HomeMy WebLinkAbout10-26-06 (2)
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15056041125
.
REV-1500 EX (06-05)
PA Department of Revenue.
Bureau of IndividualTaxes -. - INHERITANCE TAX RETURN
PO BOX 280601
Harrisbur ,PA 17128-0601 RESIDENT DECEDENT
ENTER DECEDENT INFORMATION BELOW
Social Security Number Date of Death
,
County Code Year
File Number
:;J.. ,
Date of Birth
20430 6 4 8 7
o 1
2 6
200 6
o 8
o 7
1 9 1 7
Decedent's Last Name
Suffix
Decedent's First Name
MI
S M I T H
C H EST E R
L
(If Applicable) Enter Surviving Spouse's Information Below
Spouse's Last Name Suffix
Spouse's First Name
MI
S M I T H
P A U L I N E
M
Spouse's Social Security Number
THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
REGISTER OF WILLS
FILL IN APPROPRIATE OVALS BELOW
[Xl 1. Original Return
4. Limited Estate
o
o
o
o
8. Total Number of Safe Deposit Boxes
2. Supplemental Return
D
D
3. Remainder Return (date of death
prior to 12-13-82)
5. Federal Estate Tax Return Required
4a. Future Interest Compromise (date of
death after 12-12-82)
7. Decedent Maintained a Living Trust
(Attach Copy of Trust)
10. Spousal Poverty Credit (date of death 00 11. Election to tax under Sec. 9113(A)
between 12-31-91 and 1-1-95) (Attach Sch. 0)
CORRESPONDENT - THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO:
Name Daytime Telephone Number
D
D
D
6, Decedent Died Testate
(Attach Copy of Will)
9. Litigation Proceeds Received
G E 0 R GEE
HaS KIN SON
& WEN G E R
71726 3 - 8 5 3 5
f'.....'
C) r:-,
REGISTE~~ILLS US~NL Y
:.' C)
- , ('-)
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WEN G E R J R
Firm Name (If Applicable)
C"~
First line of address
1 4 7
E A S T
WAS H I N G TON
S T R E E T
Second line of address
i"..)
( 'j
City or Post Office
State
ZIP Code
N
DATE FILED Q)
I
C HAM B E R S BUR G
P A
1 720 1
Correspondent's e-mail address:
Under penalties of pe~ury, I t 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.
SIGNATYRE OF PERSON RESPONSIBLE FPR FILING RETURN
\:".,It";'../.:../ ':,..7(..... .' (.. ""'___.1', ).':JL.L.-L71..~...
ADDRESS
81 Smithdale Road Shippensburg
SIGNATU OF PREPARE~EPRESENT IVE
DATE
10-25-2006
PA
17257
DATE
() - z,.'s-~-Ob
Washington Street Chambers burg
PLEASE USE ORIGINAL FORM ONLY
PA
17201
Side 1
L
15056041125
15056041125
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15056042126
..
REV-1500 EX
Decedent's Social Security Number
Decedent's Name CHESTER L. SMITH
RECAPITULATION
204306487
1. Real estate (Schedule A)
1.
2. Stocks and Bonds (Schedule B)
2.
3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C) 3.
4. Mortgages & Notes Receivable (Schedule D) 4.
5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) 5.
6. Jointly Owned Property (Schedule F) o Separate Billing Requested . 6.
7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property 2 7 4 4 5 1 2 4
(Schedule G) 0 Separate Billing Requested. 7.
8. Total Gross Assets (total Lines 1-7) 8. 2 7 4 4 5 1 2 4
........ . . . . . . . . . .
9. Funeral Expenses & Administrative Costs (Schedule H) 9.
10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I) 10.
11. Total Deductions (total Lines 9 & 10) . . . 11.
12. Net Value of Estate (Line 8 minus Line 11) 12. 2 7 4 4 5 1 2 4
........ .
13. Charitable and Governmental Bequests/Sec 9113 Trusts for which 0 0 0
an election to tax has not been made (Schedule J) . . . . . . . . . 13.
14. Net Value Subject to Tax (Line 12 minus Line 13) . . . 14. 2 7 4 4 5 1 2 4
....... .
TAX COMPUTATION - SEE INSTRUCTIONS FOR APPLICABLE RATES
15. Amount of Line 14 taxable
at the spousal tax rate, or
transfers under Sec. 9116
(a)(1.2) X .OOL 6 7 7 3 4 5 7 15. 0 0 0
16. Amount of Line 14 taxable 2 0 6 7 1 6 6 7 9
at lineal rate X .O~ 16. 3 0 2 2 5
17. Amount of Line 14 taxable 0 0 0 0 0 0
at sibling rate X. 12 17.
18. Amount of Line 14 taxable 0 0 0 0 0 0
at collateral rate X .15 18.
19. Tax Due 19. 9 3 0 2 2 5
............................ .
20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT
o
Side 2
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15056042126
15056042126
-1
REV-1500 EX Page 3
Decedent's Complete Address:
File Number
DECEDENT'S NAME
CHESTER L. SMITH
STREET ADDRESS
81 SMITHDALE ROAD
CITY I STATE I ZIP
SHIPPENSBURG PA ' 17257
Tax Payments and Credits:
1. Tax Due (Page 2 Line 19) (1)
2. Credits/Payments
A. Spousal Poverty Credit
B. Prior Payments
C. Discount
9,302.25
Total Credits (A + B + C) (2)
0.00
3. InteresUPenalty if applicable
D. Interest
E. Penalty
TotallnteresUPenalty ( D + E) (3)
4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT.
Fill in oval on Page 2, Line 20 to request a refund. (4)
0.00
0.00
9,302.25
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.
B. Enter the total of Line 5 + 5A. This is the BALANCE DUE.
(5A)
(5B)
9,302.25
Make Check Payable to: REGISTER OF WILLS, AGENT
PLEASE ANSWER THE FOllOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS
1. Did decedent make a transfer and: Yes No
a. retain the use or income of the property transferred; ................................. ..................................... 0 Il(I
b. retain the right to designate who shall use the property transferred or its income; ............................... 0 00
c. retain a reversionary interest; or ................................................................................................ 0 IXI
d. receive the promise for life of either payments, benefits or care? ....................................................... 0 IXl
2. If death occurred after December 12, 1982, did decedent transfer property within one year of death
without receiving adequate consideration? .............. ................. ........................................... ......... .... 0 [RI
3. Did decedent own an 'in trust for" or payable upon death bank account or security at his or her death? ......... 0 I:gI
4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which
contains a beneficiary designation? ........ ....... ................................................................................... ~ 0
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN.
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 three (3) percent [72 P.S. 99116 (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 zero (0) percent
[72 P.S. 99116 (a) (1.1) (ii)]. The statute does not exempt 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 zero (0) percent [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 four and one-half (4.5) percent, except as noted in
72 P.S. 99116(1.2) [72 P.S. 99116(a)(1 )].
The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is twelve (12) percent [72 PS. 99116(a)(1.3)]. 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.
REV-1510 EX + (6-98)
*'
SCHEDULE G
INTER.VIVOS TRANSFERS &
MISC. NON.PROBA TE PROPERTY
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
"ESTATE OF
CHESTER L. SMITH
FILE NUMBER
ITEM
NUMBER
1.
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
INCLUDE THE NAME OF THE TRANSFEREE, THEIR RELATIONSHIP TO DECEDENT AND
THE DATE OF TRANSFER ATTACH A COPY OF THE DEED FOR REAL ESTATE.
DATE OF DEATH
VALUE OF ASSET
(a)
CHESTER L. SMITH AND PAULINE M. SMITH REVOCABLE
LIVING TRUST (copy attached) Established December 21, 1999
Consisting Of:
Real Estate: Rear Pine Lane, Cumberland County, Newville,PA
TOTAL APPRAISAL VALUE (copy attached)
Cumberland County Deed Book 213, Page 1041
Real Estate: 81 Smithdale Road, Shippensburg, PA
TOTAL APPRAISAL VALUE (copy attached)
Cumberland County Deed Book 213, Page 1037
American Equity Investment Life Insurance Company:
(1) Contract #044649 VALUE $ 23,977.60
(2) Contract #044653 VALUE $ 17,007.76
TOTAL VALUE
% OF DECO'S
INTEREST
81,000.00 5<E
(b)
426,000.00 50%
(c)
40,985.36 50%
(d) M & T BANK - CHECKING ACCOUNT #97524247
DATE OF DEATH VALUE
PER TRUST INSTRUMENT 1/2 VALUE
CHESTER L. SMITH PORTION OF TRUST
917.1150%
EXCLUSION
{IF APPLlCABLEj
TOTAL (Also enter on line 7 Recapitulation) $
(If more space is needed, insert additional sheets of the same size)
TAXABLE
VALUE
40,500.00
213,000.00
20,492.68
458.56
274451.24
",.,,,, '" >''*
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
~ESTATE OF
CHESTER L SMITH
SCHEDULE J
BENEFICIARIES
FILE NUMBER
RELATIONSHIP TO DECEDENT AMOUNT OR SHARE
NUMBER NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY Do Not List Trustee(s) OF ESTATE
1. TAXABLE DISTRIBUTIONS [include outright spousal distributions, and transfers under
Sec. 9116 (a) (1.2)]
1. PAULINE M. SMITH (Life Interest in Revocable Living Trust) Spousal 67,734.57
81 Smithdale Road, Shippensburg, PA 17257
Remainder Interest: Lineal 206,716.67
50% To Patricia A. Stambaugh, Now Patricia A. Kosinski (Daughter)
50% To Galen R. Smith (Son)
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
1. "NONE" 0.00
B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS
1. "NONE" 0.00
TOTAL OF PART II - 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)
REV.151' EX' ,,,.0.
SCHEDULE K
LIFE ESTATE, ANNUITY
& TERM CERTAIN
Check Box 4 on Rev-1500 Cover Sheet
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF
CHESTER L. SMITH
FILE NUMBER
This schedule is to be used for all single life, joint or successive life estate and term certain calculations. For dates of death prior to 5-1-89,
actuarial factors for single life calculations can be obtained from the Department of Revenue, Specialty Tax Unit.
Actuarial factors can be found in IRS Publication 1457, Actuarial Values, Alpha Volume for dates of death from 5-1-89 to 4-30-99,
and in Aleph Volume for dates of death from 5-1-99 and thereafter.
Indicate the type of instrument which created the future interest below and attach a copy to the tax return.
D Will D Intervivos Deed of Trust D Other
NAME(S) OF LIFE TENANT($)
NEAREST AGEAT
DATE OF DEATH
LIFE ESTATE INTEREST CALCULATION
DATE OF BIRTH
PAULINE M. SMITH
11/21/1919
86
TERM OF YEARS
LIFE ESTATE IS PAYABLE
~ Life or DTerm of Years
D Life or DTerm of Years
D Life or DTerm of Years
D Life or DTerm of Years
D Life or D Term of Years
1. Value of fund from which life estate is payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
2. Actuarial factor per appropriate table. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .24680
Interest table rate - 031/2% 06% 010% [RjVariable Rate 5.39 %
3. Value of life estate (Line 1 multiplied by Line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
274,451.24
67,734.57
NAME(S) OF LIFE ANNUIT ANT(S)
NEAREST AGE AT
DATE OFDEATH
ANNUITY INTEREST CALCULATION
DATE OF BIRTH
TERM OF YEARS
ANNUITY IS PAYABLE
D Life or D Term of Years
D Life or D Term of Years
D Life or D Term of Years
D Life or D Term of Years
1. Value of fund from which annuity is payable .......................................... $
2. Check appropriate block below and enter corresponding (number) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Frequency of payout - D Weekly (52) D Bi-weekly (26) D Monthly (12)
D Quarterly (4) D Semi-annually (2) D Annually (1) D Other ( )
3. Amount of payout per period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
4. Aggregate annual payment, Line 2 multiplied by Line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Annuity Factor (see instructions)
Interest table rate - D 3 1/2% D 6% 010% D Variable Rate %
6. Adjustment Factor (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Value of annuity -If using 31/2%,6%, 10%, or if variable rate and period
payout is at end of period, calculation is: Line 4 x Line 5 x Line 6 ...........................$
If using variable rate and period payout is at beginning of period, calculation is:
(Line 4 x Line 5 x Line 6) + Line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
NOTE: The values of the funds which create the above future interests must be reported as part of the estate assets on Schedules A through
G of this tax return. The resulting life or annuity interest(s) should be reported at the appropriate tax rate on Lines 13 and 15 through 18.
(If more space is needed, insert additional sheets of the same size)
REV-1649 EX + (6-98)
*'
SCHEDULE 0
ELECTION UNDER SEC. 9113(A)
(SPOUSAL DISTRIBUTIONS)
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
ESTATE OF FILE NUMBER
..
CHESTER L. SMITH
Do not complete this schedule unless the estate is making the election to tax assets under Section 9113(A) of the Inheritance & Estate Tax Act.
If the election applies to more than one trust or similar arrangement, a separate form must be filed for each trust.
This election applies to the Chester L. Smith & Pauline M. Smith Revcr.:lhle IivingTrust (marital, residual A, B, By-pass, Unified Credit, etc)
If a trust or similar arrangement meets the requirements of Section 9113(A), and:
a, The trust or similar arrangement is listed on Schedule 0, and
b, The value of the trust or similar arrangement is entered in whole or in part as an asset on Schedule 0,
then the transferor's personal representative may specifically identify the trust (all or a fractional portion or percentage) to be included in the election to have such trust or sim-
ilar property treated as a taxable transfer in this estate, If less than the entire value of the trust or similar property is included as a taxable transfer on Schedule 0, the personal
representative shall be considered to have made the election only as to a fraction of the trust or similar arrangement. The numerator of this fraction is equal to the amount of
the trust or similar arrangement included as a taxable asset on Schedule 0, The denominator is equal to the total value of the trust or similar arrangement.
Part A: Enter the description and value of all interests, both taxable and non-taxable, regardless of location, which pass to the decedent's
survivin souse under a Section 9113 A trust or similar arran ement.
Description
Value
REVOCABLE LIVING TRUST FOR BENEFIT OF WIFE, PAULINE M. SMITH
Remainder: 50% To Patricia A. Stambaugh, Now Patricia A. Kosinski (Daughter)
50% To Galen R. Smith (Son)
LIFE INTEREST (274,451.24 x .24680)
REMAINDER INTEREST
$ 274,451.24
$ 67,734.57
$ 206,716.67
TOTAL
LIFE INTEREST
67,734.57
Part A Total $ 67 734.57
Part B: Enter the descri tion and value of all interests included in Part A for which the Section 9113 A election to tax is bein made.
Description Value
REVOCABLE LIVING TRUST FOR BENEFIT OF WIFE, PAULINE M. SMITH
Remainder: 50% To Patricia A. Stambaugh, Now Patricia A. Kosinski (Daughter)
50% To Galen R. Smith (Son)
LIFE INTEREST $ 67,734.57
REMAINDER INTEREST $ 206,716.67
TOTAL
274,451.24
Part B Total
(If more space is needed, insert additional sheets of the same size)
$
274451.24
II
Tltl~ IS to certify that the information here given is correctly copied from an original certificate of death duly filed with me as
L(ll:,il R,~gistrar. The original certificate will be forwarded to the State Vital Records Office for permanent filing.
WARNING: It is illegal to duplicate this copy by photostat or photograph.
Fee for this certificate. S6.00
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P 12357371
No.
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(I' Date
TYPE/PRINT
IN
PERMANENT
BLACK INK
CERTIFICATE OF DEATH
COMMONWEALTH OF PENNSYLVANIA. DEPARTMENT OF HEALTH. VITAL RECORDS
H105.143 Rev. 2/87
,.
AGE {Last Birthday}
gi y"
5.
COUNTY OF DEATH
l1
8b. Fr ankl in 8e.
DECEDENT'S USUAL OCCUPATION
81 Smithdale Rd.
16. Shi ens bur PA 17257
FATHER'S NAME (First, Middle, Last)
18. J. Brad Smith
INFORMANrs NAME (Type/Ptin:)
200. Paul ine M. Smith
METHOD OF DISPOSITION
Burial Ii] Cremation Gemoval from State 0
Other (Specify /"
DECEDENT'S
ACTUAL
RESIDENCE
(See instructions
on other side)
17b. Countv Cumberland
17a. Stale
SEX
I'"
STATE FILE NUMBER
SOCIAL SECURITY NUMBER
3.JOL/ -30
DATE OF DEATH (Month, Day, Year)
4. -'JU\"....,'"' U <"L.CI'~\l
Re5,dence 0 ~~:~fy) 0
RACE - American Indian, Black, White, et
(Specify)
10.
White
SURVIVING SPOUSE
(II wLfe. give mlliden neme}
MARITAL STATUS - Married,
Never Married, Widowed,
Divorced (Specify)
14. Married
Did
decedent
live in B
township?
17e. ~ Yes, decedent lived in
17d, 0 ~~hi~e;~t~~~~i~~~ of
15. PaUline M. Ga man
Southampton Township twp.
citylboro.
MOTHER'S NAME (First, Middle, Maiden Sumame)
19. Meda Shank
INFORMANT'S MAILING ADDRESS (Street, CityfTown, State, Zip Code)
20b. 81 Smi thdale Rd. Shi ensbur
121 ' I 21 I ,-Sf
Jan. 31, 2006 ~~S
LICENSE NUMBER
22b. FD 011776-L
Tothe be?!!Et of m ~.nowledge, ~eat~~rred at the time, date and place staled.
(Signature an, ) ( (~
23a. x.
TIME OF DEATH , DATE PRONOUN rED DEAD Month, Day, Year)
24. 2 ( 21M 25. '2-4>, Iu
PA 17257
PA
PA 17257
27. PART I: Ent.r th. dl......, InJurl.. or complic.tlon. which ctu.ed Ih. d..th, Do not Int.r Ih. rnode of dying, luch I' cudlllc or rlllpir.tory .rrlllt, .hock or he." f.Uurll
..il. 01"110' or... c:..::!) ...''1 "OIC~, Une
, Approximate
: inter':",! t;,elwe&ll
: onset and death
Other significant conditions contributing to death, but
no. iesul:illg ," :hG ....r,denj"i"g cause Qi"er. ;n PAnT i.
<;,,~k..- GJ~k. cx'---\~
DUE TO (OR AS AAoNSEaui~CE OF): !_
~ L ). \)~ch\l'" ~,\;\~'r, S
E TO (OR AS A CONSEQUENCE OF)
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f :
L
o TO (OR S A CONSEQUENCE OF)
\-l. 0t~,,~
~
DATE OF INJURY
(MOrllh, Day, Year)
WERE AUTOPSY FINDINGS MANNER OF DEATH
AVAILABLE PRIOR 10
COMPLETION OF CAUSE Natural
OF DEATH?
o
o
Could not be detennined 0 ~~CE OF INJURY
building. etc. (Specify)
28a. 28b. 29. 308.
CERTIFIER (Check only one)
.l~~J~F:~~por~~\I~~~~e~~s~~:rh ~~~~j:;'%J~uJ>; t~ ~~ea~a~~:~(:)~~3r~~X~i;~a~s h:t~r:~~~~~~~.~ .~~~~~. ~~~_ .:~~~.~:~~.~ .i:~~ .~~).
Suicide
(g]
o
o
Homicide
Pending Investigation
Accident
Yes 0 No ~
No 1SJ
Ye,D
>-
Z
W
D
W
U
w
D
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Z
.PRONOUNCING AND CERTIFYING PHYSICIAN (Physician both pronouncing death and certifying to cause of death)
To the best of my knowledge, death occurred at the time, date, and place, and due to the causes(s) and menner as stated...
:.....: ~"\,~
: 1'I.~"\"l-.~ T.
v-~ :>
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TIME OF INJURY
INJURY AT WORK? DESCRIBE HOW INJURY OCCURRED
Ye, 0 No 0
.:g]
.0
.MEDICAL EXAMINERlCORONER
On the basis of examination and/or Investigation, In my opinion, death occurred at the time, date, and place, and due to the causBs(s) and
31a~anner as stated ................... D
REGISTRAR'S SIGNATURE AND NUMBER
34.
f1
...
THE CHESTER L. SMITH AND PAULINE M. SMITH
REVOCABLE LIVING TRUST AGREEMENT
DA TED:
,19:?'Z'
BETWEEN: CHESTER L. SMITH AND PAULINE M. SMITH,
ASSETTLORS
AND: CHESTER L. SMITH AND PAULINE M. SMITH,
AS TRUSTEES
CHESTER L. SMITH AND PAULINE M. SMITH, residents of the Commonwealth of Pennsylvania, County
of Cumberland, do hereby establish a Trust upon the conditions and for the purposes hereafter set forth.
ARTICLE ONE
Section 1.0 l Trust Estate Defined
This Revoca9le Trust is formed to hold title to real and personal property for the benefit of the Settlors of
this Trust and to provide for the orderly use and transfer of these assets upon the death of the Settlors. The
"Trust Estate" is defined as all property transferred or conveyed to and received by the Trustee held pursuant
to the terms of this instrument. The Trustee is required to hold, administer, and distribute this property as
provided in this Trust Agreement.
Section] .02 Definitions
As used in this Trust Agreement:
The term "Husband" shall mean CHESTER L. SMITH.
/ The term "Wife" shall mean PAULINE M. SMITH.
3. The term "Settlor" shall refer individually and collectively to Husband and Wife.
4. The term "Descendant" shall mean the lawful issue of a deceased parent in the line of
descent, but does not include the issue of any parent who is a descendant of the deceased
person in question and who is living at the time in question.
5 The tenns "Child" and "Descendant" include any issue born to decedent, a child legally
adopted by the decedent, and a posthumous child of a decedent. A posthumous child is to
be considered as living at the time of his or her parent's death.
6. The tern1 "Survives" or "Surviving", unless otherwise indicated herein, shall be construed
to mean surviving the decedent for at least sixty (60) days. If the person referred to dies
within sixty (60) days of the death of the decedent, the reference to him or her will be
construed as jf he or she had failed to survived the decedent; provided, however, that any
REVOCABI~E LIVING TRUST AGREEMENT
Page]
..
.
such person will have, during such period, the right to the use and enjoyment as a life tenant
uf all property in which his or her interest will fail by reason of death during such period.
/. The term "Issue" will include all natural and adopted children, if applicable, and
descendants and those legally adopted into the line of descent.
8. The term "Per Stirpes" means strict per stirpes and does not mean per capita with
representation. Beneficiaries entitled to take under a "per stirpes" clause will include both
natural and adopted children and their descendants.
9. The terms "Trust Assets" and "Trust Estate" include all assets of any trust created hereunder
and income derived from such assets and all proceeds of any-description derived from the
sale, exchange, or other disposition of such assets.
] O. When required to give reasonable effect to the context in which used, pronouns in the
masculine, feminine, or neuter gender include each other, and nouns and pronouns in the
plural or singular number include each other.
Section I .OJ Trustee Designation
Husband and wife are hereby designated as Co-Trustees. The Co-Trustees shall serve jointly and severally
and either shall have full authority to act for the Trust independently. Should either husband or wife become
unable because of death, incapacity, or other cause to serve as a Co-Trustee, or should either resign as Co-
Trustee before the natural termination of this Trust, the remaining Co-Trustee, husband or wife, shall
thereafter serve as sole Trustee. The term "Trustee" as used in this Trust Agreement shall refer collectively
to husband and wife so long as they serve as Co-Trustees, to the spouse who serves as the sole Trustee,
and/or to any Successor Trustee who assumes the role of Trustee. These Trustees shall serve in the order
as provided in Section 9.01 of this Trust Agreement.
Section] .04 Additions to Trust Properties
1. The Trustee, at any time during the continuance of this Trust in his or her sole discretion
after consideration of the possible tax consequences to all concerned, is authorized to
receive into the Trust additions of cash and other properties from any source whatsoever,
whether by gift, will, or otherwise. However, the Trustee shall accept all assets which any
person or persons may give, devise, or bequeath by Last Will and Testament to this Trust,
and shall accept all assets transferred to this Trust pursuant to the provisions of any other
Trust document or documents.
} In addition, any person or persons may designate this Trust as the Beneficiary, Primary or
Contingent, of any death benefits to include insurance benefits, pension benefits, or other
benefits. Until such benefits mature, the Trustee shall have no responsibility with respect
to those benefits.
Section 1.05. Appointment.
The Trustee of the Trust is directed to apportion receipts and expenditures of the types described below
between principal and income as follows:
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1 Whenever the principal, or any part thereof, of the Trust property is invested in securities
purchased at a premium or at a discount, any premium willbe charged against principal and
any discount will be credited to principal:
2. Any stock dividends and rights to purchase additional stock issued on securities held in trust
will be treated as principal. All other dividends, except liquidating distributions, will be
treated as income; and
'3. The amount of any applicable depletion allowance for federal income tax purposes vvill be
treated as income.
Section 1.06 Administration of Trust During Our Lifetime
During our lifetime, the trust shall be held and administered as follows:
]. All property and other assets transferred to this trust shall be allocated to and held in
separate shares, the first such share being designated the "Chester L. Smith Trust Share" and
the second share being designated the "Pauline M. Smith Trust Share".
2. Each Grantor's separate Trust Share sha1l be composed of the assets as follows:
a. The Grantor's one-half interest in jointly held property transferred to the Trust; and
b. The Grantor's individually owned property which is transferred to the Trust.
While each share shall be heJd and administered separate from the other, for tax and accounting
purposes, the Trustee is authorized to hold or invest the separate share's in common investments and
co-ownership of assets.
3. The Trustee shall pay to or apply for the benefit of CHESTER L. SMITH a1l of the net
income of the CHESTER L. SMITH Trust Share, in convenient installments, not less often
than quarter-annually, and in addition thereto, sha1l pay so much of the income and principal
of such Trust Share to or for the benefit of CHESTER L. SMITH as he may direct from time
to time, or in the absence of a direction, as the Trustee may determine to be advisable for
his medica] care, support, maintenance, and general welfare.
4. The Trustee shall pay to or apply for the benefit of PAULINE M. SMITH a1l of the net
income of the PAULINE M, SMITH Trust Share in convenient installments, not less often
than quarter-annually, and in addition thereto, shall pay so much ofthe income and principal
of such Trust Share to or for the benefit of PA ULINE M. SMITH as she may direct from
time to time, or in the absence of a direction, as the Trustee may determine to be advisable
for her medical care, support, maintenance, and general welfare.
A1I property that a Settlor transfers to the Trustee pursuant to this instrument which was
community property, quasi-community property, or separate property at the time of the
transfer shall remain respectively community property, quasi-community property, or the
separate property of the Settlor transferring such property to the Trust.
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Community and quasi-community property transferred to the Trustee by the Settlors shall
be their community property and treated as such. This property, as invested and reinvested,
together with the rents, issues, and profits therefrom (hereinafter referred to as the
"Community Estate" orthe "Community Property") shall retain its character as community
property during thl::: joint lifetimes of the Settlors in spite of any change in the situs of the
Trust, subject, however, to the provisions of this Agreement.
Section I.Oj Discretionarv Termination
The Trustee may terminate any Trust when, in the opinion of the Trustee, the principal is reduced to such
an extent that it is not in the best interest of the Beneficiary or Beneficiaries to continue the Trust. The
judgment of the Trustee with respect to this decision to terminate will be final and not subject to judicial
review. If the Trustee terminates a Trust according to this Section, the date the Trust terminates will be
deemed the date fixed for termination of the Trust, and the Trustee will distribute the assets of the
terminating Trust to the Beneficiary or Beneficiaries pursuant to this Agreement.
Section 1.08 Amendment and Revocation
We hereby retain the following powers, exercisable at any time during our lifetimes:
1. l' 0 withdraw any ofthe property included in our separate share ofthe Trust Estate by giving
the Trustee written notice specifying the property so withdrawn, in which event, the Trustee
shall promptly transfer and deliver such property to us or our designee
') To amend the provisions of this Trust declaration in any respect without the necessity of
securing the consent of the Trustee to such changes, in which event, a copy of the
amendment shall be promptly furnished to the Trustee; provided, however, that following
the death of one of us, the survivor shall have no power to amend the terms of the Trust
dec laration with respect to the Trust Share of the first of us to die.
3. To revoke this Trust by giving the Trustee written notice of such revocation, in which event,
the Trustee shall promptly transfer and dellver the property constituting the Trust Estate to
us or our designee together with an accounting therefore; provided, however, that following
the death of one of us, the survivor shall have no power to revoke the terms of the Trust
declaration with respect to the Trust Share of the first of us to die.
Section 1.09 Revocation or Alteration bv Settlor Alone
The rights of revocation, withdrawal, alteration, and amendment reserved in this Article may only be
exercised by the Settlor and may not be exercised by any other person, including an agent, a guardian, or a
conservator.
Section 1.10 Irrevocability
Except as otherWIse provided, on the death of either Settlor, the designation of Beneficiaries of specific gifts
in this Trust shall become irrevocable and not subject to amendment or modification.
REVOCABI,E LIVING TRUST AGREEMENT
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Section 1.11 Settlor Powers
The surviving Settlor shall be the Trustee unle~s aDO until he or she resigns in writlng or is detcrmmed
Il1competent under the terms provided herein. The surviving Settlor shall retain all aLJsolute rights to
discharge or replace any Successor Trustee of any portion or share of the Trust which is revocable by the
surviving Settlor so long as the Settlor is competent
ARTICLE TWO
Section 2.01 Trust Income
During the joint lives of the Settlors, the Trustee shall at least annually, unless otherwise directed by both
Settlors in writrng, pay to or apply for the benefit of husband and wife, all of the net income from the Trust
Estate in the same propor1ions as each of the spouse's respective interests in the Trust Estate.
Section 2.02 Protection of Settlor in Event of Incapacitv
During the joint lives of the Settlors, should either Settlor become incapacitated as defined in Section 2.03
below, the Trustee may, in the Trustee's absolute discretion, pay income and principal for the benefit of the
incapacitated Settlor In addition, the Trustee, in his or her absolute discretion, may pay to or apply, for the
benefit of that Settlor, such sums from the net income and from the principal of the Settlor's separate Estate
as the Trustee believes is necessary or advisable for the medical care, comfortable maintenance, and welfare
of the Settlor.
Sectron 2.03 Incapacitv
A person is determined to be incapacitated if any Trustee or Beneficiary hereunder comes into
possession of any of the following:
a. Ajurisdictionally applicable court order holding the party to be legally incapacitated to act
on his or her behalf and appointing a guordian or conservator to act for hm! or her; or
b Written certificates which are duly executed, witnessed, and acknowledged of two licensed
physicians, each certifying that the physician has examined the person and has concluded
that, by reason of accident, mental deterioration, or other cause, such person has become
incapacitated and can no longer act rationally and prudently in his or her own financial best
interest; or
c. Evidence which such Trustee or Beneficiary deems to be credible and currently applicoble
that a person has disappeared, is unaccountably obsent, or is being detained under duress,
and that he or she is unable to effectively and prudently look after his or her O\vn best
interests, then in that event and under those circumstances:
1) Such person is deemed to have become incapacitated, as that term is used
in this Trust agreement; ond
2) Such incapacity is deemed to continue until such court order, certificates, and / or
circumstances are inapplicable or have been revoked.
REVOiC:ARLEUVrl"JG TRUST ,~GREEMENT
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1\ ph~/sician s certificate to the effect that the person is no longer incapacitated shall revoke a
,;erriflcate declaring the person mcapclcitated. the ,ertificate which revokes the earlier certifIcate
may be executed by either the original ceI1ifying physician or by two other licensed, board ceI1ified
physicians No Trustee shall be under any dut} to institute any inquiry into a person's possible
Incapacity The reasonable expense of allY such inquiry shall be paid from the Trust Assets.
Section 2.04 ErinciRal Invasion
Duri ng the Joil1l lives of the Settlors, should the net income of assets contained in this Trust be insufficient
10 provide for the care, maintenance, or support of the Settlors as herein defined, the Trustee may, in the
Trustee's sole and absolute discretion, pay to or apply for the benefit of the Settlors or either of them, or any
uf their dependents, such amounts from the principal of the Trust Estate as the Trustee deems necessary or
advisable for the care, mamtenance, or support of the Settlors.
Section:::: 0'5 ReSidence
U the Settlor's residence property is a part of the Trust, the Settlors shall have possessIon of and full
management of the residence and shall have the right to occupy it hee of rent. Any expenses arising from
the maintenance of the property and from all taxes, liens, assessments, and insurance premiums, are to be
paid from the Trust to the extent that assets are available for payment. It IS the intent of the Settlors to retain
all hO!1l(Cstead rights ,wailable to them under the applicable state law.
ARTICLE THREE
Section 3 0 I Provisions After The First Death
On the death of either Settlor leaving the other Settlor surviving him or h~r, the Trustee shaH collect all
insurance proceed:; payable to the Trustee by reason of such death and all bequests and dev ises distributable
to the Trust Estate
Section 3.02 Control of Assets
The surviving spouse may. at any time by written notice, require the Trustee either to make any
nonproductive property ofth is Trust productive or to conver1 producti ve property to nonproductive property,
each Within a reasonable time. The surviving spouse may further require the Trustee to invest part or all of
this share of Trust Assets for the purpose of maximizing income rather than growth or growth rather than
II1come.
Section 303 Division into Shares
I. Upon the death of either Settlor, if the deceased Settlor is survived by the other Settlor, the
deceased's individual Trust Share, including any additions made by reason of the deceased Settlor's
death, shall be divided into two shares.
, [he Trustee, in his or her sole discretion, may defel the division or distribution of the deceased's
indiVidual Trust Share until six months after the deceased Trustor's death. If the division or
distribution of the deceased's individual Trust Share is so deferred, the deferred diviSIon or
distribution shall be made as if it had taken place at the time prescribed above. In addition, all rights
REVOCABLE LIVING TRCST AGREEMENT
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given to the Beneficiaries under the provisions of this Trust Agreement which follow shall be
considered to have accrued and vested as of that prescribed time.
3 Upon the death of the first Settlor to die ("Predeceased Spouse"), the Trustee shall divide the
deceased's individual Trust Share (which shall include any property which may be added from the
Predeceased Spouse's general estate) as follows:
a The Trustee shall divide the balance of the deceased Trustor's individual Trust Share into
NO (2) separate shares (hereinafter designated as "Share A" and "Share B"). Share B shall
be composed of cash, securities, and/or other property of the deceased' s individllal Trust
Share (undiminished by any estate, inheritance, succession, death, or similar taxes) having
a value equal to the maximum marital deduction as finally determined in the Predeceased
Spouse's federal estate tax proceedings, less the aggregate amount of marital deductions,
if any, allowed for such estate tax purposes by reason of property or interest in property
passing or which have passed to the Surviving Spouse otherwise than pursuant to the
provisions ofthis paragraph; provided, however. that the amount of Share B hereunder shall
be reduced by the amount, if any, needed to increase the Predeceased Spouse's taxable
estate (for federal estate tax purposes) to the largest amount that, after allowing for the
unified credit against federal estate tax and the state death tax credit against such tax (but
only to the extent that the use of such state death tax credit does not increase the death tax
payable to any state), will result in the smallest (ifany) federal estate tax being imposed on
the Predeceased Spouse's estate. The term "Maximum Marital Deduction" shall not be
construed as a direction by the Predeceased Spouse to exercise any election respecting the
deduction of estate administration expenses, the determination of the estate tax valuation
date, or any other tax election which may be available under any tax laws, only in such
manner as will result in a larger allowable estate tax marital deduction than if the contrary
election had been made. The Trustee shall have the sole discretion to select the assets which
shall constitute Share B. In no event, however, shall there be included in Share B any assets
or the proceeds of any asset which will not qualify for the federal estate tax marital
deduction. Share B shall be reduced to the extent that it cannot be created with such
qualifying assets. The Trustee shall value any asset selected by the Trustee for distribution
in kind as a part of Share B at the value of such asset atthe date of distribution of such asset.
The balance of the deceased's individual Trust Share, after the assets have been selected for
Share B, shall be allocated to Share A.
Share A and Share B shall be administered and distributed as hereinafter set forth.
Section 3.04 Credit Shelter Trust
[f either ofthe Settlors survives the other, the Trustee shall set apart and hold as a separate trust (the "Credit
Shelter Trust") the assets referred to as Share A in Section 3.03 above. The Trustee shall hold, manage,
invest. and reinvest the assets of this Credit Shelter Trust, shall collect the income therefrom. and shall pay
the net mcome to or for the benefit of the survivmg Settlor in convenient installments at least quarter-
annually; provided, however, that the surviving Grantor may elect to pass any portion of said income to the
remainder Beneficiaries of the Trust.
[n addition, the Trustee may pay to or for the benefit of the surv ivi ng Settlor for the health, education,
maintenance, or support of the surviving Settlor, any part or all of the principal of this Trust, as the Trustee
may determine in its sole discretion, without considering other resour"es available to the surviving Settlor.
REVOCABLE UVING TR{JST A~GREEMENT
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The surviving Settlor shall have the right to demand and receive, from the principal oflhls Trust in each of
its fiscal years, the greater of five thousand dollars ($5,000.00) or five percent (5 (Yo) of the t3ir market value
of such principal determined as of the last day of such fiscal year. Such right shall lapse to the extent it is
not exercised in any year. Any commission payable with respect to principal so withdrawn shall be charged
against such principal.
No person, who at any time is acting as Trustee hereunder, shall have any power or obligation to participate
in any discretionary authority which the Settlor has given to the Trustee to pay principal or income to such
person, or for his or her benefit or in relief of his or her legal obligations: provided, however, that if an
individual Trustee has discretion to invade principal for himself or herself and such discretionary authority
is limited by an ascertainable standard, then such Trustee may invade principal (iflimited by such standard)
for himself or herself, but not in relief of his or her legal obligations.
The plan of distribution and all terms of this Credit Shelter Trust shall be irrevocable and unamenabJe at any
time after said Credit Shelter Trust comes into being.
The Credit Shelter T rustee(s) shall invest the assets of the Credit Shelter Trust to produce a reasonable
income for the benefit ofthe surviving Grantor without subjecting the principal to unreasonable risk of loss.
The Credit Shelter Trustee(s) shaJI be authorized and empowered to invest, reinvest, manage, transfer, and
convey any and all property held in this Credit Shelter Trust, including all powers now or hereafter conferred
upon Trustees by applicable state law, and also those power appropriate to the orderly and effective
admin istration of the Trust.
The Credit Shelter Trustee(s) shall make a written accounting to all income and remainder Beneficianes or
to their guardians at least annually and at the time that all assets of this Credit Shelter Trust are distributed.
Said accounting shall consist of a record showing assets on hand at the time of the last accounting, plus
additions, minus expenses and distributions, which shall equal current assets on hand. The Credit Shelter
Trustee(s) shall not be required to obtain authority or approval of any court in the exercise of any power
conferred upon the Trustee(s), nor shall said Trustee(s) be required to make accountings or reports to any
court.
Upon the death of the surviving Settlor, any accrued income shall be paid to the estate of the surviving Settlor
and the remaining principal of this Credit Shelter Trust shall be held, administered, and disposed of in
accordance with the dispositive provisions of this agreement.
Section 3.05 Oualified Terminable Interest Trust
If either of the Grantors survives the other and there are assets allocated to Share B described in Section 3.03
above, then the Trustee shall set apart said assets and hold them as a separate trust (the "Qualified
Terminable Interest Trust"). The Trustee shall hold, manage, invest, and reinvest the assets of this Qualified
Temlinable Interest Trust, shall collect the income therefrom, and shall pay the set income to or for the
benefit of the surviving Grantor in convenient installments at least quarter-annually.
lJ pon the surviving Grantor's death, any accrued, undistributed income shall be distributed to said surviving
Grantor's estate. The remaining principal shall be added to and become part of the Credit Shelter Trust and
shall be held and administered and disposed of in accordance with the plan of distribution for the Credit
Shelter Trust as provided in Sections 3.04 and 4.03, after provision has first been made f~)r the payment of
any estate, inheritance, transfer, succession, or other death taxes, payable by reason of the inclusion of the
value of the Trust proper1y in said surviving Grantor's estate.
REVOCABLE IJVING TRUST AGREEMENT
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The Trustee( s) of the Qua! ified Term inable Interest Trust are hereby authorized, in the Trustee(s) sole
discretion, to determine whether to elect (under Section 2056(b )(7) ofthe Internal Revenue Code) to qualify
all or a specific pOliion of the Qualified Terminable Interest Trust created herein for the federal estate tax
marital deduction. The Trustee(s) of the Qualified Terminable Interest Trust, in exercising such discretion,
shall attempt to minimize, or el im inate if possible, the federal estate tax payable by the estate of the decedent
spouse's estate.
However, if the Trustee(s) of the Qualified Terminable Interest Trust determine that it is in the best interest
of the persons who may receive any assets after the decedent spouse's death and after the surviving Grantor's
death to pay some federal estate tax in the decedent spouse's estate, taking into consideration any other tax
that is to be paid because ofthe decedent spouse's death and the surviving Grantor's death, and any income
tax liability that may be affected by the election, the Trustee(s) of the Qualified Tem1inable Interest Trust
may elect to take a marital deduction that does not reduce the tax to zero if the payment of the tax will not
jeopardize the ability of the Qualjfied Terminable Interest Trust to provide the surviving spouse with the
level of support and maintenance contemplated by this Declaration of Trust. The decision of the Qualified
Terminable Interest Trustee(s) to make this election shall be final and binding on all persons.
The Trustee(s) of the Qualified Terminable Interest Trust is (are) authorized and empowered to Invest,
reinvest, transfer, and convey any and all property held in this Qualified Terminable Interest Trust. This
includes all power now or hereafter conferred upon Trustees by applicable state law, and also those powers
appropriate to the orderly and effective adm inistration of the Trust.
The Trustee(s) shall make a written accounting to the surviving Grantor at least annually and shall make a
written accounting to all remainder Beneficiaries at the time that all assets of this Qualified Terminable
Interest Trust are distributed.
Section 3.06 Power to Appoint Agents
The surviving spouse shall have the right to retain an accountant and / or an attorney at law for professional
services on behalf of the Trust Estate or Estates herein. The surviving spouse shall not be responsible for
the acts of such agents beyond his or her obligation to use reasonable care in the selection of such agents.
Section 3.07 Maximum Marital Deduction
Except as otherwise expressly stated herein, the term "Maximum Marital Deduction" shall not be construed
as a direction by the deceased Settlor to exercise any election respecting the deduction of Estate
administration expenses, the determination of the Estate tax valuation date, or any other tax election which
may be available under any tax laws, only in such manner as will result in a larger allowable Estate tax
marital deduction than if the contrary election had been made.
Section 3.08 Trust Income After The First Death
Following the death of either Settlor and until the death of the surviving Settlor, the Trustee shall, at least
annually, pay to or apply for the benefit of the surviving Settlor all of the net income from the Trust Estate.
Section 3.09 Simultaneous Death
If the Settlors should die under circumstances which would render it doubtful as to which Settlor died first.
it shall be conclusively presumed for the purposes of this Trust that Chester L. Smith died first. If any other
REVOCABLE LIVING TRUST AGREEMENT
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Benej~clary and (l Settlor should dIe under such circumstance::;, it shall be conclusively presumed that the
Beneficiary predeceased such Settlor.
Section 3. 10 Last Exoenses
Upon the death of each of the Settlors, the Trustee ofthis Trust may, in its discretion, pay any part of or all
of the funeral and burial expenses, probate claims, administration expenses, and any estate, inheritance,
succession, or other death taxes, which are payable as a result of the death of each of the Settlors, out of that
portion of the Trust Estate constituting the deceased Settlor's separate Trust Share. The Trustee may make
any such payments directly to the creditors or taxing authority in question, or may remit funds to the personal
representative ofthe Estate of the deceased spouse for such payments.
ARTICLE FOUR
Section c1-.0] Common Pot Trust
At the demh of the Surviving Settlor, the Trustee shall not create a Common Pot Trust. AI] of the frust
Estate that has not been distributed under prior Articles of the Trust Agreement shall be held, administered,
divided, and distributed according to the provisions that follow.
Section 4.02 Second Death
On [he death of the last Settlor to die (the "Surviving Settlor"), the Trustee shall distribute the principal of
the Trust and any accrued or undistributed income from the principal of the Trust In such a manner and to
such persons, incl ud ing the Estate or the Creditors, as directed in this Trust "~greement.
Section 4.03 Pavment of The Second Death Exoenses
On the death of the Surviving Settlor, the Trustee shall pay from that portion of the Trust Estate constituting
the deceased Settlor's separate Trust Share the expenses ofthe surviving Settlor's last illness, funeral, burial,
and any inheritance, estate, or death taxes that may be due by reason of the Survivi ng Settlor's death, unless
the Trustee in his or her absolute discretion determines that other adequate provisions have been made for
the payment of such expenses and taxes.
Section 4,04 Trust Income and Principal Distribution Upon The Death of The Surviving Trustor
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The Trustee shall apply and distribute the net income and principal of each of the shares of the
resulting Trust Estate, after giving effect to the section of this Trust Agreement entitled "Special
Directives" to the following Beneficiaries in the indicated fractional shares:
PATRICIA A. STAMBAUGH
GALEN R. SMITH
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If any of the above Beneficiaries, or any other Beneficiary, is under the age of 25 years when the
distribution is to be made, the Trustee shall have authority to distribute the same, in whole or in pact,
to a custodian for the minor appointed under a Uniform Gifts or Transfers torvrinors Act or the
Trustee may retain any such property and administer and distribute the same for the benefit of the
REVOCABLE LIVING TReST A,GREEMENT
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mInor. paYing to or for the benefit of such minor so much of the income and principal of the retained
property from time to time as the Trustee deems advisable for the health, education, support and
maintenance of the minor When the person for whom the property is held attains the age of 25
years, the property shall thereupon be distributed to him or her free of trust unless otherwise stated
in th is i'\greement. If the minor should die before attaining the age of majority, the property shall
then be paid and distributed to the estate of the minor.
3. If all of the Settlor's Beneficiaries and their children should fail to survive the final distribution of
the Trust Estate, all of the Trust Estate not disposed of as hereinabove provided shall be distributed
as provided for in this Trust Agreement.
Section 4.05 Principle of Representation
Unless indicated differently in this Trust Agreement or in the "Special Directives" section that follows, in
the event any of the named Beneficiaries should predecease both Settlors, all of that person's share of the
Trust Estate is to be divided equally among the deceased Beneficiary's children or issue per stirpes In the
event the predeceased Beneficiary leaves no surviving children or issue, then all ofthat person's share of the
Trust Estate shal [ be divided equally among the remaining Beneficiaries per stirpes
If a BenefiCIary ofthe Settlors survives both Settlors, but should fail to survive to collect his or her share at
distribution, that share shall pass to the surviving issue of that deceased Beneficiary per stirpes and with right
of representation
ARTICLE FIVE
Section 5.0J Non-Income Producing Property
Duringthejoint lives ofthe Settlors, the Trustee is authorized to retain III the Trust, for so long as thel rustee
may deem advisable, any property received by the Trustee from the Settlors, whether or not such property
is of the character permitted by Jaw for the investment of Trust funds.
Section 5.02 Trustee Powers
The Trustee shall have all powers conferred upon a Trustee by law for the orderly administration of the Trust
Estate. If any property. is distributed outright under the provision of this Trust Agreement to a person who
is a minor, distribution may be made under the Pennsylvania Unifonn Transfer to Minors Act C'PAUTMA OJ).
The Trustee is further authorized to sign, deliver, and/or receive allY documents necessary to carry out the
powers contained within this Section.
The Trustee of any trust created under this Trust Agreement Cinc luding any substitute or sllccessor Trustee)
will have and be subject to all of the powers, duties, and responsibilities granted or imposed by the
Pennsylvania Consolidated Statutes (20 Pa. CS. Section 101 et seq.) as sllch Statute may provide atthe time
of administration of the Trust except to the extent that the same are Illconsistent with the provisions of this
Agreement.
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Section 503 Specific Powers of Trustee
In addition, the Trustee will have the following specific powers:
Trust Estate: The Trustee may leave invested any property coming into its hands hereunder in any
form of investment even though the investment may not be of the character of investments permitted
by law to trustees, without liability for loss or depreciation in value. The Trustee may sell,
exchange, or otherwise dispose of and reinvest property which may at any time be a part of the Trust
Estate upon such terms and conditions as the Trustee may deem advisable. The Trustee may invest
and reinvest the Trust Assets from time to time in any property, real, personal, or mixed, including
without limitation, securities of domestic and foreign corporations and investment trusts or
companies, bonds, debentures, preferred stocks, common stocks, mortgages, mortgage participation,
and interests in common trust funds, all with complete discretion to convert realty into personalty
or personalty into realty or otherwise change the character of the Trust Estate, even though such
lIlvestment (by reason of its character, amount, proportion to the total Trust Estate, or otherwise)
would not be considered appropriate for a fiduciary apart from this provision and even though such
investment caused part or all of the total Trust Estate to be invested in investments of one type or
of one business or company.
~
Holding Property: The Trustee may hold property in the Trustee's name, as trustee, or in the name
of a nominee without disclosing the Trust.
3.
Release of Power: Ifthe Trustee deems it to be in the best interest of the Trust and its Beneficiaries,
the Trustee, by written instrument signed by such Trustee, will have the power and authority to
release, disclaim, or restrict the scope of any power or discretion granted in thIS Trust Agreement
or implied by law.
4.
Agents, Employees: The Trustee may employ one or more agents to perform any act of
administration, whether or not discretionary, inc luding attomeys, auditors, investment managers, or
others, as the Trustee shall deem necessary or advisable. The Trustee may compensate agents and
other employees and may delegate to them any and all discretions and powers.
5.
Leases: The Trustee may lease any Trust Assets generally or for oil, gas, and mineral development,
even though the lease term may extend beyond the term of the Trust of which the property is a part.
The Trustee may enter into any covenants and agreements relating to the property so leased or
conceming any improvements which may then or thereafter be erected on such property
6.
Common Funds: The Trustee may hold any of the Trust Assets in a common fund with property
from other trust estates and may make investments jointly with any other trust, the property of which
is included in the common fund.
7
Securities: With respect to securities beld in the Trust Estate, the Trustee may exercise all the
rights, powers, and privileges of an owner, including but not limited to, the power to vote, give
proxies, and to pay assessments and other sums deemed by the Trustee necessary for the protection
of the Trust Estate. In addition, the Trustee may participate in voting trusts, foreclosures,
reorganizations, consolidations, mergers, and liquidations, and in connection therew ith, to deposit
securities with and transfer title to any protective or other committee under such terms as the Trustee
may deem advisable. In addition, the Trustee may exercise or sell stock subscription or conversion
rights and may accept and retain as an investment any securities or other property receIved through
REVOCABLE JLIVING TRlLTST AGREEMENT
Page 12
.
the exercise of any of the foregoing pO'vvers, regardless of any limitations elsewhere Iil this
instrument relative to investments by the Trustee
8. Purchases from Estate: The Trustee may purchase property of any kind from the Executor or
Administrator of our Estates.
9. Lending: The Trustee may make loans, secured or unsecured, to the Executor or Administrator of
our Estates, to any Beneficiary of the Trust, or to the Trustee. Further, the Trustee may use Trust
Assets to guarantee obligations of any income Beneficiary of the Trust (unless such Beneficiary is
serving as Trustee).
10. Distributions to or for Beneficiaries: The Trustee may make any distribution contemplated by this
Trust Agreement (1) to the Beneficiary; (2) if the Beneficiary is under a legal disability or if the
Trustee determines that the Beneficiary is unable to properly manage his or her affairs, to a person
furnishing support, maintenance, or education for the Beneficiary or with whom the Beneficiary is
residing for expenditures on the Beneficiary's behalf: or (3) if the Beneficiary is a minor, to a trustee
of an existing trust established exclusively for the benefit of such minor, whether created by this
Trust Agreement or otherwise, or to a custodian for the Beneficiary, as selected by the Trustee, under
the Pennsylvania Uniform Transfer to Minors Act. Alternatively, the Trustee may apply all or a part
of the distribution for the Beneficiary's benefit. Any distribution under this paragraph will be a fu Il
discharge ofthe Trustee with respect thereto. On any partial or final distribution of the Trust Assets,
the Trustee may appOliion and allocate the assets of the Trust Estate in cash or in kind, or partly in
cash and partly in kind, or in undivided interests in the manner deemed advisable at the discretion
of the Trustee and to sell any property deemed necessary by the Trustee to make the distribution.
The Trustee may distribute gifts of up to $10,000.00 per year per donee out of principal and/or
interest.
I] . Insurance: The Trustee may purchase new life insurance, pay the premiums on existing life
insurance on the life of any Trust Beneficiary, purchase annuities (either commercial or private)
from any corporation, trust, or individual, and may procure and pay the premiums on other insurance
of the kinds, forms, and amounts deemed advisable by the Trustee to protect the Trustee and the
Trust Estate.
12. Borrowing: The Trustee may borrow money from the Trust Estate and others. To secure the
repayment thereot~ the Trustee may mortgage, pledge, or otherwise encumber part or all ofthe Trust
Assets, and in connection with the acquisition of any property, the Trustee may assume a liability
or may acquire property subject to a liability.
13. Repairs: The Trustee may make ordinary and extraordinary repairs and alterations to buildings or
other Trust Assets.
14. Reserves: The Trustee may establish such reserves out of income for taxes, assessments, repair, and
maintenance as the Trustee considers appropriate.
15. Continuation of Business: The Trustee may continue any business or businesses in which the Trust
has an interest at the time of the Settlors' death for so long as the Trustee may, in its sole discretion,
consider necessary or desirable, whether or not the business is conducted by the Settlors at the time
oftheir death individually, as a partnership, or as a corporation wholly mvned or controlled by them,
REVOCABLE LIVING TRUST AGREEMENT
Page 13
~
20.
21.
'"":'1
with full authority to sell, settle. and discontinue any of them when and upon such terms and
conditions as the Trustee may. in its sole dlscretiun, consider necessary or desirable
16.
Retain Property for Personal Use: The Trustee may retaIn a residence or other property for the
personal use of a Beneficiary and allow a Beneficiary to use or occupy the retained property free of
rent and maintenance expenses.
1,
1 J.
Dealmgs with Third Parties: The Trustee may deal with any person or entity regardless of
relationship or identity of any Trustee to or with that person or entiry. The Trustee may hold or
III vest any part of or all of the Trust Estate in common or undivided interests with that person or
entity.
18.
Partitions, Divisions, Distributions: The Trustee will have the power to make all partltlons,
divisions, and distributions contemplated by this Trust Agreement Any partitions, divisions, or
other distributions may be made in cash, in kind, or partly in cash and partly in kind, in any manner
that the Trustee deems appropriate (including composing shares differently). The Trustee may
detennine the value of any property, which valuation will be binding on all Beneficiaries. No
8djustments are required to compensate for any partitions, divisions, or distributions having unequal
consequences to the Beneficianes.
Ie}
C fanns, Controversies: The Trustee may maintain and defend any claim or controversy by or against
the Trust without the joinder or consent of any Beneficiary. The Trustee may commence or defend
at the ex.pense of the Trust any litigation with respect to the Trust or any prOpeJ1y ofthe Trust Estate
as the Trustee may deem advisable. The Trustee may employ, for reasonable compensation, such
counsel as the Trustee shall deem advisable for that purpose.
Merger of Trusts: If at any time the Trustee of any trust created hel'eunder shall also be acting as
trustee of any other trust created by trust instrument, or by trust declaration for the benefit of the
same beneficiary or beneficiaries and upon substantially the same terms and conditions, the Trustee
is authorized and empowered, if in the Trustee's discretion such action is in the best interest ufthe
Beneficiary or Beneficiaries, to transfer and merge all ofthe assets then held under such trust created
pursuant to this Trust Agreement to and with such other trust and thereupon to terminate the trust
created pursuant to this Trust Agreement. The Trustee is further authorized to accept the assets of
any other trust which may be transferred to any trust created hereunder and to admimster and
distribute such assets and properties so transferred in accordance with the provisions of this
Agreemen t.
Termination of Small Trust: Any corporate Trustee which is serving as the sole Trustee of any
Trust or any Share thereof may at any time tenninate such Trust or Share if, in the Trustee's sole
judgment, the continued management of such Trust or Share is no longer economical because of the
small size of such Trust or Share and if such action will be deemed to be in the best interests of the
Beneficiary or Beneficiaries. In case of such tem1ination, the Trustee will distribute forthwith the
share of the Trust Estate so terminated to the income Beneficiary, per stirpes. Upon such
distribution, such Trust or Share will terminate and the Trustee will not be liable or responsible to
any person or persons whomsoever for its action. The Trustee will not be liable for failing or
refusing at any time to terminate any Trust or a Share thereof as authorized by this paragraph.
Power to Determine Income and Principal: Dividends payable in stock of the issuing corporation,
stock splits, and capital gains will be treated as principal. Except as herein othenvise specifically
REVOCABLE LIVING TRUST AGREEMENT
Page ] 4
..
provided, the Trustee will have full power and authority to determine the manner in which expenses
are to be borne and in which receipts are to be credited as between principal and income. The
Trustee has the powerto determine what will constitute principal or income and may withhold from
income such reserves for depreciation or depletion as the Trustee may deem fair and equitable. In
determining such matters, the Trustee may give consideration to the provisions ofthe Pennsylvania
Statutes (or its successor statutes) relating to such matters, but it will not be bound by such
proVISIons.
23 Generation-Skipping Taxes and Payment: If the Trustee considers any distribution or termination
of an interest or power hereunder as a distribution or termination subject to a generation-skipping
tax, the Trustee is authorized:
24 fo augment any taxable distribution by an amount which the Trustee estimates to be sufficient to
pay such tax and charge the same to the particular trust to which the tax related without adjustment
of the relative interests of the Beneficiaries;
a To pay such tax, in the case of a taxable termination, from the particular trust to which the
tax relates without adjustment of the relative interests of the Beneficiaries. Ifsuch tax is
imposed in part by reason of the Trust Assets, the Trustee will pay only the portion of such
tax attributable to the taxable termination hereunder taking into consideration deductions,
exemptions, credits, and other factors which the Trustee deems advisable: and
b. fa' postpone final termination of any particular trust and to withhold any portion or all of
the Trust Estate until the Trustee is satisfied that the Trustee no longer has any liabi I ity to
pay any generation-skipping tax with reference to such trust or its termination.
Section 5.04 Special Provision for S Corporation Stock
Notwithstanding what is otherwise provided in this Trust Agreement, if at any time the Trust contaInS any
stock of a corporation which elects or has elected treatment as an "S Corporation" as defined by Section
1361(a)(I) of the Internal Revenue Code (or any corresponding successor statute), such stock will be
segregated from the other assets of such and treated as a separate trust. The Trustee will fmiher divide the
separate trust into shares for each Beneficiary and such shares will be distributed outright or held in trust as
herein provided. In addition, all other provisions of this Trust Agreement will apply to each share held in
trust (and constituting a separate trust) except that the Trustee will distribute all of the income from each
separate trust to its Beneficiary in convenient installments at least annually. It is the Settlors' intent that each
separate trust will be recognized as a "Qualified Subchapter S Trust" C"QSST") under Section 1361(d)(2)
of the Internal Revenue Code (or any corresponding successor statute). Notwithstanding any provisions of
this Trust Agreement to the contrary, the Trustee"s powers and discretions with respect to the administration
of each separate trust (including methods of accounting, bookkeeping, making distributions, and
characterizing receipts and expenses) will not be exercised or exercisable except in a manner consistent with
allowing each separate trust to be treated as a QSST as above described.
REVOCABLJE: UV[NG TRUST AGREElvlIENT
P age I 5
ARTICLE SIX
Section 6.0 I Coordination with Settlor's Probate Estate
I.
At any time during the continuance of this Trust, including subsequent to the death of either Settlor,
the Trustees may, in their sole and uncontrolled discretion, distribute to the deceased Settlor's
Probate Estate cash and / or other property as a Beneficiary of the Trust.
J
All other provisions to the contrary notwithstanding, under no circumstances shall any restricted
proceeds, as hereinafter defined, be either directly or indirectly: (i) distributed to or for the benefit
of the Settlor's Executors or the Settlor's Probate Estate; or (ii) used to pay any other obligations of
the Settlor's Estate. The term "Restricted Proceeds" means:
a. All qualified plans, individual retirement accounts, or similar benefits which are received
or receivable by any Trustee hereunder, and which are paid solely to a Beneficiary other
than the Executor of the Settlor's Gross Estate for Federal Estate Tax purposes; and
b. All proceeds of insurance on the Settlor's life which, if paid to a Beneficiary other than the
Settlor's Estate, would be exempt from inheritance or similar death taxes under applicable
state death laws.
Section 602 Direction to Minimize Taxes
In the admil1lstration of the Trust hereunder, its Fiduciaries shall exercise all available tax related elections,
options, and choices in such a manner as they, in their sole but reasonable judgment (where appropriate,
receiving advice of tax counsel), believe wi II achieve the overall minimum in total combined present and
reasonably anticipated future administrative expenses and taxes of all kinds This applies not only to said
Trust, but also to its Beneficiaries, to the other Trusts hereunder and their Beneficiaries, and to the Settlor's
Probate Estate.
Without limitation on the generality ofthe foregoing direction (which shall to that extent supercede the usual
fiduciary duty of impartiality), such Fiduciaries shall not be accountable to any person interested in this Trust
or to Settlor's Estate for the manner in which they shall carry out this direction to minimize overall taxes and
expenses (including any decision they may make not to incur the expense of a detailed analysis of alternative
choices). Even though their decisions in this regard may result in increased taxes or decreased distributions
to the Trust, to the Estate, or to one or more Beneficiaries, the FidUCIaries shall not be obligated for
compensation readjustments or reimbursements which arise by reason of the manner in which the Fiduciaries
carry out this direction.
Section 6.03 Judgment and Discretion of Trustee
In the absence of proof of bad faith, all questions of construction or interpretation of any trusts created by
this Trust Agreement will be finally and conclusively determll1ed solely by the Trustee, according to the
Trustee's best judgment and without recourse to any court. Each determination by the Trustee is binding on
the Beneficiaries and prospective BenefiCIaries hereunder, both in being and unborn, as we! I as all other
persons, firms, or corporations. The Trustee, when exercising any discretionary power relating to the
distribution or accumulation of principal or income or to the termination of any trust will be responsible only
for lack of good faith in the exercise of such power Each determination may be relied upon to the same
extent as if it were a final and binding judic1al determination. In the event of a contlict between the
REVOCABLE UVING TRUS'!' AGREEMENT
Page I 6
provisions of this Trust Agreement and those of the Pennsylvania Statutes, the provisions of this Agreement
will controL
ARTIt:LE SEVEN
Section 7.01 Resolution ofContlict
Any controversy betvv'een the Trustee or Trustees and any other Trustee or Trustees, or between any other
pat1ies to this Trust, including Beneficiaries, involving the construction or application of any of the terms,
provisions, or conditions of this Trust shall, on the written request of either or any disagreeing party served
on the other or others, shall be submitted to arbitration. The parties to such arbitration shall each appoint
one person to hear and determine the dispute and, if they are unable to agree, then the two persons so chosen
shall select a third impartial arbitrator whose decision shall be final and conclusive upon both parties. The
cost of arbitration shall be borne by the losing party or in such proportion as the arbitrator(s) shall decide
Such arbitration shall comply with the commercial arbitration rules of the American Arbitration Association,
140 West 5 1 st Street, New York, NY l0200.
Section 7.02 Incontestabilitv
The beneficial provisions ofthis Trust Agreement are intended to be in lieu of any other rights, claims, or
rnterests of whatsoever nature, whether statutory or otherwise, except bona fide pre-death debts, which any
Beneficiary hereunder may have in Settlor's Estate or in the properties in trust hereunder. Accordingly, if
any Beneficiary hereunder asserts any claim (except a legally enforceable debt), statutory election, or other
right or interest against or in Settlor's Estate, or any prope11ies of this Trust, other than pursuant to the
express terms hereof, or directly or indirectly contests, disputes, or calls into question, before any court, the
validity of this Trust Agreement, then:
1.
Such Beneficiary shall thereby absolutely forfeit any and all beneficial interests of whatsoever kind
and nature which such Beneficiary or his or her heirs might otherwise have under this Trust
Agreement and the interests of the other Beneficiaries hereunder shall thereupon be appropriately
and proportionately increased; and
")
All of the prov isions of this Trust Agreement, to the extent that they confer any benefits, powers,
or rights whatsoever upon such claiming, electing, or contesting Beneficiary, shall thereupon become
absolutely void; and
3.
Such claiming, electing, or contesting Beneficiary, if then acting as a trustee hereunder, shall
automatically cease to be a Trustee and shall thereafter be ineligible either to select, remove, or
become a Trustee hereunder.
Section 7.03 Specific Omissions
A.ny and all persons and entities, except those persons and entities specifically named herein, have been
intentionally omitted from this Trust Agreement. If any person or entity shall successfully challenge any
tenn or condition of th is Trust Agreement, then, to that person or entity shall be given the sum of one dollar
($1.00) in ] ieu and in place of any other benefit, grant, or interest which that person or ll1terest may have in
the Trust Estate.
REVOCABLE LJVJING TRllST AGREEMENT
Page 1 7
Section !.04 Benefits Confidential
The Settlors further declare that it is their desIre and intent that the provisions ofthis Trust Agreement are
to remain confidential as to all parties. The Settlors direct that only the information concerning the benefits
paid to any particular Beneficiary shall be revealed to such individual and that no individual shall have a right
to information concerning the benefits being paid to any other Beneficiary.
ARTICLE EIGHT
Section 8.0 I Distribution in Kind or in Cash
On any division of the assets of the Trust Estate into shares or partial shares, and on any final or partial
distnbution of the assets of the Trust Estate, the Trustee, at his or her absolute discretion, may divide and
distribute undivided interests of such assets on a pro rata or non-pro rata basis, or may sell any pmt of or all
of such assets and may make divisions or distributions in cash or partly in cash and partly 1I1 kind. The
decision of the Trustee, either prior to or on any division or distribution of such assets, as to v"hat constitutes
a proper division of such assets of the Trust Estate, shall be binding on al I persons interested in any trust
provided for in this Trust Agreement.
Section 802~Q~ndtbIiftEI.Q.:0sion
N either the principal nor the income of the trust shall be liable for the debts of a Beneficiary Except as
otherwise expressly provided in this Agreement, no Beneficiary of any trust shall have any right, po\ver, or
authority to alienate, encumber, or hypothecate his or her interest in the principal or income of this Trust in
any manner, nor shall the interests of any Beneficiary be subject to the claims of his or her creditors or liable
to attachment, execution, or other process oflaw. The limitations herein shall riot restrict the exercise of any
power of appointment or the right to disclaim.
Section 8.0] Definition of Children
The terms "Child" and "Children" as used in this Agreement mean the lawful issue of a Sel1lor or of the
Settlors together. This definition also includes children legally adopted by a Settlor or by the Settlors
together.
Section 8.04 Handicapped Beneficiaries
Any Beneficiary who is determined by a court of competent Jurisdiction to be incompetent shall not have any
discretionary rights of a Beneficiary with respect to this Trust, or to their share or portion thereof. The
Trustee shall hold and maintain such incompetent Beneficiary's share of the Trust estate and shall, in the
Trustee's sole discretion, provide for such Beneficiary as that Trustee would provide for a minor.
Notwithstanding the foregoing, any Beneficiary who is diagnosed for the purposes of governmental benefits
(as hereinafter delineated) as being not competent or as being disabled, and who shall be entitled to
governmental support and benefits by reason of such incompetency or disability, shall cease to be a
Beneficiary of this Trust. Likewise, they shall cease to be a Beneficiary if any share or portion of the
principal or income of the Trust shall become subject to the claims of any governmental agency for costs or
benefits, fees, or charges.
REVOCABLE UVING TRUST AGREEMENT
Page 18
.
The portion of the Trust Estate which, absent the provisions of this section, would have been the share of
such incompetent or handicapped person shall be retained in trust for as long as that individual lives.. The
Trustee, at his or her sole discretion. shall utilize such funds for the maintenance of that individual If such
individual recovers from his or her incompetency or disability and is no longer eligible for aid from any
govemmental agency, including costs or benefits, fees, or charges, such individual shall be reinstated as a
Beneficiary after 60 days from such recovery and the allocation and distribution provisions as stated herein
shall apply to that portion of the Trust Estate which is held by the Trustee subject to the foregoing provisions
of this section, Ifsaid handicapped Beneficiary is no longer living and shall leave children then living, the
deceased child's share shall pass to those children per stirpes, If there are no children, the share shall be
allocated proportionately among the remaining Beneficiaries.
ARTICLE NINE
Section 9.0J Trustees
All Trustees are to serve without bond, The following will act as Trustees of any Trusts created by this Trust
Agreement, in the following order of succession:
First:
The undersigned, CHESTERL. SMITH and / or PAULINE M. SMITH.
Second:
The Surviving Spouse.
fhird:
At the death or incapacity ofthe Surviving Spouse, P A TRICirA A. ST AMBAlJGH
shall serve as First Successor Trustee.
Fourth:
GALEN R. SMITH shall serve as Second Successor Trustee
Last:
A Trustee chosen by the majority of Beneficiaries, with a parent or legal guardian
voting for minor Benefic iaries; provided, however, that the ch ildren of any deceased
Beneficiary shall collectively have only one vote,
Section 9,02 Allocation and Distribution of The Trust Assets
The Trustees shall allocate, hold, administer, and distribute the Trust Assets as hereinafter prc,vided:
L Upon the death of the first Settlor, the Trustee shall make any separate distributions that
have been specified by the deceased Settlor. The Trustee shall also take into consideration
the appropriate provisions of this Article,
2, Upon the death ofihe Surviving Spouse, the Trustee shall hold, administer, and distribute
the Trust Assets in the manner hereinafter prescribed.
Section 9.03 Personal ProperlY Distribution
Notwithstanding any provision of this Trust Agreement to the contrary, the Trustee must abide by any
memorandum by the Settlors. particularly that contained in the section entitled "Special Directives"
incorporated into this Trust Instrument, directing the disposition of Trust Assets of every kind including, but
not limited to, furniture, appliances, fumishings, pictures, china, silverware, glass, books, jewelry. wearing
REVOCABLE U:VING TRUST AGREEMENT
Page 19
apparel. and all policies offire, burglary, pl"Operty damage. and other insurance on or in connection with the
use of property Otherwise, any persona! and household effects of the Settlors shall be distributed with the
remaining assets of the Trust Estate.
Section 9.04 Liability of Trustee
The Trustee will not be responsible or liable for any loss which may occur by reason of depreciation in value
of the properties at any time belonging to the Trust Estate nor for any other loss which may occur, except
that the Trustee will be liable for each Trustee's own negligence, neglect, default, or willful wrong. The
Trustee will not be liable or responsible for the acts, omissions, or defaults of any agent or other person to
whom duties may be properly delegated hereunder (except officers or regular employees of the Trustee) if
such agent or person was appointed with due care. The Trustee may receive reimbursement from the Trust
Estate for any liability, whether in contract or in tort, incurred in the administration of the Trust Estate in
accordance with the provisions hereof, and the Trustee may contract in such fonn that such Trustee will be
exempt Crom such personal liability and that such liability will be limited to the Trust Assets.
Section 9.05 Successor Trustees
Any Successor Trustee shall have all the power, rights, discretion, and obligations conferred on a Trustee
by this Trust Agreement All rights, titles, and interest in the property of the Trust shall immediately vest
in the successor Trustee at the time of appointment The prior Trustee shall, without warranty, transfer to
the Successor Trustee the existing Trust property. No Successor Trustee shall be under any duty to examine,
verify, question, or audit the books, records, accounts, or transaction of any preceding Trustee; and no
Successor Trustee shall be liable for any loss or expense from or occasioned by anything done or neglected
to be done by any predecessor Trustee. A Successor Trustee shall be liable only for his or her (Win acts and
defaults.
ARTICLE TEN
Section 10.0 I Perpetuities Savings Clause
Notwithstanding any other provision of this instrument, the Trusts created hereunder shall terminate not later
than twenty-one (21) years after the death of the last survivor of all Settlors and any other Beneficiary or
Beneficiaries named or defined in this Trust living on the date of the death of the first Settlor to die. The
Trustee shall distribute remaining Trust principal and all accrued or undistributed net income hereunder to
the Beneficiary or Beneficiaries. If there is more than one Beneficiary, the distribution shall be in the
proportion in which they are Beneficiaries; if no propOliion is designated, then the distribution shall be in
equal shares to sLlch Beneficiaries.
ARTICLE ELEVEN
Section 11.0 I Governing Law
It is not intended that the laws of only one particular state shall necessarily govern all questions pertaining
to all of the Trust hereunder.
REVOCABLE LIVIl"-,'G TRUST AGI{JEEMENT
P;lge 20
I. The validity of the Trust hereunder, as well as the validity of the particular provisions of that Trust,
shall be governed by the laws of the state which has sufficient connection with the Trust to support
such validity.
~ The meaning and effect of the terms of this Trust Agreement shall be governed by the laws of the
Commonwealth of Pennsylvania.
3. The administration of this Trust shall be governed by the laws of the state in wh ich the principle
office of the Trustee then having custody of the Trust's principal assets and records is located.
The foregoing shall apply even though the situs of some Trust Assets or the home of the Settlor, a Trustee,
or a Beneficiary may at some time or times be elsewhere.
Section 11.02 Invalidity of Any Provision
[f a court finds that any provision of this Trust Agreement is void, invalid, or unenforceable, the remaining
provisions of this Agreement will continue to be fully etTective.
Section I 1.03 Headings
The use of headings in connection with the various articles and sections of this 'Trust Agreement is solely
for convenience and the headings are to be given no meaning or significance whatsoever in construing the
terms and provisions of this Agreement.
Section 11.04 Internal Revenue Code Terminologv
As used herein, the words "Gross Estate," "Adjusted Gross Estate," "Taxable Estate," "U mfied Cred it,"
"State Death Tax Credit," ."Maximum Marital Deduction," "Marital Deduction," and any other \-vord or
words which from the context in which it or they are used refer to the Internal Revenue Code shall be
assigned the same meaning as words have for the purposes of applying the Internal Revenue Code to a
deceased Settlor's Estate. Reference to sections of the Internal Revenue Code and to the Internal Revenue
Code shall refer to the Internal Revenue Code amended to the date of such Settlor's death.
RE'v'OCA.I!lLE LIVING TRUST AGREEMENT
Page 2]
SPECIAL DIRECTIVES
OF
CHESTER L. SMITH
1, CHESTER L. SMlTH, a resident of the County of Cumberland, Commonwealth of Pennsylvania,
being of lawful age, and of sound and disposing mind and memory, and not acting under duress, fraud, or
undue influence, hereby make, publish and declare this to be my Special Directive, and I incorporate THE
CHESTER L. SMITH AND PAULINE M. SMITH REVOCABLE LIVING TRUST AGREEMENT.
FIRST
The natural objects of my affection are:
My wife -
PAULINE M. SMITH
2.
My ChIldren -.
PATRICIA A STAMBAUGH
GALEN R. SMlTH
SECOND
r direct that all estate and mheritance taxe~ payable as a result of my death, not lJmited to taxes
assessed on property, shall be paid out of the residue of my Estate, and shall not be deducted or collected
from any League, Devisee, or Beneficiary hereunder.
THIRD
In the event any of my named Beneficiaries should predeceased me, all of that person's share of the
Trust Estate is to be divided equally among that person's issue per stirpes unless otherwise stated in these
directives.
FOURTH
r direct that, before any distribution of the assets of the Trust Estate to the named Beneficiaries,
certain specific distributions, if any, shall bemade from the assets as set forth all the list attached hereto and
marked "Exhibit A."
FIFTH
I hereby acknowledge and accept the "Special Directives," if any, of my spouse.
REVOCABLE LIVING TRUST AGREEMENT
Page 22
..
SPECIAL DIRECTIVES
OF
PAULINE M. SMITH
1, PAULINE M. SMITH, a resident of the County of Cumberland, Commonwealth of Pennsylvania,
bell1g of lawful age, and of sound and disposing mind and memory, and not acting under duress, fraud, or
undue influence, hereby make, publish and declare this to be my Special Directive, and I incorporate THE
CHESTER L. SMITH AND PAULINE M. SMITH REVOCABLE LIVING TRUST l\GREEMENT.
FIRST
The natural objects of my affection are:
i.
My husband ..
CHESTER L. SMITH
My Children -
PATRlCIA A. STAMBAUGH
GALEN R. SMITH
SECOND
I direct that all estate and inheritance taxes payable as a result of my death, not limited to taxes
assessed on property, shall be paid out of the residue of my Estate, and shall not be deducted or collected
from any League, Devisee, or Beneficiary hereunder.
THIRD
In the event any of my named Beneficiaries should predeceased me, all of that person's share of the
Trust Estate is to be divided equally among that person's issue per stirpes unless otherwise stated in these
directives.
FOURTH
I direct that, before any distribution of the assets of the Trust Estate to the named Beneficiaries,
certain specific distributions, ifany, shall be made from the assets as set forth on the list attached hereto and
marked "Exhibit A."
FIFTH
[ hereby acknowledge and accept the "Special Directives," if any, of my spouse.
REVOCABLE LIVING TRUST AGREEMENT
Page 23
.
DATED to be etfective this ~___ day of
]9
SETTLORS:
,....."--'; ._"'" ;, I/~~.} I' /
/ i / i -f / /' if iJ
I L/ (/ - j -r j' / l-P
l V2 .' I U ',--A '::--x \ /l!t
~_ ..r .,/;r- J e:,4.l " &Vl./.J' ~ ....'~./.f!',.L1,.,.. /~/v
CHESTER L. SMITH
PAULINE M. SMITH
ACCEPTED BY CO-TRUSTEES:
//--'/;-4' I') -J /../ /" , j'/
f .,/ ;/' ~" l 7- --_<) ;f-t"
_ \ ^~1.1e>{,'llf~..~/,~...->c \ /7/]rL/-,(.Af~z,.
CHEs"rER L. -sMrr-f( , '
PAULINE M, SMITH
COMMONWEALTH OF PENNSYLVANIA
COUNTY OF CUMBERLAND
This instrument was acknowledged before me on the date herein set forih by CHESTER L SMITH
as Settlor and Co-Trustee to certify which witness my hand and seal of office,
COMMONWEAL TH OF PENNSYL VANIA
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COUNTY OF CUMBERLAND
This instrument was acknowledged before me on the date herein set forth by PAULINE M SMITH
as Settlor and Co-Trustee to certify which witness my hand and seal of office.
',F,',r"""" !iL~H S.G-OWAN
: COMMiSSION!:&? 0,," OElEmt
tj 'C\ljJ!i\l~m"iiiweal!ti 0-1 )l'ermsyivOi/u/@
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REVOCABLE LIVING TRUST AGREEMENT
Page 24
.
...
TEi'iANCY AGREEMENT
This Tenancy Agreement is entered into on this day by and between CHESTER L. SMITH and
PAULfNE M. SMITH.
FACTUAL SUMMARY
CHESTER L. SMITH and PAULINE M. SMITH were married on
and since that date have acquired title to property as joint tenants with right of
]9
CHESTER L. SMITH and PAULINE M. SMITH have created an estate plan using a revocable
living trust and companion pour-over wills, and they now wish to convert all or part of their joint tenancy
into tenancy in common property.
CHESTER L. SMITH and PAULINE M. SMITH are aware that they may, by agreement, convert
their joint tenancy property into tenancy in cornman property so that they may better control their respective
interests in the property on each of their deaths.
AGREEMENT TO CHANGE JOINT TENANCY ASSETS
TO TENANCY IN COMMON
CHESTER L. SMITH and PAULINE M. SMITH hereby grant, convey and transfer their ('espective
interests in their joint tenancy property to themselves as tenants in common, except forjointly-held property
in Schedule A of this Tenancy Agreement if any.
CHESTER L. SMITH and PAULINEM. SMITH mtend this agreement to be binding on themselves
and on all others as to property held in joint tenancy with right of survivorship as of the date of this
agreement regardless of the manner or form of the written title.
CHESTER L. SMITH and PAULINE M. SMITH make this agreement on the. .' '~-"day of
19
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CHESTER L. SMITH
PAULINE M. SMITH
REVOCABLE UVJING TRtJST A.GREEMENT
--
SPECL\L INSTRUCTIONS FOR PREPARING AND ATTACHING lieN
"EXHIBIT A"
TO YOUR REVOCABLE LIVING TRUST AGREEMENT
If you have special instructions for bequests of property that were not included in the original trust
planning documents, it is important that they be prepared correctly in order to accomplIsh your wishes"
"Exhibit ,\" is not an amendment; it is a part of your original trust document.
I. The page(s) entitled "SPECIAL DIRECTIVES OF CHESTER L SMITH" and "SPECIAL
DIRECTIVES OF PAULINE M. SMITH" found near the end oCthe trust document entitled
THE CHESTER L SMITH AND PAULINE M. SMITH REVOCABL E LIVING TRUST
AGREEMENT needs to have a paragraph that basically says the following:
I direct that my trust estate (or personal property or
whatever the items in question are) be distributed
according to the list attached hereto and marked
"EXHIBIT A".
If your trust is a joint trust, an "Exhibit A" must be mentioned III the SPECIAL
DIRECTIVES of both.
Make as many copies of your blank "EXHIBIT A" as it takes to distribute your personal
items, listing the individual property, the beneficiary of the property, ancL ifapplicable, the
dollar or percentage amount of trust property you wish to bequeath.
3. When you finish, number and initial each page. and sign the last page. Be sure to sign your
signature and initials in front of your witnesses and a notary public. Date your "Exhibit
AI! the same date you signed your original trust agreement. (All gift pages must be
entitled "EXHIBIT A." All pages must be numbered. Each page must have a place at the
bottom for your initials; the last page mllst have a line for your full SIgnature Your
signature must have two witnesses and a notary.)
4. Attach the original signed and witnessed copy to your original REVOCABLE LJVING
TRUST AGREEMENT. Put a copy of your "EXHIBIT A" with i.my trust copies you have
stored, i.e., safe deposit box.
). See attached sample for further help. If you have any questions, contact the attorney who
prepared your trust.
6. Any changes made subsequent to the trust date should be placed in the "AMENDMENT
TO REVOCABLE LIVING TRUST AGREEMENT" which follows "Exhibit A"
LOOK FOR YOUR PERSONALIZED "EXHIBIT /:\." PAGES BEHIND THE CHESTER L SMHH AND
PAUUNE M. SMITH REVOCABLE LIVING TRUST AGREEMENT.
,.
SAMPLE ONLY
"EXHIBIT A"
ADDITIONAL SPECIAL DIRECTIVES OF JOHN S. DOE AND MARY A DOE,
TRUSTEES AND SETTLORS OF
THE JOHN S DOE AND MARY A DOE REVOCABLE LIVING TRUST
I direct that JAMES DOE get my railroad pocket watch.
I direct that JANE DOE get the money in the FIRST NATIONAL BANK of Altuna, Texas, Account
#111-]1]-111.
I direct that JAMES DOE and JANE DOE each receive a Y; ownership in the house at 23 Lexington
A venue, Phi]adelphia, Pennsylvania.
I direct that my railroad stock be divided equally among the children of JAMES DOE
I direct that my telephone stock be divided equally among the children of JANE DOE.
I direct that each of my grandchildren receive $5,000 from my trust estate. It is my intent that this
money be used for their college education.
I dIrect that my car to my granddaughter, MELISSA DOE, and my truck go to my grandson, JAMES
DOE, JR.
"EXHIBIT A"
ADDITJlONAL SPECIAL DIRECTIVES OF
JOHN S. DOE AND MARY A. DOE
Paue of
b ~___
~
Page
of
"EXHIBIT A"
ADDITIONAL SPECIAL DIRECnVES OF
CHESTER L. SMITH AND PAULINE M. SMITH
TRUSTEES AND SETTLORS OF
THE CHESTER L. SMITH and PAULINE M. SMITH
REVOCABLE LIVING TRUST
"EXH:IBU A"
ADDITIONAL SPECIAL DIRECTIVES OF
CHESTER L. SMUll AND PAULINE M. SMITH
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ADDITIONAL SPECIAL DIRECTIVES OF
CHESTER L. SMITH AND PAULINE M. SMITH
TRUSTEES AND SETTLORS OF
THE CHESTER L. SMITH and PAULINE M. SMITH
REVOCABLE LIVING TRUST
"EXJUBIT A"
ADDITIONAL SPECIAL DtRECTIVES OF
CHESTER L SMITH AND PAULINE M. SMITH
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"EXHIBIT A"
ADDITIONAL SPECIAL DIRECTIVES OF
CHESTER L. SMITH AND PAULINE M. SMITH
TRUSTEES AND SETTLORS OF
THE CHESTER L. SMITH and PAULINE M. SMITH
REVOCABLE LIVING TRUST
"EXHIBIT A"
ADDITIONAL SPECIAL DJrRECTIIVES OF
CHESTER L. SMITH AND PAULINE M. SMJITH
-
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10/18/2006
15:40
RMERICRN EQUITY 7 17172636026
NO.614 GJ002
n
AMERICAN
EQUITY INVEST'MENT LIFE
INSURANCE COMPANY
October 18, 2006
GEORGE E WENGER, JR
147 EAST WASHINGTON STREET
CHAMBERSBURG, PA 17201
RE: Chester L Smith- Deceased
Contract No. 044653,044649,044652,304397,044650
Dear Mr. Wenger:
/~.L;
2: "7 cC:C!..VPer our telephone conversation today, I am faxing you Information for the above-mentioned
'~'\..I contracts in regard to the death of Chester L Smith.
./?/~}L (~1f
The SMITH RL T DTD 12-21-99 owns contract 044649 and I have enclosed a value letter for
January 26, 2006. Pn.+( <\. -To fi" "-_
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Both Chester and Pauline Smith owned contract 304397 and I flave enclosed the letter that
includes the value of the contract that was paid out to Pauline Smith.
, <17-4
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Chester Smith owned contract 044650 and I have enclosed the letter that includes the value of
the contract that was paid out to Pauline Smith.
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The Smith RL T DTD 12-21-99 owns contract 044653 and the value as of February 1, 2006 was
$17,007.76.
Pauline Smith owns contract~2 and the value as of February 10, 2006 was $3,626.63.
Please calllf you have any questions about this information or need further assistance,
Sincerely,
Shanan Carpenter
Special Services Specialist
866-661-7125, extension 3547
P.O. Box 71216 ' Des Moines, lP-. 50325 . Phone (5'15) 221-0002 . 1 (888) 221-1234' Pax (515) 221-9947
www.american-equity.com
-~
~
10/18/2006
1S: "-1.0
:::iMERI CFil'i EQUITY -;. 17172636025
1'10.614 GJ005
iI, \
AME~iCAN
EQUITY I['.'VESTMENT LIFE
NSURANCE COMPANY
October 18, 2006
SMITH RLT DTD 12-21-99
C/O CHESTER & PAULINE SMITH, TTEES
81 SMITHDALE RD
SHIPPENSBURG, P A 17257
/
Re: Annuity Contract No. 044649
Dear Smith Rlt Dtd 12-21-99:
Your account values as of J arlUary 26, 2006 are as follows:
Contract Value:
Minimum Guaranteed Contract Value:
Surrender Value:
Surrender Charge:
$23,977.60
$26,063.40
$24,238.96
$1,824.44
If you have any questions regarding your contract, feel free to contact our office at 1-866-661-7125.
Sincerely,
~~
Shanan Carpenter
Special Services Specialist
VALUE
P..:J. Sox 71216 ' Des Moines, IA 50325. Phone (515) 221-0002" 1 (888) 221-1234 . Fax (515) 221-9947
www.american-€quity.com
LAST WILL AND TESTAMENT
(Pour-Over Will)
OF
CHESTER L. SMITH
ID ENTITY
1, CHESTER L. SMITH, residing in the County of Cumberland, Commonwealth of Pennsylvania,
being of sound mind and memory, and not acting under duress or undue int1uence of any person
whomsoever, hereby declare this to be my Last Will and Testament, and 1 do hereby revoke all other former
Wills and Codicils to WiJIs heretofore made by me. My Soci~1 Security Number is 204-30-6487.
All reference made herein to "spouse or my spouse" refers to the person to whom 1 am currently
married, namely, PAULINE M. SMITH. By the ensuing provisions of this Will, it is my intention to dispose
of my interest in our property; I do not intend to dispose of anything belonging to my wife or to put her to
any election.
.
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I have the following children: P A TRlCIA A. SJ-AMB-Ai:J6f-I born May 2, 194 I and currently
residing in Salisbury, MD 21804; GALEN R. SMITH born May 2, 1946 and currently residing in
Shippensburg, PA ] 7257.
DEBTS, TAXES AND ADMINISTRATION EXPENSES
I have provided for the payment of all my debts, expenses of administration of property wherever
situated passing under this Will or otherwise, and estate, inheritance, transfer, and succession taxes, other
than any tax on a generation-skipping transfer that is not a liability of my Estate (including interest and
penalties, if any) that become due by reason of my death, under THE CHESTER L. SMITH AND PAULINE
M. SMITH REVOCABLE LIVING TRUST executed on even date herewith (the "Revocable Trust"), or if
my spouse predeceases me, under the Survivor's Trust created by the said Revocable Trust. Ifthe Revocable
Trust assets should be insufficient for these purposes, my Executor shaJI pay any unpaid items from the
residue of my Estate passing under this Will, without any apportionment or reimbursement. In the
alternative, my Executor may demand in a writing addressed to the Trustee ofthe Trust an amount necessary
to pay all or part of these items, plus claims, pecuniary legacies, and family allowances by court order.
PERSONAL AND HOUSEHOLD EFFECTS
It is my intent that all my personal and household effects were transferred to the Revocable Trust
as a result of the Declaration ofIntent signed this date. If there are any questions regarding the ownership
or disposition of these assets, it is my desire that such assets pour into the Revocable Trust, signed by me this
date in accordance with the provisions of the section titled "Residue of Estate."
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POLR-OVER WILLS
Page
iT estator/T cstatrix)
RESIDUE OF ESTATE
I give, devise and bequeath all the rest, resigue and remainder of my property of every kind and
description (including lapsed legacies and devices), wherever situated and whether acquired before or after
the execution of this Will, to the Trustee under that certain Trust executed by me on the same date of the
execution of this Will. The Trustee shall add the property bequeathed and devised by this item to the corpus
of the above described Trust and shall hold, administer and distribute said property in accordance with the
provisions of the said Trust, including any amendments thereto made before my death.
If for any reason the said Trust shall not be in existence at the time of death, or if for any reason a
court of competent jurisdiction shall declare the foregoing testamentary disposition to the Trustee under said
Trust as it exists at the time of my death to be invalid, then I give all of my Estate including the residue and
remainder thereof to that person who would have been the Trustee under the Trust, as Trustee, and to their
substitutes and successors underthe Trust, described herein above, to be held, managed, invested, reinvested
and distributed by the Trustee upon the terms and conditions pertaining to the period beginning with the date
of my death as are constituted in the Trust as at present constituted giving effect to amendments, if any,
hereafter made and for that purpose I do hereby incorporate such Trust by reference into this my Will.
EXECUTOR
I hereby nominate and appoint PAULINE M. SMITH as my Independent Executor of this, my Last
Will and Testament, to serve without bond.
In the event the first named Executor shall predecease me or is unable or unwilling to act as my
Executor for any reasons whatsoever, then and in that event, I hereby nominate and appoint PATRICIA A.
STAMBA UGH to serve without bond as my Independent Executor.
In the event the second named Executor shall predecease me or is unable or unwilling to act as my
Executor for any reasons whatsoever, then and in that event, I hereby nominate and appoint GALEN R.
SMITH to serve without bond as my Independent Executor.
Whenever the word "Executor" or any modifYing or substituted pronoun therefore is used in this my
Will, such words and respective pronouns shall be held and taken to include both the singular and the plural,
the masculine, feminine and neuter gender thereot: and shall apply equally to the Executor named herein and
to any successor to substitute Executor acting hereunder, and such successor or substitute Executor shall
possess all the rights, powers, duties, authority, and responsibility conferred upon the Executor originally
named herein.
EXECUTOR POWERS
By way of Illustration and not of limitation and in addition to any inherent, implied or statutory
powers granted to executors generally, my Executor is specifically authorized and empowered with respect
to any property, real or personal, at any time held under any provision of this my Will: to allot, allocate
between principal and income, assign, borrow, buy, care for, collect, compromise claims, contract with
respect to, continue any business of mine, convert, deal with, dispose ot: enter into, exchange, hold, improve.
incorporate any business of mine, invest, lease, manage, mortgage, grant and exercise optlons with respect
to, take possession of, pledge, receive, release, repair, sell, sue for, make distributions in cash or in kind of
POUR-OVER WILLS
Page 2
,
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(T estato r IT estarrix )
partly in each without regard to the income tax basis of such asset and in general, exercise all of the powers
in the management of my Estate which any individual could exercise in the management of similar property
owned in its own right upon such terms and conditions as to my Executor may seem best, and execute and
deliver any and all instruments and do all acts which my Executor may deem proper or necessary to carry
out the purpose of this my Will, without being limited in any way by the specific grants or power made, and
without the necessity of a court order.
My Executor shall have absolute discretion, but shall not be required, to make adjustments in the
rights of any Beneficiaries, or among the principal and income accounts to compensate for the consequences
of any tax decision or election, or of any investment or administrative decision, that my executor believes
has had the effect, directly or indirectly, of preferring one Beneficiary or group of Beneficiaries over others.
In determining the Federal Estate and Income Tax liabilities of my Estate, my Executor shall have discretion
to select the valuation date and to determine whether any or all of the allowable administration expenses in
my Estate shall be used as Federal Estate Tax deductions or as Federal Income Tax deductions and shall have
the discretion to file ajoint income tax return with my spouse.
SPECIFIC OMISSIONS
I have intentionally omitted any and all persons and entities from this, my Last Will and Testament,
except those persons and entities specifically named herein. If any person or entity shall challenge any term,
or condition of this Will, or of the Living Trust to which I have made reference in the sections "Household
and Personal Effects" and "Residue of Estate," then, to that person or entity, I give and bequeath the sum of
only one dollar ($1.00) only in lieu and in place of any other benefit, grant bequest or interest which that
person or interest may have in my Estate or the Living Trust and its Estate.
SIMULTANEOUS DEATH
If my spouse and I should die under circumstances such that the order of our deaths cannot be
determined, then it shall be conclusively presumed for the purpose of this Will that my spouse survived me.
If any other Beneficiary should not survive me for sixty (60) days, then it shall be conclusively
presumed for the purpose of this my Will that said Beneficiary predeceased me.
Testator
Page 3
(T ~stato r/T estatrix)
POUR-OVERWJl:LLS
This instrument consists of 5 typewritten pages, including the Attestation Clause, Self-Proving
Clause, signature of Witnesses, and acknowledgment of officer. r have signed my name at the bottQJ:11 of each
of the preceding pages. This instrument is being signed by me on this)' day of
19
ATTESTATION CLAUSE
The Testator whose name appears above declared to us, the undersigned, that the foregoing
instrument was his Last Will and Testament, and he requested us to act as witnesses to such instrument and
to his signature thereon. The Testator thereupon signed such instrument in our presence. At the Testator's
request, the undersigned then subscribed our names to the instrument in our own handwriting in the presence
of the Testator. The undersigned hereby declare, in the presence of each of us, that we believe the Testator
to be of sound and disposing mind and memory.
Signed by us on the same day and year as this Last Will and Testament was signed by the Testator.
WITNESSES:
ADDRESSES:
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POtJR-OVFR WILLS
(T e'stator/TestJ tnx)
COMMONWE/'\L TH OF PENNSYL VANIA
COUNTY OF CUMBERLAND
SELF-PROVING CLAUSE
the undersigned authority,s;n this day persS~;llly appeared CHESTER L SMITH,
and C .~-,G.i;7~/?..s-~ Y<~/_<<;<i- , known to me to be
the Testator and the witnesses, respectively, whose names are subscribed to the foregoing instrument in their
respective capacities, and all of them being by me duly sworn, CHESTER L SMITH, Testator, declared to
me and to the witnesses, in my presence, that the instrument is his Will and that he had willingly made and
executed it as his free act and deed for the purposes therein expressed; and the Witnesses, each on his or her
oath, stated to me in the presence and hearing of the Testator. that the Testator had declared to them that the
instrument is his Will and that he executed the same as such and wanted each of them to sign it as a witness;
and upon their oaths, each witness stated further that he did the same as a witness in the presence of the
Testator, and at his request and that he was at that time eighteen (18) years of age or over and was of sound
mind, and that each of the witnesses was then at least fourteen (14) years of age.
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SUBSCRIBED AND ACKNOWLEDGED before me by
s u bscri bed and sworn to b efo re me by
witnesses, this the
19
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and
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Notary )?:6blic, ~ommon\vea]f6 of Pennsylvania
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COMMIS.$iOr~!;~ Of f)F.'E0$ ~
C-i<l/fn,,\li:)J.lwedfu ci P,*,ftSvhf<Qllia i
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POUR-OVER WILLS
Page 5
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iT estator/T estatrix'\
APPRAISAL OF REAL PROPERTY
LOCATED AT:
81 Smithdale Road
Deed Book 213 Page 1037
Shippensburg, PA 17257
FOR:
Estate of Chester Smith
81 Smithdale Road
Shippensburg, PA
AS OF:
January 26, 2006
BY:
Susan B. Burkholder
State Certified Residential Appraiser
This appraisal was completed to establish value.
Summary Format
Complete Appraisal
Form GA1 - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE
~~ 1<a:nnieMae Diversified Appraisal Services
' Desktop Underwriter Quantitative Analysis Appraisal Report
file No. 0628
TIllS_SUMMARY APPRAISAL REPORT IS INTENDED FOR USE BY THE lENDER/CLIENT FOR A MORTGAGE FINANCE TRANSACTION ONLY.
Property Address 81 Smithdale Road City ShippensburfL State PA Zip Code 17257
_~i!Jal Description Deed Book 213 Page 1037 _~_____ __ _________~ounty _Cumberland __
Assessor's Parcel No. 39-11-0308-016 T ax Year 2Q05-06 R.E. Taxes $ Special Assessments $
.. Borrower n.a. Current Owner Smith Occupant IAJ Owner i-I Tenant n Vacant
j\!ffihborhood or Project Name n.a. Project Type Il PUD r-l Condominium HOA $ /Mo.
Sales Price $ n.a. Date of Sale n.a. Descriotion / $ amount of loan charaes/concessions to be paid by seller
- Propel1v riohts appraised IX': Fee Simple n Leasehold -I Mao Reference 11-308 Census Tract 0131.98
Note: Race and the racial composition of the neighborhood are not annraisal factors.
: Loca1ion 0 Urban [J Suburban [:gj Rural Property values [:><J Increasing 0 Stable 0 Declining
., Built up [] Over 75% 025-75% [J Under 25% Demand/supply D Shortage [:><J In balance 0 Over supply
~> Jirowlh rate Ii RallliJ. [>~I Stable Ii Slow Marketina time Fi Under 3 mos. !Xi 3-6 mos. n Over 6 mos.
Neighborhood boundaries The .~ubject n~1borhood is bordered by Ritner Highway, SlJijJpensburg, Newburg
and Newville_
Single family housing Condominium housing
PRICE AGE PRICE (if applic.) AGE
$(000) (yrs) $(000) (yrs)
100 Low 5 Low_
500 Hiah 200 Hiah
in PredominantT'~TITpredominant I:{//
175 50
Shape IrreglJl~_____
Dimensions JII~.!ll1!~_~______~ Site area~,62 acre~_______
SpeCific zoning classification and description None in township
Zoning compliance D Legal [J Legal nonconforming (Grand fathered use) D Illegal, attach description I:><J No zoning
- Highest and best use of subject property as improved (or as proposed per plans and specifica1ions): D Present use 0 Other use, attach description.
lfiiiffiesrUbTIC---- Other Public Other -- Off-site Improvements Type-------pljE][(;--- PrivaF-
Electricity il('] Water D Well Street Macadam [:gj 0
Gas n n.a. Sanitarv sewer n On site AIIev . None rl il
Are there anv aoparent adverse site conditions leasements encroachments. soecial assessments slide areas etc.)? r -1 Yes 1)(1 No If Yes attach descrintion.
Sour~e(s) used for physical characteristics of property: [:gj Interior and ~erior inspection [~li;xterior inspection from street 0 Previous appraisal files
r I MLS rxI Assessment and tax records 'n Prior insnection IXI Pronertv owner I I Other lOescribei:
No. of Stories 2 Tvne iDet./Att.) Dtchd Exterior Walls Alum sidinq Roof Surface Shinqles Manufactured Housino-l Yes I><f No
Does tlillJ!iopertv aenerallv conform to the neinhborhood in terms of stvle condition and construction materials? IX! Yes I 1 No if No, attach description.
- Are there any apparent physical deficiencies or conditions that would affect the soundness or structural integrity of the improvements or the livability of the property?
il Yes IAJ No If Yes, attach description.
Are there any apparent adverse environmental conditions (hazardous wastes, toxic substances, etc.) present in the improvements, on the site, or in the immediate vicinity of
the subject property? 0 Yes il('] No If Yes, attach description.
I researched the subject market area for comparable listings and sales that are the most similar and proximate to the subject property.
My research revealed a total of ___'__ sales ranging in sales price from $ to $ _______
My research revealed a total at 3 listings ranging in list price from $ _ 260,000 _ to $ _ 450,000___
The analysis of the comparable sales below reflects market reaction to significant variations between the sales and the subject property.
_------.fEATURI:~__~UBJECT SALE 1 f---- SALE 2 __ SALE 3
81 Smithdale Road 1555 McClures Gap Road 59 Clugston Road 381 Kerrsville Road
Address Shippensburq Carlisle Newville Carlisle
Proximitv to Subiect I,xit', 'iX' 16.28 miles 4.44 miles 11.69 miles
Sales Price 1$ n_a"i,.,:,>'I.~ 260,000"':,'1 $ 450000'",,;,'1$ 400.000
Price/Gross Livil}!LArea 1$ rtJ $ 161.29 It] 1;.,\ \e./ $ 290.32 II! J"X> _~ 206.19 rtJ I,f;.;: ',70
Data & Verification Sources Y'.., i . i" .,........ Courhtouse/MLS Courthouse/MLS Courthouse/MLS
VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION T +(-)$ Adjust DESCRIPTION I +(-)$ Adjust DESCRIPTION
Sales or Financing Ii"'>:'}'::} None known None known None known
, Concessions 1."" ,';,Y,: Conventional Conventional Conventionai
Date of SalefTime I";:, 'i 6-15-06 ~--- 12-17-04 ~ 3-17-06 ------c-----_
----;----
Location Averaae Similar , Similar : Superior ~--=~
Site 81.62 acres 35.71 acres +137700 59 acres ,+76900 46.71 acres __-:--_ +1.Q12QQ
View Averaqe Similar Similar Similar ______
: '
Desilln_(SJy~___Q.olonial Colonial _____ Colonial ..Q.QJonial_~_i-___
- _Actual Aae !Vrs.) 1 Q6 years 116 years 100 years 106 vears_--,--, ___
~ Condition~_Averaqe Similar , Similar , Similar
Above Grade Total : Bdrms: Baths Total: Bdrms: Baths p,C;::- Total : Bdrms: Baths I;' ;3",:. Total : R~ Baths I;:/Xi:
Room Count 7 2 1.5 6 3 2 +1,000 6 3 1 +3,000 6 3 2 +1,000
.. Ji[Q!'.uivina Area --_ 1,320 So. Ft. 1,612 Sa. Ft. -8,800 1,550 Sq. Ft. -6,900 1,940 SiLlt. -18,600
~ Basement & Finished 50% basement Similar Similar Similar
- Rooms Below Grade None None None None
Garaae/Carport 2-car qaraqe None +6 000 2-car qaraqe i-car aaraae
Porch, end prh Porch, end prch Porch, Cntrl air Porch, enc orh ----;---
Barn corn crib None +30,000 Barn outbuildas -20,000 Similar
. NetAdi. Itotal1 1<:. rxI + r l-:$ 165,900 rxI + l -:$ 53,000 IX + r __:$
.. Adjusted Sales Price I;".;,' ..,......M,f!i@;I'"" Hn.LI,:
of Comparables 1:,i('lGr6~~J:.; 1.6%1 $ 425,900';;h~;,;t ?!l,10/~1 $ 503,000,/ :,I~li\\~ nZ~1 $__---.1.79,100
Date of Prior Sale Jl-28-99. 3-1-06 8-19-97 No prior sale Ji?~____
Price of Prior Sale $ 10 $ 1.00 $ 90,000 $
Analysis of any current agreement of sale, option, or listing of the subject property and analysis of the prior sales of subject and comparables: N02aleb.a~~ken place in
the past three years.
Summary of sales comparison and value conclusion:. The Cost approach was_not considered since this is not new construction or the Income approach,_
due to the fact this is an owner occupied single family dwellinq. The Sales Campariso~[l!Qach is the b~roach for this tvpe of property.
1 +(-)$Ad;st
-.:+:MOO
70,100
f---- __
1--------.-----_______
--
----~--
This appraisal is made [2<J "as-is", [J subject to completion per plans and specifications on the basis of a hypothetical condition 1hat the imwovements have been completed, or
[J subject to the following repairs, alterations or conditions Appraised in current condition.
BASED ON AN [J EXTERIOR INSPECTION FROM THE STREET OR AN
PROPERTYTHAT IS THE SUBJECT OF THIS REPORTTO BE $ 426,000
I:><J INTERIOR AND EXTERIOR INSPECTION, I ESTIMATETHE MARKET VALUE, AS DEFINED, OFTHE REAL
, AS OF January 26, 2006
PAGE 1 OF 3
Form 205 -- "TOTAL for Windows" appraisal software by a la mode, inc. -- j.800-ALAMODE
Fannie Mae Form 2055 9-96
-------~--------~--
--------- -.-----~-.._--_._--------------~
Are any common elements leased to or by the Home Owners' Association?
Describe common elements and recreational facilities:
_._-~_.~-------------------------
i] Yes [J No
If yes, attach addendum describing rental terms and options.
~~--------~._------~-~---_._-----~--_._~._~-------------------
Project Information for Condominiums (If applicable) - - Is the developer/builder in control of the Home Owners' Association (HOA)?
Provide the following information for all Condominium Projects:
T otai number of phases~~~__~___~_ __ ~ Total number of units ~______'~___'__ ___ T ota! number of units sold _ ~_.~__~__
Total number of units rented __~________ Total number of units for sale __~___,.~___ Data Source(s) ~_'_~_'__~,___
Was the project created by the conversion of existing buildings into a condominium? [J Yes [J No If yes, date of conversion:
Project Type: Primary Residence Second Home or Recreational Row or Townhouse Garden Midrise [J Highrise [J _~__,__
Condition of the project, quality of construction, unit mix, etc.:
No
------------_.._~-----------------.__._-.------- --------------------.-------------------------------
Are the common elements completed?
[] Yes [] No If No, describe status of completion:
------------------------.----.--
-Are a;;Y common'el;rru;nlsleased to orbyth~Home Owner~ Ass'ociationT---- l'jYes-- [J No It y~atta'Zh-;jddendum describirlgrentalte;ms and optio-;;-s~-----
Describe common elements and recreational facilities:
------~----.._-----------_._----------------------~-------------
~--~------------
---------------------.--
PURPOSE OF APPRAISAL: The purpose of this appraisal is to estimate the market value of the real property that is the subject of this report based on a
quantitative sales comparison analysis for use in a mortgage finance transaction.
DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all
conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue
stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer
under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting
in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made
in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration
for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.
* Adjustments to the comparabies must be made for special or creative financing or sales concessions. No adjustments are necessary for those
costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the
seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable
property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or
transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar
amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment.
STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION
CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is SUbject to the following conditions:
1. The appraiser will not be responsibie for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes
that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the
basis of it being under responsibie ownership.
2. The appraiser has provided any required sketch in the appraisal report to show approximate dimensions of the improvements and the sketch
is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size.
3. The appraiser will not give testimony or appear in court because he or slle made an appraisal of the property in question, unless specific
arrangements to do so have been made beforehand.
4. The appraiser has noted in the appraisal report any adverse conditions (such as, but not limited to, needed repairs, the presence of hazardous
wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during
the normal research involved in periorming the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge
of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous
wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and
makes no guarantees or warranties, expressed or implied, regarding the condition of the property. The appraiser will not be
responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions
exist. Because the appraiser is not an expel1 in the field of environmental hazards, the appraisal report must not be considered
as an environmental assessment of the propel1y.
5. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be
reliable and believes them to be true and correct. The appraiser does not assume responsibility for tile accuracy of such items that were furnished by
other parties.
6. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice.
7. The appraiser must proVide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal
report (including conclusions about the property value, the appraiser's identity and professional designations, and references
to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower;
the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or
federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of
Columbia; except that the lender/client may distribute the report to data collection or reporting service(s) without having to obtain the
appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be
conveyed by anyone to the public through advertising, public relations, news, sales, or other media.
8. The appraiser has based his or her appraisal repOlt and valuation conclusion for an appraisal that is subject to completion per plans and specifications on
on the basis of a hypothetical condition that the improvements have been completed.
9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to completion, repairs, or alterations on the
assumption that completion~he improvements will be perfor~d in it worKmanlike manner.
PAGE 2 OF 3 Fannie Mae Form 2055 9-96
Form 205 - "TOTAL for Windows" appraisal software by a ia mode, iri.~. - 1-800-ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal~port
APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that:
1. I pe/iormed this appraisal by (1) personally IrIspecting from tile street the subject property and neighborhood and each of Tile
comparable sales (unless I have otherwise indicated in this repolt that 1 also inspectec! The interior of the subject prope~y); (2) collecting, confirming,
and analyzing data from reliable public and/or private sources; and (3) repOlting the results of my inspection and analysis in this summary appraisal
report. I further certify that I have adequate information about the physical characteristics of the subject property and the comparable sales to develop
this appraisal.
File No. 0628
2. I have researched and analyzed the comparable sales and OfferingS/listings in the subject market area and have reported the
comparable sales in this repOlt that are the best available for the subject property. I further certify that adequate
comparable market data exists in the general market area to develop a reliable sales comparison analysis for the subject property.
3. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in
the appraisal report. I further certify that I have noted any apparent or l<nown adverse conditions in the subject improvements, on
the subject site, or on any site within the immediate vicinity of the sub.iect propelty of which I am aware, have considered these adverse
conditions in my analysis of the property value to the extent that I had market evidence to support them, and have commented about the effect of
the adverse conditions on the marketability of the subject property. I have not l<nowingly withheld any significant information from the appraisal
report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct.
4. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are
subject only to the contingent and limiting conditions specified in this fOI1l1.
5. I have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal
ihterest or bias with respect to the participants in the transaction. I did not base, either paltially or completely, my analysis and/or the
estimate of market value in the appraisal report on the race, color, religion, sex, age, marital status, handicap, familial status, or national
origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties
in tile vicinity of the subject property or on any other basis prohibited by law.
6. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my
compensation for performing this appraisal is contingent on the appraised value of the property.
7. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, tile
amount of the value estimate, the attainment of a specific result, or the occurrence of a SUbsequent event in order to receive my
compensation and/or employment for peliormlng the appraisal. I did not base the appraisal report on a requested minimum valuation,
a specific valuation, or the need to approve a specific mortgage loan.
8. I estimated the market value of the real property that is the subject of this repOlt based on the sales comparison approach to value. I
further certify that I considered the cost and income approaches to value, but, through mutual agreement with the client, did not develop them, unless
I have noted otherwise in this report.
9. I peliormed this appraisal as a limited appraisal, subject to the Departure ProviSIOn of the Uniform Standards of Professional Appraisal
Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of
the effective date of the appraisal (unless I have otherwise indicated in this report that the appraisal is a complete appraisal, in which
case, the Departure Provision does not apply).
10. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value.
The exposure time associated with the estimate of market value for the SUbject property is consistent with the marketing time noted
in the Neighborhood section of this report The marketing period concluded for the subject propelty at the estimated market value is
also consistent with the marketing time noted in the Neighborhood section.
11. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report.
further certify that no one provided significant professional assistance to me in the development of this appraisal.
SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that:
I directly supervise the appraiser who prepared the appraisal report, have examined the appraisal report for compliance with the Uniform Standards
of Professional Appraisal Practice, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's
certifications numbered 5 through 7 above, and am taking full responsibility for tile appraisal and the aopraisal report.
APPRAISER:
S. t (,)
Igna ure: ---;"~~+.iA;,LiJ,,,
Name: Susan B. Burkholder
Company Name: Diversified Appraisal Services
Company Address: _3!2. E. HiqhSJreet, Ste 101 ,Carlisle, PA 17013
SUPERVISORY APPRAISER (ONLY IF REQUIRED):
. /xt.z::.:;' -7 ail:
~ir~~:uIar~y E~~----------~-==----=-~=-==-==
Company Name: Diversified Aj)Q!aisal Services _______
- Company Address: ~~Hiqh ~eet, St~,JQ1,g-"Ilisle, PA 1.701]____
Date of Report/Signature: _June_28, 2006_____~___ Date of Report/Signature: June 28, 2006 ___
State Certification #:B1::000659-L ____~____ ____ State Certification #: GA-:990014-L~_____________
or State License #: ---________________ or State License #: _______________
State: PA_______________ ________ State: --"'f.-'--------__________________
Expiration Date of Certification or License: _.June 30, 20QI____ Expiration Date of Certification or License:JuQEJ..~.Q,lQQZ______
-._._--~~._-~-----~--,~
ADDRESS OF PROPERTY APPRAISED:
81 Smithdale Road_________
~JJippensburg, P A --1]257____________~__________
LENDER/CLIENT:
Name: ___~_______~_________
Company Name: Estate i>f Ch~s!~L9Jll.i~ ______
Company Address: !l.L~mithdale Road, ShippensburfLP_1L___
SUPERVISORY APPRAISER:
SUBJECT PROPERTY
-
/~ Did not inspect subject property
~~ Did inspect exterior of subject property from street
, Did inspect interior and exterior of subject property
COMPARABLE SALES
Did not inspect exterior of comparable sales from street
Did inspect exterior of comparable sales from street
APPRAISED VALUE OF SUBJECT PROPERTY $
EFFECTIVE DATE OF APPRAISAL/INSPECTION
426,000
January.l!L 2006 ~__
PAGE 3 OF 3
Form 205 - "TOTAL for Windows" aporaisal software by a la mode, inc. -1-800-ALAMODE
Fannie Mae Form 2055 9-96
Supplemental Addendum
File No. 0628
Borrower/Client n.a.
~rty Address 81 Smithdale Road
~llL~~ie~ensQlliL_...__..
Lender Estate of Chester Smith
---~-_.__.~-~~_.._-~_..._~_..~_._~-_._-~-~----
__Couny CUlllQerlil..nQ._
-----~-_ _Statf!.....F'i\.._________....1i2.lorie17257_
Additional Comments
The subject is older than five years old. All mechanical systems including heating, electrical and plumbing systems appear to be
working adequately. No warranties are implied in this statement.
The subject property has an on site weiland septic system. This is common for the area and have no adverse impact upon the
marl<etability or the home.
One or more of the comparable sales are older than six months old. AlthOl)gh there are comparable properties in the subject's
area, none have sold recently, therefore, sales in excess of six months old have to be used. All three comparables used were
the best available.
Although there are other similar home in the subject's neighborhood, none have sold recently. Therefore is was necessary to use
sales further than one mile from the subject property. The sales used are the best available.
The predominant value in the neighborhood is less than that of the market value of the subject property. This is due to the very
wide range of values of properties in the area and superior quality of the subject property. This condition does not affect the
market value of the subject or its future marketability.
Gross adjustments exceed 25% and net adjustments exceed 15% for one or more of the comparable sales. Although there are
other similar homes in the area, none have sold recently. The sales used are the best available.
The scope of the assignment included an analysis of the subject's area, an inspection of the subject property, an estimation of
the property's highest and best use and the consideration of all three approaches to value and the application of those relevant to
the valuation of the subject property.
The Intended User of this appraisal report is the Lender/Client. The Intended Use is to evaluate the property that is the subject of
this appraisal for a mortgage finance transaction, subject to the stated Scope of Wml<, purpose of the appraisal. reporting
requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the
appraiser.
Privacy Notice
Pursuant to the Gramm-Leach-Billey Act of 1999, effective July 1, 2001, appraisers, along with all providers of personal financial
services are now required by federal law to inform their clients of the policies of the firm with regard to the privacy of the client
nonpublic personal information. As professionals, we understand that your privacy is very important to you and are pleased to
provide you with this information.
In the course of performing appraisal, we may collect what is known as "nonpublic personal information" about you. This
information is used to facilitate the services that we provide to you and may include the information provided to us by you
directly or received by us from others with your authorization.
We do not disclose any nonpublic personal information obtained in the course of our engagement with our clients to nonaffiliated
third parties, except as necessary or as required by law. By way of example, a necessary disclosure would be to our independent
contractors, and in certain situations, to unrelated third party consultants who need to know that information to assist us in
providing appraisal services to you. All independent contractors and any third party consultants we engage are informed that any
information they see as part of an appraisal is to be maintained in strict confidence within the firm. A disclosure required by law
would be a disclosure by us that is ordered by a court of competent jurisdiction with regard to a legal action to which you are
party.
We will retain records relating to professional services that we have provided to you for a reasonable time so that we are better
able to assist you with your needs. In order to protect your nonpublic personal information for unauthorized access by third
parties, we maintain physical, electronic and procedural safeguards that comply with our professional standards insure the
security and integrity of your information.
.,
S' t I'
Igna ure --~;,w";;r.4~~~~_u_~___..
Name ~usan B. Burkholder_.~~____________.~__
Date Signed Jun~.1!L?Q.06__ ____.. _._____._.__
State Certification # RL -000659-L State
Or State License # State
Signature ---&;;,1'1~" :J~-te; _~__ _____.____
Name l,arry E. Foote. ___________
Date Signed lune~!lQlliL.....__.___._.~__~___
State Certification # GA-000014-L State
Or State License # State
~----_._~--~-~--
Diversified Appraisal Services
Form TADD2 - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE
Subject Photos
!Q!Iower/ClienLJl""'-_______________~_ ~
f~;~h~;':~~~g:;::~:~:;d. . -- C"","-C~~'":"d=---=_ .. _ -=5;,: ~~=~-- ---="~~d.,~57-.____1
Subject Front
81 Smithdale Road
SUbject Rear
SUbject Street
Form PICPIX.TR - "TOTAL for Windows" appraisal software by a la mode, inc. --1-800-ALAMODE
BorrQlVJl[Lr::1LeIlt--'J,<J,______ .. ______ ___________ __ _ _. _ ______ __. _____ _ ________ _____
P[QQMty Addl~ll1_ Smit~ale BQad ______________ . _________._._ ____________________
~itLJ?.h.il22ensburg_ --- __ .. -_______Q9JJnJLCum.berl~lcJ _ St~~-P6--____.li]L{;ode__1]:z~L_____
Lender Estate of Chester Smith
Comparable Photo Page
Comparable 1
1555 McClures Gap Road
Comparable 2
59 Clugston Road
Comparable 3
381 Kerrsville Road
Form PICPIX.BR - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE
I Borrower/Client n.a..~_________ _______ __ '_.
Properly Address 81 Smlthdale Road ____~__ _____._____. ___.____.
_Qi~ensblJl}J___~.__,,_ _~...J:ount\i._gumb~r@II9_~__ ._ _ __.__ nS@k--PA_________.~...liP....QOdL172~L___~_
Lender Estate of Chester Smith
Building Sketch (Page - <I)
120'
12.0'
12.0'
9.0'
L---
5.0'
14.0'
10.0'
16.0'
140'
10.0'
28.0'
280'
14.0'
14.0'
26.0'
26.0'
r-~--------- SKETCH CALCULATIONS
I--~-_m--=~-_~-----~l
[1'1
! ~
I ~ First Floor
-~._-~._---,,---_.~.-.::.._------ ._---~---- --~
.~~~~-----~--~-----_.~-
Ai : 12.0 x 12.0"
A2: 16.0 x 14.0"
A3: 26.0 x 14.0 "
144.0
224.0
364.0
------_.__..~._~-~~---_...~_._---_.-
732.0
r'~1 I A4: 16.0 x 14.0"
I A4 ! A5: 26.0 x 14.0"
: c:J I
1- .~ ~~. ==_ =.-. --: .1 :::,:,:::; ^'"'__- =-~-~=_= ~_1::~_
224.0
364.0
Form SI(T.BldSkl- "TOTAL for Windows" appraisal software by a la made, inc. -1-800-ALAMODE
location Map
Borrower/Client n.a.
Property Address 81 Smithdale Road
~ S~ippensbu~_
Lender Estate of Chester Smith
2iJill><It 17257 _ . _ ~
County Cumberland _______ State PA
JUIJIAT.A.
.~.
1.7,5'
PEflR'!
"U~11J
Ge.rmantOlJJn
fIUtHlI.jGDON
l(ltt~rni;!nrIY
OrdniSnce
bopot _"''e.
Ridgl2
8enderS\fillev
kendtsville,:,
'QuinO"1f
/,;/iJaynesboro
Form MAP.LOC - "TOTAL for Windows" appraisal software by a la mode, inc. - 1-800-ALAMOOE
APPRAISAL OF REAL PROPERTY
LOCATED AT:
Rear Pine Lane
Deed B.ook 213 Page 1041
Newville, PA 17241
FOR:
Estate of Chester Smith
81 Smithdale Road
Shippensburg, PA
AS OF:
January 26, 2006
BY:
Susan B. Burkholder, RL-000659-L
State Certified Residential Appraiser
This appraisal was completed to establish value.
Summary Format
Complete Appraisal
Form GA1 - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE
Vacant
IMo.
Type Public Private
o ~
11
No If Yes attach descri tion.
o Previous appraisal files
Manufactured Housin
No
441 Pine Grove Road
Gardners
16.84 miles
SALE 3
1354 Mountain Road
Newbur
3.68 miles
rtJ $
Courthouse
DESCRIPTION
None known
Conventional
7 -1-05
Similar
2.63 acres
Similar
Similar
45 ears
Similar
Baths Total: Bdrms: Baths
5 : 2 : 1
782 S . Ft.
600
-3 900
-22 100
$ 61.03ctJ
Courhtouse
DESCRIPTION
None known
Conventional ,
~~
10-7-05 :
Similar
11.81
Similar
Similar
22 ears
Inferior
Total :Bdrms:
+ - $ Adjust.
+ ( -)$ Adjust.
+ -)$ Adjust.
-14500
+10
-6,000
-4,700
+5,000
+5,000
-2000
+1,000
+1,000
4,600
-4,000
-8,600
+5,000
+5,000
-8,000
-13,400
+ 1 ,000
+5,000
-3 000
-2,000
+ 1 000
23,700
24,900
81,300
58,100
1.00
Althouqh there are other homes in the area, none have
This appraisal is made c>:sJ "as-is", 0 subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, or
[J subject to the following repairs, alterations or conditions Appraised in current condition.
BASED ON AN 0 EXTERIOR INSPECTION FROM THE STREET OR AN
PROPERTYTHAT IS THE SUBJECT OF THIS REPORTTO BE $ 81,000
~ INTERIOR AND EXTERIOR INSPECTION, I ESTlMATETHE MARKET VALUE, AS DEFINED, OFTHE REAL
,AS OF January 26, 2006
PAGE 1 OF 3
Form 205 - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE
Fannie Mae Form 2055 9-96
Desktop Underwriter Quantitative Analysis Appraisal Report File No. 0628065
Projecllnformalion for PUDs (If applicable) - - Is the developer/builder in control of the Home Owners' Association (HOA)? Yes D No
Provide the fOllowing information for PUDs only if the developer/builder is in control of the HOA and the subject property is an attached dwelling unit:
Total number of phases _~_____ Total number of units __~_______~____~ Total number of units sold ____~___~
Total number of units rented ~___~ Total number of units forsale___~_____~ Data Source(s) ___~________
Was the project created by the conversion of eXisting buildings into a PUD? [J Yes [] No if yes, date of conversion: _~_____~_
Does the project contain any multi-dwelling units? 0 Yes [J No Data Source: ____~_____________~____~_____
Are the common elerrHmfs completed? [] Yes D No If No, describe status of completion:
Are any common elements leased to or by the Home Owners' Association?
Describe common elements and recreational facilities:
DYes l]No
If yes, attach addendum describing rental terms and options
Project Information for Condominiums (If applicable) - - Is the developer/builder in control of the Home Owners' Association (HOA)?
Provide the following informafion for all Condominium Projects:
Total number of phases Total number of units Total number of units sold
Total number of units rented Total number of units for sale ____ Data Source(s)
Was the project created by the conversion of existing buildings into a condominium? DYes D No If yes, date of conversion:
Project Type: D Primary Residence Second Home or Recreational D Row or Townhouse Garden 0 Midrise r] Highrise
Condition of the project, quality of construction, unit mix, etc.:
No
IJ
Are the common elements completed?
[J Yes [J No If No, describe status of completion:
Are any common elements leased to or by the Home Owners' Association?
Describe common elements and recreational facilities:
DYes D No If yes, attach addendum describing rental terms and options.
PURPOSE OF APPRAISAL: The purpose of this appraisal is to estimate the market value of the real property that is the SUbject of this report based on a
quantitative sales comparison analysis for use in a mortgage finance transaction.
DEFINITION OF MARKET V ALUE: The most probable price which a property should bring in a competitive and open market under all
conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue
stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer
under conditions Whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting
in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made
in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration
for the property sold unaffected by special or creative financing or sales concesslons* granted by anyone associated with the sale.
* Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those
costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the
seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable
property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or
transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar
amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment.
STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION
CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions:
1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes
ttlat the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the
basis of it being under responsible ownership.
2. The appraiser has provided any required sketch in the appraisal report to show approximate dimensions of the improvements and the sketch
is included only to assist the reader of the report In visualizing the property and understanding the appraiser's determination of its size.
3. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific
arrangements to do so have been made beforehand.
4. The appraiser has noted in the appraisal report any adverse conditions (such as, but not limited to, needed repairs, the presence of hazardous
wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during
the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge
of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous
wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and
makes no guarantees or warranties, expressed or implied, regarding the condition of the property_ The appraiser will not be
responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions
exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered
as an environmental assessment of the property.
5. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal repOlt from sources that he or she considers to be
reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by
other parties.
6. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice.
7. The appraiser must provide his or her prior written consent before ttle lender/client specified in the appraisal report can distribute the appraisal
report (including conclusions about the property value, the appraiser's identity and professional designations, and references
to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower;
the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or
federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of
Columbia; except that the lender/client may distribute the report to data collection or reporting service(s) without having to obtain the
appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can. be
conveyed by anyone to the public througtl advertising, public relations, news, sales, or other media.
8. The appraiser has based his or her appraisal report and vaiuation conclusion for an appraisal that is subject to completion per plans and specifications on
on the basis of a hypothetical condition that the improvements have been compl~ted.
9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to completion, repairs, or alterations on the
assumption that completion of the Improvements will be pertormed in a workmanlike manner.
PAGE 2 OF 3 Fannie Mae Form 2055 9-96
Form 205 - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE
Desktop Underwriter Quantitative Analysis Appraisal Report
APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that
1. I pertormed this appraisal by (1) personally inspecting from the street the subject propertY and neighborhood and each of the
comparable sales (unless I have otherwise indicated in this repolt that I also inspected the interior of the subject property); (2) collecting, confirming,
and analyzing data from reliable public and/or private sources; and (3) repotting the results of my inspection and anaiysis in this summary appraisal
report. i further certify that I have adequate information about the physical characteristiCS of the subject property and the comparable sales to develop
this appraisal.
File No. 062806S
2. I have researched and analyzed the comparable sales and offerings/listings in the subject market area and have reported the
comparable sales in this report that are the best available for the subject property. I further certify that adequate
comparable market data exists in the general market area to develop a reliable sales comparison analysis for tile subject property.
3. I have take'l into consideration the factors that have an impact on value in my development of the estimate of market value in
the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on
the subject site, or on any site witllin the immediate vicinity of the subject property of which I am aware, have considered these adverse
conditions in my analysis of the property value to the extent that I had market evidence to support them, and have commented about the effect of
the adverse conditions on the marketability of the subject property. I have not knOWingly withheld any significant information from the appraisal
report and I believe, to the best of my knowledge. that all statements and information in the appraisal report are true and correct.
4. I stated in the appraisal repolt only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are
subject only to the contingent and limiting conditions specified in this form.
5. I have no present or prospective interest in the propertY that is the subject of this report, and I have no present or prospective personal
interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the
estimate of market value in the appraisal report on the race, color, religion, sex, age, marital status, handicap, familial status, or national
origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties
in the vicinity of the subject properly or on any other basis prohibited by law.
6. I have no present or contemplated future interest in the subject propeliy, and neither my current or future employment nor my
compensation for pertorming this appraisal is contingent on the appraised value of the property.
7. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the
amount of tl1e value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my
compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation,
a specific valuation, or tl1e need to approve a specific mortgage loan.
8. I estimated tile market value of the real property that is the subject of this repOlt based on the sales comparison approach to value. I
further certify that I considered the cost and income approaches to value, but, througl1 mutual agreement with the client, did not develop them, unless
I have noted otherwise in this report.
9. I pelformed this appraisal as a limited appraisal, subject to the Departure PrOVision of the Uniform Standards of Professional Appraisal
Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of
the effective date of the appraisal (unless I have otherwise indicated in this report that the appraisal is a complete appraisal, in which
case, the Depa/ture Provision does not apply).
10. I acknowledge tl1at an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value.
The exposure time associated with the estimate of market value for the subject propertY is consistent with the marketing time noted
in the Neighborhood section of this report. The marketing period concluded for the subject property at the estimated market value is
also consistent with the marketing time noted in the Neighborhood section.
11. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. I
further certify that no one provided significant professional assistance to me in the development of this appraisal.
SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that:
I directly supervise the appraiser who prepared the appraisal report, have examined the appraisal report for compliance with the Uniform Standards
of Professional Appraisal Practice, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's
celiifications numbered 5 through 7 above, and am taking fuil responsibility for the appraisal and the appraisal repolt
APPRAISER:
SUPERVISORY APPRAISER (ONLY IF REQUIRED):
S' to- -- - .
. Igna ure: -----.Ai.:l',;,.(~;.,.i.~1+--___________~.~_______
Name: Susan B. Burkholder" '- .
Company Name: DiversifiedAppraisal Services
Company Address: ].5 E'--'::llilb.Street, Ste 101 ,Carlisle, PA 17013 __
~~~~~UTarry E. f:~~';;~' -------~----------
Company Name: Diversified Appraisal Services
Company Address: 35 E. High Street, Ste 101 ,Carlisle, PA 170~
Date of Report/Signature: June 28, 2006 __ Date of Report/Signature: Jun~.2Q.9_~______
State Certification #: RL~()().?~9-L_________________ State Certification #: _<36.~D00014-L________________
or State License #: ---______~_______ or State License #: __ ________~__~.
State: PA..~_________ State: ~__ _____~_
Expiration Date of Certification or License: _.'Jun~~.QL_______ Expiration Date of Certification or License: -..-Jun~ 30, 2007. ______
ADDRESS OF PROPERTY APPRAISED:
Rear Pine Lane
i'ie'!{VlIl~!.l'AJ 724 L___ ~__~__
SUPERVISORY APPRAISER:
SUBJECT PROPERTY
i!~ Did not inspect subject property
: Did inspect exterior of subject property from street
i-= Did inspect interior and exterior of subject property
COMPARABLE SALES
Did not inspect exterior of comparable sales from street
Did inspect exterior of comparable sales from street
APPRAISED VALUE OF SUBJECT PROPERTY $ .Il1 ,000 ______ _
EFFECTIVE DATE OF APPRAISAL/INSPECTION Janua~2006
LENDER/CLIENT:
Name: __ _ ________________________________ ._
Company Name: Estat~_Clt Ch.e_ster~mith ______~_______..__
Company Address: f3.LSJ]lithdale R_oad, ~jppensbUL:fh.E.6._____
PAGE 3 OF 3
Form 205 -. "TOTAL ior Windows" appraisal software by a la mode, inc. -1-800-ALAMODE
fannie Mae Form 2055 9-96
Desktop Underwriter Quantitative Analysis Apprai.sal ~tep~rt
FEATURE SUBJECT SALE 4
~-----~-~_._-.- ._._-._-~- ----- ----_._-_._-~_._--~_._-
Rear Pine Lane Mountain Road
Address Ne~i1le Newville
Proximity to Subject
Sales Price $
Price/Gross living Area_
Data &
VALUE ADJUSTMENTS
Sales or Financing
_ Concessions
Date of Salemme
.. Location
Site _~ 4.~Z acre~~.
. . View _______ _Avera~__~
- DesignjgjYJL_ CabL~_.
Actual Aae (Vrs.) 34 years
ConditiQ[L_.____ i\vera~
Above Grade Total : Bdrms:
- Room Count 2 : 1 1
- Gross Livino Area 468 SJUj.
.. Basement & Finished
Rooms Below Grade
Gara e/Carport
, -- SALE -5
-L-__
SALE 6
- - -.----.----
CO!-lrtho~o;~___,------.-____
DESCRIPTION
None known
Conventional _ _________ _______ _..__.__~~___~-~---_~_
6-30-0'1.......__-------'--__.+4,800 ~_____._._~--------_ _____ ___~_~-_______
Similar ' _________~___
11.26acre -14,100 ______.____~____ ____~~._
Similar-....._.__.~__-'--__.__~___ _______._____._-'-_____.__ ______ ____ _ ___'___________._
J?lmilar__~_'_______ ______~___.______ ____________________
13 ears' -------------.-:-----___u___~.-------
------- --.--,-- --- - -----. ------~~--__r-----
J~ _1:.(:-l$.AdjuSl _J!f:SCBIPTION _-l.:+:t:J16cJjust:.._ _..Q!:SCRIPTION..___+_i1::-)t~djust.
Total -:Bdrms: Baths ~D2fii./.!< I ToiaiTBdrrTIi B~~~-.t~]}S:;&t'":iBi2L
- --~~~,~-~----t=--~.~- S-g~Ft,~__________
-===:=__i.=~~=~~__=--=='::::_ :__===__=
+2 000 :=t- :
~---~ , - ----===-=-:-==-=.:::::::---: to=--= ':::-=_':::-::-=:='~--:----~I
7)b; $ 3,500 +-U-=cr$.-_ -~~~ ~ l..llt....-LL_..J~ _ __
~I'JL 58.400 . ~I! . ---1:6,:::- ~L _ __.
10 $NO prior sale IistecL__~_____ -C ___ ~ _____ $ __ ~==_=__..:_.=~~-
---..---..---------.-----..--.------_~_..__oo_____~ ---.-. ._. __ ------00--- __u_ .-___oo.__m_oo 00-----------=1
4 : 2 : 1 -4,000
--2.1JUiiJ.lL--'--__ -2,200
None . +5,000
None __._---------'---.::':5,000
None
Porch
None
1+
~~._~-~----------_..._~--
-~.._~~----~--,~. ~----_._.~--,._-------_.,---_._._----------_._-- .----'-- ~---_._------_.,_._-_._----
--_._----~------_._-------------,._._..,----- ----.--
-~-_._--_.~----~-~-----_.---------------~--_.._---~--_.._~--~_._- -----------_.__.__._--~-----_._--
._--._---~_._._._------~-_._--_.__._._---------_. --- .~_._----_.
._-~_._---.._-------
--~-~--_._-_._----_.__._-----------_._._._-------------..----..--
------~--_.__._----~~------._---------_.
---------------_._-~
-~---_._---~--_.._--~---_._---------.~
.___ n' .________._~___~~___~_______~~_____~~_~____~
-------~~-----
-----~-----~._~--._-------------~-~----_._--_.._---_.._---~--_._-~-~
--- -- - ~ --- --- ---~~-----
--------~------------------------.__._~----------------
--------------------------- ---_..__._"---~-~-------_._----._._-------_.__..------------
--.------------------
~----~--~-~-~._---
---------------._----~------------------_._-_._~------.-~-------~---_._------_._----------_._--- ._---~..- ---~-..- --_.._----_._----~------
_.~-_._---_._-----~~-------------~-----------_._-_._~---...--.-
----------~-_._---_._------------~._---~._._------~-_.--~---------~---.._----'------------------------
-~----~~----_._--------~--------
--_._~.._---_._---------------~._---------------~----~--~-~------.-----.---.-----.----
-----~_._------~~-~-~------------------------- ----. ------"_.._--------_.~
--"----~ ------~~------------------------~----------
----~-~------_.------_._----------~----
---~-----.._-.----_._------- - --~---------~~--------------------------------------------
-~-~--------_._~----~._-~--~--------_._---_.._-_._-------------------------------.~-----_._-----------._.
_.~~----~----------------~-_._----~.__._._----------_.------ --------------
-~-----------------_._---_.----------._-----------------------
~------------~-------. --.--.-.------
M________~.._.~____________.___________________
--._----------------------------_._--------~--~-~~--~--.-._-------
--._--~._-_.._----~~.._-
--~----- ---.--------~---------~-----.._--~-~._---------~-_._-----------~_.----~_._-----------------~---._-
...~------------------._------------_._-, .----------
-_._---~~-~---
---_._---~--------_..._-~---_.
--------~-~
----------~~------------------------------~---~._-~~--------------~~-----~-
_._--~"----------
'-~------~-------~----_._---_._-------------~
----------.---.---.-----------
-----------------~-----------
------._--------------------_._-----~-----~--------_.---~-._-------~-~_._-~
.---------------.------
.-._--_._-._._-----------------."---~-_._----_._---'------------------...--.--------- --------~------------------------------------
--~~--_._~-----_._---~------~_._--_._--_._------_._------~-----------_._---------- ----.--.----
Diversified Appraisal Services
Form 205,(AC) - "TOTAL for Windows" appraisal software by a la mode, inc. -1-80C.ALAMODE
Fannie Mae Form 2055 9-96
File No. 0628068
1f~:~~~: :::~:~:~~::- ~:"~-c:m~:':~ ~ ~~f='~~~A =--:=- --- -=j,_,,,i1~~_:==l
Additional Comments
The subject is older than five years old. All mechanical systems including heating, electrical and plumbing systems appear to
be working adequately. No warranties are implied in this statement.
The subject property has an on site well and septic system. This is common for the area and have no adverse impact upon the
marketability or the home.
Gross adjustments exceed 25% and net adjustments exceed 15% for one or more of the comparable sales. Although there are
other similar homes In the area, none have sold recently. The sales used are the best available.
One or more of the comparable sales are older than six months old. Although there are comparable properties in the subject's
area, none have sold recently, therefore, sales in excess of six months old have to be used. All three campa rabies used Were
the best available. Sales of cabin are scarce. The sales used are the best available.
Although there are other similar home in the subject's neighborhood, none have sold recently. Therefore is was necessary to
use sales further than one mile from the subject property. The sales used are the best available
The scope of the assignment included an analysis of the subject's area, an inspection of the subject property, an estimation of
the property's highest and best use and the consideration of all three approaches to value and the application of those relevant
to the valuation of the subject property.
Privacy Notice
Pursuant to the Gramm-Leach-Billey Act of 1999, effective July 1, 2001, appraisers, along with all providers of personal
financial services are now required by federal law to inform their clients of the policies of the firm with regard to the privacy of
the client nonpublic personal information. As professionals, we understand that your privacy is very important to you and are
pleased to provide you with this information.
In the course of performing appraisal, we may collect what is known as "nonpublic personal information" about you. This
information is used to facilitate the services that we provide to you and may include the information provided to us by you
directly or received by us from others with your authorization.
We do not disclose any non public personal information obtained in the course of our engagement with our clients to
nonaffiliated third parties, except as necessary or as required by law. By way of example, a necessqry disclosure would be to
our independent contractors, and in certain situations, to unrelated third party consultants who need to know that information to
assist us in providing appraisal services to you. All independent contractors and any third party consultants we engage are
informed that any information they see as part of an appraisal is to be maintained in strict confidence within the firm. A
disclosure required by law would be a disclosure by us that is ordered by a court of competent jurisdiction with regard to a legal
action to which you are party.
We will retain records relating to professional services that we have provided to you for a reasonable time so that we are better
able to assist you with your needs. In order to protect your non public personal information for unauthorized access by third
parties, we maintain physical, electronic and procedural safeguards that comply with our professional standards insure the
security and integrity of your information.
Form TADD - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE
Location MaJ}
Borrower/Clie!lL.s,:~___,~_________~~___ ___~'_______ ___________ '____~___
Propert'LAddres.!iBS'~r Pine Lane__________.__________~___~_ _______~_
CilL Newville______ County Cumberland_______~__ Slate_PA ----______1l12.CodLJ1241___
Lender Estate of Chester Smith
Granuille:
;IJll
J I) I'j I AT",
+
Cargill
"~rport
1m',
.,' F L I Ij
Blacklog
;rizJ
P lOR n \'
.'New
GermantolJJn
HUt,nttlOOON
\ Concord
::Ooylesburg
~!"
". Lurgan
F f1 ,",
OrrstCillJrl
K L 1 N'
lmtert(~nny
Ordni'&oce
Depot Araa
cha~~i~i~~
Afjlorl-t_
-;idq,~
Bendersville
A D A f,J! S
'i,Hf1P; .-West Hamilton
Heights",
moos Micro$oltCotp
Form MAP.LOC - "TOTAL for Windows" apnraisal software by a la mode, inc. -1-800-ALAMODE
Subject Photos
Borrower/Client n.a.~_~___~_~~_~. ______~_______. __.~__~._.___ j
Pro.IJ.m1'LMdress Rear Pine Lane.__~~__._~___~__~.__________._~_
~:~d",N~";'~~ ~of Ch"tee 8m'" C,""", Co""'oc'ood ---~ ___~Sta'e ~A __ __ _], Code 172"'-~_-
Subject front
Rear Pine Lane
Subject Rear
SUbject Street
Form PICPIX.TR - "TOTAL tor Windows" appraisal software by a la mode, inc. -1-800-ALAMODE
I
Comparable Photo Page
Borrolf1er/Client n.Q.~______~___~__~__~___. _____ __ __~________~_ __~__~__~~_~~_
l'r9Jl.@ill'Addre~_LBear Pine Lane _ ________~____~__________~~___________~____
CitX' Newv~~--_______~iill1I'._gumberI9.QCL__________S.@tLP~_ _-n~-__~-_JiQ..Q.QQL1I~4L_
Lender Estate of Chester Smith
Comparable "1
441 Pine Grove Road
Comparable 2
300 Meadows Road
Comparable 3
1354 Mountain Road
Form PICPIX.BR - "TOTAL for Windows" appraisal software by a la mode, inc. - 1-800-ALAMODE
Comparable Photo Page
,
~orrower/Client n.a. .-----.---~-~--____~_.m _~~__~______~__.
Property Address Rear Pine Lane
~ity Newyille ---_____ ___ Coun~umberland____~_~____SJillLE'A~_____.....lip CodLl7241_~__~__
Lender Estate of Chester Smith
"._--_..~--~--.~
..
Comparable 4
Mountain Road
Comparable 5
Comparable 6
Form PICPIX.BR -- "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE
BUilding Sketch (Page - 1)
.
Borrower/Client n.a.
Pronertv Address Rear Pine Lane
City Newville
Lender Estate of Chester Smith
_.~---~~-~-_.._~~-~_._-,-
~-
,.
...
-~ Cumberl~g~_~___~_~__JltateYA _____ __firLfQClL172~L_~__
.
26.0'
18.0'
First Floor
18.0'
26.0'
26.0'
18.0'
Basement
18.0'
26.0'
D
'~-----. ~----]
SKETCH CALCULATIONS
"--l'-~---~~_____--n______-_.._-- ---~~--...~.-
--._._~--- ~ ~-'-------_._----
A1 ; 26.0 x 18.0 =
468.0
---------~ ~'~'~-"-_._~~-_._-_.~-,-~.~~-._-----~----
First Floor
468.0
------~~._-------~~.__.-
D I AU60. 18.0 " 4680
- - - - . --- . - - ~--- -- - - __I ",""mool _ ._ ____ _ _ _ __ _ 468.0 j
~-._.~---~-- -- ~_m~__~. .._________._jJotal UVin!l~___ __ _'___.._ ___468.0._.1
Form SKlBldSkl - "TOTAL for Windows" appraisal software by a la mode, inc. -1-800-ALAMODE