether
payable hereunder, by operation of law, contract or otherwise, I
appoint my Trustee hereinafter named as Custodian for such minor
under the Pennsylvania Uniform Transfers to Minors Act.
14. TRUST MERGERS AND TERMINATIONS.
(a) If there should be established by My Spouse,
either by Last will and Testament or by inter vivos Deed
or Agreement, trusts similar to the trusts herein
established for the benefit of my issue, my Trustee
herein shall have the right and power to merge trusts
herein established with similar trusts for the same
beneficiaries established by My Spouse and to operate
each of the merged trusts as a single trust.
(b) If, in the opinion of my Trustee (other than
My Spouse), at any time any trust hereunder is or
becomes too small to justify its maintenance as a
separate trust, my Trustee (other than My Spouse), in
Page 10 of 12 pages
.
...
such Trustee's sole discretion and without the necessity
of court approval, shall terminate such trust by
distributing all the income and principal of the trust
to the then income beneficiary of said trust. If any
additions to any such trust are received after its
termination under this ITEM, such trust shall be revived
and this provision shall continue to apply to it.
I hereby appoint My Spouse,
15. EXECUTOR APPOINTMENT.
AUDREY A. HANNA, as Executrix of this will.
If for any reason My
Spouse should fail or cease to act, I appoint FULTON BANK, with
offices in Lancaster, Pennsylvania, and my brother-in-law, RELLAND
WINAND, of West Chester, Pennsylvania as Co-Executors.
If either
of them should fail or cease to act, then the survivor shall serve
alone. All references in this will to my "Executor" shall refer
to my originally named Executor, to my successor Co-Executors or
surviving Executor, as the case may be.
I hereby appoint My Spouse
16. TRUSTEE APPOINTMENT.
and FULTON BANK, with offices in Lancaster, Pennsylvania, as
Trustee of any Trust created hereunder. My Spouse may designate
her successor in writing signed by her. If My Spouse should for
any reason fail or cease to act as Trustee hereunder and she has
not designated a successor {or the successor so designated fails
or ceases to act}, then RELLAND WINAND shall serve as Co-Trustee
hereunder. No Trustee serving hereunder shall be liable for any
acts or omissions of the Trustee occurring prior to their assuming
the office of Trustee or Co-Trustee hereunder. So long as a
beneficiary of a trust hereunder is a Trustee or Co-Trustee, he or
she shall not {i} participate in any discretionary determination
of the Trustee to distribute principal dr income of such trust to
or for the benefit of such beneficiary or to his or her issue; or
Page 11 of 12 pages
.
"
(ii) participate in any discretionary determination of the Trustee
to terminate said trust under the ITEM hereof entitled "TRUST
MERGERS AND TERMINATIONS". All references in this will to my
"Trustee" shall refer to my originally named Co-Trustees or to my
successor Co-Trustees or Trustee, as the case may be.
17. WAIVER OF BOND; FIDUCIARY FEES. My Custodian,
Executor and Trustee shall qualify and serve without the duty or
obligation of filing any bond or other security. Any corporate
fiduciary shall be entitled to compensation for services in
accordance with the standard schedule of fees in effect when the
services are rendered.
IN WITNESS WHEREOF, I have set my hand and seal to this,
my Last Will and Testament, consisting
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eleven (11) pages, this ,?I~ day
and the preceding
of
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We, the undersigned, hereby e~rtify that the foregoing
Will was signed, sealed, published and declared by the above-named
Testator as and for his Last will and Testament, in the presence
of us, who, at his request and in his presence and in the presence
of each other, have hereunto set our hands and seals the day and
year above written, and we certify that at the time of the
execution thereof' the said Testator was of sound and disposing
mind'-~/memJ:r: .,
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Page 12 of 12 pages
.
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NILLES LA W FIRM
A TTORNEYS AND COUNSELORS A T LA W
Duane H. I1vedson
E. Thomas Con my, II[
Stephen W. Plambeck
Gregory B. Selbo
Patricia R. Monson*
Leo F. J. Wilking
William P. Harrie*
Mark R. Hanson* ·
H. Malcolm Pippin+
* Also Licensed in Minnesota
· Also Licensed in South Dakota
+ Also Licensed in Montana
*Douglas W. Gigler
Andrew L.B. Noah
* Jacqueline S. Anderson
* Joel M. Fremstad
Kirsti B. Hourigan
*Shanon M. Gregor
*Telly J. Meier
Gregory W. Liebl
*Kimberly L. Peterson
1800 RADISSON TOWER
201 NORTH FIFTH STREET
POST OFFICE BOX 2626
FARGO. NORTH DAKOTA 58108-2626
(701) 237-5544
Fax: (701) 280-0762
www.nilleslaw.com
September 8, 2006
VIA E-MAIL: hroyer@sasllp.com
Heather D. Royer
Attorney at Law
River Chase Office Center - 3rd Floor
4431 North Front Street
Harrisburg, PAl 711 0
Re: Estate of Joseph P. Hanna
Our File No.: 90212
Dear Ms. Royer:
I expect by the time you receive this letter we will have had an opportunity to discuss some of
these matters on the telephone. It is the intention of this letter to respond to your correspondence
of July 10, 2006 and August 14,2006.
First, has it been determined that DakTech with about 25 different shareholders is a "closely-held
corporation" under Pennsylvania law?
With regard to Schedule C-l (for your inheritance tax return) the following can be provided by
DakTech. Refer to the item numbers off the form.
1. DakTech, Inc.
3502 36th Street SW
Fargo, ND 58104
Incorporated in the State of North Dakota on April 30, 1990
2. 45-0416933; December 31 year-end
3. Manufacturing and Sales; Computers
4. Common Voting Stock; 1,921,712 shares issued; Par Value $0.001; 95,240 shares
owned by Hanna; Value - $95,240.00
NILLES, ILVEDSON, PLAMBECK & SELBO, LTD.
Williston Office: 3-4d. Street East, Suite 206, P.O. Box 1525, Williston, ND 58801-1525 (70 I) 577-5544
Bismarck Office: 115 N. 4d. Street, Pp. Box 2512, Bismarck, ND 58501-2512 (70 I) 250-0122
.
.
September 11, 2006
Page 2
5. No
6. No
7. No
8. No
9. Yes; See attached.
10. No
11. No
12. No
A. There have not been detailed calculations as to the valuation of the
Company or its stock. The shareholders determine on an annual basis
what they believe to be a fair value for the stock. In 2005 that fair value
was $1.00 a share. Because of business activities, in January of 2006 the
shareholders determined that value to be $2.00 a share.
B. There will be some costs associated with copying five years of corporate
income tax returns. I presume the Estate is willing to pay that expense.
Please advise.
C. DakTech leases its principal business site in Fargo, North Dakota, from J
& J Investments, Inc. It has not been appraised recently. The tax value is
$1,380,000.
D. Principal stockholder of DakTech is Bob J. Hegg. He owns 1,154,080
shares.
E. The current officers of DakTech are Bob J. Hegg, President, Jacqueline M.
Hegg, Secretary-Treasurer.
F. The dividend paid fo,r the fiscal year 2005, paid III early 2006, was
$?????? per share.
G. No other information.
..
4
~
September 11, 2006
Page 3
The March 1992 Agreement you attached to your correspondence was effectively the "phantom
stock plan." That plan was rescinded in early 1993 when the then-shareholders of the company
effected transfers of shares to Mr. Hanna that resulted in him owning 95.25 shares.
Subsequently, in July of 1993, the Articles of Incorporation were amended to change from
50,000 shares of Authorized Stock at $1.00 par to 5,000,000 shares of Common Stock at $ .001
per share. The Articles of Amendment specifically provided that each share would be converted
into 1,000 shares of Common Stock at $.001 par value. Stock certificates were surrendered and
Mr. Hanna, for example, was issued a new Stock Certificate No. 62 on August 6, 1993 for
95,240 shares. It is our understanding that Mr. Hanna was/is indebted to Bob Hegg for a portion
of the shares purchased by Mr. Hanna from Mr. Hegg but I presently do not have that detail.
I have attached a copy of the February 3,2005 shareholder minutes.
With regard to the dividend check issued in January of2006, that check was made payable to the
Estate of Joseph P. Hanna. It was apparently negotiated by Mrs. Hanna in her capacity as the
Executor of Mr. Hanna's Estate. Dividends are traditionally paid annually. No additional
dividends have been declared.
With regard to transferring Mr. Hanna's stock to Mrs. Hanna, we would require that the original
Certificate No. 62 be surrendered, duly endorsed by Mrs. Hanna in her capacity as Executor of
Mr. Hanna's Estate, together with a certified copy of the documentation appointing Mrs. Hanna
as the Executor and indicating that they are in full force and effect as of the time she submits the
stock certificate. We would then expect that Mrs. Hanna would provide specific instructions in
her capacity as the Personal Representing advising to whom that stock should be distributed. We
would also like your certification, in letter form, that you are the attorney for the Estate, have
reviewed Mr. Hanna's estate planning documents and confirm that the requested disposition by
Mrs. Hanna conforms with those estate planning documents. Upon receipt of those documents,
we would cancel Certificate No. 62 and issue a new certificate or certificates pursuant to those
instructions. With those instructions, we would request specific information with regard to
address, telephone number, facsimile number and electronic mail address, all if appropriate, so
that DakTech's records can properly reflect to whom notices should be given.
If you need anything further, please feel free to contact me directly.
Sincerely,
Gregory B. Selbo
GBS/bjb
Ene.
. .
SMIGEL, ANDERSON
& SACKS LLP
JOANNE A BRADLEY,
PARALEGAL
PHONE: (717) 234-2401
ATTORNEYS AT LAW
TOLL FREE: 1-800-822-9757
FACSIMILE (717) 234-3611
EMAIL: jbradley@sasllp.com
September 13,2006
www.sasllp.com
File No.
8963-1-5A
Register of Wills
Cumberland County Courthouse
1 Courthouse Square
Carlisle, PA 17013-3387
Re: Estate of Joseph P. Hanna
No. 2006-00487
Dear Register:
Enclosed please find for filing an original and three (3) copies of Pennsylvania Inheritance Tax
Return as well as an original and two (2) copies of the Inventory to be filed in the above Estate.
I am also enclosing a check payable to the Register of Wills in the amount of$220.00. This
amount consists of$190.00 for additional probate fees, $15.00 to file the Inheritance Tax return and
$15.00 to file the Inventory.
Please date and time stamp the additional copies of the Return and Inventory and return them to
our office in the self-addressed stamped envelope enclosed.
If you have any questions, please feel free to contact me.
Very tml y yours,
~-~{. ~o
ll~ ~. Bradley ..!
Paralegal
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