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HomeMy WebLinkAboutOC1967-0074 - ESTATE OF PATSCHI I II L, I-Iri...I ," IN THE ORPHANS'COURT OF W,~Sh':NG'I'ONCOUNTY.. PENNSYL V.a.N11\ I .I., t., HE..~RING ON PETITION FOR CITATION TO SHOW CAUSE WHY DISTRIBUTION SHOULD Nor BE MADE IN ACCORDANCE WITH ADJUDICATION OF COURT No.74 of 1967,O.C. ) ) ) ) ) ) }Deceased.. ESTATE OF "-oI-Q Z !: Ul..:~, <: z~.J.GLENN PATSCH, .J >-~~z.., ~0. IN BE: II ..=u ;::.... N APPE.ARANCES~ .\....,'.~ -,' ., ",' .j , .',., ('\'..t ~., '.,.•"J .,.~j', ,",. , I Friday,April 14,1967,at 10:00 A.M.,EST. I ADAM L.SANDERS,ESQ.,of Washington, Penna.,representing the Petitioner. THE HONORABLE P~VINCENT MARINO" President Judge of the said Court. ROBERT L.ZEMAN,'ESQ.',of Canonsburg. .Penna.,.representing.~dolphL.Zeman, Executor of esta te of J.Glenn Patsch. "(. ,f' "I TIME: via: III l-e:ou. IIIc:: l-n: :Jo U .J< U l1.l1.o !l:~.~1 BEFORE:o J..: ·u o :J..,';.',"J \ I IAJ F~t...~ -#4< ,INDEX TO WITmN TRANSCRIPT I '.1 ;," t ...~=====-----­ ~~~ I iI~ .: I ', I,'II, j 1 t-=u ll:I-UI i5 .J 0( U o:l., :tl-t-N WITNESS ." t' "~" .J I'1 Direct 8 40 Cross 28 47 Redirect 49 Recross 50 ui ll:III l-. ll:..~.0Q. 1IJ {~a::;..:~I l-ta::,, :l 0 J u I .J0(',!,u ,. Ii:l1. .I 0 u ,:,:, 1 1\~ ,, t \'J, •"j',,.(f'~,. ·r if;," ",'. .' " " ," RESPONDENT'S EXIDBITS:. A :..' A Xerox copy of a United States Estate Tax Return,Form 706, :in the name of'J~Glenn Patsch,presented on page 8 and admitted on page.13. t ...(Ie'"~~ Il . ...:.:::..!====~==========r==1,,I \EXHIBITS I .1' II II A Xerox copy of an Estate·Tax Closing Letter in the estate of J. Glenn Patsch,'identified as Form L-154,addressed to Adolph Zeman,and.dated July 1,1966,presented on page 10.and admitted on page 13 ~.'. 0{B'" z-=:>.J>IIIZ Zl<la.. i C-o'l-I:) Z :z:III«~ ..=u ::.D -III o .J« U o:J., x~E-(II lfia:IolI-a:o0..Iola: I-a: :Jo U .J-=: .U Ii. Ii.o A Xerox copy of a letter from the U.S.Treas'ury Department,. Form D11.0,addressed to Adolph Zeman,dated July 1,1966, and having attached thereto various forms in the nature of work- sheets and summaries,presented on page 11 and admitted on page 13• A Xerox copy of U.S.Treasury Department Form No.1331, entitled Notice of Adjustment,addressed to Estate of J.Glenn Patsch,Adolph L.Zeman,Esquire,Executor,presented on page 12 and admitted on page 13. A Xerox copy of a Deed from Pittsburgh RallwaYs'::Cornpany to Patsch Brothers,Inc.and Zeman and Zeman,dated January 9, 1956,presented on page 23'and admitted on tage 23.. '.., , I II -- " ! ---------------...,...------,......,I II141 -:-.:..::::_d;1.===VF============================r===I ;', hearing on Petition to Show Cause why distribution should not·be THE COURT: MR.SANDERS: The Court is ready,gentlemen. If'the Court please,this is the time set for made in accordance with a former adjudication of the Court in the estate of J .l.-Glenn Patsch.The petition was filed;answers.~'.'i._!.)'\~~.;2 ..i _.~,~ were filed to that petition in which the first nine paragraphs of .« z«>-'>-'nzzIII ll. zoI-CI Z J:lJl«~ .1,; 'I .~.\•...~.•~:.:..t-,f the petition,all but two of the paragraphs were admitted.It would •J . "l'~""'\::':,.;... ~.;.seem to me,inasmuch as the only part of this thing isn't admitted.. { is involved,the payment by Mr.Zeman of $2583.12 to Wilma B. •"!..'\1 )../;"! Patsch estate,that possibly the defendant should go first.Because •.~r i ~lJ a: I-lJlo .J« u o ;:l... J: I-r-N I can'~rebut something that hasn't been.put in.The first nine paragraphs which amounts to our claim have been admitted.And I don't know whether Mr.Zeman will agree to that or not.That is the crux of the matter as 1 see it from your answer. .speak for themselves.As Mr.Sanders says,the first nine aver-.!;r .'- . ". ...,'c"··.::, ,t<• ••• ments.-,;of ,hiS petition have been admitted in the answer of the :"'..1;I , ".. res'Pondent,which'contain new matter. ".,\'l.- . THE COURT:Where do we go from here? If the Court please,I believe the pleadings ", ", uia:~MR.ZEMAN:a:o0-IIIa: /r. ;:lou -'« u LLLLo .'f.t .•', MR.ZEMAN:If the Court finds as a matter of law that the petition in its first nine averments states a proper cause for the ,, ! •r • i•I, r ~...~. ijt consideration of this Court,then it would appear that ordinarily, procedure would require that the respondent,the executor,then prove the matter alleged,the facts alleged as new matter. I 1 agree'with that;but there is no use in us wasting time'if it's admitted,as 1 see it. I MR.SANDERS:• _._---:;:"==F========================~=5= I III! Ii ,- ,j and not relative to the issue. ,I ! I I., What others? They are not une,quivocally admitted.. That is a conclusion of law,Your Honor. In order to save the time of the Court and the If the Court would prefer,we can do this If the Court please,they are admitted.But it If the Court please,at this time the Respondent, .Let's proceed in that'marmer. new matter.And.ill order to save the time of the,Court and the record"we will re,(rain from 'reading them.The averments have been admitted in the answer of the petitioner. offerinto evidence the averments of paragraph number five of the ,'j.• of the,new m~tter which appear in his answer to the petition•.We " Adolph L-:Zeman,Executor,offers into evidence certain averment is aveITed,and Mr.Zeman did not so state,that they are immater 1 ments having been admitted in the answer of the petitioner. seriatim.I was waiting for Mr.Sanders'response.We offer averments of paragraph number six of the new matter;the aver- •'j I'.l..-t·..record.'r'we offer into evidence without reading the same,the I ;. MR.S.ANDERS:~' MR.ZEMAN: MR.SANDERS:' THE COURT: ':..~! MR.ZEMAN:'j~" MR.ZEMAN: THE COURT:..{-MR.ZEMAN: J 'I il <t z<>.J>-Ul I z Z!JJ ~11. i~'I 0"r-j Clz :z:j}l/l<I s .:U t c: f0-Ul 0 .J< u-I 0 ::J.., :tI-....... t.<Ii1Il::u ~.."f0-e:0a.!JJr:: I- ,~Il: :J 0 U .J<~'t U•ll.ll.0 I 1lJ~I1 Il,., ";1 II I, i 6 !, I I!,I \I II i, ! ·into evidence the averments of paragraph number 7 of new matter, I ' .'to the effect that Adolph J:.,.Zeman as Executor,under date of Augul t 22,1966,delivered to Edward P.Patsch,Executor of the estate of .Wilma B.,~Patsch.a check in the amount of $2583.12.This aver-· ri ,"':;:::-'.':-:.1===::il========================F== I ment having been admitted in the answer. II! Now Mr.Zeman may say Mr.Zeman,may 1 stop you a minute1·On paragraphs six,seven and eight,parts of them are admitted and ;';. We offer into evidence the averments in paragraj h parts of them are specifically denied. or at least not sufficiently denied as a matter of law.We offer $2583.12~:for the reason that that averment has either been admitte~ into evidence--- - ~ ·number ~ight of new matter•.That Adolph L.Zeman made demand that the;denial is argument.But there are specific denials in all 'were ssimply admitted as stated,which is not.so.On paragraphs "',,:".'f.:,I upon the,'estate of Wilma B.Patsch for the return of said sum of , I ·.of tho,se paragraphs.And the way he is putting this in would lead ~~t :~~:"I ..~,'!'..'.the Court to believe,or anyone reading the record,that they , ..=u a: l-I/) a .J MR.SA NDERS:<u a::>-, :r...,... l\I lfia: UI I-a:o Q. IIIa:• 1-.a:::>ou .J <t U~. l:.o <z<>.J>-(/)zzUI!l. iol-e>z :t 1Il<~ .six,seven and eight,am I right,Mr.Zeman1 i: .No,Mr.Sanders,1 did not make that statement.MR.ZEMAN: iI 1 offered into evidence certain averments of thcs e paragraphs which ,.11 IIhavebeenadmitted.I did not ask leave of the Court for admittanceJ I 1 I!.1 i of the entire paragraph.I f .__._,lr;---tt------------------------+--l b ~if.~:'I~~r --.--..,....-.....J 7 '.'THE COURT: MR.ZEl\1AN: Are there any others,Mr.Zeman? Yes,Your Honor.I have one more. iIij' THE COURT: MR.,ZEMAN: You'may continue. We offer into evidence the averments of paragra h number nine of new matter,to the effect that Edward P.Patsch, ..: z<>J>-IIIZZ\IJ0. iol-e>z :t CIl..::s: one of the heirs of J.:Glenn Patsch,who is entitled to share in the distribution in his estate,is the Executor ot the estate of Wilma B;Patsch and the sole devisee under the last will and testament of Wilma B.Patsch.These averments having been admitted in the answer of the petition. We will now,with the permission of the Court, offer testimony in substantiation of the remaining essential aver- ments. answer are properly now a part of the record and are admitted as". to by counsel,or portions thereof which have been admitted in the such •...o·,:~. ., ';; The RespondentThankyou,Your Honor. The Courts rules that the averments referred :t... l' :'4 THE COURT: lTia:wl-e:o0.wa: I-a: ;)o U J..: u l;:MR.ZEl\JT..AN:Lt.o .~calls Adolph L.Zeman. I -~,"iiij; -:t----tj--------------------------.-----------i!---- r-Adolph L.Zeman,Esq.8 Q Your name is Adolph L.Zeman? Q You are the 'Executor of the e8tat e of J.Glenn Pat8ch,deceased? ADOLPH L.ZEMAN,ESQ.IS CALLED AND SWORN. DIRECT EXAMINATION BY MR.ROBERT ZEMAN: ,..Yes,sir.A Glenn Patsch). A Yes,!did.' Tax Return in that estate? my office file. I ! \ I i· I I,, ,;. I •.•:. .'::".~, Yes. Are you a.member of the Bar of this Court? Yes. a United States Estate Tax Return,Form 706,in the name of J. (Stenographer marks Respondent's Exhibit "A",a Xerox copy of if that is your office copy of the return which you fUed? Patsch,,will you state whether or not you fUed a Federal Estate With the ermission of the Court,we offer into evidence Res ponden 's A Yes,it is in my handwriting. Q Mr.Zeman,1 show you Respondent's Exhibit marked for identi-. fication as Exhibit "AII,purporting to be an office copy of the United States Estate Tax Return,Form Number 706,and ask you A ,Yes.The original was fUed with the Government.Th'e copy is in Q Do you have an office copy of that return? Q Mr.Zeman,in the course of administering the estate of J.Glenn A· A Q <l; ,.z I 0(>.J>-III '1 z ZL:J0- f i,I 0 1 l-I Cl i z ::t !III<l; I ~•,,...:1 u a:l I- f\!III i a .J0( U-0:J.,J :J:l-t l"- N,via:w'I 'l-n::00-Wit I-a: :J0U .J0( U lJ.l:.0 I 1f "~I"f t••,~ 1'.J ,. the same for the record., but as to the admission in evidence,we wiUhave to concern our- I J, I! .!L ·I I i •·! IIII .:[ III iI Mr.Zeman,do you know whether the We will permit you to substitute the Xerox copy, .We will reserve our ruling on it as to materialit.;• ., United States Government? Yes,it was.. as Exhibit "A"was audited by the Internai Revenue Service of the Estate Tax Return which you filed and which we have identified We will be going into this,Your Hc:nor,and the materiality,we believe,will be demonstrated in the later testimony.' .Thank you,'Your Hmar. THE COURT: THE COURT: ~U !!l-UI o J <{ U o;A Adolph L.Zeman,Esq. Exhibit "A",and ask leave to substitute therefore a Xerox copy of selves with the materiality of same. ~Q. «>J>-UIZZwa. zoI- "Q. z I j I:l'l·lj Iil 11~1 . •,1 " J:~,... t'I Q (Jj 0:Wl-e:o0.we:A l-e::> 3 Q J <{ U u.u.o Will you state whether,as a result of that audit,any adjustments were made in your Estate Tax Return? .Ob,yes....Will you state whether or not you received any correspondence or documents from the Internal Revenue Service in connection with IIIt· I--I." .1 ita audit of that return? I A Yes,from the different agencies of the Government that handle particular phases of the tax return. (Stenographer marks Respondent's Exhibit "BIl ,a Xerox copy of Adolph L.Zeman..Esq.J 10 July 1.1966). MR.SANDERS:Mr.Zeman,is this all of the material sent with further exhibits in this connection. this same letter or just a part? do this in an orderly fashion. otfer the whole of the material.not just parts. This is one item.We will have occasion to oriez We propose to.Mr.Sanders.But we wanted to I feel that some time during this hearing you sho ,lldME.SANDERS:'. MR.ZEMAN: MR.ZEMAN: (Continued direct examination by Mr.Zeman): !;s,,, "i~, 4,I l.~ :';«";~z...~«~>.J;~)-.,If) "z~z,W0- i!0>I- 'i Clz j r If)«~ MR.SANDERS: ..:~Q"c:I-!!!0 .J« u 0 :J., J:l-t-('I ctireLlll-ll: 00.Lll 0: l-re :l0 Au ..J« u Ql:.I:- 0 Mr.Zeman.I show you Respondent's Exhibit marked for identifi- cation as Exhibit "B".purporting to be an Estate Tax Closing' Letter in the estate of J.Glenn Patsch.identified as Form L-154. addressed to you.under date of July 1.1966.and ask you whether you received this in the course of the mail from the United States Treasury Department? Yes.< If the Court please.we offer into evidence at this time Exhibit "B" identified by the witness,and ask leav12 to substitute a Xerox copy for the purpose of the record. If the Court please.I wish to object to the admission of this.unless it is shown later it is material to the issue before the Court. ,< i I ri ..•I---1t------------~~- , .•• ...•<.<,r.t;· ~,' I""' #'.:t' .>. t I,[ t 11AdolphL.Zeman,Esq. Yes,II did. Depart ment? due course of the mails,received this form from the U.S.Treasu of worksheets and summaries;and ask you whether you,in the July I,1966,and having attached thereto.various fanna in the natu in connection with the estate of J.Glenn Patsch,under date of If the Court please,we offer into evidence Respondent's Exhibit "C' .and ask leave to substitute a Xerox copy of the same. States Treasury Department,Form L-IIO,addressed to you, cation as Exhibit "e",purpoI'Ung to be a letter from the United !Vir.Zeman,I show you Respondent's Exhibit marked for identifi- to Adolph Zeman,dated July 1,1966,and having attached thereto v~ious form~in the nature of worksheets and summaries). a letter from the U.S.Treasury Deparhnent,Form L-I10,addres ed ,. (stenographer marks Respondent's Exhibit "C",a Xerox copy of ' on all of these matters until they are properly concluded. Q Yes,Yo~Honor. ~ z~>.J>-lJl Z 7-Ula. i Q 0t-o~:t: lJl <{::; ~u c:: f-III 0 .J<t u· 0 :J., l-I'(II ui0: Ul l-a:0a.wa: f-A0: :J0u Q.J<( u ii:l1. 0 "j' i, j ~\~~1i==#=======================!===1! .i THE COURT:Well,we will reserve our ruling temporarily I,,I tII I I IIiIII \ 1! THE COURT:The substitution is permitted in all of these "..,< matters.But the ruling on the materiality will be deferred until all of the exhibits are in. (Stenographer marks RespondentIa Exhibit "D",a Xerox copy of u.S.Treasury Department Form No.1331,entitled Notice of makes being to an estate.and this petition being -filed by an individulU Adolph L.Zeman,Esq. Adjustment,addressed to Estate of J.Glenn Patsch,Adolph L. If ! 12 , II fII \I, i IIIii I ItI iItIII, rII, I! I \i IIIII If I I,I, ,\: I •I ;1 I I ;:-:; 'I ,0,• :~ The payment,that,he T~t1 do not see the ,materiality or that they What is your objection,Mr.Sanders,to the Is that the last of the exhibits in this matter? In this connection.We may have one more,but .. .....I~f ;••J...:.,'_;~ are relative to the issue before the Court. admission of these exhibits? not in..,this phase of the matter. purpos~s of the record. .''.'•....J.., Exhibit :'D"and ask leave to substitute::a Xerox copy of the same for If the Court please,we offer into evidenc'e at this time,Respondent's ,Yes,I ,did. .,.. course of the mails from the U.S.Treasury Department? .Executor"and ask you whether you received this document in the Notice ,of Adjustment,certified under date of October 7,1966, addressed to the Estate of J.Glenn Patsch,Adolph Zeman.Esquire Zeman"Esquire,Executor).; 1 show you Respondent's Exhibit marked for identification as Exhibit "0",being U.S.Treasury Department Form Number 1331.entitlec .(/.. MR.SA NDERS: <Iia:w I-a:oll.wa:THE COURT::i~f-I0::::~••,\." :>ou -I« u 11-11-o :tl-I' C'l MR.ZEMAN: ..=u a: I-~, C ..J<: u o;THE COURT:". Q ..: z,~>..J)" 1/1 Z Z l~ U. zoI-~A rVl<::;Q , " '~ ~,,1tt '1 , J.~... i~,-1 , , II ; I , e~~.,I J "'~, "",..~. 1 I.!, t heir"that I carmot see,if they are attempting to .:;how setoff, which hasn't been claimed in their papers or counterclaimed, which is not so stated.that it is material to the issue before the t-,iJ:I_,...:c:.:o:,:u::r:..:t:.:...~l..:a::m=...!pe~r:.:m=it:.:t.::in~g~it:....::to::....:b:.:e~pr:.:e::s:.:e::n=t::e.:d~s:.:u:.:b~j.:e:c.:t ..:t:o...:m::!..y...:o:b~~~e:c:ti:o::n~,-t---- I : ].: as Item Number .13? for Schedule "c"and tell the Court what adjustment was made '.I;' ! - iI II' II I 1I i I I!I I I I I !I \ The materality and relevancy of all of these ., TQe return indicated no valuei and the correction made by the - Now will you refer to the top of that worksheet and in connection to reflect value of loan to I.C.Patsch &Sons.Inc." the examiner,.in longhand he has written,"Item 13 is include~ with Item 13,will you state the value shown on the adjustment?·.. In the worksheet prepared by Mr.Henry Adams,Henry R.Adams, will you please refer to Exhibit "e"and the worksheet attached part of the record Exhibits "A"."B"."c"and "n"offered by counseL Exception noted. time,the Court will rule that we shall admit in evidence and make to prejudice anyone's right to have them in evidence,whether they be completely material or only partly material.So that at this the Court in determining this matter.And it certainly isn't going exhibits may be questionable,but at the same time they may aid because I do not know what is to follow it. THE COURT:'. <Iin:IoJt-Il:oa.w a:Q t-Il: ;)oU .JoJ: U I.l.AI.l.o I II II II <t z<.>.Jr~?z Z (;J Co Z 0t- l'Z !: ~?<5:Q t '"t-o) Q .J< U Q ;)A-, ~;:r- l'l ._.....1\====tl=============A=d=Ol~p=h=L=.='Z=e=m=a=n=,==E=s·~q=.========*==13===.•~fiIj f- examiner is in the amount of $2117.97.The adjusted amount is Q A $2117.97. Now refer on Exhibit "e"and the worksheet for Schedule F.and tell the Court what adjustment was made as Item Number 6. In Mr.Adams'handwriting appears,"Item 6 is intended to include 111I -I I J !-1eJ.I 1, (. ". Adolph L.Zeman,Esq. decedent's share of the value of real estate held by Patsch Brothers ,Coal Company partnership.II 'The calculations,the return,my return or no value.The corrected return by the examiner,$4166.6 • And the adjusted valueI'$4166.67. Now will you state whether or not there were any other adjustments ','. made by Internal Revenue Service on your return with relation to the value of stocks? Yes.There were quite'a number of cases where there were adjust ments made,because I,took the low values of the stock,t~.nd the Government wanted the mean values.1 don't have a statement in front of me,but there are quite a few such items that you expect normally in any Federal Estate Tax Return where the examiner. makes what are properly essential adjustments in valuations. I call your attention to a thermofax sheet and show you the same, which is attached to the answer to new matter of the petition.The thermofax purports to be a copy of a letter from Zeman and Zeman to Adam L.Sanders"Esquire,dated August 22,1966;and ask you ,(: whether you wrote that letter? Yes,I wrote this letter. 14 11 \ \ IIIIIIII II' ,..-,--,,-.,1r-tt----------------------+__~ ., ';, ej Ii~ ),r A When you wrote this letter,on what information did you rely for setting forth the items arid the figures? This requires a rather extended exp~anation.1 knew 'Mr.Adams quite well over the years and respected his ability as a Federal III I f:' II IIIIiII iI -i \•I, I! !ii IIIII I'•.II . i I .1.1 '.;.--'. Estate Tax Examiner.He appeared in the office one day and told B.Patsch..And that as a result,he had concluded that I had me that he was in Washington,that he was either working on or They are identical. had completed the Federal Estate Tax Return in the estate of Wilma underpaid the estate of Wilma B.Patsch in connection with three cation and as to the amounts.And I then dictated a;letter,using thE ., tile amount of $2583.12.And I hastily drew a check to the order items._.He jotted down these three items,both as to their identifi- Will you state whether or not you had any part in the preparation at the time that I had underpaid the estate of Wilma B.Patsch in exact data that.Mr.'.Adams had given to me.As I say,he stat ed in the amount of $2583.12,and sent it to Mr.Sanders~ of Edward P.Patsch,Executor of the estate of Wilma B.Patsch,. ,. Patscb and sons,and an item in the amount of $416.6~67 with The figures of $21,17~97 with regard to an alleged loan to I.C. of the Federal Estate Tax Return of Wilma Bo Patsch estate? Yes,they do . regard to Canton Township property appear in this letter,do they " Will you state whether or not these entries correspond to the not? entries on-Exhibit "Cll to which you have previousiy testified? ,.A bsolutely not o· A I· II I ~z.::>J_>-~,z.,. wCo Z0f-az J: VI<:;: G c: f-", Q J< U 0 Q:l.., ~r-C'l tri<l:w Ar-a: 00. W Q0:: f-a: :l0U .J< U lLlL0 I A Q II , ,.....-~~~---~--------,r----.....-.-t :11 / .l I •~~Jl===*============A=d=O=lP=h=L=o=z=e=m=a=n=,=E=Sq::::o=========l=== i··j,I j I J!~,l, f . ~ ~3 t •I!Ij j .. ~ f .~ ...-"ii .1L,------ti.---Jt--------------------1f..-_ JJr·····------------- 16AdolphL.Zeman,Esq., You have stated in your testimony that you hastily wrote the letter·Q J I -d'b::==*=============================j===j i ~ ;.' 't~',4 .~~ !'II I .":'~~-."- ~;';...:---= The item relative to the adjustment of stocks, Brothers Coal Company.So that was an obvious error made. .':' ., As I remem ber it,I was either called to come into Court at the and fOr,Warded the check.What was the occasion for your haste? partnership.Patsch Brothers Coal Company.'Because 1 k.new that that'was.never a partnership asset of Patsch Brothers Coal '_' ComPany.:',Because our firm and Patsch Brothers Coal Company And 1 took it for granted that I had failed 'to pay \Vllma B.Patsch time or,was required to be in Court,and I was under considerable presaur~:-rArid as'l ~say,knowing Mr.Adams and having found him 'i so efficient:over the years,I just didn't question what he said. the amount of $2583.00.However,after the pressure was'off a few days later,~I took occasion to-examine Exhibit "Cli•And to my consternation,found that it was certainly inaccurate and incorrect in some respects,and it was questionable in my mind as to whether one of the other items was correct.I have reference particularly of Zeman and Zeman,and the other half in the name of Patsch .\, WaySl Company.and the title,I knew Was taken one-half in t;he name as a corporation purchased the property from the,Pittsburgh Rail- ,to the matter of the real estate purportedly belonging to the A vi 0:w I-0:oa.w 'Il: l-ll: ::lo,u J« u u.u.o r=u Il:f-Ulo J~ U o::l., :tI-r-'" ~ z ~>J>-~~z'ZW0. "! J !1 Ji that was,as 1 say,a standard formal matter of '.audit.And 1 I 1 felt that there was no reason why that should be charged to the I .j ii.---tr------------------:---------~--------+---: i :,j I .!I j Adolph L.Zeman,Esq. J.Glenn Patsch estate,otherthan in the adjustment of ~he accounts Now a~to the purported loan,I had absolutely no inforrr:aUon regarding it.0 At the time that I am talking about---shalll go on and tell you?0 0 Yes.Would you state the informaUon that you secured with respect to the purported loan to 1.C.Patsch and Sons and the conclusion which you drew trom your investigation? 17 I I i You will understand that ow:firm has represented I.C.Patsch ~o.·~ and Sons,°a partnership,composed Ultimately of C.W.Patsch, o Ralph L.Patsch and J.Glenn Patsch;and also that this partic~lar partnership operated the automobile sales business and garage. o In addition thereto,there was a partnership knownas Patsch Broth rs Realty,Patach Brothers Coal Company,which handled real estate ventures,in which the same three partners were involved.They had identical interests in both of these partnerships with reference to the operation of the companies,and they were very loosely00 run•.If a partnership needed some money to meet a current obligation,~t was not unusual for the three partners to contribute ~ as a capital contribution additional sums of money that went into the particular partnership.Now that applied to both of these partnerships • I know that there were dozens and perhaps,oh, many more trar..sactions where the individual partners added to their ori inal contribution when the partnerships were formed. Ii i ----._--~~ Adolph L.Zeman,E~_,====:;1=·~.l~a==I.J.._.., .f:.1.~J t t I 11.~ ~z '">J>-(,~zz '"Q. ....u Now not having any knowledge of this particular transaction,I sent for Mr.Miller,the C.P.A..who handled Patsch estate affairs for years,and asked him what explanation he could offer. And it appeared,a~Mr.Adams found,that at some point there appeared on the books of I.C.Patsch and Sons,a charge in favor of the three individuals.In other wc>rds.that the three individuals ,.had made a loan.And then his investigaticn-"--and this has reference to the books---shows that suddenly this charge was taken orf the books.And he could not offer any explanation as to why it was done.and suggested that there might have been some income tax angle to the thing,in the interest of better bookkeeping that i iI I. II ,.organized two separate corporations.One corporation WBB 1.C...i . 1 ,. J Patsch and Sons,Inc••which took over all of the assets of the \ ,'J..','. •I partnership of 1.C.Patsch and Sons.And stock was issued to the -I three of them in the same proportions in the new corporation.In I.-;.---tt------------:..------~__J\!L_.I -,--j - was,May of '56,they discontinued both of the partnerships and I talked to the two surviving partners,C.W. ,I., II'. I •\.I·, !,. j"!:;'i, ,~.IIo·trf /. iIi Ii I But that it didn't ""-.--',-. required that it be done.But it was unsatisfactory. Patsch and Ralph L.Patsch;and while they,of course,k new of these constant capital contributions,they couldn't put their finger was such a capital contribution made or not. make any difference in their viewpoint.'.Because in 1956,I think it ..on this Particular one.So they said they don't know whether there uia:wI-a:oQ.wa: I-a:. :JoU J '"U U.too '.; I J 19 , Was there later approval by the IRS of these What are the names of the succeeding corporatio a half an hour apart or something. Absolutely;definitely.Both of the corporations were transferred at the same time.1 remember the Directors'Meetings were space Patscb and Sons,Inc.on the basis of a tax-free exchange.Will corporation Patsch Brothers,Inc.? between Patsch Brothers Coal Company,a partnership,and the you state whether or not the same type of transfer occurred as Company,it was changed to Patsch Brothers,lnc. Inc.That is the only change in it.With the Patsch Brothers Coal the corporations. the partnership assets.That appears in connection with both of .transfers as tax-free propositions? to the three partners in equal proportions and equal to the value of accepted the offer of the partnership to transfer all of the assets of the partnership among the distribution of non-assessable stock of the partnership to the corporation.And in the corporate minutes other words,this represented a tax-free transfer of all the assets .at the first Board of Direc,tors'Meeting the new corporation THE COURT: A No exce t that when the ta'll:retu~were filed,they were accepted til-<~A The I.C.Patsch and Sons partnership was I.C.Patsch and Sons, zot-~THE COURT: :t « z 01:>-l>-til,z ZwCo Let me break in on you.You have stated the transfer of the tota 1 assets of the partnership known as'1.C.Patsch and Sons to I.C. !( ! Lj , \-i: I i j Ji 1.;,. Adolph L.Zeman,Esq.'~-b=:::=!t==============================::=:::::::=========t==f==,! i· \! I rI ! ! ~,,- l iI J t I. it;r In all the subsequent years the transfer was neve!r Never'questioned • Coal Comp~ny? and there was no question raised because the Act of Congress the corporation. questioned?'! them individually or even though it were a capital contribution to that explanation,what did ;)'ou conclude with respect to the assets a partnership,with respect to this alleged loan from Patsch Brothe 8 the three partners are concerned,it made no difference to them~. specifically provided that if the transfer consisted of at least 750/0 of the assets,that it was tax-free. What did you conclude as to the liability of 1.C.Patsch and Sons, because whether it's owed to the---even though it were owed to the partnership,the fact is that it was all reflected in the value of and the two corporations ? and liabiliUes inter se of the two partnerships you have mentioned'.".'. , All right then,Mr.Zeman.based on the explanation'that you have given and on'the investigation which you have made as reflected in That,it merged in the transfer.-The corporation took over aU the assets.-The corporation took over all the liabilities.So far as . I don't,know that 1 understand you. Q That is either as an asset or a liability in one corporation or the ou:er. ..:Az..:>~QzzW 0. Zol-e>z t-=u a: I-III o .J A« u §Q ]; l-I'N toIl:' Ull-ll:on-Ul a:A l-ll::JoU .J« u i;:u.o I I THE COUR T:'l I I I A I;dolph L.Zeman,Esq.20"-~l::'=:!l===========================t===•..., L Ii,~Ifj j i f, r:1I~ "... !!I 'l ':I ~..L~ i i 'II• .. '. . 'j ( '),1..., :.1 l " " :~ii : I' I I / •~ .' f,- ,.,It. 1 i . I -I', t '1 II.~l,I'.'t,..•-...J.----tt-----------~--I•"i )..;~.i ' t iit II!, 1!\ i I I:!II \Ii f " I , It, I I I , II..!IrIIi!iI I I! I I I I f , rI II, tIL'p:; I':~r:. I.I; III!i I. ) i I I ; ;., " Yes.It made no difference to them.'They were sitting in exactly Patsch in the two corporations,1.C.Patsch and Sons,Inc.,and the same posi'tion. Patsch Brothers,Inc.? Yes.No:w you will understand this was a family-held organization In your inventory and appraisement which you filed in this estate, The reason I couldn't----and that was done within 'the gO-day period ','," When it came to preparing the inventory,as I was required to do, that is his real estate,his individual real estate holdings,his' indh~dual,stock,whatever,.h~had,1 filed an inventory as to this or organizations.And that they covered a multitude of transactions. the two corporations,I ran into trouble.I found that there were alone to clear the deck of everything except,the c.orporate structure~• total or aggregate number of separate lots and soforth ran as much so far as the individual~assetsof J.Glenn Patsch ia eoncerned, as 400;let me say,to be conservative,300 items.As a matter of of this reai.estate.And I went over it item by item with two 'When it came to preparing or determining the value of the stock in experts in the field.And I had an audit made by Mr.Miller. some 400 pieces of real estate involved.I should say that there duty,I felt that I shouldn't rely on my own judgment as to the value were some 28 large tracts.'But they were all subdivided,and the ,did you state the value of the holdings of the decedent,J.Glenn A Q I ot Zot>J>-A~,zZ,.:.I Il. i0;.- ()z :z: r."<:~ ..:iJ c: f-\Il 0 J<: u 0 :J., T >=;-.. C\I r.ti0:w"f-a: 0 Cl.Wc: f-a: :l0 U J<: U ii:~0 ~ I t lb:::=:#=============A=d=o=lP=h=L=.=Z=e=m=a=n=,=E=,=sq=::::::;:.=======9====2:1== I 1i-•" i i IIjIt, I 1 f J I rIj I J1 IIt.; i I ,I,,·--..iI-ij---------------------'-:-------+---~ tl,....-,, i ".... -~--~----------~ And based upon Mr.Miller's audit,the information and valuations r'~(·'·...__A ......,"'I .. j f f ~Adolph L.Zeman Ran <)<).~·_··..·----s~b=,.~=================~~~========1r=~ .~ that I got from these experts,and 'my own judgment,we found that I! I II.' III1rI I! I iI I \i You said that you found thatyou were very close. What auditors? .. time of the preparation of the supplemental inventory.And Mr.Miller,the C.P.A.of the company who carried them on the " I filed a supplemental inventory covering only the stock in the two In the course of your testimony,you have referred to a parcel of Close to what? corporations . Well,.if I felt that a lot was worth $1400,and the auditor showed it..' books at particular values.Now I then---and by the way,in the as to the I.C.Patsch and Sons,Inc.,and as to Patsch Brothers and Company,Inc.,copies of which I gave to JYlr.Sanders ,at the file you will find a complete breakdown of all of these assets,both was worth $1375 or $1350,I accepted the auditor's figures. THE COURT: THE COURT:·' lIicrw ~cr O.0. Wc: ~a: :Jo U J<: u ~Qo ,:u cr~",o J<: u o :J.., we were very close and that no purpose would be served to ll1ake a change in the auditor's figures.' <t Z <:>J ~Azz~ ·f•:) \I I i . II' II land in Canton Township,which was owned in part by Zeman and Ze :n.an and in part by Patsch Brothers,Inc. .(Stenographer marks Respondent's Exhibit "E!I,a Xerox copy of .a Deed from Pittsburgh Railways Company to P,.tsch Brothers.Inc. and Zeman\.&ZeIrlan,dated January 9,1956).. . !iI. !'i II II , II . III \ IIIi II.I , i !IIIi:i, I I I It was Mr.Zeman and the Court,I think possibly The same is admitted in evidence and made part Thank you,Mr.Sanders.Mr.Zeman,after receiving the notice of the valuations of the stocks and the stock prices shown on the Page 216 in the Recorder's Office of this county,relating to made to Zeman and Zeman and Patsch Brothers,Inc.It was not the Coal Company,and we admit that to save time or any trouble of adjustment and the worksheets,did yOll make Qny comparison about that.That was an error on Henry Adams'part. Pittsburgh Railways CompE.ny to Patsch Brothers,Inc.and Zeman Yes. referred in your testimony? auditor Henry Adams thought it was,and first reported it. deed was nol made to Patsch Brothers Coal Company,as the property in Canton Township in this county,and ask you whether, Exhibit fl Ell,which purports to be a photostat of a C:aed from the\.\ I "" for purposes of the record. this is the deed for the Canton Township property to which you.have I now show j'OU Respondent's Exhibit marked for identification as and Zeman,dated January 9,1955,of record in Deed Book 951, 1 should say something here to save time.It is correct;that that ..With permission of the Court,·we off~r into evidence Respondent's Exhibit "E"~nd ask leave to substitute a Xerox copy of the same f-a: ;Jo U J< u ii:lL.o Ula:~MR.SANDERS:c::oa.w·a: o J< U g THE COURT:., :l:'.1~Q :-.. '" <z«>J>-~)zzw<:. ~.~of this record. II II ....I f I!I ~, ------------.=.=-.---:-.----=.::::..-----:--:-::-.-:-.c-;-.--=-.~--c-.-:c-__--o----,----~-__:_--..,..-~ .~I'.! t' 'f 23 itAdolphL.Zeman,Esq.!·4b::::!!=======~~~~~~~========r===:.. I Q•.i- f~!11i~t .1 :1 ,f l t.1 -~ ·1.~ 1lei' II r 'J I1' II'f : i". f • 1, f'j , J ..---~ for most of the adjustments. A Yes.He specifically stated in his report that that was the reason j I \ i ,·1 I III j . 24 :' different? in the adjustment of the values as 'determined by I''I1r.Adams. That's right. 1 passed that up as being inconsequential. ~.' prices,.is'that correct? ,.'Revenue,Service,'there were certain adjustments made in stock.. Adolph L.Zeman,Esq.' I don't thitlk 1 understand you. appraisement in'this estate? .adjustment with the figures that were contained in your inventory a ". ::-"',-dividend which was included in that figure of $2100,in the figure, given day on the New York Stock Exchange or a mean value? .'" the time of the declaration of the dividend.But that was all adjuste I ' discrepancy due to whether you were taking the tow value on a ,,. and l\JIr.Adams is absolutely right in his determination. Q ..l\part from that.will you state whether or not there would be a •"0;"''"',''~h:atever'it is.and it was a question of whether the stock dividend .was payable to the estate or payable to the devisee,'depending upon :;~,,,y.,:,!:~ A No,very slight.-There was one place where there was a stock Q Let me ask you this -were the comparative values materially' A Yes,they:were listed in the inventory'.The only difference was Q Were'theB~'stocks also listed in your inventory? Q .Well,in the adjustment papers that were submitted to you by Intern A $ Jj ir "1", ';'j 1f4 i IIfI<: z<:>.Jt>-~) Zziw 0- i10,.. "t9 l z•I.."'f. 1 (fl 't ,j 3: .:u "a::,t f- l ~) a -l<: u 0 ~:J., I :rl-I'N ~"L~ I-0::0 'I 0.w il: I-a: :J 0 U -l<: u iLu. 0 '! 1 ~1,y, 1,~,: 1 II II ! i" II II!I i t, I ItII[ I I1I "i !i, IiiI.I .\'...~ i, 25 t! f III, iI i iIfIII ~ ':~.'.,'.."': --~ .....". had put the money,_knowing that ther~would be some delay,I put and subject to a charge of $150.00 by Mr.Miller for work done in connecti0l?:with this purported l~n.and income tax,a small amount,.1 think it was in the neighborhood of $58.00 was owing by the fidu~iary in his estate in the Income Tax Return. I offered to pay Mr.~..Patsch the one-half of...... the money in a savings account and there was accrued interest;.'.~ $.2600.So at this point,I had $30,000 plu~the refund:And I...;: L.'1.e Govern.me~t in the,~mou~t o~somewhe~e,,appx:-oximately , -'.'~ had overpaid the taxes.And t here was a refund received from this was the residue,of the estate 'Was distributable one-half to say that as a result of the Federal Tax audit,it was found that I :.".. . Glenn Ferris Patsch and one-half to ~dward P.patsch.I,might" waS reawarded for tax purposes,and which was distributable--- ~.~.,. After 1 transmitted the check to Mr.Patsch as Executor of the you pre~red a suggested distribution of the residue in,this esta,te?........ which you expla'ined to the Court,will you state whether or not..-.'. .estate,I had in my control at the time the sum of $30,000 which ';•.I :'• A II :!z-<>.J>-IIIZZ!.:J:l. Z 0 f- <!: Z :I:'n<~ G c:;-.,. a .J< i) ::l ::J., J:l-I'N vi:XWf-c: 0Co W~ f-a: ::J 0 U .J 0=: ~LLLL O. ,I t,.~Jt====IF:============A=d=Ol=P=h=L=.::::z::::e=m::::a=n=,==~.::;::~=~~,______,l Q.Now after all this was done and you had made-your in::v:=e:=s~:::t:-i':-g=a=t::io=n==:::;::=== •1I the net amount,provided I was allowed;~;a credit for the $2500. Q $2583.12,is that the right figure?,'; A Which 1 had mistakenly paid to him as executor.This was refused. Q Now,did you make this suggested distribution to either Mr.Patsch-;,-'-"~rltl--------_"":'-_----:--------~~- I I II e II, f,I j ( ! III, .:I \'....:...: ,, ,I iI tIi ! :/! I..~I I .- it Now I dontt want to be pinned down too closely on this. Yes. I made it to Mr.Sanders.1 have had no discussion with Mr.Patsc • Mr.Sanders for his approval,what did he say? lVIr.Sanders is the counsel of record for Mr.Patsch,is that Let me rephrase the question.Did he accept the suggested dis- And when you made or you oftered this suggested distribution to He told me that he had sent the check to Edward"and that he didn't Mr.Sanders said he would have to take it up with his client,and correct? tribution or reject it? know---l dontt want to be too specific---and that he didntt know Well then is it lair,to say that he rejected the suggested distribution whether Edward would return it or not.But that he could not that you made?' ,'\ so that 1 could close out the estate account. accept the statement which I gave him of what money was available Are you prepared at this time,and have you been prepared since he rejected it,yes. the time mentioned,to make a final distribution in the estate of J.Glenn Patsch in accordance with the order of this Court heretofo A A Q Q .... ~Aitl-~, 0 J« u 0 :J., ;: I' N «Qz 0(>J>-"~zzw n.A io}- ~Q :r."~.0::: '}ia:I,} l-0:o,~ 0:Q l-a:::>ou J« u u.AII.o "1';1 -~--~~~~--",---__-,--__----;"..." ;'~l ~lrf ; !j Adolph L.Zeman,Esq.26 :~=-~l======================,_=:::__::::-,=====*===\li or his counsel,Mr.Sanders?I,1. m,L",it:fJ 'n.r.~~~t '~: ~~ f1Ji.J~~i€~ i"i,',J:2i~i;t<,~~~~J!~,fj,';;l!'.~! DIl II'~,,~ .~!.l, ~iI~JI.~~l~~re il-__---=::.....=-a-=:~~::.:t=:-=:'::h...:.:_oo_n_a_s--,-y_ou_r_e_c_e_i_V_e,_,',_t_h_e_r_e_f_u_n_d_O_f_$_2_5_8_3_o_1_2_fr_o_m_E_._dw,--a_r_d-+.-_ ~1fi~lI I will do it instantly. Q You may cross examine,Mr.Sanders. f ! I I I:! f , I : I I ., !I, ! II!I fI I i!i!\ i I !. II' I I II, Ii I 27 I I tIi I1! JI I\I, I \:I, III i f! Is that subject to .the charge of Mr•.Miller for The Court is acquainted with it too. charge•.. Yes. And there are certain other items like accrued interest and matters practice before the Orphans'Court,have you not? $150.001 Yes,to an extent. Bar and a practicing attorney for in excess of 50 years and have done considerable work in matters of decedents'estates and in reported in 423,Pennsylvania Reports,Page 4201 of that sort,Your Hmor.Mr.Zeman,you are a member of the Are you familiar with the holding,the recent holding of the Supreme i ~(tO}{fa ~i Court of this Commonwealth in a case entitled ~.Estate~\.i\l!"~, And are you prepared to follow the rule as laid down by the SupremE 1 would assume that•. THE COURT: I ~Qz'">.J>-,~zzW :l. i0....~<:: ::: VI<~ Adolph L.Zeman,E·sq. A Mr.Sanders,in a letter to me,has agreed that that is a proper 1-" U Aa: I-~~ o~Q u n ::3 "' ~ic:;:Ac:on. UIc:: l-e: ::3 8 A .J« u ii:Ql>.o .1 Court in that very recent case? A I am prepared to follow the orders and directions of Judge Marino, before whom this matter ia pending for the moment. i . ·'e THE COURT:. I II, i,• \ \\, I \I \, III \I \ \ \ \ \I \\III, I ,. .. 1\. 1 I \ l \,, .J~!i \. -, . If the court please.this is objected to for to make distribution.We would therefore accordingly object. properly before the Court on the matter for a petition for citation surcharge againSt the fiduciary;and this is a matter that is not and apparently Is directed to the aspect of a possible suggested the reason that It goes beyond the averments of'the petition. Tax on the $7749.,37 which was the total amount reported In your letter to me·of August 22.1966?. In the final adjustment of your Federal Tax,did you pay Federal That's right.·sir. and "e"and soforth. in the papers med with the court already under exhibit "A","B"• 'then the only refund that you have received is the one mentioned additional refund. by the Treasury Department.1 did not fUe an'appUcation for any The refund.of course,as the record shows,was granted automatic lly J.Glenn patsch Estate of any kind? have you ever applied for a refund of Federal Estate Tax In the 1 will do the best 1 can.The first question I wouid like to ask you, Thank you very much.sir. Particularly one with your experience and intelligence. 1 know you.Mr.Sanders. !vlR.ZEMAN: Q A ::: I (,~ <: ~ ~l u c:I-~1 VI !..0 /...n.J Q<: u a :J... ,.. t- <'I If, 0:w Al-e:0!L W I-Q c: :J 0U .J<: u "-"-0 ,I '\Adolph L.Zeman,Esq.28 \I~====================t===. •:~\CROSS EXAlIIUNATI0N BY MR.SANDERS:\ •.\.Q ,Mr.Zeman,1 am not used to croSs examining attorneys. 1:\...!A I"<Q!~~.~ I:.~~z~1fJ g:ni ..l)z A , I ." i 'I, IiI!I I I I III What is your question,sir? that that was not included in my appraisal of the real estate holdings the Patsch Brothers Coal Company.The reason for that oversight (Stenographer reads back last question). Township,Cecil Township,North Strabane Township,Canonsburg Yes.My answer to you is that at no time,the 706 or at no time The item of the loan,purported loan,.U was not reported. Mr.Zeman,may 1 break in just a minute?I didn't ask you if. The answer to your question is no,but it requires explanation. tax o~although ;..t<h.ere were other things,including marital and tm refore obviously there was no Federal Estate Tax paid on it. , and Houato~and there was only one piece(of property thE\t was loca edJ1'...... in any other couhty~and it happened to be Canton Township.So as $21,000,which 'resulted in a final refund instead of additional $7749.37 was not included as something additional that you did pay was that these many pieces of real estate were centered in Chart1er~..,'.,,; deduction,where you had not taken enough deductions by as much tax. you paid tax on those in the first 706 you filed.I asked you if, in the final adjustment of all tax,which was accepted by you,this it was not returned as part of the overall valuation of t.'le stock; It is undisputed,with reference to the Canton Township property, A ze:"z J: f/) <S ,rj C!~Q'oa.wcr· t-o: :Jo U .J« u lL L:.o < z«>.J>,~zZ 0- I. ,'I I b:=#li============A=d=o::::lP=h=L=.:=Z=e=01:=:a:=n=,=E:=s=q=''=========1=~29=;II I'(II THE COURT:The objection is overruled;exception noted.! r':,-liIi:I A t:; f .II~·;c .,I' f I A\.\I~, fI, ~ti ' I1~I ;:: l-(J) o "..J,.•«~g fr\.., ~ ~.~~_1r__--=h=a::=s:.....,;.:th:..:..e:=.;r::..;e=--=b::.;:e::.;:e;.::;n=-a=nYol-...:c~1:.::;a:::.im:::::...,=.bsL.....:.yt:.:h:.:e:....:::G:.:o:...:v...:e~rn..:::::m::e:::.n:.:t:....:.:fo::.:r:....:a:::d:::d:::i:-:t~io:.:na:.=.:l~ta~x:::e:.::s:'---I-_ ~I ,~ J) .., '.' ',I IIiIIff ,- -iItiII, j !!I I\II\, 1, i ; I!, !\ 1Ii[. j I, lIiI !, iII .. I ; I.,, II , I.{ I, I ! It the Court please,counsel is arguing with the .Yes,we 'Will sustain the objection. loan.I have not overpaid.I just haven't paid because I accepted the audit of the Federal Government.And I didn't'want to go back on the valuation of the Canton Township property or on the purp.ortel Mr.'Adams then didn't tell you thatyo\i did owe tax on $7749.37 •l of the estate not to.open up a Pandora~s·:box.That is exactly what The estate paid whatever taxes the Government said was owing. Now Mr.Sanders,I think in fairness,1 should say that when I No,l'am not~ Aren't you really admitting you did pay it on that then?Wouldn't and you did not 'allow that in you~8.etHement with him,your final 1": i !of their audit.because I knew that the minute I did.the'estate would J ; come out at ~~~hort end.··And the amount of the additional taxes I' would far•.far exceed this $2800.What I did was in the best interes 8/ 1II.{ 'I1, would have happened if I had gone into these things that you suggest.\, .~. of assets either through increases or things not p~evil)\1S1Y reported':...'" !~•1>, t; fftit~l; !"ri~ _..~ And I wasn't disposed to stir up trouble by suggesting to the Government that they go in and find more taxable assets. settlementl and the estate did not pay any tax on it.' you say that? I think the report will show that you did. witness and attempting to state a conclusion. MR.ZEMAN:, THE COu'RT: A Q ~z">J )- '"zzl;j Q. io... ~Q Itil";>.> <Iia:Ul f-a:oQ. Ul :Qa: '5u J« u~Ao :I ..~ \ ,,,. ~U c: f-\.0) a J"U'.gY.;...,A ':}0-r-N ;t;;.~~~..rI.IiI:, "/I':, ,~~i J~...~4!4...~_.11~~.,.-tr----------~------------------~-- :tr.f#:i.f~~~ II II tII!i IIII i; !II1I !IIII!I I Ii ! III, I fI, !IIIiiI i!; I I !I j',I I .I I Ir-.I.'.II·1!. i IiI f II.I III, i Adolph L.Zeman,Esq. ~ partnership asset because.I found a tax receipt made out in the the deed to the corporation.Well,he says,"I treated'it as a name of the partnership.II In other words,the transfer by the ,- Recorder to the Commissioners had not been made.He says, "Had I done my duty and gone down to the Recorder's Office to He says,"l didn't check out this purported loan either;because check,this would never have happened.ISO I am wrong on that.II _' can't we make a correction at this time?"He says,_"The papers them back here,you are looking for trouble."He says,."Because remember,I accepted your valuation as to the value of the stock." He says."If you want -this all reopened.the next man may come it was on the books 20 years ago,I accepted it."So 1 says,"Well, May .!hay~EJ>:hibit "e"please?Mr.Zeman,I ask you to look in and take up each individual piece."There were 400 pieces This is the preliminary statement prepared by th~examiner.And have all been concluded and sent to Philadelphia.If you want at Schedule C,the second page of it at two,and read what it he says the principal causes of change---- short end.l~He says,"You are better off if you let well enough alone;~~lh:_1And.,J.1agr:eed.It wasn't my purpose. states there. .of real estate."And you might come out substantially on the Q A z., zo:-o Z c:...;,) a .J< U o :J.., I II I vi !l:IIIrto!l.\:Ja: l-ll: :JoU J< U \1.U.o ,.. ',' 11 "t~I fi 'I'i·~..,'~k:::=:l~'===================================1==== . ,.:.:.-'1'1 discovered these three items in the Exhibit "e""I sent for Mr. i/.,-Adams,and I told him tha t he was clearly wrong and showed him -t'I~~..... f;i~"i\'T;.~ ii''''l1t:1A~~ tlft~:ittf-i'l~,'j !j1t !I$tjj .1 1,I, .; f !i"i!:j t,1 !," ~..."r----tr--------------------:.---------I--I I"II'I;~.,.3 'j," ~------------------- 1 I! I ! I II 32 "j / Brothers,Inc.corporation assets. reflected in his audit. 706 amounted to more than the increases or additions made by Mr. Well then the deductions thatyou had not claimed in the original·.' Mr.Zeman,isn't it true in thefinal adjustment of this that the Th~t's right. Adol Which we have agreed weren't partnership assets,but Patsch Include decedent's interest in partnership assets. deductions which you had not claimed as marital deductions and whi h purview of the marital deduction,or putting it another way---- Just answer my question.It's.set forth right in the paper in your .. It included a piece of real estate which did not come within the Include value of loan of decedent to corporation. Read four•." . I just asked you to read what two states;not the whole page. \Vhat does three state?' the p~oper marital deduction.I claimed less than what we were, Adams,is that correct? entitled to,and that Mr.Adams very properly caught it and it is ..," Correct marital deduction. were allowed in the final settlement amounted close to $21,OOO? hands. .'Ch,I'm riot questioning the amount.It's true that I didn't claim Q A Q A Q -: z-:>.J>-A~)zZtlla.Qz'e(,A~z (f) <l::;Q r:u Q f0-il: :Jo U A.J-: U ii:u.o "\ .~.. - Inc. A ThatI s right., Q"Half and half. A That's right. MH.ZEMAN: A \f! I 1! IIi tI III i I I t i i t ,. , , , I II, I , \I I ,. \"II'l I I . i I I 1iII II i I ii, \ J 33 It wasn't included in my retul n. Did you ever file any inventory on that $25,000 .If the Court please,we object to this question Adolph L.Zeman,Esq._'__-_----.....,---.~=:====·=l:I==== testimony~and which we submit is gratuitous on the part of Mr. creates a value of $25,000 which has not been established by the in two res pects.First,there is a stateI!-ent in the question which Brothers,Inc.or Patsch Brothers,1.C.Patsch and Sons'( property or include it in statements of the assets'of either Patsch wrong about that. That we admit to be correct and that Henry Adams was at first . that the title to that was in Zeman and Zeman and Patsch Brothers, Getting back to our ~nton Township property,you have stated Not the original return? That's right. reports • It was included in Mr.AdamsI audit. But the $7,000 was included in the taxable estate and then the marital deduction was taken off as a deduction as shown in the .. Yes,sure. Yes. thousand? The difference in the marital deduction'was more than the seven I \. t-il:: :J 8 Q J <: u Il.Il.o Q U Q zoi- ::I'Qz... z ~A <: z<:>J>-,,1 Z i~ 1 \~ I ..~5-I.. ~ ~~, 1 , I t.. I I r II I! I III, I \ i.'II ' 1 '),. The import of our objection,Your H<nor,is that If the Court please,I'd just like to say,Mr. Zeman has stated they paid no Federal Tax on this Canton Township piece of real estate.'Thesixth interest was already shown,Bob, to inquire into matters of valuation which have been closed.Arid account,and the preliminary audit in this matter,and the Courts have held that once the matter has been disposed of by the Court, in your papers,that the deceased had a sixth interest in it.And therefore,we submit that the question is looking for incompetent the sixth is twenty five,becaus'e'that's it.1 think we'have a right to know whether he had included that or not in any of his which were properly part of the inventory,the appraisement,the it is going into incompetent'matters. Sanders.And secondly,Mr.Sanders is now inquiring into matters evidence. of this Commonwealth and the latest expression in Verdelli estate inventories or reports on Patsch Brothers~Inc.assets,becaus e it is improper at a later date,except on a petition for review, he said he paid no Federal Tax on it,which ~don't agree with. I am not putting anything in that isn't already in,'when I say MR.SANDERS: MR.ZEMAN: Adolph L.Zeman,Esq.L.:':Il:=:=====*==============================~====I ~f. «,~ J.4:''1'j•.~ t}Irt~ t i tI(II II: I i « z-t :>I J )-,,1 ZJz I "!1: ~!l. Z«e j i i) Z :'f -'IlI<:;. U ;> ~r:i u :J:,;t r-t .~, i a J<: u !J ~:J.., 1 i'-;: I r-N I uicr.III;-.I a:00- Ir w !~a: ;-,I a: ::J 0 U J.~«.. I u ii:L:-a ~'~~:~It is sustained.Exception noted. (Continued cross examination by Mr.Sanders): The objection to the question as propoundedTHECOURT: i II -1r-1r------:--------~-+--- .J II I !I,, i I i!Ii,'..' I "i ."'!t,,~"; • . II,.. f fIII <• Yes,I knew what the Schedule of Distribution of this Court was, Mr.Adams told me it was coming and as I tell you,1 did it Well~at the time you mailed the 'check,.'did you pay that money;--- Then you sent that for what reason?For what reason did you mail sure. thoughtlessly,I did it carelessly,1 did 1t negligently. that check? to me,yes. You sent it under the assumption then,that the widow was entitled Had you marshalled or collected those additional assets before to that amount of something additional in the estate ? Yes.Until I got my bearings and found out that I had made a Had 1 done what? mistake. was that check drawn on funds which were r~awarded to;you . It was drawn from 'Ply account as executor in Western Pennsylvania for Federal Estate Tax purposes only? you paid them out? ,National Bank,whi,ch consisted of the $30,000 which was reawarded !Iic: W l-e:oc.w U Q a:I-'ll o ..J <!. II C :J., <!. Z<!.>;:Q ~., :::z:oJ, ioG Az. l-e: :J8 Q .J..: u l:. \l.o ~------~-~~------~~~~~~~~~ I I 's I I~IiIAdolphL.Zeman,Esq.35 , a!,''~*=Q===M=r=.=z=e=m=a=n=,=W=h=e=n=y=o=u=m=a=i1=e=d=t=h=e=$=2=s=a=3=.=1=2=C=h=e=C=k=t=o=m=e=,=b=U=t=pa=y=ab=l=:l.F===I £I.t to the Wilma B.·Patsch Estate,did you not know that there were ~ j I Ifonly.two residuary legatees in that estate,and that they were I .i I i" I Edward P.Patsch and Glenn Patsch,Jr.?! ,f·t I! J Ii AtIi 1 f...~, 21r~ a.,' ~' ~; j ~~ II A I II Q I I,A II Q Marshalled the assets,the adcmions;'You thought existed before you '-4,1t---Ji1f----------.:..=----=------.:---l-_ "'~'-~ wrote the check? Adolph L.Zeman,Esq. conceivably havemade,but didn't make in this instance. I \i I iI .. I"·.. III!".. \ I'I I '·1iII I 1i <t. r.:1 36 \ f· If the Court please,thia is asking the witness Now had that----this is a hypothetical queationg you mayobject~-- it had been made to a creditor rather than a legatee,do you think let's say to a creditor---the audit is closed to creditors,but suppa . had Edward P.Patsch,or that payment been made to a creditor,. Absolutely my error. error? that you are righ.:in asking the Court to ex~use you for making that Clearly,1 had no business doing it• then it was your error,.as you say. Yes. 'Well then,how could you pay that out to somebody other than those Patsch and Glenn Patsch by the Court? refunded.I had money with which to pay it. Wasn't that money'that had already been awarded to Edward P. Oh,1 had $30,000 in the bank.1 had $2800 that the Government he gets it,does·it? .. .two unless it was for F~deral Tax? MR.ZEMAN: ;:: ~A "~a:~Qc:oa.wx Q Certainly an executor,:as a rule,doesn't payout money before to pass a moral judgment upon himself on a mistake that he might A A 1 don't know what you mean by marshalling as,sets. zoI-(;)Az -'- C •1 A<: u g Q., l-.a: :Jo U .J<t. U ll.LJ.o <: Z<~~Q zzw(l,. -,. ! I I· -. iI II I I \I i1 37 Very well. Thank you,Your Hpnor.This closes our case, They have all been admitted except Exhibit "Ell, Adolph L.Zeman,Esq. .If the:Court please,at this time I want to offer If the Court please,at this time--thank you,Mr, The question is improper for many many reasonl . P.Patsch to the new matter in the defendant's answer to the original1 in evidence paragraphs 1,2,3,4,5,6 in .the answer of Edward Your Hcnor. which is now admitted in evidence. "E". elusions.of law to be derived from the facts.We now therefore re- The remaining averments in his answer to 'new 'matter state con- Sanders---the Respondent has nothing further to offer into evidence .offer into evidence Respondent's Exhibits "A","B","e","n"and and reserve the right to cross examine on that testimony. If the Court please,I don't believe I have any further questions of this witness.If Mr.·Zeman has any further testimony,I will wait have written the check..- I wouldnIt do it over again,Mr.Sanders. in the letter.We naturally assumed he had the money or he wouldn ~ We sustain the objection. 1 am trying to find out why he sent it.And there was no explanation MR.SANDERS: THE COURT: I THE COURT: I \ ! \ :.oU J<: ut ·MR.ZEMAN: o rt)c:l:Jf-a:oQ.w a:THE COURT:~ ~Az<>J~Qz I Q zoi-.. ~ :!::II<:.~MR.ZEMAN: o·fl' -,. .- 11--1 -t~_--~D~ew:.t:.!ito::!:i~o~n~a.:J:s~s~ta~t~e::.:=d~.:----------------4-_ 'l !~~, U' .... ,' ',' I",I I Let me review that offer a moment. I feel that the Court would know what the facts And we would also like to further Object,Your If the Court please,I believe if you would look If the Court please,these offers are objected the new matter.And I don't think that there is any order needed are. mat erial.I think they rather prefer not to. be introduced into evidence.We therefore would accordingly of law rather than matters of a purely factual nature. to for the reason that Mr.Sanders is asking to have admitted into be a notice to plead subscribed to the pleading which is sought to by evidence,if material.,competent and relevant.I practice before this Court is governed by the rules ,in equity,and evidence in many many instances contain conclusions or statements His answer to the new matter did not contain a notice to plead. on the answer to new matter suggesting that they answer it with object.Although he certainly would have the right to ~rove them is no order on there to answer at any time.Although we did answeI at the answer of the defendant here to the original petition,'there ,. that therefore,in order to bind 'a party tOo an admiasion,there must H.,.nor,in that the items in the pleadings which are offered in It is my understanding that under the rules of civil procedure, evidence without the requisite proof,certain averments of fact. MR.SANDERS: THE COURT: MR.ZEl\trAN: ;:,.. N ui0::·w l-ll:o0.111a: ;.. 0::>ou .J« u lL.MR.ZEMAN:lL.o < z<>.J>(/)zZ111II. ·z,0;..o Z J:In<~ ,..: U 0:l-ll) ,0 .J MR.SANDERS:<: uo:>., 'I ·~~~~I I ,__..~:)~_===~============A=d=Ol=p=h=L=.=z::::e=m=an=,=E=s=q=.==========tI~=3~81····----~l •;1 Iiter!!i~ (I 'I.,'~j Il'iI~.~~1l ..~ I.~ I F ; III~., f,ijIll>!IIiA~-1.-n------tt----------------------..:.------+-_-IJ~"i"'c;" lio........-~--~~.~ 1~ W f'39~~::';:':"::'::'<!M::====H:==================::===::::-==='~==========*==I ." Return in the estate of Wilma B.'Patsch are of necessity,incompetent, \ aaked..Call the witness . • I '"'.0::.1 II I I II I l.~.J 1 .1 ,. Well,we are'going to rule on the questions as Call the witness and then we will rUle on your If the Court please,we would ask that the testiz:n:my At this time,I would like,in the way of rebuttal, The request for the admission of these paragrapiLS,, or the witness not be heard,and that the offer be refused,for the questions. the material that 1 expect to offer. like to file in place of the original.I will call the witness to prove of $2583.12.I have the original estate closing letter,which you to call Edward P.Patsch to the stand and offer some evidence. can identify as Defendant's Exhibit "AIfHnta~t,with the breakdown. I have made photostats of it,which,if the Court will perrr.it,I wool:l recorded by the stenographer). (At the direction of the Court,off-the-record discussion was not ..-. Through this witness,I wish to prove the Federal Estate Tax paid in evidence is refused.Exception noted. by the Wilma B.Patsch Estate,as a result of the check received by that estate,which has been referred to as a check in the amount THE COURT: J.,llL ZEMAN:. MR.SANDERS:. THE COURT: , .;: uii:l:..o ~; [l: ~THE COURT:ll:on.w ll: ~l:: ::JoU reason that any matters having to do with the Federal Estate Tax irrelevant and immaterial to the proceedings now before the Court., zo~~z r =."<:;; ~U It~III C oJ 0:( U C ::J.., ~r-N <: z«>oJ>-III Z Zl:Jn. I .-..-;;..----tt-------------------..:....--------------+---11;'"'4l~;:., 1 .1 1 1 ! 11!!• I III!, 40EdwardP.Patsch Let's identify the witness and ask a question.: If the Court please,this evidence is offered August 22,1967,in the amount of $2583.12? Yes. Are you'the party to whom 1 sent the'check sent to me by Mr.Zeman, Pats ch~your father? Yes• Are you also a residuary legatee named in the estate of J.Glenn 2685 Schaaf Drive,Columbus,'Ohio. Are you executor of'the Wilma B.Patsch Estate? Where do you live? nmECT EXAMINATION BY MR.SANDER S: only in rebuttal. THE COURT:' MR.SA NDERS: !ll !l.Q What is your full name.D Mr.Patsch? iol-~A Edward Phillip Patsch. <EDWARD P.PATSCH IS CALLED AND SWORN.z·<:>.J,.",zz ~~A;:",o -l Q-< u g A... .~ 1\1 Q <Iic:... l-e:.on.~A I-cr: :J8 Q J '"UIi:~o >:, .~ It:_,io'. l~..~...~I • l-·'-~'~===::::tf=================================*===l _.,~,. A Yes,sir'. 'j , 'Q I show you'Defendant's Exhibit "A"and ask you what that is? MR.ZEMAN:Just a moment.If the Court please,the exhibit has not been marked for identification.But passing that for the '.moment---- THE COURT:Let's call it Ex.~ibit 1.We hEwe letters used in he •l other exhibits. 41 MR.ZEMAN:The exhibit which has been offered to the witnea a distribution in the estate of J.Glenn Patsch;not in the estate of would be incompetent,irrelevant and immaterial,for the reason to rule on the objection until we see what the question is.What and will be apparently marked for identification as Exhibit 1,relate ,\ I I \ tIi! !I ILet's get the question first.We are not going That's right. I showed him Exhibit 1 of the Defendant and aske:i It's a return of some type~Federal Return. was the question. him what it was. Wilma B.Patsch. to the estate of Wilma B.Patsch and an estate tax closing letter. is solely as to why the executor should not be compelled to make that the issue before the Court and the proceeding now being heard We submit that the exhibit and any evidence in relation thereto MR.SANDERS: MR.SA NDERS: THE-COURT: THE COURT:'Now what is your ne~'d question? MR.SANDERS:I am going to ask him if that is the estate C10Bini letter in the estate of Wilma B.Patsch for Federa:l Estat'e Tax . THE COURT: <: z«>.J>-~1Z.Z"''I. i 0l-e>Z .1<:~ ..:U 12:"-in•c oJ« u 0 :J-, ;; "01 uil::wl-e: 0Q. :JJc: f-a::J0U .J« u ii:u.0 purposes,and if that return shows and is connected with the check sent to me August 22,1966 by Mr.Zeman. MR.ZElV1A N:\Ve object to this,Your Hmor,for the reasons mentioned before,and for the further reason that it states a double I I 42 \\'" ,. If you will ask The objection is sustained;exception noted. Edward P.Patsch But the Court will permit this witness to testify as to what dispositi n question.. you after it was,'received from lVIr.Zeman. Yes. if any he made of the check for $2583.12 that was sent to him by Was that check made payable to your mother's estate? Did you retain possession of thatmoney? Patsch,E~ecutor• You mean Federal Tax? Or deficiency• It was made payable to the Wilma B.Patachestate,Edward P. ,' owed seven hundred 'some dollars for income tax,which----' I retained this check until such time I was notified by you that I Income tax? THE COURT: <that relevant question.z ' <:>g Q IvIr.Patsch,did you receive the check referred to here as being zzUJ u.for $2583.12 from me?. z () f-~A II :tUl~Q ..: ~A f-~l i5 .J< U g Q-, rJirr :llf-,c:: o0.wa:Q f-a: :J8 A .J <I: Ur;:Q l:.o ;',. .~:ij ~~~1I!~.•'~~.'" 'IU ,."~'i!.fJ._-_-.. A Yes. , l A Yes. including interest? A $713.30,plus the interest.It was close to $758.00,I believe. Did you use money to pay that tax?Q Q And what was the amount of tax you paid?Do,you know the total Edward P.Patsch 43 Q $713.30 deficiency plus interest?•A Yes. Q A total being $765.00.is that correct? ;-"~. A Yes. THE COURT:What was done with the rest of the money?<' <:Q I am going to ask him. z«~THE COURT:You are spea~ing of a deficiency of seven hundre~ (I)zz~some dollars,and you have a check for $2583.00. :io·~Qz Haveyou still retained possession of the rest of the money received :rt,~.A Yes,1 have the balance. ;.:u Q !:~~, '5 1\ J<: I •~Q i-N , Was that in accordance with instructions from.me? Yes. Will you tell us for what reason you were required to pay $765.00 more Federal Tax? I was instructed by you that this was for additional distribution frorr ~.':'.:......'.~.'.....,..... ui ~A., ~a:o0-wc: ~rr :J·8 Q J«U ii:Ll.o the J.Glenn Patsch,my father's estate. Do you.know whether the original 706 report which we filed~as at first approved? ............:..'~~~...:"~:...'~ A 1 don't know. i \I..\ I the Weste~n Pennsylvania National Bank stock,and that was the only correction made in that was they added $38.00 for an increase on Is it not true,as shown by the papers in your hands.that the onlyQ. \ I,·..'I,._II change made in it as we originally filed it?t_1l_A__$_3_8_.7_5_.~__,_.:...-.--------_+-- I Q Does that refer.on page three.they are not 'numbered.as one of th ~ Q The paper in your hand is the final estate closing in your mother's I I I!i IIiiI!f l "II I!!i I..'::" i II, 44 ! f I i II I.'I ,I . (, The objection is sustained. If the Court please.we have not been objecting Y~8. Yes,the cl asing letter. Edward P.Patsch Yes. That was the only increas e in assets they wanted more tax on.' \, Item two.yes,included additional distribution from the estate of J. taxable items.additional distribution from 'the estate of J.Glenn Patsch? estate. On the next page.page four marked Schedule B"is there an amoun opposite B.and what is that amount? Glenn Patsch., Western Pennsylvania National Bank stock. to the form of the colloquy going on between counsel and the witness question has not been properly laid. but we submit ,that the foundation for the conclusion asked in this charging you withthe distribution from the estate of J.Glenn Pats'd • $38.75. THE COURT: A MR.ZEMAN; A A Q Du'e to the fact they added'a traction to our appraisal value of the Q Q Then all of the additional tax,you have paid was a result of them I I -< Z '1:>.J>-<~zzW'l. i ':>t-o Z :;: VI<: ~ ;-u r<: l-~~ C .J<: u 0 :J.., ;:,... N ,~:ui,.".0: WI- 0: 0 tL W 0: f-0: :J0U .Jq; U~ll. 0 A ".'~" Q,I A , ':-. Edward P.Patsch 45 • Q Is that the increase in the value of the Western Penns.ylvania stock J which I just referred to? A Yes. Q And opposite F,under that,what is the figure? A $2583.12. .from tile estate of J.Glenn Patsch. sentence on that page. A ,Yes. stated deficiency in the amount of :~·$713.30? . I ! Yes. Yes. following of $2583.12. And is that the exact amount of the check you received from me.pa~rable to your mother's estate.August 22.1966? A Q Did you pay the tax shown at the bot.tom of the last page which is ( A The above item is entered to include additionai proceeds (in cash) Q .T1"..at would refer then to the adjustment item immediate l¥ Q 1 ask you to look at page five of that rep<?rto ,and read the last Q<t .z<:>..J>-OJZ Zl.:Jn i 0l-vZ "<3: ;.:u· e:: I-~, 0 J<: u Q•:J., ;:...N ~-i 0-w l-e:: ~0Cl.;..,U 0- 10 l-ce: .::~:J0.u,..J.:; U .";:.ll..,11. .~0 Q _~nd in addition to that.did you pay interest on it,which made the tc tal Yes. is no part of our claim.We are not asking for additional assets. and would have no right to,in my opinion.as yet,under the case amount paid $765.00 and some cents? If the Court please,this evidence is offered only in rebuttal.It A Q .~ li f,!,., ~}j1 t- tl~,.l..----..;.'---_ .Yes,but first I'd like to move that the testimony Do you want to cross examine? referring only to the requirement.:::that the executor make distri button; this bill on a third of thOR e assets,exactly to the penny~and paid the tax on it. of this witness with relation to the exhibits offe~ed be stricken for the further reason that it goes beyond the averments of the aBsets;and to show that after that estate was 'aud·ited,we received .for the reason it is incompetent,irrelevant and immaterial,and .petition for the citation 1n this matter.The petition for citation Q.,.., '"f-. ~, o .J<: u ~z<:>.J>-1IlZZw"- z MR.ZEMAN: ot-oZ I " i l i[il.:::_====IJ;::::::=============~E~,d!±1al~a~r~d~p~.=P~a~ts~c:::!b~=========~:1=~4tj6c==i f t 'U already cited to you by Mr.Zeman in Pa.420,page 423.This is 't•meraly in rebuttal of statements by the Defendant that he did not ,I !pay the Federal Tax on the $7,000 shown on his reports as added ·1,,, ~f~'tt~' J.·titr~:I'I~. I, ~.';, I.~.•~.:. impl'oper acUon or alleged improper action,which has resulted in· not that the executor be s'addled with a surcharge on some type of vic:w f-e:o 0-wc:: f-a:::>o. u /~';:....~. .,.,'>..:.:J;:.:':u ii:I:.o the 10s8 apparently as alleged to another estate.".We see no materiality or competency in this evidence,and ask that it be stricken.. ..~...~.:'.-.:~. ...;.'.~_~:.;-_:"I;~::.: THE COURT:The motion is refused;exception noted. i~,I;~. 'it1t,rt;,f. l··-:$' t~·i ,r....'..·.•~...:.r~;{~ !.;i.~:._ If the Court please,he didn't receive the letter Yes. December 23,1966. Will you refer to that letter and state the date which appears on it? I received a copy of this letter. to Edward P.Patsch of 4007 ,Andrus Avenue,Columbus,Ohio,27, Did you receive this estate tax closing letter on or about the date Department#Internal Revenue Service. The date is December 23,1966 trom the United States Treasury . To my knowledge,yes. la it not tru,e.Mr.Patsch# and ask you whether you received tlt..at letter? which is shown on it? All right.I show you Form L-l10 a~tached to the Exhibit "address d whatever it was,that figure,in the latter part of Auguzt,1965? at all.I did. you to state for the record the date which appears thereon. Did you read that letter when you received it? A Q z.or-g MR.SA NDERS: ~Q.z «Az«>.J IiI.Edward P.Patsch 47 I~==*=================f==i CROSS EXAMINATION BY MR.ZEMAN:I ~fI'•Q Mr.Patsch,I call your attention to the exhibit No.1,the estate'.1 I tax closing letter,particularl;)'to the date appearing on it in .[ l red near the top under the designation of the letterhead,and ask '1 1j ~I1~'fi·:~1:;~ j. ~I ~QI!t.! I.~:i ~., i.·.·'~AI.;··i:·;~,::: 'I 8£l ~I ~Q lOA Hf·",..;$ 11.:J,·u:~I~i:1.Q .And you promptly deposited it to your esta te account,did you not?I-._·tt-----------+--ij Jl.':....~>.•~'.~"\:... ,~l~{; Edward P.Patsch 48 ..~(l-.1\.\ ~.~ YO~endorsed it and you deposit~d it,in your .-saVings], ". Yet,notwithstanding,having re~eived the word,you deposited that check in your own account,is that cor~~ct? Did you deposit the check before or after you received that wond? Yes. It was sometime aftenvards. When 1 was forced,yes. iSsued in the month of September of 1966? No,sir. Not'in the estate account? , i! i I "i!rI\:t\' In other words,you used this money for your own purposes,did yo\.:not~\I EJ ,I'f .~J 1.{~IiI~I Isn't it true that you received word that this check had been inadver enttyJ I\r \1\J. 1HIi Yes. That's right. The check was deposited in my savings account. account. ., I didn't ask you that.What did you do with the check? What did you eventually do with it? 1 asked you what you did with the check. What did you do ? I eventually had to come up with seven hundre~-:--... I held on to it,as instructed by my attorney. I subtracted the amount lowed and deposited the balance,. No,sir•A Q A Q II A .~Qz<:~A>-~,zzw QCo i0i-Cl Az :;: ~~ 0(Qs r:u ;r: I-Ul 0 _f\..J<: t; a Q:J., ;:r-AC'I vic:w Ql-e: 0a.w AD:: l-ll: :J0 Qu .J« u L;:u. 0 A Q A Q • • I IiII:1.~iIi~~.4~~r-Jt_It_A Y_e_s_.------------_---.:_----------+--- l Q A Q Edward P .Patsch And you had not,at that time,received the final closing on the Federal Estate Tax Return in the estate of Wi~ma Patsch,had ·you? I hadn't,unless Mr.Sanders had. The fact of the rna tter is,you didn't get the closing letter until December of '66,is that not correct? 49 ~A December 22nd. 1:>.JG Q That's all.z.,. j;j 0. zo !-oZ J: <II«~REDIRECT EXAMlNAnON BY MR.SANDERS: II, I.l ,.•iI t ;r Q!-~1 ;5 J< U 0~A.., .~ N Q "t:<:Ii AoQ. I.:J .~Q' c:::JoU .J 1: U i;: I:-o Mr.Patsch,when you received that check fOl"tW:enty-five hundred and some dollars from me,did you have an estate checking account? I had one"yes. In Columbus? No,sir;it was in Pennsylvania. And b...ad distribution of your mother's estate been made and assets delivered with the exception of what the Court reawarded here to come to Mr.Zeman that was to/you as an heir? ... ; ti i, I A Yes. Q Then you cashed the check,you endorsed it,depol3it~dit i~your own savings account. A Yes., I !Ili, Q And of course,out of that amount,in your individual account,you had to pay this Federal Tax of $765.00 and you still have the remair der ;~•of the money. Edward P.Patsch 50 A Yes. A Yes,in Columbus,Ohio. RECROSS EXAMINATION BY MR.ZEMAN: hundred some dollars in your personal account? Q That's all I want to bring out. : -f'·"*' Just a moment,Mr.Sanders,just a moment. The objection is sustained. And the reason that you have it where you have it is because---. " I have another question.Haveyou or your attorney.to your knowledlge~ ., ever made any'attempt to secure a refund from,the Internal Revenue Tax of '.:":765 odd dollars I believe that you mentioned by reason of Service of the monies which you paid on account of Federal Estate I don't mind your asking leading questions,but please don1t state MR.ZEMAN: conclusions•.The form of the question is objected to. Q THE COURT: Q Mr.Patsch,do you still have the remainder of the twenty five Q I I ~z<>.J>-"zz '", ig (,')z... CIl<:3: ~u c: f-<1 a .J<:•u rJ :J-, xto,.,. N enc:w f0-e:: 0a.w'c:; f-Il: :J0U .J« U l:.l:. 0 this.check? MR.SANDERS:Objected to as immaterial and ir.relevart to the issue. THE COURT:The objection is :s:ustained. , I ~-~-----_.._.'--'_•._._-----------~ I Edward P.Patsch 51 A It was on mine.I sent the check to Mr.Sanders:; account or on your own estate account,which? III I I 'I I /I, I,, I feel that is obvious •.It would have to be. Objection.When did he draw?He didn't draw Objection is sustained. The question is objected to for the Barne reason• If you know. .Out of personal money,yes. Would it have been after September of 1966? the Federal Government. Didn't he pay $700 additional tax? check#would.it not? It was sometime afterwards,I received the full amount. I don't remember. It would have been after August of 1968 after you received the It was after I was notified by Mr.Sanders.!don ~t remember. It was sometime before you received the final closing notice from it. MR.SA NDERS: A Yes. THE COURT:· .MR.SA1'4"DERS: zo!-~lV!R.SANDERS: <{MR.SANDERS:z«>.J>,~zz~ a.Q c~c:~Ql-.e: 0a.w.- l-e: :J 0 Au .J« u QG:.~:u.0 l-i"...A :;: til ~Q Allrigbt.I'm asking him when he paid this $700 •.. Q ~'hen did you draw the check for seven hundred Borne odd dollars? Q Did you ever contact the United States Government for the return Q And this check was drawn to the Federal Government on your own of your seven hundred Bome odd dollars? uc:MR.SANDERS: l-~, a ..J A <{ u o :J Q., that has been offered and the evidence laid before this Court,we equitable powers,direct the petitioner Edward P.Patsch to make res titution and refund of the amount inadvertently paid to him by ,I, i I •~:~ '{ I -to.,t"'; I .~ t. I .;~.-,.~;i'( "G".:~:it= f-....~r.''ztJi'iiI.,~1 I! I . " ,I .- 52 --------~------_._--____r- Edward P.Patsch There is the deficiency awarded.And the If the Court please,in view of the testimony If the Court please,1 still feel this estate closin refund awarded.of tax overpaid.And it is my belief als'o that April 1,1967 interest was received by the executor on the money in the is interest for '86. should be certain additions to it which are B~own also in the papers claim only for that money awarded by the Court in its final decree o~ it,such as the accountant's fee,the Inheritance Tax paid.There distribution to Mr.Zeman as executor,a 'reaward of $30,000.'Ve only.We have made no claim and are making roOne.on additional That's all,Mr.Patsch. assets.We are making none on surcharges.We aremaking a, letter marked Defendant's Exhibit 1 should be admitted in rebuttal have admitted in our papers certain deductions should be made fron ,with one exception,the interest.There is interest for '65;there !- U 01: Z0.(>..I>-~)z Z til :'1. would respectfully request that the Court~in the exercise of its vi[l:w.tt Western Pennsylvania Bank,which should be accounted for. o0-w~THE COURT:Those are matters of argument which you may :r:> 8 submit to the Court at any time.As to the motion for admitting .J« u~the letter marked Exhibit 1.the motion is refused.Exception o I noted., MR.ZE'MAN: .,. o...(,z -.' lff~Q .,I MR.SANDERS: •I I I:.··'.·"... :'( ~:I,;~' I:~' :~ :1 ~~I~·~~,. ,'. ~... ~" ~fi "'iii,~: ~,>1" .'".#.~ "1II 53 ,•the check which has been the issue of this proceeding,in order that Adolph L.Zeman,Executor,may forthwith and promptly comply .with the order of this Court and make final distribution in accordanc with the terms of the audit approved by this Court. and Edward P.Patsch,Executor of the Wilma B.Patsch are:two.".-.. different legal entities with no connection whatever in this matter. written by the Court. The Court is not prepared at this time to make May I say one more'word?Edward P.Patsch· any order.The contemplated procedure will be part of the opinion _,MR.SANDERS: o~. ".c ,I THE COURT: f-:" l: c:t; o .J« u o ::J., And I feel that the burden,the law placed on a mixer of funds or .on a mixer of anything for that matter has always been placed on the mixer.We feel that we have been deprived of money since .;,.,:"... last October,and there was nothing in the'world to have prevented is all I have to say. oral argument before the Court or to file a memorandum of the the executor from paying all but the amount of this check;and that If counsel desire an opportunity to make an ~:r ::Jo U THE COIJRT:..J« ui:: ""o law concerning the issues in this case,they will be given an opoor I•I tUnity to do so. MR.ZEMAN:May I suggest,Your Honor~that'it might be • more convenient for counsel"and I was wondering if it might be more convenient for the Court that argument which we would like to I ( ~.;,' .',,------------------------ Thank you,Your Honor. We will do that.The Court will fix a time later make be deferred unti 1 the record is transcribed.so that we may make convenient references to portions of the record'in the course of our argument. ,-·THE COURT: MR.ZEMAN: ,.,•.. 1, ~. 1 (, _...._.·d;====i==================i==I..--I I •~t . I ...\ I•.~.. 0{THE COURT:z0{>.J>(/)z ~j;j • ll. We will adjourn. (Proceedings Closed)• zol-e>z x (/)«~ 'above cause is hereby approved and directad to be filed. ,.jr•\.."..'i 1 hereby certify that the proceedings and evidence are contained .,C'C:... •'I ..O'•I ~t •r t'I I ;~ The f~r~going record of the proceedings upon the hearing of the I.,'..",1-. .~~ " U ll:f-·(/) C .J« u c ::J.., i=,.. N .,en fuli,.and accurately in the notes taken by me'on the hearing of the aoovea:wI-a: · 0 cause~and that this copy :iJ3a correct transcript of the same.'f:j ••(,a:. l-.a: ::J ,. 0 U <' :-J •l;i'«·U /'~r''ii:I.. Lt.••6o·",!I .", ., • ~.By the Court, !' P.J • .•-----Hl.....------------I- --.._._-~'"'t._""""~'--"'.'" ."-,;I )..."','., l ,1 ...; .'.,-'\ IN THE COURT OF CO}mONPLEAS~OF WASHINGTON COUNTY,.pm~NSYLVANIA ,..,.' ,. \. No.437 September Tent'l,1969.",A"I .' :. ·· .... .~ ....~.", ",'-,;':..~,, .•i"•• 1 "CIVIL'::AC'tION -LAW ' "...~~.".·:;,i ..~i ,.'1\:'i P.PATSCH,et al•.~:'"..<" " . , "..~.';"·Plaintiffs,...:" ".,~...'.~., .'.""VS O '"',' EDWARD ,-..: ..· COMPLAINT IN TR..~SPllSS :. ..o"':.i,.,~.,~:._~.'."';.;.:>:'\';·:"',oefendant.s. ,,,-.:~, ,::;'\..;-''~}> WII.,LIAM c;.,~ATSCH",et al., ...~'~<~:',"'~~.:':";l5 ~~.i_:,.t\"..< ."./.':':'~·At~ti:iNOW·r'.this'6th:day of'November,1970,comes the ,.....-..'''''...--..-.'"'".. plaintiff j,:by'.bis attorneys,PATRON0 ,CRISLER AND EDWARDS,, ...,'.'.~;....\."~~','.J'•-. ESQOIRES~''a~d.c~inplains in trespass of the defendants.,as·£0110\118: ., ~~:~...',;..:.'":....".~',·1 •.Clark W.Patsch,aleo known as c.to1.Patsch, i .J .\' .<'.:,died,,'a'resident·,qf the Borough of .Bouston ~~~ashingtcn County,'\ ,; .;.~'.. 2 •.':Prior to .his death the said Clark t-1.:P~tsch I '..~ .\Penn.sylva.."'1ia,~~,on:Dacember14,196a•.:"'.: • I.. .\ ~'... I .'~ 1.:". >",• ,.'"-. also known.as·C.ti~.'Patscn,:~as.tine.of~the'stockholders in.bolO ".:.. " closely:,haig.;corpo:r.a:tions,,:to.'Vlitj I.C ...Patsch a,nd S008;,:Inon.' ",',.",....,':,'''.,:'.'..'.:'.;......."{,,.! and.Pat·scb.\arothers.,.Inc;'.".'~.\:~,'.",; 't'·~.:":'·~)'~i ::·t..':'·.~~}j:..:',;;:',:-:':,'>:'.." .:.r t ,}~;::.",'.o~·<'~./~•:A ""~... ,:'..J'..;·}c;·;.;'3.····Priorto his death Clark W.Patsch,also'., _-".'.:.;:'.~;...:~;:,~'J:J ,'....'.;!.".~'>,.'.,".' ,"~.~~.'',' known .,as,.c.·,w.•...Patsch,·.was "a partner It:1 a'fami.Iy partner-ship ';1, .....'.,-.,\':",'..~;,',.',.~~'. . ..i(.' ..',:..":.'~~':,\.-I·~'.f ~; known as.PatschBrothe,rs Coal.Company.•f "".<."::.:'f;~:/i:.~...~,~.(;,':;..'.:";::..',...,,:'}, .,.'."::Yf~·~·'';.{'-.4..,:J.Glenn'Patsch "la.S also a stockholder'in Irf ~.~•;~t~cl,"and 'sons;Inc.and Patsch Brothers •Inc.~j a ".,. !Ipartner i~'P~tsch;~rothera Coal Companydurinq his lifetirile. ....,. "~. I .J;,..'.".,,' :., i.'l i''.'. 1(,':',-'~.-'; (,.." I' "~.. 5.The said J.Glenn Patnc'h died,a resident ·of ti:e Borough of Houston,vJashington County,Pennsylvania, on March,22,196It.; . 1 6.The plaintiff;is an'individual 'll',lho resides in the?~.ow~a.lJlt±.ckering.,Eair:fleld CountYt state of Ohio • i, J 7 .;The plaintiff.13 ene'of Jche residuary legatees ":1. ., and devisees named in the Will of,J.Glenn Patsch. ,. ." )- r, ,,,\_....;.••I" "\', t, \''I,.-.,,.. ..."\~-..,."l:_ .'.;. ',\ .8..;Wilma B.~.atsch was also a legatee and . , devisee named in'the Will of J.Glenn Patsch.The said ~'lilma ~.;..."; " ." ..B.Patsch died·,.a :resident of.the'.'.~,,','•~:.~..":','.'.•.'i _/.'t. Cotmty I Pennsylvania,o~the 27th, .'Borough,of Houston,~'lashing,ton day of April,1964. {.\,"9.:.,.The plaintiff ''las·.duly appointed executor"-'.,~~.~,I ~_.. . ."":;,~.'. .\.t,'..,~~. of the .estate oft Wilma'B.Patsch'by theI\egister of Wills of .'.. ."~'.,~",':,!. Nashington .'countyi,~Pennsylvania • .~ .-1.;'~'. .,"."f·.L ,':.....~.. ·,,,::1·0.{.:The plaintiff brings,this action in tres-, '.'~.';!.'.. .'o~\1 .·r , f.l ",.. .".., ~. ;.'.. pass ;t~vindic~t~~his'o~n rights and also the rights of the :.'•~I,r·o .._....;..~:":: estate of Wilma.'.B~,Patsch • .~'::.;~~~~.:·,f.:;';"'-'i",)i.~/:"":'1 °t,;:r :', ..,I.'';'::''-"',''11 ,t At the·time of the death of J.Glenn Patsch~,''''',l;~,',"..,':A'...• ',":,.' he ~wned.'o;ne-third (I/3)of the stock in each of I.,C•.Patsch and' •0 ~'~_':~,0 ~,I: .0:\0'._. .Sons,Inc ....and Patsch Brothers,'Inc.and ·t-Y'as a partner entitled to a '12.Adolph L~Zeman,Esquire,was duly ap- ·4-"t 1p~iI!te\:i :;Ex~cutor of the Wi 11 of ,1 .":Glen~Pa·tsch., estate of J.Glenn Patsch in which the stock owned by the.)." :'~ '.,I. ". ~',"!13..The·said'Executor filed inventories in the ..''Jsaiddecedent in PatschBrothers,Inc.was valued'at $67.141.60 ,.., .~., '.. the estate:,. The interest in the said$70,958.75". ..~.., ,t') and the stock :owned by the said decedent in I.C.Patsch and Sons, ,..,.,";~ the <inventories filed by the.said executor •... ~."~r , 14.'.'During his adm'inistration of,...., .;,'.·i·,:~,'.~, "',"'-:-'t..~.'Inc~was valued'at I,,~~'O})~'.{'~', .decedent;,i'n'Patsch·Brothers Coal Company "las not mentioned in ,-'r.f p ~,....' ··.·1·-',. ;,. .'~.. ;~;'"... t,~,:-)J}~""0 ,'~~. •"the·said.Adolph L.Zeman delivered to the plaintiff a \-lriting ..'r ' "lhich proPorted to be a statement of the assets and liabilities ." •f of T.C~Patsch'and Sons,Inc.,and of Patsch Brothers r Inc.A copy of the said statement is attached hereto,marked "~efendants· Exhibit No.1-11-28-69"(a designation assigned during a depos~- tion),and,made a part hereof. ,15 ~'I'he valuations set forth in the inventories filed by the said Adolph Zeman were based on the said statement ·ot'.r a.copy of which is attached to this complaint. ) " .~. 16.,:Relying 'on the said·statement·the plaintiff '.~. accepted,-the valuations set forth.in'~.the inve.ntory and the •"II :':'" omissionC;;i.:the said'interest .'in'patsch.Brothers Coal Company.., 'I "~.l ~.."",II ..'•and took·no.'exception to,them.' .17.~SubE.eguently Adolph L.Zeman,as Executor, t,". ,•.t.~• "~"". filed his account·~·'In,the said account the valuations used;in·,', , the'said i:~\VentoJ;'ies·and ba~ed.on th~statemen.t a copy of which ,'~. ~, .~, "",;I..• ...:.1 : \. is :attached to'this!comolaint ~lere reaffirmed and again used.'.1,..,'".,".>:,.:-"\".:..,;,._~.~...:.~[,.;I \.;;;,..~.;~.'·r~;.{,'t t.~;.~:'R~lyingon the statement a copy of which ~._•.~...:4'.i "~l •. ( is''attached .to...th'is','complaint the plaintiff did not take any ~....'••,;\,:,.'J ';"...:';,;I".. exception,',to'~the".v'aluations of stock set "forth in.the said:'~'.'".~,:,~/}~,I;\.',~,'. account',or'to,the'omission therefrom,of an interest.in the",,'~:'''l'Y:',;::,1'<'1 1 '. patsch,Brot~efs Coal"Company. ~"..1 • . ...•',\r..~.";:f;~:"'_:i '..i9"The Orphans I Court of Nashington County,: .,(.... Pennsylvania',~,made an adjudication and decree distributing the ,.J..,', i '....',1 property-:of':J •..Glenn Patsch on August 25,19650 In.that adjudi- ."~-~i cation and .decree .it was ordered tha't the stock owne.d by the .., deceased in I •.~C.Patsch and Sons,Inc.and in Patsch Br.others, .Inc.be ,awarded.in"kind to the persons interested in the estate, " :including,';the plaintiff both in his capacity as an individual .'d..:).':::L,....',. leaatee·"andLdev1.see and in his capacity as persona~representa~ . •-I'r:~.• ;.ti~~/6f'~iil~aB"P~tsch,a dece~~~d legatee and devi~ee.In .' .'I. I •>•'....'••~.·f ",':.\-,..- .i·{,(; ;,~alculating the,'distribution in kind to Edward P.Patsch and the. ••.,;.,\,~~~•..,;,.,~,,~I.•..~,.•I e~tate of wilma B.'Patsch'the'Orphans'Court used the valuati~ns ".j,'.•. ,.'or'"·.~,~·;·t·'~.·". of t.he·'sa'i:d>s,fock:employed in the inventory and account..It.;did',''.' t''.;,,~\~,~,' . not distribute the decedent's interest inipatsch Brothers·CoaL {_.~., :> Company because,it was not mentioned in th.e inventories or ac- count. 20.In reliance on the data in the stat3rnent. a copy of which is attached to this complaint the plaintiff did not take exception ~o the said adjudication and decree. I'21.Subsequent to the entry of the said adjudication and decree and in performance of an agreement made prior to the,entry of the said acjuciation and decree the " plaintiff sold his interest·in·the stock'.'on the said I.C.Patsch t. ,J . (°t ·, "...'.:~..,'lJ·'.' ..,..... ',:''. ".',•~.J t .,,}O "l .).t 'Ii ... ...I" ,. .',t .~" ..-.........; ".1 '.,. ·,. '.'.'t,.·.~".: ,:;,:'.' ,.," I"".'...:',..'.·, .",'r i:. ,.. ~'".",''. I' a.nd 'Sons,Inc".and Patsch Brothers,~Inc.to !.C.Patsch and Sons','Inc.;:~He':'als~sold the:intere'st in the stock ~"'ned by 'the ~..."~',.,I .':'.;. \..i . estate of Wilma B..·Patsch to:"!·.C.'Patsch:and Sons,.Inc.The' "'\ purchase price which he received and which the estate of,Wilma B. Patsch;:~eceived',.'i\1as)'based on the,valuation of that stock set forth in the inventories,the account,and the adjudication and decree o.f~,::·the···cou'rt..~~. ,;i">.:,.,J:'J >t 2~'~'The plaintiff accepted the consideration paid .1', for,thei·sai<l stock in.reliance 'on t.~e infonnation ,supplied by: 1"~,'.:0,'i...~.':"~,,the~statem~nt:<a'copy'of whi'ch is attached to this complaint•.., I,.\~","! "".:'·,';·:i(·r.·...-23~The said stook was in fact worth more than .'j:"':I~:~\.:t't ,:."t·:..:<'...~~:,' the pur.chas$pri'ce·'.received by the plaintiff,actinq for himself .,-.',.'. and for,',the :;estats of Wilma Bt Patsch •.''Jlhe ·fact that the said " stock,.hadbeen,.undervaltled was ascertained by the,plaintiff aft.er ,.',",:'i , the said sale··had been Jr.ade and after·the court's adjudication and ", decree had been handed down. 248 The·statemen't a copy of which is attached to this conlplaint did not contain all of the assets of Patsch Bro- thers;In\?,of.I.C.Patsch and Sons,Inc.and contained none .of.the,assets of Patsch Brothers Coal Company...The said statement '"").,. ,"~'..~,I '..•I ' •also markedly:undervalued those assets,which were'listed'in it... ;;,. ,i.t' '.',:,~."1";'"'.;:25...Prior to,·his death Clark W.Patsch,..also !;'~~""',r;~',d:::\'~>",~''i','':'J ", • known ~SC;~~~."Pat.s'ch,was se,cretary of .1.'C;Pat:sch,IIic.and"\.,.;:~,'.~~';'.~~;r '{;",,'~.,....;~...t:,::'t ~,.,':'A','',:..'~~~~,,"~ Patsch '~rothersj .,Inc.'and'was one·of three partners in ,Patsch :.•;"lr' Brothers C~al Company.The said I.C.Patsch.and Sons,Inc.'and ,, Patsch Brothers,Inc..had no'treasurer.The books and recordsIofPatachBrothe;'s.Inc.and I.C.Patsch and Sona,Inc.",ere kept by and unQer the supervision of Clark W.Patsch,alao known as C..W.Patscn •.The said Clark ,~.Patsch,also known as C..W. Patsch,was also an officer in the said corporations after the death of J.Glenn Patsch.The said Clark W.Patsch,also known a3 c.w.,Pat3~~,was that officer of the said corporations who was primarily responsible,both before and after the death of :.. .' • I I ,~,, . .~ l,...,,'•. ,. <••,,' :"•.,',,';:;'.? .~:. ""i .'",'t. '.. ._.~~,':'{).,~''.~, ,.\;'r ~';\> J.Glenn ~atac.h,for the'financial records of.the said corporation 1 ..... ,,...(,";:.:;',,:,', r,·· and of ·the ..sSid,pat;'tnership.~:" "/,,~:...'..,~~....'}',,'..~.<:"'~.':.<:.:I;:".{.-.:. , ,,~"26,'.".;.The said'Clark W•.Patsch, ,;.'.':', ,,;':1'',.."W~Patsch provided:the'information whi.ch made up the 'statement .-.'.' '.:;......:,' I ". whicb,:!sattaChedl to ,this complaint.:" ,.t '",.::,. ;.;>',..,.':..;2'1~"The said Clark \'1.Patsch,also known as~t ':~:' .~.'i.,,'.'J;.'..( I' I ''i c~W.Patscb,was'icb'oth before and after the death of J.Glenn .',,"~-.~.~"::.~.;.:\,~:.."-;~'.~~'...~:~;. Patsch,,an·:'offl'cer ,and prinefpal stockholder in I.Ca-Patschand''::,".\\,i"~-,.:.X ',~:."t-~.......ll Sons ,i,'.Inc~·rf....~.::<..\f~:.'!.:,.;.'.\!:~.r,::::,'1.'is .Th~said Clark 'VI ..'Patsch,also known ase.w.;'.;'.,!.,\.~'.":';;'-::.~~''~'::,:;..• 'patsc..~.~:deii-be~atel'y furnished false information to the plaintiff .f~ri t~fl~~~o:~.~'t.·;delUding the plaintiff int~belieVin~';'that' ~~4'':":'..~,c . the.pla~nt:i'ff.·a interests in Patsch Brothsrs,,Inc.,I.C..Patsch " ;~.;';,.....:>. ,,·Ii. anc!Sons r.:Inc•.':and Patsch Brothers Coal Company.'Were worth,less '.\.. '. tionsupplied,by t.he said;Clark;':~'.\.::,~r ~. latsch,.the plaintiff sold his .""'~).,,",',:~..,~~,~~,"~.:"" for'less than their;tru~value interests·in said corporat;.ions '.' \.~'.'I' WHEREFORE,the plaintiff claims damage3 in an,amount in excess of $10,000.00 in his own right and claims damaqe3-.in excess of .$10,000.00 on behalf of the estate of ~nlma B.Patsch. Patscr:'Brothers Coal Company.,"',';.;'::",:: .,0;,,:,,:"....':::.••:'/·C29~.",The pl~intiff and,.th~"'e~tate of '~iika~:~..'/' ~. •,I".;.;.~•..'~l''.?.-'"~~'.f r..:.'':.:.,. Patsch 'hava':'been'wronged by the.false'inxormation deliberately 0'"",t ;J':.':\1 ,~\.~','.,,\. .':'"~..,_.'...; s'upplied 'by·'.,Cl·ark·W.,Patsch ,;a.lao :knol-m as c.w.Patsch /,;withan !.~,;.-i;':.;;)\ti '.,,<,,:I '.~I •".. intent.'to ~..defraud.and are entitled to redress to right the said .' ~"".', •r··'. wrongs'•.<,.i,.: ., :,~'>..\ :', ,. I " PATRONO,CEISLER AND EDWARDS· By lsi Francis H.Patrono Attorneys for PlaIntiffs. ~ .~ '."..'.f .~ I t f' , .f ! : ,". \'(''f "( !'STATE COUNTY." .. ss: r ,Before me,.the undersiryned authority,personally '.,i appeared E.OliARD P.PATSCH,who,being duly sworn according to law~" deposes and says that the facts set forth in the foregoing I I "I I '., '.I ,~."i:.~-.:.I' },i ~ l ~.f t Complaint'are true and correct'to the best of his information....~-... and belief,~~:' 1 .1 l·· !',!.-'(" f I.1 . Sworn to:and subscribed before me this .~-?..--r..d"day of '~~11~c...;<".~,.-.(;.~1970. ,, I I! • ,-.\ ",/ I l •.), \)"}t,J,. F ...~. .(".",.\\.".; ,1 .' ,. I. ,..'l,: .> 'oj ., ·1.J:C-".",,',.,.r 1.'"·1 t· 1..''.,.".,.' ·:~5f)O~CO.~;GG:>ca 2C«~)"CO t;tf"":j~C"-:f'!_,,;c.J-•...,..w.9 "I,r,r,i'"..I ...,..-.JV 161;O~OO ...,,-;~r.r-f';;;.~,JV"IdU ;QO~CO 525s(JO ..:' .'.. '.'-:.' ,,~~:....:" ,.,. ", ....; .!., .' :"Sar\t1csstat1"on'Equli>. Shop F..qu1pmon.t·:Ho1£!.ts',"';':Jac-.ks :unc.stu.dzJ:· ....lJ1oo1~'",'r"i F·.""1 i ,.·:"r."i';· Q U ~~f~"G""~r...-J""r.J .CQr.lprB·~~£~r;J. J~1~o"~QQla Cr0CJ..t cai:.'d,.ga.~ct· Tiro,B~tterios;and ",..: " ..;. .,:~'. "~4 ,.•.:......1".... '.; ..'.~:'.. .~..,.,. J'V ~ .'f :;' :Used.·Cars'r.··.'.',". ,..,'..' .... :'\ '" '.\! .." .'~" "150000 .'"., ".<{".' '. ..~. " .•_o._~~-_~w ...._1lQ» ',..~';,....~.Joto....."~.:,.>':,I1:t.~./".:.J.7...,7;--~...•..."-""-#.."" "·T., " '." .. ','. '.,. "'. ......~:i." .;'. "'. .~':'.... ."' .;:...'-......'..;'i~',~~:<'.:,....... .:.::, .', ,~". .' .:.... ..' ptopert].value B-'Ch£J.rtiel"s Tup:' Houston Eo:ro J:ro~~h strabil.?".1J1 'CdP CanonsbUl'g'Ec·!'o ... .00.ltBtan~.Recei\7aol08.. .'. ~..";--:': ':,.... Cash on 'H~~;~",./':',::<.~.:~.;.;...:" "Bonds and StQCk2.·:'.'~.........~':~~~;,...,. ..:.~...- .......: '. ..'.... ,i' ". -"-,.'"'" ~" ':.-t,~'."• •!":~.... ..~:.' .:~.:.;'.)'r·.... :.... ~'"'..J .~_• ";":'J~~.. ..': I ,,;. ~-' ,'I " ---.;-.~-~.:~..'.~...,,".(_;',"<.-:':~<''''I:'1'.:••;•••':","'.~•.:'::... .'...,.'.:'.~-'~" o 000 Statement of 0 Acc·ou..rr~s R~ceiVb ole ",",,'j;•...:'.. ~'0 t~'~"lml~ Fl~r-~t.!n r.~t"')'r'?Dlr~V~·,.J __Yo {~~1smi~~ f}1 ffr.i"d 'B,'·r,r...~~~-;}.Q~...." G.i ~oni,~·!ik.~'"0 Guttm:;Jn ,Oil Gut tm(:1n SU'J;)11,7..~..C'~'::l',r (:1;c 1"'''nt'~_'to..o":,.,...-._.......__ r'''''''''_....,.,....~.....t;....~j,U-:'::.,;bn.,..:"",."?,'i"1 .,...'\-.>........\v!-~--l~'\Jo Gj.~OCj.1 B~CS;a r,1''1~'7\el~!{(~-r"':!j'r""''",..,-...'-"..._..J t:.~~~r 'f"f ';-":",~.Y~~".'*v_"&'_....._v "1,-4i ..~'b ,.....,..,..~·t l.~,~'~.)-0 "'1 ...h~:..")••,~1'>:......u,~..·....--~a...;Zt ..•~.:.o~__ (~J:~Ufl~~::n , I o I ,0 1",' ',' .'. .,".",, -. ..',,~....._,. •...> ,; .,' '"'~'•.;.•..~~.....).;'.-._._""'""',..~_.~.~,:,,,,._.r_~_.~_......_~ , .' .1 I. I ". .,'.~ .' "".-.; ~',.~....."."~...''- " ,: ..:~".. '.. .'" ':::',. .:.: ..~. ~..:.-.'.. .... :..."', .,...... .,' ,". -.- ,,'. ;". ...',. .' '..~. :. . ..~.. "'-.} ~;., '~;~..,."~... "-. ................:. .:~~.{..... •..c••, .'..:.'"J":...-I '";. .',......';,... .'••t ...•',' ::'.- ~..'...~":. .,',; ~".',.: ":.fl"....·.l>,,,1~:.~v·a. ',........~'.. '>,,>;<t~..:.~·.:.~:. .:.'.\'.. .'.• '." .". "..•r :~..•~.._..L#._·l ~_••<;;...;.,._._r~·-~••••.__••t,.·.~__..J••_...'~•.:_-o. .: .....j " '" '. ...",.. \.-.' .... :........, •...'·,1 •;..~ .,.~-.'. ..:;.>.,.- .....;..: ...-,', Sen So SO.ti. Sdn Sd-U' Qri",.'•~~lo.\':'• ..Ban SQn,S,t'ln''.;.:.:....~,. C ...l~~?~~,a..;\,/.l.;.....~...~_~ sOn '-:..::.'.- B~"1.'c ;,',::'~.. ScL"1",'.... Scb -Sdn',.' So.n . 3dn ..-.", 1964 ',':,., .....'. o ~'.... ~. .1,,' .....'•.~";:v "".-.';',:'~.'i:.';.l.,..,::,":'~"::<lJ._....;;...:..,,-....:..-.:;-.:.:;•.:,~..-,~~->_"~,,~..,;,_.~.__-,.:10.'_. " • I 25,.C:> 25o(J ~2~r..C) ':""':lCJ r-'--.-.:.._...;.,.' .~",'"'.{'\-••.•w '.,\..•...1 r -~~....1""\~'·4·)···~~., .~J .,':',J . ,,','1-."'"~....." ,.....~...J .. ,50 /'9.~. 50 59 J"~... :'1~,L ......q-",..,'~ t .' !• " '. .' "- ... " j ."-~:';,.......,!,\.,..._.:.-~~:.-:-::'":,,~~.:s;.:::~""'~-;:-:--,,">'.' ,':'.------,Y'"'J':1 ..."..,... Acct of .' 1 I 1 'I " ",:' ',' .' :••c. .....,...... " " _·;po.~r""",·."_,,,,-_ st~r-J~EtX~tz BT;~':dS~1arcn !\.t.rco l·i;::-·~c::·s~.s ~'I"""''';-:-J !~~r......,''"'''l~~·..:-r.....vt.~..._·:...·_"J~..-...~.4••.J C~::L!,,:~·-t;l T~:}·:c:~~ R~)c<l .'i.~jl:{ ~:t::Lld ;:.~~:: [?oh~.::ol T~.,:;: ~;·:l~~.1 EJ..·~e~·~:·:,::c Co A~~=B A~o St~t1on ,",., " .>..~...~ ."~ "t~''f ••/:":.,:. 1::9'""7;:>"~."':"3 "'c..'-'..,"r el::>.'; ':178,,00 "<::; 60,,00 60,;00 r', Auto Rof'lning II " ..:·\.Sl'l}..~~·Jd II F::.~tol.'·'y I,rotor Pril"ts Co liatl J\dv C,o' ~,[JI)A W[l;;h Adv,Co 'i\;:at2 }..\4t.O D$a.lors AS800 .\'I,~:.shins 00I30r~~·8r ~:'f i\R 0 ._...-........;.._'"~_...._: .: ..... ." •,<,'...~.,.;''': ~"...7'.,4 ~1<.~',n;"Oii,"r..-;.~V ."~V ~,Iu.~~J.~ Cl,:Xte:>:lll J:::olsh 1>3'2·3.on::;~"1ni 'Roooj.<J.blo fr'ort fwJ.C of I C P2.toch ~;Eo:lS 2 1iQOo OO 27 ..93 ..0\) ,,..{'7#'=.f'\.,,\A :VcV"t8 ,18S"CO ....~.....". " :'.,' "'." ',,"" .,.,.:,--.• ,~,. -.:'.,':....~.~~'.-..~., :','"'1:"•••• .~..'. ...... " '/ 'I'' .-.'. /," .:."..~" ·c·... '.-: -.):.':"'.' ,....,", :' ," ........... ---,,-"'-.- ."•.-t I"~.' ..::"'.:' " :::·:;::.:·?r:-:_--.....t;/_... "., ·,'·;,'-Liabil.itl,9S ;:,8 r;.C?utach &S0n~~nc i\cctsDUQ Pay Roll ?roport·-v. .'.~<,. .... ,.'':~.'.:.;.. ,,' ...-." .-.,Total ~~sets.::238297 ~37 . L1!lbilitiE)8~'i;;'::.293'l1.C9 " .'....'...",~."::'~-,:'~',:;~.~~~-,-_...----- 210926.28 .;' •.' ..... .....,''". ":..- .,'.'.... •'0'<. ..'.;: " :,; ,........, ·:'1 '.,. '..... "." '.~'....' •1••~: I.no "," '0';" .!.'~~o • ,,",' .,:.- "" ," Houston Boro .~ ":,",:'. " ':.,:....' • 0 •.~~: ".... I.:' .' " ,:.~'. ."" ..:0-:. ','".."....,. .~I -.....:.._..__.........':_0 ~.__-......._.--:.#__.••;;.••~_:....•••;j.•.,~~_v.··._,'_ . ...... ." ,.:.,. .. 'D''''o''''''''~'''+''.~fn lUG'~,_.:..Jv_v.,v __ ~.:.\. Oi.I:C p,,-,ta en &:B.0:1':3 Ino "..,- Lot·3-9 B1I\::-5 Lot A ',- -301'0 o:t Houston ... Collier St 1530.0J (~90~O() ;~i ~,.u~.,..."'!..-~v 3 5!;·().,00 75C!,.00 .20~"20 "co 1)5v~00 .~-5GCO.OO ·1~·5()~~·o ~.GO. 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'. .....-'.-._~¥-.~_..~'..-~.•~__.~_"'-_•• " I...-....-. .....•'\.\~.-!. \0\.,...... I' "....,. ., .~._,:........'< ......1 ~.'\ ~,..,._---...::.~:;;:)~{j .--.......-..'"~;..:.~;,:...: ;~)2jS uj(., (;1;0 l..l: ,,.t••.•.:'71:: •.uo..c...'~.I U !~) 79J)15 !o '1 r;,"'\}l ..to ..:........;i;<J"': ~::):i !i".(¥W ..." .: ,', "\,....• ,'.~1. .;. .....,',I,.'. .. .-'::........".-.-," ...... .;" .':~ t _" ...p ,~ ,J",."," mentsll •At the time.we considered the previOUS Petition,it appeared I.I l.II V! f,. Francis H.Patrono,Esq••of Patrono, Ceisler,Edwards and Pettit Law Firm, representing the Plai.ntiff. Robert L.Zeman.Esq.,of Zeman and./· Zeman Law·Firm,representing the Defendants..' Sweet,P.J ••DiSalle,J.,Gladden,J. (February 17,1972) CIVIL ACTION ...LAW Plaintiff. ORDER PER CURIAM vs. ,~..'. r IN THE CqURT OF COMMON PLEAS OF WASHINGTON COUNTY,PENNA.\ i Iii EDWARD P.PATSCH,and EDWARD'.>. P.P ATSCH,Executor of the Estate of ) WILIVlA B.PATSCH,) ) ), I }0 i)I )No~437 September Term~1969,A.D. I)f )i )I ) ) ) Defendants.) BEFORE:. APPE}\RANCES: WILLIAM C.PATSCH.and JOHN K. PATSCH•.Executors of the Estate of CLARK W:PATSCH. I'IPetition for Order to Permit Inspection and Copying of Books and Docu.- , lfIDivisionofthisCourtlrelati~,e to matters substantially similar to those herd that discovery was being pursued by these plaintiffs in the Orphans I Court 0.\/j '1 ~\.~This matter"is befo-re us on defendants'objections to plain-r., -;,..!"-, ':tiffs'req~;~ts for admissions of relevant matter~offacl pursuant to R.c.p.l ',,: 4014 (a}.We previously had before us,in this same proceeding,plaintiffs'l ... "I'r "-It'•"I / IiI/ ItIIII II 'l'IIII IIil !!II II ;i I: l:II:1;1,It!:;,:: 'tI';1 ilII I' IIIIIiI',I " " ,I "Ii!I II 'IIIII,I I'.1Ii l:I; IIII 11I,I''III It I',I,1 II niiI'[I II "1: ,,:iIi to to Inspect "without prejudice to the plaintiffs;right to pursue further i in'V'olved. I'l! By our Order of March 6,1970-,we therefore denied the Petitionl I t' "ii 'I :1II!, "IiII rI Il \ iIIIII 1 f•. r , I I I ;I. I ~.I iI ' IiI IIt ( j. .1...! I. /s /Richard DiSalle ,.'.. .- /s/Thomas D.Gladden /s/C.G.Sweet J.._------------ P.J.-,--------------- J.------------- o R D E R .AND NOW.this 26th day of M.ay.1972.tha plaintiffs' ':.Happearing that ·the Orphans'Court proceed.ings are still •~.r :.">"~J...,". 1 •_~_•A N~,,~••",:._.......-~ Request for Admissions is refused. ,~ pending"we-see:no 'reason to depart from our position with respect to the first petition for'discovery. ,i:ii:pcovery in this division at the conclusion and exhaustion of all discovery procedures 'in the Orphans I Court Division." ,."'I'..../i .j Ii,I Ii :1 IIII U !I IIIIII II!~ II II II II II~ rJ "!lIiIIII,I.,I II 'II: ";1;i "IiI"Ii "., '1I,iIlIII'II IiIt! :1II . "II:II -IfII IIII,\IiIi:1 1\ I',I i, ;1 IIi It Ii ii " il ",II, I!I I :1 II 1\I, II IIIIII Ii "III~IiII (t- v .. IN THE COURT OF COMMON PLEAS OF WASHINGTON COUNTY,PEl;NA. "CIVIL DIVISION -LP,W EDWARD'P.PATSCH,et al,.) ) PlaL'1tiffs ) ) \TS.) .NO.437,SEPT.TERM,1969,.c'\.D. ): WILLIAM C.PATSCR,et aI,) ) Defendants ) Patrone>;.Ceisler &Edwards.of \Vashington, Pa.,Attorneys for Plaintiffs. CURRAN.J ..DiSALLE,J.BEFORE:~ ~~•j •.~ OPINION 'BY:"..:' APPEARA'NCES: Me CUNE,J. DiSALLE,J.March ~,1970. Zeman &Zeman.of Canonsburg,Pa.•A ttor- neys for Defendants. OPINION ." This matter comes before the Court on Plaintiffst "Petition for Order to . Permit Inspection and Copying of Books and Documents~'in an action in trespass in which only a Writ.of Summons has been issued and served.Following the .. filing of the Petition,we issued a Rule directing the defendants to show cause _ why the discovery should not be permitted. ~. The Petition sets forth that the petitioner and his mother,Wilma B.Patsch.'.:i. were devisees under the Last Will and Testament of J.Glenn Patsch,who died on March 22.1964;that at the'time of his death.the decedent.J.Glenn Patsch,. had an interest in Patsch Brothers Coal COmpany,Patsch Brothers,Inc.and 1.C.Patsch &Sons.Inc.It further alleges that the executor of the J.Glenn Patsch Estate;Adolph L.Zeman,delivered a statement to the petitioner ..'\. which purported to be a balance shee~of the assets and liabilities.of the ,. aforementioned business enterprises;that said statement was used by the. . petitioner as a basis for evaluation o~the decedent's interest in the afore- mentioned business"enterprises and the value of the corporate stock thereof, and further,"that.the statements of assets and liabilities were erroneous. The Prayer calls for an Order permitting the inspection of the books of Patsch . Brothers Coal Company,Patsch Brothers,Inc.,and 1.C.Patsch &Sons, Inc. .'.., The defe~dant8~main objection to the request for discovery is that the ," " "subject matte'~of'the petition and the 'relief sought by the plaintiffs are identical: ~•~I :" with the averments in.the Petition for Review of the Account and Decree of Distribution filed on November I,1968~in the Estate of J.Glenn Patsch,de- ceased,at No.64 of 1965,A.A."The defendants therefore contend that by. reaso~of the pendency of the matter in the Orphans I Court,the Court of Common Pleas has no jurisdiction.At the ·same time,the defendants aver thar they are not parties to the matters pending in the Estate of J.Glenn Patsch and that they are not proper parties to any proceeding involving said" estate and thatno.t being proper parties,an Order for inspection against them will not lie. "-"......-....:r.'..~:...J-- ". Initially we obs'erve that the fact that the defendants in the instant suit are not parties to the aforesaid Orphans'Court proceedings might justify this Court in permitting the discovery,since the issues raised in'the instant proceeding may not be the same·as those raised in the Orphans'Court, especially when this Court is without the benefit of a Complaint in the record. On the other hand,under the new Constitution of Pennsylvania,the Orphans'Court is now eli division of the Court of Common Pleas and certainly it would be incumbent upon this Court to determine whether parallel proceed- ings in the Civil Division and in the Orphans'Court Division would result "-2- .in duplication and repetition. .....I1ccordingl.Y,we have examined the Petition to Re'/iew the Account and . Decree filed in the Orphans'Court Division b'y Edward P.Patsch,who has, as in his Writ of Summons in the·Civil Division,filed it both in his individual· capacity and as executor of the estate of his mother.The Petition alleges that.inventor~es..were filed in the ~:state of J •.G~ep.n Patsch reporting the ,, "~", stock of L C •.Patsch &Sons,Inc..and Patsch Brothers,Inc.,and that following exceptions to ,the Account,an agreement was reached whereby the· <.• stock'of ~aidc.orporationswould be awarded to the petitioner and his mother in kind,and I;·C.Patsch &Sons,Inc.would then purchase said stock.As we understand it,this Agreement was approved by the Court and incorporated in its Adjudication and Decree on August 25,1965.. The Petition.for Beview then alleges that the stock of both 1.C.Patsch &Sons,Inc.and Patsch Brothers,Inc.was undervalued and that the state-· ment of assets and liabilities,upon which the stock valuations were based, was erroneouS.The Petition for Review concludes with a prayer,inter alia~ th~t theOrphans f Col1rt "authorize your petitioner to employ discovery pro:. .-'. , I II I II Preliminary objections were filed to the Petitioner's Bill for.Review in cedures"to ascertain the full amount of error in the inventory,appraisement -. ..'I:,.,,.It and account,etc. ."".: .. ".~ .'I: .' I theOrphanst Court,and on February 17,1970,President Judge P.V.MarL'Jo entered an Order dismissing the Preliminary Objections and directing the respondent to file anP..nswer in 20 days. -3- .../.~ Rule No.6 of the Supreme .Court"s Orphans'Court Rules provides: -, "The local Orphans'Court,by general rule or special order,may prescribe the practice relating to depositions, discovery,.production of documents ,and perpetuation of testimony. To the extent not provided for by such general rule or special order,the practice relating to such matters shall conform to the practice in the local Court of Common Pleas.Amended., effective Feb.1,1968.II ' It can be seen that the plaintiff has the same right to discovery in his .,1,., Orphans'CO,urt.proceedings as he would have in the Civil Division. •.."";~"," .'~ As,we view:this matter,therefore,while the proce.edings in the two ."". divisions may not.necessarily be identical,and while different remedies and,.,,,z·'.(-...,.. different 'recoveries may be had in each,it would appear that,at least at this posture of both proceedings,it would be duplicitous to permit parallel discovery procedures in separate divisions of this Court. \"1e therefore make the following: ~., i . -4- :.,. .:Ii :-.~ j, ...;"...,....I '~_. 1': ORDER AND NOW r this Gf:£day of '!J~J I 1970,the Petition to ,.._... Perrrdt Inspection is denied without prejudice to the plaintiffs'right to pur- sue further discovery in this division at the conclusion and exhaustion of all discovery procedures in the Orphans'Court Division. By the Court, !d~d~Rlchar:DiSalle,J.' I JOIN: hi ~J~P/JfC(!~ Ba..rron P.McCune,J". I .;.I JOIN: ."{~,/~;j~-M x? "Alexan~~r R.Curran, ';':-,. ,. ,e, \ \.\ ;., 1 1 .../..- "," j 'po- .....-..~.,..... ,.~ ,.'... ,". ." IN THE'COURT'OFCO~rON PLEAS OF WASHINGTON COUNTY,PENNSYLVANIA ','.,CIVIL ACTION .:.LJ!..W .... '".'-... ·.~. .:..' .:..,..,;.-:, ·, :.:;. ".:".:.~.'. EmAfARD P.PATSCH;'et al.~.".,....\'......" .',,;;.....::'.'~,,'.;'..... ..1.····: Defendants.'.:.".. ), ) ) ).. )," )No.437 September Term 1969 A.,D •. ) ) ) ) ) "'''..: .'......". ,.':.;"",- ·".,', '.,:DEFENDANTS'BRIEF SUR OBJECTIONS TO ,REQUEST FOR ADMISSION OF RELEVANT MATTERS OF FACT .', _..'.i "'.:.~: -: ZEMAN AND ZEJ.\iI\N ADOLPH L.Z~~N,ESQ • ROBERT L.ZE~~N,ESQ . Z~~N LAW BUILDING CANONSBURG,PENNSYLVANIA "... ';,,' ."':. ,,'. .~.';~.:' • •r ,"~L •;:.....: .',j .-'.':. ", '~'.".~.. ,',"" .~,.~:. '....." •'.''••< ··c."-·'.,.-.\"...'......' .'.... •':'".',i.'...,"' ."'..:-. •~,••':'I ,.• .',,1:':-,. "1 .'. STATEMENT OF QUESTION INVOLVED '.' ",- DOES RULE OF CIVIL PROCEDURE 4014 REQUIRE THE ADMISSION OF: ,.',"ar,MATTERS ALREADY ASCERTAINED BY DISCOVERY; ",.... ••..'-,p ,...... .~~. ,,,"b),MATTERS PRDJIARILY RELEVANT TO)AND INVOLVED '.,', : '..'..::'n,j'~'"'ANOTHER PENDING PROCEEDINGS; ~~-:.:".;'''',.~.::...' ,{-.,::c)':~'MATTERS 'UNRELATED TO DOCUMENTS; .,to •~'"• .d)THE TRUTH OF MATTERS CONTAINED IN DOCUMENTS; e)'THE VALIDITY OF LEGAL CONCLUSIONS; f)MATTERS NOT vITTHIN THE PERSONAL KNOvlLEDGE OF A PARTY,PARTICULARLY A FIDUCIARY; " g).FIDUCIARIES ~GAINST THE INTEREST 'OF THE ESTATE; -::-;;',..~. ",; .il)',PIVOTAL AND CONTROVERSIAL FACTS?.~,\,~'~:<'L.~""~';'.'.;"" ~.:,,;~>1 :~" I.,..,.' ",'.' ,~,''\ •l r',~,.....'.-,~ ,. ,,, '..t _~~_, '.',~~..' ,.""~~: ,, -2- --------------c-------" -; ..,..' HISTORY OF THE CASE ".'. The plaintiffs,'Edward P.Patsch et al.instituted an -i." ; t··'. action in trespass against William C.Patsch et al.,defendants. ".."',-:....'.~,:,. The plaintiffs then:filed "'a request for admission of relevant "'.'.> matters of:fact~-.')he 'defendants then filed objections to the '-",request ,:,conte!lding,that ,:,the -reques~did not fall ~Nithin the ,,.~. .L.i, . .::'. ,.'.....,.'. :."..... -, -, ,t.~, -!; ,; ..... --.'.- '.,.' J•••• '';,:, '~.:'...'. '..~,...,. ".:. •f '••~"• ,".. .~,,','.:"'; .-',- ,',., .~': .'",...:,' 4',",.'~ -.t·).'!._ ',:"'! .1~''~.:" r - -3- ," ," ',"". .':,. -.,f .',.: ,(1 ..."j}•• .','~'. "~, ...... ..':";','",' .'/' . ,i ~." ARGUfvlENT ' ;.'.',',.:..""!''•.. ~",.:.'...:,". 'Defendants aver that the plaintiffs misconstrue the scope .~.' The plaintiffsofPennsylvaniaR:ule'of''Civil Procedure No.4014. ••I"-' .•.,.••".:;'"';'~t',,',~';'~:'seek admissions'as to the,truth of matters of fact contained in.'...',.....,~ the Request,',for -Admission.'These are matters that have hereto- ,r-'~"..~..::....~:".'• . . fore been det~~ined,by'depo~itions taken in this case,in which the plaintiffs:~a:l~e"identicalquestions of the propriety of procedures,in connection with the settlement of the Estate of J.Glenn Patsch;'who d:led on March 22,,1964.These matters \'lere covered in a Petitionf~r Review,in proce~dings had at r-Io.64 of .'-' 1965 A.A.,in \'lhich no opinion has been handed dOv-TIl to this date by the Orphans'Court "Judge.Th'e essential information and data sought ,by the plaintiffs .in this Request for Admission of Releva,nt \'...,.... Matters of 'Fact are,the same which the plaintiffs sought in the procee,dings 'a~"',:N~~:,64 ~f ;i965 A.A.' ,"',' ,- ,' ,, Itmust'be borne in mind that we ,operate under a fact- ,,,',.'....... pleading sys,te~;'~h'ere-the'defendant is required to ans-!,ver the .~, ,....." averments of a complaint,and the entire issues of fact are heard by a jury at atrial of the case. -4- ,:--~.;,:"'.~...',"" ., • ,,:B',•••','~...~, .....-' "....'•. ,;,.... .'"'.~. . ,-; '.~~;....:"::. ........ ~~..:~,....'.''..~,:~;,. •••Ii..,. ~..~... ;'\-.' -..'.'~.~.'.... In the Complaint in Trespass,as filed,the plaintiffs aver that they sold stock in I.'e.Patsch and Sor.s,Inc.and Patsch Brothers,Inc.to Clark W.Patsch and Ralph L.Patsch at an undervaluation and that·this undervaluation was attributable to a false statement of the value of the assets in the Estate of J. Glenn Patsch.',It is plain that the statement did not include certain assets of the Estate of J.Glenn Patsch consisting of his ,, interest in cash in the bank and real estate acquired by the •.r _ corporations.',These contentions obviously seek to establish the Review and the Answer filed to said Petition at No.64 of 1965 A.A. There is no authorization for admission as to relevant facts under Rule 4014 and the scope of the Rule is limited to docrnnents and to facts connected "~th documents,namely,the .,""authenticity,correctness,execution,delivery,mailing or receipt thereof."Goodrich-Amram Standard Pennsylvania Practice,Section 4014(a)-I. " As stated in Section 4014(a)-I,the right is available' ,',whenever the inquirer has a copy of a document in his possession or othe~lise available as an attachment to a'request for admission for incorporation by reference.The procedure for admissions is ,a device for limiting the issues at the trial more effectively than can be done in the pleadings.The pleadings in the action will not permit a compulsory demand for an admission by the opponent of the truth or falsity of any averments respecting these documents.Every issue will remain open until the trial.It may well be that the defendants at the trial will admit the truth or falsity.of any averments respecting these documents. -:5- ',' ., .,.. In Reed v.Farmers'National Bank,89 D.&C.547,it was held that trA request that defendants'admit that plaintiff's bonds of a school association were presented to and examined by defendants,as trustees,and the school assoc~ation,as 'I mortgagor,on a specified date must be disallowed as not coming within the purview of Pa.R.C.P.4014,which .permits.inquiry into an opponent's position respecting the genuineness of documents or the truth of any fact relating to the·authenticity,correctness or execution of the docu- ment.'A request that defendants ad.mi t that certain bonds are'valid obligations is improper as seeking an admission ..;of a legal conclusion rather than an admission of fact as .allowable under Pa.R.C.P.4014••••Defendants object to .the,request for admissions contained in paragraph No.19 'of plaintiff's·request for the reason that the request is beyond the scope'of Rule 4014 and that the facts sought to be admitted in such request are irrelevant to any issue 'in'this proceedings•••This rule does not contemplate an admission as to the validity or legal effect of a \'lriting, document.or record.It is improper for a request to require an admission of a question of law.As has been previously stated,the purpose of this rule is to expedite the trial and to relieve the parties of the cost of proving certain facts which will not be disputed at the trial and the truth of which can be ascertained by reasonable inquiry.The defendants'objection,must be sustained.Tr '.'~.~ In the case of Kelley v.Connecticut General Life Insurance Co ••6 D.&C.2d 89,a request for admissions was denied as beyond ..:...~ '.ithe'scope of the rule under Pa.R.C.P.4014,in that the request seeks an adJnission of the truth of the matter concerned in::a report and not'merely an admission that the exhibit is a correct copy of an. original document,or where the request seeks an admission of expert medical opinion and/or factual conclusions which are not within the plaintiff's knowledge. In the Request for admissions,the plaintiffs do not seek to establish the genuineness of any document or writing,nor is a copy of any document or writing attached to the Request. As stated in Qoodrich-Amram,Section 4014(a)-): TlSub-division (a)permits inquiry into the opponent's position respecting the.'genuineness'of the document,or the 'truth of any fact relating td its authenticity, -6- ~.".. ..~.-:_:.~...:.......~.: ," correctness (or)execution.'These four categories cover various aspects of the same issue,namely:-will the opponent at the trial,attack the genuineness of the document,dispute the accuracy of its contents,or question the validity of its execution?Or,in opposite terms,will the opponent concede the document and its contents,subject only to possible objections to its relevancy,materiality,competency and general admissi- bility?•••If the opponent will confine his attacks on the document to these questions,'no proof will be needed on any issue regarding the document.1I .. And,again,as stated in Section 40l4{a)-3:- .,'(', 'TIThe opponent may call upon his adversary kinds of concession.First,do you admit the ness ,of the document?Second,do you dispute of a,ny ·of the contents of the document?" for tvro genuine- the accuracy .",:. ". ,-..'"". " t.•: . ~..."...-- ".-....,.1',.,',...,, ~'=-: .... Again"we refer to Goodrich-Amram Standard Pennsylvania Practice)Section 4014(b)-4~The defendants find themselves in a position where they cannot admit or deny the request,since it 'involve's information \'lhich the defendants are excused from disclos- iLg,or because of 'la~k of knowledge of the facts,whic~rests in strangers,sufficiently isolated from them to excuse them from 'inquiry. The Request calls for an opinion of the various p3.rties or calls for information as to which they have no p~rsonal know- ledge'and \'lhich cannot be ascertained by reasonable inquiry. The Request for Admissions calls for admissions of pivotal and controversial facts which occurred during the admini- stration of the Estate of J.Glenn Patsch and the defendants would not be in a position to answer the Request for Admissions with any degree of accuracy. The.facts sought to be admitted in said Request are irrelevant to any issue in thi~proceedings,but are pertinent to the proceedings in the Orphans Court Division of this Court at No.64 of 1965 A.A. --,-...~----------=--------~-~---------------'-'-'----~~-=---- ...~ The defendants are the executors of the Estate of Clark W. Patsch.It is contended that no request for admissions can be validly claimed against the fiduciaries,since the fiduciaries have ., no knowledge of the underlying facts;nor can the defendants as fiduciaries be compelled to make admissions against the interest of the Estate.\'lhichcould 'only be based on evidence of witnesses other.';." ,....',' than the fiduciaries •.,',.."~ ,. .',~.~../-'"'.. .In··'Sc~anton Lackawanna Trust Company v.McDermott et ux., ':fYriere is a substantial difference,hOvlever,between the procedures authorized in the two rules (4014 and 4007). Under.rule 4014 the party \'iho seeks discovery has the right to serve a written request for an admission by the adverse party for the purpose of the pending action only of the genuineness of any l,'lriting,document or record,a·copy of which is attached to the request,or ~he truth of any fact relating to its authenticity•••••The admissions sought are as to the authenticity of the document itself,of the signatures of decedent,of the existence of legal or valuable co~sideration for the conveyance to defendant,and.whether or not the subject-matter of the'agreem0 nt of sale is the .,same as the conveyance which is sought to be defeated by this action.These are matters which it,seems to us in the inherent nature of plaintiff's duty as fiduciary plaintif.f ought not to be compelled to admit.It is quite obvious that plaintiff as corporate fiduciary has no knowledge of the .,underlying facts,nor ought plaintiff as the administrator of a decedent's estate be compelled to make admissions against the interest of the estate,which dould only be based on the evidence of witnesses other than the administrator or its corporate officers ••••In other words,admissions which could legitimiately be sought from 'a direct party to the trans- action giving rise to the subsequent action cannot in,·our opinion be sought from a fiduciary who is under a legal duty to prosecute a colorable claim.1f .. ,~.; ,.........-~-.'\ .\'.,:;::f·..···· ;.'.•:'.c,"".... ..~.~...."'.'. •:',<~"~~;'::.' ".:. ~.~.~~:.<·;..:-7~~-"...... / ""~ ...1 D.&C.2d 539;~he defendants filed a Motion to Dismiss Plaintiff's Rule and.furt~ergoes'on to say ::::::'·;,--:-:::...·,i~-·;."~···:· ~.~~~?;~~~.:~..::~.:....;. It \'las held in this case that the plaintiffs'request to strike off will be treated as in the nature of objections to the competence of the matter and the objections::to the request for admissions yull be sustained and the plaintiff relieved from the necessity of filing a?answer;that this is a subject of written interrogatories or depositions. -8- ~"'"......l' The general substance of the proposed defense seems to us to present questions which ought to"be decided at trial if prope~ly pleaded. ."".'.' .-' •...I~ t,.-,. '.~- .~ -9- I ."i'· "I ..'., P\I "",.:.....~~. '.....•..r .'.~.,. .'!. " NO a 437 September Term 1969 A.D. j .,.,. ) ) } ) ) ) )Defendants Plaintiffs IN THE COURT OF COMMON PLEAS OF WASHINGTON COUNTY,PENNSYLVANIA CIVIL ACTION -LAW EDWARD Pe PATSCH et al. .\AIILLIAM G.PATSCH et al~ PRELIMINARY OBJECTIONS AND NOW comes 'tlilliam c.Patsch (error.eously·identified in the caption .of ·the plaintiffs'Complaint in the above-entitled action as William G.Patsch)and John K.Patsch,Executors o~the Estate of Clark W.Patsch,a/k/a C.W.Patsch,Deceased,by their attorneys,- Zeman and Zeman,and file the following Preliminary Objections to t~e plaintiffs'Complaint in Trespass in said a~tion. I.MOTION TO STRIKE .I . The defendants move that the plaintiffs'Complaint be .stricken for the ·reason that it does not conform to the Pennsylvania Rules'of Civil Procedure in the following particulars: ·'1 ......I ••- I 1.The summons in trespass by which the captioned case .....'as instituted named as defendants "vlilliam C.Patsch .and John K. Patsch,Executor{s}of the Estate·of Clark VI.Patsch"(as by reference to the record will more fully appear:',.but the body of plaintiffs'Complaint in Trespass neither mentions the said William C.Patsch nor John K.Patsch,nor does it aver that said Complaint is filed against them in their fiduciary capacity. 2.The complaint does not identify the defendants against whom the action is brought. \'..~.:~..~:;".'...,~,.~ 3.The Complaint appears to allege six separate causes of action,in three of which the plaintiff appears to be Edward P. Patsch,individually,and ~n three of which the plaintiff appears to" be Edward P.Patsch,Executor of the Estate of Wilma B.Patsch, deceased,but the Complaint does not'separate the several causes of action,nor does it state the saTle as separate counts. 4.The plaintifrs allege that certain essential action was taken in the performance of an agreement,but the nature of the ,. agreement,'whether verbal or written,is not.stated;and,if \<JTitten,a copy thereof is not attached to the Complaint',nor''are the essential terms thereof set forth. II.MOTION FOR A MORE SPECIFIC CO~WLAINT The defendants move that the'plaintiffs be 'required to file a ~ore specific complaint,for the following reasons: .' of their alleged liability to the plaintiffs. 2.·Paragraph No.10 of the Compla~nt alleges that "the 3.Paragraph No.29 of the Complaint alleges that "the plaintiff and the estate of Wilma B.Patsch have been wronged by the false information deliberately supplied by Clark W.Patsch, also known as C.W.Patsch,with an intent to defraud and are entitled to redress to right 'the said wrongs." .', .':,",.I'..........-. '.'..:-.-':'" ,••' I 4 •.~~::" 4.~aragraph No.21 of the Complaint alleges that'certain essential action was taken in performance of an agreement,but the nature of the agreement,whether verbal or written,is not stated; .-2- .:~I:.. ..:... . .~..~._.--_..-...........-..._.--'-_.,._.-.......__.--~.,_........--:---.-__....:..-.._---_.~-,..---. .'...\ and,if written,a copy thereof is not attached to the Complaint, nor are the essential terms thereof set forth. 5.Notwithstanding the fact.that the plaintiffs have. indulged in extensive discovery proceedings,the Complaint fails to set forth the purchase price which the plaintiff received for the stocks which are the subject of the Complaint or the true value'· thereof or the amount by which the said stocks were allegedly .. undervalued. 6~The Complaint does not state the date when the plain~iffs learned that the said stocks were under.valued. 7.The Complaint does not state when the plaintiffs learned that the information regarding said stocks was allegedly ·false. 8.The Complaint does not state when Clark W.Patsch, also known as C.W.Patsch,allegedly furnished false information to the plaintiffs. 9.In paragraph No.23 of the Complaint,the plaintiffs' allege,inter alia,that "the fact that the said stock had been . undervalued ",as ascertained by the plaintiff after the said sale ....'.. had been made and after the court's adjudication and decree'had been handed do\~,n but .does not set forth at any place in the Complaint the date·of such ascertainment~ 10.The Complaint does not state the alleged fraud of Clark W.Patsch,also known as C.W.Patsch,with the precision or particularity required by law or by the Pennsylvania Rules of Civil Procedure" .11.The Complaint does not state with the required precision or particularity the basis for the plaintiffs'reliance on . ·1 • I :.'.I -3-" "•••~I.~. the allegedly:false information. .. ,\ ," '<>• i' 12 •.The Complaint does not state the manner in which the allegedly ·false information \'las given to the plaintiffs by the said Clark W.Patsch. 13".The Complaint states.that the allegedly false infor- .mation \-ras furnished for the purpose of "deluding the plaintiff into believing"but does not allege that the said Clark \1[~Patsch practiced any other specific fraud upon the plaintiffs. 14.The Complaint does not state that the said Clark W. Patsch defrauded the plaintiffs for his own benefit or for the bene- fit of any other person nor for the purpose of causing loss or damage to the plaintiffs. 15.Notwithstanding the extensive discovery proceedings that t~e plaintiffs have had and notwithstanding the fact that the plaintiffs are claiming money damages,the plaintiffs do not specifically set forth the amount of their claim or claims. III.A PETITION RAISING A QUESTION OF JURISDICTION '.'.I.... .,.. .': '."'"0"1:The defendants allege that the Court of Common Pleas of ,~... "Washington County,Pennsylvania in its Civ:ll Division has no 'juris-.''> diction over:the causes of action alleged in the plaintiffs' Complaint for the following reasons: 1.The causes of action set forth in the plaintiffs' Complaint relate to the administration of the Estate'of J.Glenn Patsch,deceased,and,if valid,are properly within the juris- diction of the Orphans Court Division of said Court. 2•.The Orphans Court Division of said Court has taken :"-4- ;. r' OJ I; Ii I; " ·. jurisdiction of the alleged causes of action at ·the instance,and behest of,and by action of,the plaintiffs. 3.·"A proceedings involving the causes of action set forth in the plaintiffs'Complaint has been instituted in the Orphans Court,now the Orphans Court DiVision,by the plaintiffs. 4~The plaintiffs have elected to pursue a remedy for the'causes of action asserted in their Complaint in the Orphans Court,now Orphans Court Division. 5.Among the causes of action asserted in the plaintiffs' Complaint are claims that the inventory and account in the Estate of J.Glenn Patsch,deceased,did not set forth said decedent's pur-. ported interest in an alleged partnership known as Patsch Brothers Coal Company and that the same was not distributed.Such matters are within the sole and exclusive jurisdiction of the Orphans . Court Division and cannot be within the jurisdiction of the Civil Division of the Court of Common Pleas,nor made the subject of a trespass action in the Civil Division of the Court. I~ I' l IV.PETITION RAISING THE DEFENSE OF A MISJOINDER OF A CAUSE OF ACTION The defendants allege that the plaintiffs have misjoined causes of action in their Complaint for the following reasons: 1.Among the causes of action apparently asserted in the plaintiffs'Complaint is an alleged fraud of Clark \'1.Patsch, purportedly growing out of his alleged furnishing of false infor- mation,by reason.of \lJ'hich plaintiffs sold certain shares of stock in two ~orporations,Patsch Brothers,Inc.and I.C.Patsch &Sons, Inc. ~5- ;..~:. .; :..\.' • • •"~.0'....J~.•....•.;.......".• ,, t,\, 2.The plaintiffs also·appear to allege as a cause of action that,in reliance on said alleged false information,they failed to request the Orphans Court to administer the interest of J.Glenn Patsch in a purported partnership,known as Patsch Brothers Coal Company. I • I I 3.There can be no transfer of a decedent's interest in I 'a partnership as a matter of law. ship bet'l'leen the sale of the shares of stock and their failure to act ~nth regard to the alleged interest ofJ~Glenn Patsch in said purported.partnership. v.PETITION RAISING THE DEFENSE OF THE PENDENCY OF A PRIOR ACTION 1.The defendants aver that the plaintiffs filed an . .. action in the Orphans Court of Washington County,Pennsylvania,on or about November 1,1968,styled "Petition For Review of Account and of Decree of Distribution Based Thereon in ·the Estate of J. Glenn Patschtf at No.64 of 1965 A.A.of said Court. I.I' .....2.On October6:,1969,the plaintiffs instituted the captioned,case by a \~it of Summons in Trespass at the above number 'and term in the Court of Common Pleas of Washington County, Pennsylvania,in the 'Civil Division and the plaintiffs'Complaint has been filed in said pro~eedings.· 3.The alleged causes of action in the "Orphans Court proceedings and in the captioned case ~re,apparently,based on the same factual situations and seek essentially the same remedy. VI.DEr'TURRER. The plaintiffs'Complaint ~t~tes no cause of action . 6 ;'"....I".!'"; , ~.:...:'., .:.". , ,. ...~. .'~.:".-. .-~. ",,"'...'.r'""......L.. against the defendants for the following reasons: '1.,The body of the Complaint,does not mention the defendants or any liability which they have,or could have,to the plaintiffs. 2.The causes of action complained of are those against a decedent and no action may lie,against a decedent,as such. 3.The Complaint indicates that J.Glenn Patsch died on £flarch 22,1964,that Wilma B.Patsch died on April 27,1964,and the within action was instituted on October 6,1969..The information on ~'Thich the Complain't is'based having been available to the . plaintiffs for a period in excess of five years,prior to the entry of suit,the plaintiffs'causes'of action are ·barr.ed by the Statute· of Limitations. 4.The Complaint fails to aver particular facts on which a cause of action for fraud may be based. 5.The Complaint fails to aver any duty or the breach of any duty owed by Clark W.'Patsch to the plaintiffs.:..:-. '.,~ .: 6.The Complaint fails ,to sufficiently aver any.remedy to which the plaintiffs are entitled or the basis for any remedy•. WHEREFORE,the defendants respectfully request that the plaintiffs'Complaint be dismissed,or in the alternative,that it be stricken,or in the alternative,that a more specific pleading be required,all at the cost of the plaintiffs. /)N AND ZEMAN ,/(j{,~ ~!/t ttorn~ys for 'i liam C.Patsch and John K.,lPatsc',Executors of ,the Estate C rk·vl.Patsch.q/~/11 Ci.J..1 rt't r'5c ~h'(~nS<:i)It-7- ";' ·0,.'• r'.0,•( ':..'..~,- -, '.,... ..~, CO~~O~TEALTH OF PENNSYLVANIA ) ) COUNTY OF vlASHINGTON .) .. "". ...' ss:. .....',,, .'.. . .:....... ..: '... ,.. I·,- f • !.l1· " ~:l.!I Personally appeared.before me,the u~dersigned authority, WILLIAM C.PATSCH and JOHN K.PATSCH,Executors of the Estate of Clark W.Patsch,defendants within named,who,being-duly sworn according to la\v,depose and say.that the -facts set forth in the foregoing Preliminary Objections .are 'true to the best of their knowledge;information and ,belief..', .,-I.' ."...- :;,.... l- i- Sworn ~o a~d subscribed before me this ~tf,.~ day of 'November,1970 Cfrf-r)ckhiq;ry £.~ I;v 5Dr /,",~ i'..;~~i"3.!,~~J·Y P.Z~!'a::~~~\·!~t~.i·i'Pub:ic !CaiH;'~S~tH··;:~·J~f.~:r:~~·;n ~UiltYt Pa.· MJ-\-~:::i;:i2..,;~:l E~;1ir~r~'~/971 • ...'._.."..-...".~-----...._-_.-_......~-_... 1- '.l r". r .' "."': .._....~ ,-....."..'.- .'.:..~:..'..'... '"'...-:',-:,- 27TH JUDICIAL DISTRICT lIallqillgtOU (!Juuuty,Jlrllltllylltattia COURT ROOMS ,COURT OF COMMON P:"EAS ....-5 HON.CHARLES G.SWEET,PRESIDENT~UD~t ORPHANS'COURT HON.BARRON P.MCCUNE.JJDOE ~~~1 ~/.../HeN.P.VINCENT MARINO.PRE.,DENTJUDOE HON.ALEXANDER R.CURRAN.JUDOlE ~,~'L-I,;>C~~~ .~~wfJ~~~~~ 12::-/.)-+fJCrl-B~--::'.~I--- -!--/~·.I-~~.J--.~~-~--r---=; ~-,---------------:-:---\--- t.,,:..:~;-..~,:,--i..''0.'......'",.)'=~ ...'f ~::::.---'~-'--:------1 ~;'__'~_'~-"--:-r_,-_'L~~.'~~_.:'_'.:.--.';"-"~_'---_""""=~.-.::2::'.:.--1 "jt' ,..:-;.:.,-'..~__lI-_/_,'_1_,'~~..' ,I . ------'~.~--'---'----.-.-.......,-..-------,---'--~--___r -- .'--: ,. .~............ ,.. ",..... I .~ \'.' I'Ii, f'. , , I'., I, I.,; I, I !I Ii,I "." I·.! ,·Ii '.~ -~---~--~~,----~~'~;••,.~~.~~:..(:.:;:.~~...:A..4-.•~:....':"'>...£i.~~'f;~=--~="­ I I . 'r;I- III------·~:---- ; I ,II " 'II·t . .,II " III'~--'------:------':.--~_--'--_~~-::-:::-"_~~----==~~1f,__...'_'l ·--11 " " ,t I~ It, --_.--'---.-~-'----,-,---:----:----- '.i- , ---....---------..--~~--~~-~~-----i----.-!II I 'i-I---.~---..-- '.fl..:, II .t .! , " ADAM L.SANDERS ATTORNEY AT LAW WASHlN'GTON.PA. WASHIXGTON TRUST BUILDING Ado ~_ph L ~Zeman,Esq. Zeman Law Building' fCanonsburg,Penna.15317 Ai ~J'M-r t!Olj2 ,- -" February 17,1967 ". Re:J.Glenn Patsch Estate' Dear Sir: Receipt.is acknowledged of your letter of February 2, 1967,and enclosure. You state there are no "additional assets"in the estate of J.Glen~Patsch.Yet,out of Edward and Glenn's money, you made a final settlement of the Federal.Estate'tax in this estate,paid ta.x on $7749.37 more assets than you showed in you~original 706,amounting to over $2,000.00,and thus also causing us to payout over $700.00 more Federal Tax in the Wilma B.Patsch Estate.Were there additional assets or should you be surcharged for paying taxes not owed? You told rnethat the loan from Patsch Bros.Inc.,to \ I.C.Patsch &Sons of $6353.91 was not actually made,but..Ja gadge~to save income tax.Did you tell the Federal Examiner this or did you pay tax not due so he would say nothing to I.R.S.? .You state Patsch Bros.Coal Co.,was dissolved in 1955, and in 1957,transferred all assets to Patsch Bros.Inc o ~Vhy is there still real estate assessed to Patsch Bros.Coal Coo, in 1966? l'lhen you listed the land owned by Patsch Bros.Inc 0,by Tmvnships in showing how you arrived at the Book value of Patsch Bros ..Inc:.(copy of which I have)did you show any real estate mmed by this Corporation in Canton Township,or did you Iea"If"out'a.$25,000.piece in Canton TQ1,I.rl1ship on which you later p.dd ~d.d';_tic::.al Federal'tax? It ' .rl'-.:1.S ~v:'__.0.n I.y'm do not want to make an aJnicable disposition Adolph L•.Zeman,Esq.-2-February 17,1967 of this matter,and you have wrongfully been withholding money due Edward p.Patsch since October,1966.I will now prepare and file a proper Petition to the Orphans'Court. .1 . ,~i t "Sincerely yours, 1," I!.._---_.. ALS:htb ..,". -. -,. \ '. . , I ./ Attorney at·Law " RC Co49 (9-64) COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF COUNTY COLLECTIONS INHERITANCE:TAX DIVISION ·i·- PENNSYLVANIA ESTATE TJ\X DETERMINATION Da te of Dea th --,---+"!'-------==---'I--=~-A-!l;;L.,I---...,,.------- -County --#-;.... ".., 1.Taxable estate per U.S.Estate Tax Return,Form #706 )J 2.Taxable estcte per final change in Federal-Return dated "'~I.J.--;I---;..._b::........:b.:==-_ -~f (r "3.Amount of credit for State death taKes. As shown on return form or final change notice ($---... As verified by computation 4.Penna.Inheritance tax due and/or paid 5.Normal Inheritance taxes paid to other States 6.Total Inheritance tax credits ( 4 +5) 7.Total liability for Penna.Estate Tax (30 -6) 8.Less:Pre-,ious payments on alc of Penna.Estate Tax Date of payment Amount of Tax paid Amount of Irterest paid $------$------- 9.Balance of Penna.Estate Tax due (7 -8) " , " (d $.:::::::::!N==o==fIJ======== Prepared by --!--~-~--f-~--------- 11.Balanc..-.......~~~~f.... Reviewed and approved by ----------------------_._---------- (Nome)(Title)(Date) , } I f J • , "u.S~TREASURY bEPAR'TMENT INTERNAL REVENUE SERVI:CE OFFICE OF THE DISTRICT DIRECTOR P.O.BOX 2488 PITTS3URGH,PA.15230 IN REPLY REFERTO Form L-l54 JUL 1 196& ESTATE OF "Adolph Zeman,Attorney at Law J.Glenn Pa s Zeman Building DATE OF DEATH Canonsburg,Penna.15317 '3-22-64L-_ 1 c', ESTATE TAX CLOSING LETTER The Federal estate tax liability for the estate named above is as fellows:1··. Gross estate tax •••••••••••••••••••••••••t •••••••••••$32,953.46 ,Le'ss credits allowed: State death taxes......•..$1,220.28 j Federal Gift Tax .....••.•$IIi j Tax on prior transfers •....$!.I t1I' "Foreign death taxes•••.•..$i LESS TOTAL CREDITS.; •;......................•$:',220.28 'NET ESTATE TAX $,3:',733.18 If proof of settlement of the Federal estate tax liability is required by ci third perty,this closing letter,together with cancelled check(s)or receipt(s)showing payment of the net estate tax shown above,and interest and penalties (if any),may be exhibited to such third party as evidence that the Federal estate tax liability has been discharged for the above m:rmed estate. Very truly yours, FORM L·154 (REV.4-64) L..:::::=======:::=============--..---- THIS IS AN IMPORTANT DOCUMENT H.ALAN LONG District Director ! ,1 I In the Or;?!lcm's Court ofr.Wa,ilii12ton County.Pa. ,~"L~Xh!bjt..l2>....•'.......••.•••. Date ..'!.'t!-:~7......•........ RCC·49 (9-64) COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF COUNTY COLLECTIONS INHERITANCE TA:<DIVISION ." PENNSYLVANIA ESTATE TAX DETERMINATION 2.Taxable estate per final change in Federal'Return dated _ tounty ~1-Ult.l-,J.--.!-..l!....!>J-4<!!~----------- ~Bureau Fi Ie No •• •'*' 3.Amount of credit for State death taxes. .As shown on return form or final change notice ($Jv!D.@) --It I As verified by computation 4.Penna.Inheritance tax due and/or paid r5.Normal Inheritance taxes paid to other States ,6.Total Inheritanc,~tax credits (4 +5) 7.Total liability for Penna.Estate Tax (3 -6) 8.Less:Previous payments on alc of Penna.Estate Tax $ $-------- Date of payment Amount of Tax paid $----- Amount of Interest paid $------- No!/!-----.,j--';-.......------ 9.Balance of Penna.Estate Tax due (7 -8) 10.Interest due from to @6%per annum 11.Balanco of Po n.Est~ostduo as of Manageje~~or I ,I I Reviewed and approved by -----------------------_.._----- (Name)(Title)(Dote) • I f i \ fORM 706 (Rev.Dec.1955) U.S.TREASURY DEPARTMENT Interncil Revenue Service' .UNITED STATES ESTATE TAX RETURN (Applicable only to estates ,of decedents,dying on or after August 17,1954.If decedent died prIor to August 17,"1954,lise,torm 706,Revised December 1953.) Estates of nonresHents not citizens of the United States may generally file on Form 706NA instead .of this form.For details see page 39. DO NOT WRITE IN SPACE BELOW Date received Decedent's name Date of death J.Glenn Patsch March 22.1964 ·'onr-16-71609--2 ..Tax on return or deficiem:y 1-------....----...-----,-----1---------.----------,,-------- InterestPrincipal Payments Date Citizenship (nationality)at time of death united states Line,Page COMPUTATION OF TAX (Seeinstructions on page 38) List Assessments (SPACE FOR USE OF INTERNAL REVENUE SERVICE) Amount Residence (domicr.e)at time of death 114 w~McMurray Road Canonsburg.Pat Page 1 DETERMINA':'ION BY INTERNAL REVENUE,SERVICE $---------------------------------------------------------------------------------------------$--------------------------$------------------------ _..__...._-_....-----------------_..-_.._-------------------------------------...------.---------------------------------------------------------------------------------_.._--_.._---- _..---..-.._-..--....---------.-..-------------------------------------- --------------------------------------------------------------------..-----------------------------.._-----~-.._- PART I I.Gross estate tax (use table A,page 40); ,: ,$-"35-j-830-~-33-"--- 2.Credit for State death taxes (use Table B;:;lage 40),-.........::J::r-~4Hi5i;tO"l-"i'l"'lt'I~-- 3.Gross estate tax less credit for State death t':lxes (it-3m i minus item 2).This is the net amount payable unless .~~~~.SV ~redit for Fee.eral gift taxes,tax on prior transfer3,or foreign death taies is claimed in Part II ,$ PART II -34-;385-;-43""----- 4.Credit for Federal gift taxes,' ,,$_ 5.Credit for tax on prior transfers.. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . ..._ 6.Credit for foreign death taxes 1 1 7.Total of credits under Fort II (total of items 4,5,ar_d 6)..••••••••.....•••.•..............'.....•.•..",1 _ 8.Net estate tax payable (item 3 minus item 7)., , , . _," , , , , , , , , , ,..' , , . , , , '$ (Use Form 706 (Revised December 1953)for estates of persons dying before August 17.1954) GENERAL INSTRUCTIONS trn Statute and general description.-The Federal estate tax is imposed by chapter 11 of the Internal Revenue Code of 1954.It is not an inheritance tax.It is imposed upon the transfer of the entire taxable estate and not upon the share received by a par- ticular beneficiary.The taxable estate is determined by taking the value of the gross estate (Schedules A to I,inclusive)and deducting therefrom the total amount of the de\luctions author- ized by the statute. Different provisions control the determination of the tax lia- bility of the estates of citizens or residents of the United States and the estates of nonresidents not citizens of the United States. (Generally,reference herein to the decedent's residence means the decedent's domicile.)For specific information on Federal estate taxation in the case of a nonresident not a citizen of the United States.see "Additional Instructions for Estates of Non- residents Not Citizens of the United States"on page 39. Estates for which return required.-A return on this form must be filed for the estate of every citizen or resident of the United States whose gross estate as defined by the statute exceeded $60,000 in value at the date of death. Instructions relative to the requirement of a return for the estate of a nonresident not a citizen of the United States are set forth on page 39. The value of the gross estate at the date of the decedent's death governs the liability for the filing of the return,regardless of any valuation as of a subsequent time that may be adopted by the executor under the provisions of section 2032 of the Code. Time and place for filing return.-The return is due 15 months after the date of the decedent's death.The return for the estate of a resident decedent must be filed with the District Director of Internal Revenue in whose district the decedent had his domicile at the time of his death.The return for the estate of a nonresident citizen must be filed with the Director of Inter- national Operations,Internal Revenue Service,WashiRgton 25, D.C.,U.S.A. Payment of tax.-The tax is due 15 months after the date of the decedent's death,and must be paid within such period un- less an extension of time for payment thereof has been granted by the District Director.Check or money order in payment of the tax should be made payable to "InternaL Revenue Service." Supplemental documents.-If the decedent was a resident and died testate a certified copy of the will must be filed with the return. If the decedent was a nonresident citizen,the followingdocumentsmustbefiledwiththereturn: (1)A copy of the inventory of property and the schedule of liabilities,'claims against the estate and expenses of ad- ministration filed with the foreign court of probate juris- diction,certified by a proper official of such court. (2)A copy of the return filed under the foreign inherit- ance,estate,legacy,succession tax,or other death tax act, certified by a proper official of the foreign tax department, if the estate is subject to such a foreign tax. (3)If the decedent died testate,a certified copy of the will. Other supplemental documents may be required as herein- after ex.plained under the instructions for the several schedules. Execution of return.-This form consists Qf 40 pages numbered in consecutive order.For convenience in typing carbon copies, the sets as issued may be readily separated and the correspond- ing sheets matched.When completed.the return must be per. manently fastened together with all sheets in proper order.Any suitable type of paper fastener may be utilized for this purpose. Ordinary wire staples are recommended for the return of aver- age size.All pages provided.numbered 1 through 40.must be included. Write only on one side of each sheet of paper.If there is not sufficient space for all entries under any of the printed sched- ules,use additional sheets of the same size,and insert in the proper order in the return.All information required as indi- cated under "General Information"must be supplied in the spaces provided.The questions asked under each schedule must be specifically answered,and if the decedent owned no property of any class specified for the schedule,the word "None"should be written across the schedule. The gross estate must be set forth under the appropriate Schedules A to I.The deductions,except the amount claimedforthespecificexemption,should be shown under the appro- priate Schedules J to N.In the case of a resident or citizen ,Page 2 the amount deducted for the specific exemption should be shown under Schedule P,and the taxable estate computed thereon. For every item of principal,any income accrued thereon at the date of the decedent's death must be separately entered under the column headed "Value at date of death";and,if the alternate valuation is adopted,any includible income with respect to each item of principal,as hereinafter explained, must be separately entered under the column headed "Alternatevalue." The items should be numbered under every schedule,and a separate enumeration should be used for each schedule.The • total for each schedule should be shown at the bottom of the schedule.The totals should not be carried forward from one schedule to another,but the total or totals for each schedule should be entered under the Recapitulation,Schedule O. The information indicated by the columns headed "Subse- quent valuation date"and "Alternate value"should not be shown unless the executor adopts the alternate valuation authorized by section 2032 of the Code.If such alternate valuation is not adopted,the space in the columns headed "Sub- sequent valuation date"and "Alternate value"may be utilized for descriptive matter,as indicated in the example show~nder the instructions for Schedule A.Similar information '!hould be omitted in the space provided'therefor under the Recapitula- tion,Schedule 0,if the alternate valuation is not adopted. The computation of the tax must be shown in detail as indi- cated on page 1.If the executor determines no liability for tax;the word'"None"should be shown at item 8 under "Com- putation of Tax." If credit for foreign death taxes is claimed,the credit should be computed on Schedule S. The filing of Form 706 will not be considered the filing of a complete return as required by the statute and the regula- tions issued pursuant thereto unless all the information as indicated herein is set forth. If there is more than one executor or administrator,all .. should verify and sign the return.Such .persons are respon- sible for the return as filed and incur liability for penalties provided for erroneous,false,or fraudulent returns. If there is no executor,or administrator appointed,qualified,• and acting in the United States,every person in actual or con- structive possession of any property of the decedent is consti- tuted by the statute an executor for the purposes of the tax (section 2203 of the Code),and is liable for the filing of the return.If two or more persons are liable for the filing of the return,it is preferable for all to join in the filing of one complete return,but if they are unable to join in making one complete return,each is required to file a return disclosing all the information he has in the case,including the name of every person holding an interest in the property and a full description of such property.If the appointed,qualified,and acting executor or administrator is unable to make a complete return,the statute requires that every pel'son holding an interest in the property shall,upon notice from the district director,make a return as to such interest. The person or persons who file the return must,in every case, sign under penalties of perjury the first declaration on page 40.If the return is prepared by an attorney or agent for the person or persons filing this return,the second declaration on page 40 must also be signed under penalties of perjury by such attorney or agent. Representation by attorney or agent.-If the executor is to be represented by an attorney or agent before the Internal Revenue Service,by correspondence or otherwise,itis necessary (1)that the'attorney or agent be enrolled to represent claimants before the Treasury Department,and (2)that a power of attor- ney shall have been submitted authorizing the attorney or agent to act on behalf of the executor in the matter.Copies of Treasury Department Circular No.230,as revised,relating to admission to practice before the Treasury Department,and a pamphlet relative to the conference and practice requirements of the Internal Revenue Service may be obtained from the Director of Practice,Internal Revenue Service,Washington 25,D.C. Penalties.-Severe penalties are provided by law for willful failure to make and file a return on time and for willful attempt to evade or defeat payment of tax. "n~16-71690-2 Page 3 ·116b.Date g'ranted Mar.30"1964 ADDRESS (Number,streel,city,zone,and Slale) ADDRESS (Number,slreel,cily,zone,and Slale) Zeman Law Building Canonsburg,fa. University Hospital D~:i:pe&ville~Florida .ADDRESSES (Number,street,city,zone,and State) I IZb.Date of death 13.Number of children Two DESIGIIATION RELATIONSHIP Iil Separated 0 Widowed D Divorced Executor Grandson 156 W.-Pike Street~Houston~Pa. 3060 E.Livingston Ave.Columbus .. Ohio 1144 Dorsh Road;South EuclidjOhio 1144 Dorsh Road.sou~h Euclid..Ohi'o . Granddaughter 1144 Do~sh Road.south Euclid.. Ohio Son Wife Son I Adolph L.Zeman NAME NAME NAMES .~ 114 W.McMurray Road ..Canonsburg"Pa. .~~ Frederick w.Small Ado~.ph L.Zeman Glenn Robert Patsch G1ennF.Pstsch.' Wilma B.Pstsch Edward P.Patsch ". Donna Lee Patsch 7•.Decedent'B physicians Za.State in.which domiciled at time of death IZb.Year in which this domicile was established Pennsylvania 1898 I.Address of decedent at time of death (Number,street,city,zone,and State). IOc.Business address (Number,street,city,lOne,ar.d State) '8.If decedent W:::lS confined in a hospital during his last"illness or within 3 years prior to his death,give name and address of hospital..~. university HospItal..Ga1nesvillej.Florida IZ~.If widowec,give name of deceased sI::0'lse 14.Heirs,next of kin,devisees,and legatees (If more than five,only the names of the five principal ones are required) .U.Marital sta1'1S at date of death IJi Married D Single 3.Date of marriage to surviving spouseI4.Domicile ':1t date of marriage t~survivin~spouse I 5.Citizenship (nationality)at date of death ....Pennsylvania .United states 9a.Date of birth I 911.Place of birth (City and State or country,if other fu':1n United States) .JUly 29,1898 HouatonjPermS11van1a \:"ESTATE OF --m-.l;---Gl-eRD--Pat#eh----------------;=----m---------um \cnr-16-7169f-l \ 9 1 ISc:.Case No.116d.Kame of court 116e.Location of c~urt 64 of 1965 A.A.Orphans'Court Washington"Pa.. 161.To whom granted?(Designate whether executor,executrix,administrator,or administratrix.Explain if different from the person or persons fi:ing return) \ GENERAL INSTRUCTIONS-Continued ,Gross estate.-In addition to the general provision of the statute requiring the inclusion in the gross estate of property to the extent of the decedent's interest therein,other provisions specifically include,as more fully explained hereinafter in the instructions for the separate schedules,certain transfers made during the decedent's life without an adequate and full consid- eration in money or money's worth,annuities,joint estates with right of survivorship,tenancies by the entirety,life insurance even though payable to beneficiaries other than the estate,prop- erty over which the decedent possessed a general power of ap- pointment,and dower or curtesy (or statutory estate in lieu thereof)of the surviving spouse. Community property.-Property held by the decedent and his surviving spouse as community property is includible in the gross estate to the extent of the decedent's interest in such property.under the applicable law of the State,Territory,or possession of the United States,or of the foreign country. For further details,see Estate Tax Regulations. Yaluation.-Unless the executor elects otherwise at the time the return is filed,all property included in the gross estate must be valued as of the date of the decedent's death. Alternate valuation.-If the executor elects to ;'dopt the val- uation authorized by section 2032 of the Code,such election must be expressly indicated in the s.pace provided under "Gen- eral Information."The election cannot be exercised unless the return is filed within 15 months after the decedent's death or within the period for filing the return as extended by the district. director. In general,the object of section 2032 of the Code is to make provision whereby the amount of tax otherwise payable may be lessened when,within the year following the decedent's death, the gross estate has suffered a shrinkage in its aggregate value. The executor may,by an election duly made upon this return, have the property which was included in the gross estate on the date of the decedent's death valued as of the applicable dates, as follows: (1)Any property distributed,sold,exchanged,orotherwise disposed of within 1 year after the decedent's death,valued as of the date of such distribution,sale,exchange,or other disposition,whichever first occurs; (2)Any property not distributed,sold,exchanged,or otherwise disposed of within such I-year period valued as of the date 1 year after the date of the decedent's death; (3)Any property,interest,or estate which is "affected by mere lapse of time,"valued as ofthe date of decedent's death; except that an adjustment is to be made for any difference in its value not due to such lapse of time,as of the date 1 year after the date of decedent's death,or,as of the date of its dis- tribution,sale,exchange,or other disposition,whichever first6ccurs.','. Property,in the.case of a sale,exchange,or other disposition thereof within the I-year period,is to be valued as of the date when it ceases to form a part of the gross estate,that is,the date when the title passes as the result of its sale,exchange,or other disposition.The terms, "distributed,""sold,""exchange," "or otherwise disposed of,"comprehend all possible ways by which,property may be separated or passed from the gross estate. The property to be valued as of 1 year after the <late of decedent's death,or as of that date,or as of some intermedia,te date,is the property included in the gross estate on the date of the decedent's death.It will·be nec·essary in every case first to determine what property constituted the gross estate at decedent's death. Interest accrued to the date of the decedent's death on bonds, notes,and other interest-bearing obligations constitutes prop- erty of the gross esta,te on the date of his death and is to be included in the alternate valuation.Rent accrued to the dateofthedecedent's death on leased realty or personalty consti- tutes property of the gross estate on the date of his death and is to be included in the alternate valuation.Outstanding dividends which were declared to stockholders of record on or before the date of the decedent's death consti- tute property of the gross estate on the date of his death,and are to be included in the alternate valuation.Ordinary divi- dends declared to stockholders of record after the date of the decedent's death do not constitute property of the gross estate at the date of his death and are to be excluded from the alter- nate valuatioB.However,if dividends are declared to stock- holders of recO'rd after the date of the decedent's death with the effect that the shares of stock at the subsequent valuationdatedonotreasonablyrepresentthesamepropertyexisting at the date of the decedent's death,such dividends are to be Page 4 included in the alternate valuation,except to the extent that such dividends are paid from earnings of the corporation afterthedateofthedecedent's death., The election applies to all the property included in the gross estate on the date of the decedent's death.It cannot be ap.plied only to a portion of such property. In every case where the election is exercised,the return must set forth (1)an itemized description of all property included in the gross estate on the date of the decedent's death together with the value of each item as of that date,(2)an itemized disclosure of all distributions,sales,exchanges,and other dispositions of such property during the I-year period after the decedent's death,together with the dates thereof,and (3)the value of each item of property d,etermined as herein- before explained and in accordance with the regulations issued pursuant to section 2032.The foregoing information mu'st be shown under the appropriate columns of each schedule.Under the column headed "Description"a brief statement for each item must be shown explaining the status or disposition gov- erning the subsequent valuation date,such as,"Not disposed of within year following death,""Distributed,""Sold,""Bond paid on maturity,"etc.Under this same heading a descrip- tion of each item of principal and includible income must be entered separately.Under the heading,"subsequent valua- tion date,"the applicable date for each separate entry of principal and includible income must be shown.Under the heading,"Alternate value"the amount of the prin- cipal and the amount of includible income must be sepa- rately shown.In the case of any interest or estate the value of which is affected by mere lapse of time such as patents, leaseholds,estates for the life of another,or remainder interests,the value shown under the heading"Alternate value" must be the adjusted value,i.e.,the value as of the date of death with an adjustment reflecting any difference in its value as of the later date not due to mere lapse of time.Under the heading,"Value at date of death"the amount of the principal and the amount of includible income must be entered separately. For examples illustrating the entry of the information required under the schedules,see pages 6 and 10.While the examples there shown pertain to Schedules A and B,the infor- mation required under the other schedules should be set forth in a similar manner. All the information indicated on this form must be supplied. Statements as to distributions,sales,exchanges,and other dispositions of the property within the I-year period after the decedent's death must be supported by evidence.If the court issues an order of distribution during that period,a certified copy of the order must be submitted as part o.f ~he evidence. The district director may require the submIssIOn of such additional evidence as is deemed necessary. Credits against tax.-Under certain circumstances a credit against the tax is authorized for estate,inherit'ance,legacy,or succession taxes paid to a State,Territory,the District of Columbia,or any possession of the United States.The size of the taxable'estate determines whether this credit is allow- able and,if so,the maximum amount thereof.See ,part I, item 2,under "Instructions for Computations of Tax"~n page 38,for information relative to the allowance of thIS credit.. Credits for Federal gift taxes are,under specified conditions, allowable against the tax.See part II,item 4,under "Instruc- tions for Computation of Tax"on page 38. In the case of a citizen or resident of the United States, credit is authorized by statute and treaties,undercertain con- ditions,for esta.te;inheritance,legacy,and succession taxes paid to a foreign country.(See "Credit for Foreign Death Taxes"on pages 36 and 37.) Credit for tax 'on prior transfers is ex'plained in the instruc- tions on pages 32 and 3.4.• Cl'ildit for foreign death taxes.-In the case of a citizen or resident of the 'United States,a credit is authorized under certain circumstances for death taxes paid to a foreign coun- try.The credit is authorized (a)by statute or (b)by treaty. Where credit fOl'a foreign death tax is authorized by treaty, there is allowable either the credit computed under the statute or under the treaty,whichever is the more beneficial to the estate.See "Death tax conventions"on page 6 for the effective dates of the treaties which authorize the allowance of a credit for foreign death taxes.See "Instructions for Schedule S"on page 36 for a list of the foreign death ta~es for which credit is authorized by treaties,and for informatIOn relative to the computation of the credit. (Continued on page 6) 0".-16-71699-1 18e.If any of the contents of the safe deposit bOll:are omitted from the schedules,explain why 18d.If the dececent had a safe deposit box at the time of his death,indicate under what schedules in this return the contents are listed B - C - D DYes fl No kJ Yes 0 No DYes 0 No X ZZc.Telephone No. Zeman ,~.......;....-., Western Pennsylvania National Bank,Houstonl Pa. ZZh.Address (Number,street,city,zone,and State) 220:Name of attorney representing.estate,if any Zeman ann lab.If held jointly,give the name of the joint deposit.)r ZI.Did the sam'3 undersigned make diligent and cc.reful search for the existence of any trusts created by the decedent during his li:etime or any trusts created by other persons u:lder which the decedent possessed any power,beneficial interest,or trusteeship? GENERAL INFORMATION-Continued 19.Did the undersigned person or persons filing return make diligent and careful search for property of every kind left .by the decedent?_£Yes 0 No ZOo Did the samE-undersigned make diligent and careful searchfor information as to any transfersof the valueof $5,000or more made by the decedent during his lifetime without an adequate and full considerationin money or money's worth?Yes 0 No 18c:.Relationship of joint depositor to decedent 17c.Address of ancillary administrator or executor (Number,street,city,zone,and State) 18a.Did-tliedecedent at the tiIrle of his death have a safe dep:Jsit box held either alone or in the joint names of himself and another? If "Yes,"state location 17a.Did the decedent at date of dea':h own property in any State or country other than that of his last domicile? If "Yes,"sta:e place of ancillary probate proceedings 17b.Nome ofan'cillary administrator or exeCl.:tor 745-2400 ALTERNATE VALUATION (These instrucnons Clpply only if nlternClte valuCltion is elected.For further information on this subject,see General Instructions on pClge 4) Z3.An election to have the gross estate of the dece::!ent valued as of the alternate date or dates is made by entering a check mark in the box set forth below.o The executor elects to have the gross este.te of this decedent valued in accordance with values as of a date or dates subsequent to the de· cedent's death as authorized by section 2032 of the Code. 'The election carinot be exercised unless it is shown upon the return,Form 706,and the return is filed within 15 months after the decedent's death or within the period for filing the retun as ex:ended by the District Director. The due defe for the filing of the return is the day of the 15th calendar month after the decedent's death numerically corresponding to the day of the calendar month in which death occ'lrred,except that,if there is no numerically corresponding day in such 15th month,the last day of such 15th month is the due date.For 3xample,.if the decedent died on August 31,1954,the due date is November 30,1955.If placed in the mails the return must be posted in ample time to reach the District Director's office,'under ordinary handling of the mails, on or before the date on which the return is require::!to be filed.- \., ESTATE OF --.--.-.....•.J....-Gl.erm--p.at&elT..-.----------------------------------Page 5 ,cnr-16-71699-1 1\ ~I GENERAL INSTRUCTIONS-Continued INSTRUCTIONS FOR SCHEDULE A REAL ESTATE 1 House and lot,1921 William Street NW.,Washington,D.C.(lot 6,square 481).Rent of $900 due at end of each quarter,February 1,May 1,August 1,and November 1.Value based'on appraisal,copyofwhichisattached:0 _ Rent due on item 1 for quarter ending November 1,1954,but not collected at date of death .---------Rent accrued on item 1 for November and December 1954 .-------------------------------------_ 2 House and lot,304 Jefferson Street,Alexandria,Va.(lot 18,square 40).Rent of $100 .payablemonthly.Value based on appraisal,copy of wh.ich is attached o ~_ Rent due on item 2 for December 1954,but not collected at date of death _12,000 100 $36,000 900 600 Value at date of death Value at date of death Alternate value Alternate value 1/1/56 $30,000 $36,000 2/1/55 900 900 2/1/55 600 600 12/1/55 10,000 12,000 2/1/55 100 100 Subsequent valuation date Subsequentvaluationdate mortgage,only the value of the equity of redemption (or value of the property less the indebtedness)need be extended in the value column as part of the gross estate,in which case no deduction for the indebtedness is allowable under Schedule K. Real property which the decedent has contracted to purchase should be listed in this schedule.The full value of the property and not the-equity must be extended in the value column.The unpaid portion of the ,purchase price should be deducted under Schedule K of this return. The value of dower,curtesy,or a statutory estate created in lieu thereof,is taxable,and no reduction on account thereof or on account of homestead or other exemptions .should be made in returning the value of the 'real estate. The basis for the returned values should be stated.Ifbased upon appraisal a copy of such appraisal should be attached to the return. In addition to authorizing credit for foreign death taxes,the conventions provide situs rules which apply in the cases of . certain nonresident aliens.Information relative to these situs rules is set forth on page 39. Further instructions.-Detailed instructions pertaining to each schedule are included herein.Additional instructions for estates of nonresidents not citizens of the United States are given on page 39.For further information see the Estate Tax Regulations.' Country .Effective Date Greece_________________________________________________December 30,1953AustraliaJanuary7,1954Japan,.April 1,1955 Description Description Example where the alternate valuation is adopted:date of death.January 1.1955 House and lot,1921 William Street NW.,Washington,D.C. (lot 6,square 481).Rent of $900 due at end of each quarter, February 1,May 1,August 1,and November 1.Value based on appraisal,copy of which is attached.Not disposed of withinyearfollowingdeath _ Rent due on item 1 for quarter ending November I,1954,but notcollecteduntilFebruary1,1955 "_ Rent accrued on item 1 for November and December 1954,col-lected on February 1,1955 _ House and lot,304 Jefferson Street,Alexandria,Va.(lot 18,square 40).Rent of $100 payable monthly.Value based on appraisal,copy of which is attached.Property exchanged forfarmonDecember1,1955 _ Rent due on item 2 for December 1954,but not collected until Feb-ruary 1,1955 _ lIem1'10. 2 lIem No. Real estate.should be so described and identified that upon investigation by an Internal Revenue officer it may be readily located for inspection and valuation.For each parcel of real estate-there should be given the area and,if the parcel is im- proved,a short statement of the character of the improvements. For city or town property state street and number,ward,sub- division,block and lot,etc.For rural ,property state township, range,landmarks,etc. If any item of 'real estate is subject to a mortgage with respect to wnich the decedent's estate is liable (1.e.,if the indebtedness is enforceable against other property of the estate not subject to such mortgage,or if the decedent was personally liable therefor),the full value of such property must be ex- tended in the value column.The amount of the mortgage in any such case should be shown under "Description"·in this schedule,and deduction taken therefor under Schedule K.If, however,the decedent's estate is not liable for the amount of the Examples showing use of Schedule A Example where.the alternate valuation is not adopted:elate of death.Janaary 1.1955 Death tax conventions.-Death tax conventions are in effect with each of the countries listed below.The provisions of a . convention apply in the case of a decedent dying on or after the effective date shown. Country Effective Date Canada________________________________________________June 14,1941 United Kingdom___________________________________July 25,1946 France October 17,1949NorwayDecember11,1951 Ireland________________________________________________December 20,1951 Union of South Africa_~.July 15,1952 ' Switzerland September 17,1952 Finland .December 18,1952 Page 6 onr-16-7168l1-1 TOTAL :also enter under the Recapitulation,Schedule 0)$. 0=-16-71699-1 /, 10,000.00 12..000.00 Value at date of death $ Schedule A-Pa;Je 7 Alternate value $ iJ Yes 0 No Subsequent valua-tion dateDescrip:ion .(If more space is needed,insert additional sheels of same size) ItemNo. GROSS ESTATE SCHEDULE A REAL ESTATE Lot of ground situate in the Borough of Houston,Washington.County,Pennsylvanla~ known and designated as Lot No.3 in Block No.10 in D.C.Houston Plan ot Lots,recorded in the Recorder's Oftice of Washington County in Plan Book 1, page 173;having erected thereon a two- story frame building containing store- rooms and apartment 2 Lot of ground situate in the Borough of H Houston,Washington County#Pennsylvania, bounded and described as follows,to wit~ Beginning at a polnt~the intersection of the western boundary line of Pike street and the northern boundary 11ne of First street;thence in a northerly direction along said line ot Pike street 60 feet to 10'»now or formerly of Isaac N.PaxtonJ thence along the line of last said lot North 67-10 1 West 138.70 teet ~o land ot Campbell L.Heed;thence along last said land South 23°05 1 West 60 teet to the line of First street atore- said;thence along said line of First ·street in an easter17 direction 138.70 feet to P1ke street,the place of beginning;having erected thereon a two-story apartment dwelling ESTATE OF ..J...._..Glenn.....Eat.sch.. . _ Did the decedent,at the time of his death,own any real estate in the United States? INSTRUCTIONS FOR SCHEDULE B STOCKS AND BONDS ,/r-D~scription.-D"escriptionof stocks should indicate number of portion of the difference to or from the mean price obtaining shares,whether common or preferred,issue,par value,price on such nearest date before the valuation date.If actual sale per share,exact name of corpo'ration,and,if not listed on a prices or quoted bona fide bid and asked prices are available I stock exchange,t~e po~t-o~ce address of the principal bu~iness on a date within a reasonable period prior to the valuation date, .office,the State m WhICh mcorporated,and the date of mcor-but if no actual sale prices or bona fide bi~and asked prices are poration.If listed,state principal exchange upon which sold.available on a date within a reasonable period after the valu- Description of bonds should include quantity and denomina-ation date,or vice versa,then the mean between such highest tion,name of obligor,kind of bond,date of maturity,interest and lowest available sale prices or bid and asked prices may berate,and interest-due dates.State the exchange upon which taken as the value.-------.,--,--- listed,or if unlisted the principal b.usiness office of the company..For the valuation o,f ina:ctive stock and stock i~close corpora- Stocks and bonds subject to foreign death taxes to be grouped _tIOns,see the regulatIOI!s Issued pursuant to sectIO!12031 of the under separate heading.-Where any estate,inheritance,legacy,Code.Complete finanCIal and other data upon whIch the estate 0'1'succession tax has been paid to a foreign country in respect'basesits valuation shouldbe submitted with'the return,including of any stocks or bonds included in this schedule,the stocks and'baJ.ance sheets (particularly the one nearest to the valuation,,. bonds subjected to the foreign death tax should be grouped date),an~statements of the net earnings or operating results separately on this schedule under the heading,"Subjected to and dividends paid for each of the 5 years immediately precedr Foreign Death Taxes.",~ing the valuation date.': Yaluation.-In the case of stocks and bonds listed on a stock Securities returned..as of no value,nominal value or obsolete, exchange the mean between the highest and lowest quoted should be listed last,and the address of the company'and the selling prices on the valuation date shall'be considered as the State and date of the incorporation should be stated.Copies of fair market value per share or bond.If there were no sales correspondence or statements used as the basis for return at no on the valuation date,such value shall be determined by taking ..value should be attached.'..<'""- the mean,between the highest and lowest sales on the nearest Interest and dividends.":"'Intetest and dividends mustbe shown 'datI!before and the nearest date after the valuation date (both separately as explained in the'generaFins1::ructions under "Exe- such nearest dates being within a reasonable period),and by cution of Return." prorating the difference between such mean prices to the val-,Estate of nonresident not a citizen of the United States.-In the uation date,and by ad,ding or subtracting,as the case may be,case of the estate of a nonresident not a 'citizen of the United such prorated portion of the difference to or from.the mean States,stocks of foreign:corporations are not'to be includ,ed in price obtaining on such nearest date before the valuation date.lthis schedule or any other schedule.If such an-individual was For example,assume that sales of stock nearest the valuation not engaged in business'in,the United States,there shall not date (June 15)occurred 2 days before (June 13)and 3 days be includ,ed in this schedule or any'other schedule,obl~gations after (June 18)and that on such days the mean,sale prices issued by the United States prior to March 1,1941.Except aspersharewere$10 and $15,respectively.The ,price of $12 otl).erwise provided in these instructions,in the case of a non-shall be taken as representing the fair market value of a share resident not a citizen of the'United States,stocks and bonds of .of such stock as of the valuation date.If,however,on June 13 the following classes must be entered in'this sched,ule as situ- and 18 the mean sale prices per share were $15 and $10,respec-'~ted in th~United States:(1)sto,cks of co!,pox.a!i~nsorgani~ed tively,the price of $13 shall be taken as representing the fair m the Umted States regardless 6f the locatIOn of the certlfi- market value of a share of such stock as of the valuation date.cates,and (2)corporate or 'other bonds,if the,certificates were If the security was listed on more than one exchange,the rec-situated in the United States at the time of death. ords of the exchange where the security is principally dealt in Under the prov,isions (..of the death'tax conventfons with should be employed.In valuing listed stocks and bopds the tl1,e following countries,the bonds listed after each country's executor should observe care to consult accurate records to name'which were owned by a nonresident not a citizen of the obtain values as of the applicable valuation date.United States ale not situated in the United States -and 'accord- Dividends declared on shares of stock prior to the death of ingly shoUld not be entered in this schedule:.• -.,'. the decedent but payable to stockholders ofrecord on a date after (a)United Kingdom,France,and 'Greece.-In the case of ' his death are not includible in his gross estate for Federalestate a resident of one of these countI'ies',all bonds,regardless of tax purposes.However,in a case where the stock is being,the location of the certificates.. traded on an exchange and is selling ex-dividend on the date (b)Canada.-In the case of a resident of Canada,bonds of the decedent's death,the amount of the dividend should nut issued by corporations other -than those organize~in the be included in the gross estate as a separate item but should be ,United States and i~scribedor registered bonds issued-by anY added to the ex-dividend quotation in determining the fair government,municipality,or public authority where the au-market value of the stock as of the date of the decedent's death.·thorized place of 'inscription or registration'is outside theInthecaseofstocksandbondswhicharenotlisteduponanUnitedStates.,.,-..~ exchange,but are dealt in through brokers or have a market,the (c)Finland.-In the case where the decedent or his bene- fair market value shall be determined by taking the mean be-ficiary was a resident (not domiciliary)of Finland,bonds tween the highest and,lowest selling prices as of the valuation issued by a corporation not organized in the United States date;or,if there were no sales on that date,such value shall be or by a noncorporate issuer who does not have a place of determined by taking the mean between the highest and lowest residence (not domicile)in the United,States.sales on the nearest date before and the nearest date after the (d)Union of South Africa alJd Ireland.-In,the'·case of a valuati-QIJ,dat"bboth such !1earest ~ates being within a reason-decedent who was ordinarily resident,(not 'domiciliary)in able"wil>8P)\'~by proratmg the dIfference between such mean the Union,or in the case of a decedent who was a resident of prices to the valuation date,and by adding or subtracting,as Ireland,all bonds,provided they were actually subjected to the case may be,Su~rWilw.d.~~tion of the difference to or estate duty in the Union or in Ireland,as the case may be.from the mean pric6:iolllRflM.~t6ii.~uchnearest date before the (e)Australia.-In the case of a decedent who was a resi- valuation date.If quotations are obtained from brokers,or dent of Australia,bonds issued by a debtor who does not have evidence as to the sale of securities is obtained from the officers a place of residence (not domicile)in the United States (see of the issuing companies,copies of the letters furnishing such convention for exceptions),and bonds i'ssued by any govern- quotations or evidence of sale should be attached to the return.ment,municipality,or public authority located outside of the IJ..~tW!J.,'iaI~:prenot available during a reasonable period United States.be~~..tbtl.f.el;,Qndending after the valuation date,the fair (I)Japan.-In a case where the beneficiary of a decedent's market value may be determined by taking the mean between estate was a resident of Japan,bonds (except bearer bonds) the bona"..ti4e bid and asked prices on the nearest date before issued by a corporation not organized in the United States or and the Wrest date after the valuation date (both such nearest by a noncorporate issuer who does not have a place of resi- dates being within a reasonable period),and by prorating the dence (not domicile)in the United States,provided such bonds.P.i4e~~b~~n suc~mean,pnces to the valuation date,and were subjected to inheritance tax by Japan.~~.~\~~btractmg,-asthe case may be,such prorated (Continued on page 10) SCHEDULE B STOCKS AND BONDS 1.Did the decedent,if a resident or citizen of the United States,own any stocks or bonds,regardless of physical location, at the time of his death?rx Yes 0 No II.Did the decedent,if a nonresident not a citizen of the United States,own,at the time of his death,any stocks of corp)· rations organized in the United States or bo:1ds situ:lted in the United States as explained in the instruc:ions?0 Yes 0 No Item Description (including face amount of bonds or IUlmber of shares)Par Unit value Subsequent valua·Alternate value Value at date of deathNo.tion date 1 1 share Canon BUilding $$50 50 45.00Association 2 lSO shares Hickory-Penn Gas 125.0C 75.0QCompany850¢ \,3-25 shares Patsch Auto Bus 50.00 125.00Co.,@ $5.00 ~ 4 1138 shares Western Pennsylvania National Bank @ $53-1/4 60,598.50 5 3 shares Public Service and No 226.fRElectricCo.,@ $75.656 6 56 shares The Budd Co.,@ D.OO 906.47$16.187 No 1 600 shares,Maytag Co.Ro 23,137.20@U8.562 8 739 shares American Motors 5.00 12,262.23@$16.593 1-2/ 9 193 shares Ashland 011 &1.00 7,611.34RefiningCo.@ $39.437 10 356 shares Patsch Bros.Inc.100 67,141.60@flBB.60 11 ~090 shares I.C.'Patsch &100 ~O,958.75@.65.375 TOTAL (als:>enter under the Recapitulation,Schedule O)$@I 088.06(If more spacs is needed.insert additional sheets of same size) ESTATE OF J_-.Gl~Jln._..Pa..tS.c.h _ onr-16-71699-1 Schedule B-Page 9 INSTRUCTIONS FOR SCHEDULE I-Continued Examples showins use of Schedule B Ellample where the alternate valuation is not adopted:date of death,January 1,1955 Item Description (including face amount of bonds or number of shares)Par Unit value Subsequent '-Alternate value -Value at dale of deathNo.valuation date .- 1 $60,000-Arkansas Railroad Co.first mortgage $ -$.4%;20-year bonds,due 1966.Interest payablequarterlyonFeb.1,May 1,Aug.1,and Nov.1,-,N.·Y.Exchange on date of death___________________1,000 _100 .-'.-"60,000-------------------------------------------$30,000 of such bonds distributed to legatees on 8/1/55 29:706 .Aug.1,1955,N.Y.Exchange________________________------------99 -_..--------------------- $30,000 of such bonds sold by executors on Sept. 9/1/55.-~9,7qO .1,1955__~____________________________________________________------------99 -..-6-______________________ 'Interest cou.pons attached to bonds,item 1,due -. and payable on Nov.1,1954,but not oashed at date of death.Cashed by executor on Feb.1, 2/1/55 600.,1955__________________________________________________________--------------------------.....-600'Interest accrued on item 1,from Nov.1,1954,to --Jan.1,1955.Cashed by executor on Feb.1,1955__________________________________________________________-----..--...-------..---------2/1/55 400 400 2 500 shares Public Service Corp.,common.N.Y.,~..--.- .Exchange.Ex dividend on date of death_________100 110 ------------------------------------------55,000-.Not disposed of within year following death_________------------90 1/1/56 45,000 .-----------------------Divid,end on item 2 of $2 per share declared Dec. 10,1954,and paid on Jan.10,1955,to holders ..--,--of record on Dec.30,1954____~_________________________--------------------------1/10/55 1,000 1,000. Example where the alternate valuatiqn.,is adopt~d:d~te-of death.January 1'.·'1955""".'!., INSTRUCTIONS FOR SCHEDULE C MORTGAGES,NOTES,AND 'CASH Value at date of death $ 60,000 ..~ 600 400 ~- 55,000 .1,000 Alternate valueSubsequentvaluationdate 110 _..-_ Unit value Cash in possession.-List separately from bank deposits. Cash in bank.-State bank.and·address,amount in each bank, serial number and nature of account,showing whether checking, savings,time de.posit,etc.If statements are obtained from banks they should be retained for inspection by an internal revd enue agent. Estate of nonresident not a citizen of the United States.-In the case of a nonresident not a citizen of the United States,a bank deposit is not regarded as situated in the United States if thedecedent was not engaged in business in the United States at the time of his death.In the event the decedent was so engaged in business,a bank deposit may,nevertheless,not be includible under the provisions of an applicable death duty convention. 100 ParDescription(including face amount of bonds or number of shares) 500 shares Public Service Corp.,cornmon ex divi-dend,'N.Y.Exchange _ Dividend on item 2 of $2 per share declared Dec. 10,1954,payable on Jan.10,1955,to holdersofrecordonDec.30,1954 ·-'.~_ $60,000-Arkansas Railroad Co.first mortgage $ 4%,20-year bonds,due 1966.Interest payable quarterly on Feb.1,May 1,Aug.1,and Nov.1,N.Y.Exhange___________________________________________1,000 100 ._ Interest cou.pons attached to bonds,item 1,due and payable on Nov.1,1954,but not cashed at --'date of death ~.---------------------._ Interest accrued on item 1,from Nov.1,1954,toJan.1,1955 . •_ 1 2 Item No. Page.lO 0...-16-71699 1 The classes of property under this schedule should be listed;;eparately in the order given. Mort!JCISes•.,.......,State (1)face value and unpaid balance,(2) date of mortgage,(3)date of maturity,(4)name of maker,(5) property mortgaged,and (6)interest dates and rate of inter- est.For example:Bond and mortgage for $9,000,unpaid bal- ance $6;000;dated January 1,1952,John Doe to Richard Roe; premises 22 Clinton Street,Newark,N.J.,due January 1,1960; mterest payable at 6 percent per annum January 1 and July 1. Note.promissory.-Show similar data. Contract by the decedent to sell land.-Show name of vendee, date of contract,description of property,sale price,initial pay- ment,amounts ofinstallment payments,unpaid balance of prin- cipal,and interest rate.. (SCHEDULE C MORTGAGES,NOTES,AND,CASH Did the decedent,':It the time of his death,own any mortgages,notes,or cash?yO Yes 0 No Value at date of deathAlternatevalueItemDescripti~n SUbSt~~e~~t~alua.--;-I---------------------~I-----I~$:------j-~$-----'-- 11 'judgment Note of Ralph L.Patsch 2 3 4 5 6 7 8 9 10 :Cash on person (..' American Express Travelers Checks American Motors J)ividend Check Ame:rlcan Motors DiVidend Check The Maytag Co.,DiVidendi Check Ashlan~Oil &Refining"D;vidend Check Western Pennsylvania National Bank - Savings Account Western Pennsylvania National Bank'- Checking Account, Metropolitan,Life Insurance Co.- Proceeds ot POlicy H.B.Paxton &Son,'Rental Check 18.00 60.00 19.00 165.75 210.00 57.90 1186.12 2626.5'1 17465.10 196.50 5000.00' \.'\. ..' \ "-.., ., TOTAL (a~so enter under the 'Recapitulation,Schedule 0)$ (If more space is needed,insert additional sheets of same size) ..'r ·~71004.88 1 ESTATE OF ----J-..---Gl~r:m--Pat-seh------------------------------------------------Schedule C-Page 11: cor-l6-7lti99-1 Incidents of ownership in a policy include,for example,the right of the insured or his estate to its economic benefits,the power to change the beneficiary,to surrender or cancel the policy,to assign it,to revoke an assignment,to pledge it for a loan,or-to obtain from the insurer a loan against the surrender value of the policy,etc.A reversionary interest (as,for ex- ample,if the proceeds would become payable to the insured's estate or payable as he might direct,should the beneficiary pre- decease him)constitutes an incident of ownership for the pur- pose of the preceding paragraph-only if immediately before the death of the decedent the value of the reversionary interest ex- ce_eded 5 percent of the value of the policy at that time. I INSTRUCTIONS FOR SCHEDULE D INSURANCE - Section 2042 pf the Code provides for the inclusion in the gross estate of (a)insurance on the decedent's life receivable by or for the benefit of the estate and (b)certain insurance on the decedent's life receivable by other beneficiaries.·The term "insurance"refers to life insurance of every description,in- cluding death benefits paid by fraternal beneficial societies operating under the lodge system. Life insurance not includible in the gross estateunder the pro- visions of section 2042 of the Code,and the Estate Tax Regulations pertaining thereto may,depending upon the facts of the particular case,be includible under some other section of the Code and the applicable regulations. Insurance in favor of the estate The ful~amount of the proceeds of insurance on the life of the decedent receivable by the executor or administrator,or other- wise payable to or for the benefit of the estate,should be included in the gross estate.Insurance in favor of the estate includes in- surance effected to provide funds to meet the estate tax,and any other taxes,debts,or charges which are enforceable against the estate._The manner in which the policy is drawn is immaterial so long as'there is an obligation,legally binding upon the bene- ficiary,to use the proceeds in payment of such taxes,debts,or charges.,The full amount is so includible even though the pre-miums or other consideration wherewith the insurance was ac- quired may have been paid by a person other than the decedent. Insuran~e receivable by beneficiaries other than the estate Insurance with respect to which the decedent pllssessed inci. dents of ownership at-time of death.-The amount of the aggre- gate proceeds of all insurance on the life of the decedent not re-ceivable by or for the benefit of his estate must be included in thegross-estate if the decedent possessed at his death-any of the in-cident~'of ownership,exercisable either alone or in conjunction with any..person. , ••II" Page 12 Execution of schedule Under "Description"-show.the name of the insurance company, number of policy,name of benenciary,face amount of the policy, principal amount of any indebtedness to the insurance company deductible in determining the net.pr.ocee!i.s,-and-.the-jnterest on the foregoing indebtedness accrued to the date of death.The value to be entered on Schedule D is the face amount of the policy less the ind(1bt~dn~ss ~l1d,accr:ued,Jnterest.shQwn under "DescJ;iption."Accumulated dividends (including interest pay-able thereon)_,post mortem dividends,and returned premiums are to be entered 011 Schedule Fl and not.onSchedule D._. The "LifeInsurance Statement,"Fonn712,for each insurance policy listed in the schedule should be obtain'ed from the insur- ance company by the executor and filed with,the·return, In addition to t~e insurance shown on thereturn as part of the gross estate,complete information must be submitted as to any ,insurance on the deced,ent's life which the executor believes is not incl~diblein the gross estate. Estate of nonresident not a citizen of the United States In the case of an estate of a nonresident not a citizen of the United States,the proceeds of insurance on his life need not be included under this schedule.'- 0 •.--16-71699-1 SCHEDULE B STOCKS AND BONDS I.Did the decedent,ifa resident or citizen of the United States,own any stocks or bonds,regardless of physical location, at the time of his death?~Yes 0 No II.Did the decedent,if a nc,nresident not a citizen of the United States,own,at the time of his death,any stocks of corp)o rations organized in the United States or bonds situated in the United States asexplained in the instructions?0 Yes 0 No Schedule B-Page 9 (If more space is needed,insert additional sheets of saine size) 0"r-16-71600-1 ESTATE OF J_'l Gl~nn._..Pa_t.s.c.b ._ Item Description (including face amount of bonds or number of shares)Par Unit value Subsequent valua-Alternate value Value at date of deathNo.tion date 1 1 share Canon BUilding $$50 50 45.00Association 2 ISO shares Hickory-Penn Gas ~5.0C ., 75.0QCompany@50¢ \,. 3 25 shares Patsch Auto Bus ~O.OO 125.00Co.,@ $5.00 '. 4 1138 shares Western Pennsy1vania National Bank @l $53-1/4 60,598.50 5 3 shares Public Service and No 226.97ElectricCO.I @ $75.656 6 56 shares The Budd Co.,@ p.OO 906.47$16.187 No 600 shares,Maytag Co.No 23,137.20@U8.562 8 739 shares American Motors 5.00 12,262.23@$16.593 1-2/ 9 193 shares Ashland 011 &1.00 7,611.34RefiningCo.@ $39.431 0 356 shares Patscb Bros.Inc.100 67,141.60@$188.60 1 lOgo shares I.c.-Patach &:100 70,958.75@.65.375 . TOTAL (also enter under the Recapitulation,Schedule 0)$@I 08 1 1 1 INSTRUCTIONS FOR SCHEDULE B-Continued Examples showinS use of Schedule B Example where the alternate valuation is not adoptedi date of death.January 1.1955 Cash in possession.-List separately from bank deposits. Cash in bank.-State bank.and-address,amount in each bank, s'erial number and nature of account,showing whether checking, savings,time deposit,etc.If statements are obtained from banks they should be retained for inspection by an internal rev-enue agent. Estate of nonresident not a citizen of the United States.-In the case of a nonresident not a citizen of the United States,a bank deposit is not regarded as situated in the United States if the decedent was not engaged in business in the United States at the time of his death.In theevent the decedent was so engaged in business,a bank deposit may,nevertheless,not be includible under the provisions of an applicable death duty convention. Example where the alternate valuatiqn.Js adopt~d:dC!te-of death.January 1'.··1955'"-".•., Item .Description (including face amount of bonds or number of shares)Par Unit value Subsequent Alternate value Value at date of deathNo.valuation date 1 $60,000-Arkansas Railroad Co.first mortgage $$4%,20-year bonds,due 1966.Interest payable 0quarterlyonFeb.1,May 1,Aug.1,and Nov.1,N.Y.Exhange___________________________________________1,000 100 --........-.......__.._-------------.-----------......_-60,000Interestcouponsattachedtobonds,item 1,due and payable on Nov.1,1954,but not cashed at --.--'<late of death____________________~_________________________--------.._--.------------------------------_..----------------------600Interestaccruedonitem1,from Nov.1,1954,to Jan.1,1955________________________________________________---------------------------------------..------------:---------------400-2 500 shares Public Service Corp.,common ex divi-, dend,·N.Y.Exchange__________________________________100 110 --_..-------------------.....--,.--------------55,000Dividendonitem2of$2 per share declared Dec. 10,1954,payable on Jan.10,1955,to holders -of·record on Dec.30,1954_______________________'_____-1,000___________-Z'.---------------_..-..-----------------_..-"':--------------- -..... Page.IO, INSTRUCTIONS FOR SCHEDULE C MORTGAGES,NOTES.AND 'CASH The classes of property under this schedule should be listed ~eparatelyin the order given. Mort!JCISes.-:State (1)face value and unpaid balance,(2) date ofmortgage,(3)date of maturity,(4)name of maker,(5) property mortgaged,and (6)interest dates and rate of inter- est.For example:Bond and mortgage for $9,000,unpaid bal- ance $6,000;dated January 1,1952,John Doe to Richard Roe; premises 22 Clinton Street,Newark,N.J.,due January 1,1960; mterest payable at 6 percent per annum January 1 and July 1. Note.promissory.-Show similar data. Contract by the decedent to sell land.-Show name of vendee, date of contract,description of property,sale price,initial pay- ment,amounts of installment payments,unpaid balance of prin-cipal,and interest rate._ ~ Item Description (including face amount of bonds or number of shares)Par Unit value Subsequent .-Alternate value -Value at dale of deathNo.valuation date--- 1 $60,000-Arkansas Railroad Co.first mortgage $-$·4%;20-year bonds,due 1966.Interest payable quarterly on Feb.1,May 1,Aug.1,and Nov.1, 100 ,.N;·'Y.Exchange on date of death___________________1,000 _------------------.-----------------------.-'60,000 ·$30,000 of such bonds distributed to legatees on 99 8/1/55 29:700Aug.1,1955,N.Y.Exchange________________________------------.--------------...-_..._..._-- $30,000 of such bonds sold by executors on Sept. 99 9/1/55 .~9,7~0 .1,1955_______________________________________________________-..------------------------_..._---------- ·Interest coupons attached to bonds,item 1,due ... and payable on Nov.1,1954,but not oashed at date of death.Cashed by executor on Feb.1, 2/1/55 600,,1955__________________________________________________________._------------------------,.-•J _600 'Interest accrued on item 1,from Nov.1,1954,to --Jan.1,1955.Cashed by executor on Feb.1,1955__________________________________________________________._------------------------2/1/55 400 400 2 500 shares Public Service Corp.,common.N.Y.-.-,,-,.. •Exchange.Ex dividend on date of death_________100 110 ------------------.-----------------------55,000. Not disposed of within year follOwin!death_________------------90 1/1/56 45,000 .----------------------..Dividend on item 2 of $2 per share eclared Dec. 10,1954,and paid on Jan.10,1955,to holders -..---,of record on Dec.30,1954______________________________-_.........--_......--------------1/10/55 1,000 1,000. GENERAL INFORMATION-Continued 18e.If any of the contents of the s:::tfe deposit box are o:nitted from the schedules,explain why 18d.If the decedent had a safe deposit box at the time of his death,indicate under what schedules :n this return the contents are listed DYes fl No kl Yes 0 No DYes 0 No X 22c.Telephone No. Western Pennaylvanja National Bank"HOuston,fa. ..zema'n .Law'Building"Canonsburg.Pa .. 21.Did the same undersigned make diligent and careh:l search for the existence of any trusts created by the decedent during his lifetime or any trusts created by other persons under whic~the decedent possessed any power,beneficial interest,or trusteeship? 2Zh.Address (Number,street,city,zone,and State) ALTERNATE VALUATION (These instructions apply only if alternate valuation is elected.For further information on this subject,see General Instructions.on page 4). 220:Name of attorney representing estate,if any Zeman and!Zeman B ..,C ..,D 23.An election to have the gross estate of the decedent valued as of the alternate date or dates is made by entering a check mark in the box set forth below..o The executor elects to have the gross estate of this decedent valued in ac:::ordance with values as of a date or dates subsequent to the de- cedent's death as authoLized by section 2032 of the Code, lab.If held jointly,give 6e name of the joint depositor 'The election carillot be e:xercised unless it is shown upcn th!'l return,Form 706,and the returnis filed within 15 months after the decedent's death or within the period for filing the return as extended by the District Director, The due date for the filing of the return is the day of the 15~calendar month after the decedent's death numerically corresponding to the day of the calendar month in which death occurred,except -.hat,if there is no numerically corresponding day in such 15th month,the last day of such 15th month :s the due date,For exampie,.if the decedent died on August 31,1954,the due date is November 30,1955. If placed in the mails the return must be posted in ample time te reach the District Director's office,.under ordinary handling of the mails, on or before the date on whic;1 the re:urn is required to be filed. 19.Did the undersigned person or persons filing return make diligent ane.careful search for property of every kind left ,bythe decedent?,F Yes 0 No 20.Did the same undersi<ined make diligent and careful searchfor information as to anytransfers of the value of $5,000or more made by the dece::ient during his lifetime without an adequate and full consideration in money or money's worth?Yes 0 No 18c.Relationship of joint depositor to decedent 17&.Name ofancillary administrator or executor 18a.Did'tlie'decedent at the ume o(his death have a safe deposit box held either alone or in the joint names of himself and another? If "Yes,"state locaton 17a.Did the decedent at date of death own property in any State or country other than that of his last domicile? If "Yes,"state place of ancillary probate proceedings 17c.Address of ancillary administrator or executor (Number,street,city,zone,and State) \" ESTATE OF .------.------J..:---Glerm.-p.at5eb--.-.---.-- ---_ .Page 5 ,cor-l6-71699-1 \\\. \ 1 I INSTRUCTIONS FOR SCHEDULE A REAL ESTATE 12,000 100 $36,000 900 600 Value at date of death Value at date of death Alternate value Alternate value 1/1/5&$30,000 $36,000 2/1/55 900 900 2/1/55 600 600 12/1/55 10,000 12,000 2/1/55 100 100 Subsequent valuation date Subsequent valuation date mortgage,only the value of the equity of redemption (or value of the property less the indebtedness)need be extended in the value column as part of the gross estate,in which case no deduction for the indebtedness is allowable under Schedule K. Real property which the decedent has contracted to purchase should be listed in this schedule.The full value of the property and not the -equity must be extended in the value column.The unpaid portion of the ,purchase price should be deducted under Schedule K of this return. The value of dower,curtesy,or a statutory estate created in lieu thereof,is taxable,and no reduction on account thereof or on account of homestead or other exemptions should be made in returning the value of the real estate. The basis for the returned values should be stated.If based upon appraisal a copy of such appraisal should be attached to the return. In addition to authorizing credit for foreign death taxes,the conventions provide situs rules which apply in the cases of certain nonresident aliens.Information relative to these situs rules is set forth on page 39. Further instruetions.-Detailed instructions pertaining to each schedule are included herein.Additional instructions for estates of nonresidents not citizens of the United States are given on page 39.For further information see the Estate Tax Regulations.' Description Description Example where the alternate valuation is adopted:date of death,January 1,1955 House and lot,1921 William Street NW.,Washington,D.C.(lot 6,square 481).Rent of $900 due at end of each quarter, February 1,May 1,August 1,and November 1.Value based on appraisal,copy of which is attached.Not disposed of withinyearfollowingdeath_ Rent due on item 1 for quarter ending November I,1954,but notcollecteduntilFebruary1,1955 _ Rent accrued on item 1 for November and December 1954,col-lected on February 1,1955._ 2 House and lot,304 Jefferson Street,Alexandria,Va.(lot 18, square 40).Rent of $100 payable monthly.Value based on appraisal,copy of which is attached.Property exchanged forfarmonDecember1,1955 _ Rent due on item 2 for December 1954,but not collected until Feb-ruary 1,1955_._ 1 House and lot,1921 William Street NW.,Washington,D.C.(lot 6,square 481).Rent of $900 due at end of each quarte'r,February 1,May 1,August 1,and November 1.Value based on appraisal,copyofwhichisattached._ Rent due on item 1 for quarter ending November 1,1954,but not collected at date of death._Rent accrued on item 1 for November and December 1954 ,_ 2 House and lot,304 Jefferson Street,Alexandria,Va.(lot 18,square 40).Rent of $100 .payablemonthly.Value based on appraisal,copy of wh.ich is attached ~--- Rent due on item 2 for December 1954,but not collected at date of death _ Itemrio. Item No. Real estate should be so described and identified that upon investigation by an Internal Revenue officer it may be readily located for inspection and valuation.For each parcel of real estate there should be given the area and,if the parcel is im- proved,a short statement of the character of the improvements. For city or town property state street and number,ward,sub- division,block and lot,etc.For rural ,property state township, range,landmarks,etc. If any item of real estate is subject to a mortgage with respect to wnich the decedent's estate is liable (i.e.,if the indebtedness is enforceable against other property of the estate not subject to such mortgage,or if the decedent was personally liable therefor),the full value of such property must be ex- tended in the value column.The amount of the mortgage in any such case should be shown under "Description",in this schedule,and deduction taken therefor under Schedule K.If, however,the decedent's estate is not liable for the amount of the Examples showing use of Schedule A Example where,the alternate valuation is not adapted:date of death.Janaary 1,1955 GENERAL INSTRUCTIONS-Continued Death tax conventions.-Death tax conventions are in effect Country .Effective Date with each of the countries listed below.The provisions of a G D b 30 1953conventionapplyinthecaseofadecedentdyingonorafterreece.ecem er ,the effective date shown.Australia .January 7,1954Japan,,April 1,1955 Country Effective Date Canada .______________________June 14,1941 United Kingdom July 25,1946 France October 17,1949 Norway December 11,1951 Ireland________________________________________________December 20,1951 Union of South Africa_~.July 15,1952 Switzerland .September 17,1952 Finland ..December 18,1952 Page 6 onr-16-7169l1-1 ",. ~2,000.00 y 12..000.00 10#000.00 Value at date of death $ Schedule A-Page 7 Alternate value $ Subsequent valua·tion dateDescription ", GROSS ESTATE, SCHEDULE A " REAL ~T~TE o~16-71699-1 TOTAL (also enter under the Recapitulation,Schedule 0)$. (If more space is needed,insert additional sheets of same sIze) Lot of ground altuate in the Borough of Houst~n#Washingto~.Countl#pennsylvania~ known and designated as Lot No.3 in . Block tJo.:10 in D.C.Houston Plan of "-Lots,~corded in the Recorder's Office of washington County in Plan Book 1# page 173;having erected thereon a two- story frame"building containing store- rooms-and apartmen~ 1 ItemNo. 2 Lot of,ground situate in the Borough of H Houston,Washington County,Pennsylvania, bounded and described as follows,to wlt~ Beginning at a pointl the intersection of :the western boundary line of"Pike street and the northern boundsrr line ot First street;thence in a northerly direction along said line of Pike Street 60 feet to lo~'now or formerly of tsaac N.Paxton;thence along the line of last said lot North 67°'10'west 138.70 feet ~o land of campbell L.Reed;thence along last said land South 23°05'West 60 feet to the line of First street afore- said;thence along said ll.ne or First " 'street in an easterly direction 138.70 feet-to Pike street,the place.of . beginning;havlngerected thereon a two-story apartment dwelling-~.. ESTATE OF _.J __.Glenn..Eat.s.ch __.____. Did the decedent,at the time of his death,own any real estate in the United States? INSTRUCTIONS FOR SCHEDULE B STOCKS AND BONDS .' portion of the difference to or from the mean price obtaining on such nearest date before the valuation date.If actual sale prices or quoted bona fide bid and asked prices are available on a date within a reasonable period prior to the valuation date, but if no actual sale prices or bona fide bid,and asked prices are available on a date within a:reasonable period after the valu- ation date,or vice versa,then the mean between such highest and lowest available sale prices or bid and asked prices may be taken as the value.. For the valuation of inactive stock and stock in close corpora- tions,see the regulations issued pursuant to section 2031 of the Code.Complete financial and other data upon which the estate bases its valuation should be submittedwith'the return,including balance sheets (particularly the one nearest to the valuation date),and,statements of the net earnings or operating results and dividends paid for each of the 5 yeats immediately preced,- ingthe valuation date.. Securities returned as of no value,nominal value or obsolete, should be listed last,and the address of the company and the State and date of the incorporation should be stated.Copies of correspondence or statements used as the basis for return at novalueshouldbeattached..- Interest and dividends.-Interest and dividends must be shown separately as explained in the geriefaFlnstructions under "Exe- cution of Return," Estate of nonresident not a citizen of the United States.-In the case of the estate of a nonresident not a 'Citizen of the United States,stocks of foreign.corporations are not to be includ,ed in tthis schedule or any other schedule.If such an individual was not engaged in business in the United States,there shall notbeinclud,ed in this Schedule or any other schedule,obligations issued by the United States prior to March 1,1941.Except asotherwiseprovidedintheseinstructions,in the case of a non- resident not a citizen of the United States,stocks and bonds of the following classes must be entered in this sched,ule as situ- ated in the United States:(1)stocks of corpOl;ations organized in the United States regardless of the location of the certifi- cates,and (2)corporate or other bonds if the certificates were situated in the United States at the time of death. Under the provisions "of the death tax conventIons with the following countries,the bonds listed after each country's name'which were owned by a nonresident not a citizen of the United States are not situated in the United States and accord- ingly shduld notbe entered in this schedule: (a)United Kingdom,France,and Greece.-In the case of a resident of one of these countries,all bond.s,regardless of the location of the certificates. (b)Canada.-In the case of a resident of Canada,bonds issued by corporations other than those organized.in the United States and i~cribedor registered bonds issued by a:llYgovernment,municipality,or public authority where the au- thorized place of 'inscription or registration is outside the United States. (c)Finland.-In the case where the decedent or his bene-ficiary was a resident (not domiciliary)of Finland,bonds issued by a corporation not organized in the United States or by a noncorporate issuer who does not have a place of residence (not domicile)in the United .States. (d)Union of South Africa and Ireland.-In the'case of adecedentwhowasordinarilyresident(not domiciliary)in the Union,or in the case of a decedent who was a resident of Ireland,all bonds,provided they were actually subjected to estate duty in the Union or in Ireland,as the case may be. (e)Australia.-In the case of a decedent who was a resi-dent of Australia,bonds issued by a debtor who does not have a place of residence (not domicile)in the United States (see convention for exceptions),and bonds issued by any govern- ment,municipality,or public authority located outside of the United States. (f)Japan.-In a case where the beneficiary of a decedent's estate was a resident of Japan,bonds (except bearer bonds) issued by a corporation not organized in the United States or by a noncorporate issuer who does not have a place of resi- dence (not domicile)in the United States,provided such bondsweresubjectedtoinheritancetaxbyJapan. (Continued on page 10) ,rDescription.-Description of stocks should indicate number of shares,whether common or preferred,issue,par value,price ;per share,exact name of corpoi.'ation,and,if not listed on a stock exchange,the post-office address of the principal business office,the State in which incorporated,and the date of incor- poration.If listed,state principal exchange upon which sold. Description of bonds should include quantity and denomina- tion,name of obligor,kind of bond,date of maturity,interest rate,and interest-due dates.State the exchange upon which listed,or if unlisted the principal business office of the company. Stocks and bonds subject to foreign death taxes to be grouped under separate heading.-Where any estate,inheritance,legacy, 0'1'succession tax has been paid to a foreign countI1'in respect of any stocks or bonds included in this schedule,the stocks and' bonds subjected to the foreign death tax should be grouped separately on this schedule under the heading,"Subjected to Foreign Death Taxes."., Yaluation.-In the case of stocks and bonds listed on a stock exchange the mean between the highest and lowest quoted selling prices on the valuation date shall be considered as the fair market value per share or bond.If there were no sales on the valuation date,such value shall be determined by taking the mean between the highest and lowest sales on the nearest date before and the nearest date after the valuation date (both such nearest dates being within a reasonable period),and by prorating the difference between such mean prices to the val- uation date,and by ad.ding or subtracting,as the case may be, such prorated portion of the difference to or from the mean price obtaining on such nearest date before the val~ationdate. For example,assume that sales of stock nearest the valuation date (June 15)occurred 2 days before (June 13)and 3 days after (June 18)and that on such days the mean.sale prices per share were $10 and $15,respectively.The ,price of $12 shall be taken as representing the fair market value of a share of such stock as of the valuation date.If,however,on June 13 and 18 the mean sale prices per share were $15 and $10,respec- tively,the price of $13 shall be taken as representing the fair market value of a share of such stock as of the valuation date. If the security was listed on more than one exchange,the rec- ords of the exchange where the security is principally dealt in should be employed.In valuing listed stocks and bopds the executor should observe care to consult accurate records to obtain values as of the applicable valuation date. Dividends declared on shares of stock prior to the death ofthedecedentbutpayabletostockholdersofrecordonadateafter his death are not includible in his gross estate for Federal estate tax purposes.However,in a case where the stock is beingtradedonanexchangeandissellingex-dividend on the date of the decedent's death,the amount of the dividend should nut be included in the gross estate as a separate item but should be added to the ex-dividend quotation in determining the fair market value of the stock as of the date of the decedent's death. In the case of stocks and bonds which are not listed upon an exchange,but are dealt in through brokers or have a market,the fair market value shall be determined by taking the mean be- tween the highest and,lowest selling prices as of the valuation date;or,if there were no sales on that date,such value shall be determined by taking the mean between the highest and lowest sales on the nearest date before and the nearest date after the valuatiQp.aatl'\.4both such nearest dates being within a reason- able.,Slil>""it'J(ji by prorating the difference between such mean prices to the valuation date,and by adding or subtracting,as the case may be,su~rWjl.Wd :iWtion of the difference to or from the mean pric&;:l(:ib~p"tuchnearest date before the valuation date.If quotations are obtained from brokers,or evidence as to the sale of securities is obtained from the officers of the issuing companies,copies of the letters furnishing such quotations or evidence of sale should be attached to the return. :u.1f1octWlJ,t'tal~:11re not available during a reasonable periodbe~4lt!'f.f.el.Qnd ending after the valuation date,the fair market value may be determined by taking the mean between the bona.-..1l.de bid and asked prices on the nearest date before and the Wrest date after the valuation date (both such nearest dates being within a reasonable period),and by prorating the ~e:r:s~b~'ll~n such mean prices to the valuation date,andl>~.~..M-..tmtbtracting,as the case may be,such prorated (SCHEDULE C MORTGAGES,NOTES,AND,CASH Did the decedent,at the lime of his death,own any n:ortgages,notes,or cash?yO Yes 0 No lIemNo.-1 2 3- 4 5 6 7 , 8 ,9 ... 10 11 Description C~sh on ~person American Express Travelers Checks American.Motors 1lividend Check American Motors Dividend Check The Maytag Co.~Dividend Check Ashland Oil &Rerining~Dividend Check westernpennsylvanla National Bank - Savings Account Western Pennsylvania National Bank'- Checking Account Metropolltan,Life Insurance Co.... Proceeds of Po1ic1 H.B.Paxton &Son~'Rental Check, Judgment Note of Ralph L.Patsch Subsequent valua-tion date $ Alternate value Value at date of death $ 18.00 60.00 19.00 165.75.210.00 57.90 1186.12 2626.5'1 17465.iO 196.50 5000.00 <• I, TOTAL (also erner under the Recapitulation,Schedule 0)$ (If mor~space IS leeded,Insert additional sheets of same size) ESTATE OF ----J-.---Glerm--Pat'ftClT------------------------------------------------ 0...-16-71699-1 . r ·~71004 •88 I Schedule C-Page ll~ Incidents of ownership in a policy include,for example,the right of the insured or his estate to its economic benefits,the power to change the beneficiary,to surrender or cancel the policy,to assign it,to revoke an assignment,to pledge it for a loan,or to obtain from the insurer a loan against the surrender value of the policy,etc.A reversionary interest (as,for ex- ample,if the proceeds would become payable to the insured's estate or payable as he might direct,should the beneficiary pre- decease him)constitutes an incident of ownership for the pur- pose of the preceding paragraph-only if immediately before the death of the decedent the value of the reversionary interest ex- ce,eded 5 percent of the value of ~he policy at that time. INSTRUCTIONS FOR SCHEDULE D INSURANCE, Section 2042 pf the Code provides for the inclusion in the gross estate of (a)insurance on the decedent's life receivable by or for the benefit of the estate and (b)certain insurance on the decedent's life receivable by other beneficiaries.The term "insurance"refers to life insurance of every description,in- cluding death benefits paid by fraternal beneficial societiesoperatingunderthelodgesystem. Life insurance not includible in the gross estateunder the pro- visions of section 2042 Of the Code,and the Estate Tax Regulations pertaining thereto may,depending upon the facts of the particular case,be includible under some other section of the Code and the applicable regulations. 1 Insurance in favor of the estate The full amount of the proceeds of insurance on the life of the decedent receivable by the executor or administrator,or other- wise payable to or for the benefit of the estate,should be included in the gross estate.Insurance in favor of the estate includes in- surance effected to provid,e funds to meet the estate tax,and any other taxes,debts,or charges which are enforceable against theestate.~,The manner in which the policy is drawn is immaterial so long as'there is an obligation,legally binding upon the bene- ficiary,to use the proceeds in 'payment of such taxes,debts,or charges..The full amount is so includible even though thepb~­ miums or 'other consideration wherewith the insurance was ac- quired may have been paid by a person other than the decedent. Insuranfe receivable by beneficiaries other than the estate Insurance with respect to which the decedent possessed inci. dents of ownership at'time of death.-The amount of the aggre- gate proceeds of all insurance on the life of the decedent not re- ceivable byorfor the benefit of his estate must be included in the gross estate if the decedent possessed at his death,any of the in-cident~'bf ownership,exercisable either alone or in conjunction with any.,person. ," Page 12 Execution of schedule Under "Descript~on':'show!h(il !1aIl.!e of the insurance company, number of policy,name of beneficiary,face amount of the policy, principal amount of any indebtedness to the insurance company deductible in determining the net.proceep.,s,'a.nd'.the'jnterest on the foregoing indebtedness accrued to the date of death.The value to be entered on Schedule D is the face amount of the policy less the indebtedn!'lsB ~~d ,accrued..interest.shQwn under "Description."Accumulated'dividends (including interest pay- able thereon)"post mortem dividends,and returned premiums are to be entered all Scheduleli'cand not OIiSchedule D. The "LifeInsurance Statement,"Form712,for each insurance policy listed in the schedule should be obtain'ed f.rom the insur- ance company by the executor and filed with,thereturn. In addition to t~e insurance shown on thereturn as part of thegrossestate,complete information must be submitted as to any ,insuranceon the deced,ent's life which theexecutor believes is notincl~diblein the gross estate. Estate of nO!lresidentnot a citizen of the United States In the case of an estate of a nonresident not a citizen of the United States,the proceeds of insurance on his life need not be included under this schedule..' OD,l6-71699-1 -l I -- SCHEDULE D INSURANCE la.Was anyinsurance on life of decedent receivable by his estate?lIb.By beneficiaries other than estate? iii Yes 0 No":iJ Yes 0 No Z.Was there any insurance on the decedent's life which is not inclu:ied in the return as a part cf the gross estate? JtJ Yes ;:rt No If "Yes:'a complete explanation as to all such insurance must be submitted. ItemNo.Description Subsequent valua-tion date Alternate value Value at date of death 2140.00 2785~00 $$ The union Central Life Insurance Company ,-Policy No.810130 Glenn Ferris Patsch and Isla Patech ·Sprow18~beneficiaries '2~OOO.OO plus dividend additions 3 2 The Prudential Insurance Company ot America -Policy No.5795045 Edward P.Pat8ch~Executor of Wilma B.Pat8ch~beneficiary $2785.00 The Prudential Insurance Compan1 or America~Policy No.G 14100~Certif. 816;Glenn P.Patsch and Edward P. Pat8ch~beneficiaries -$12~OOO.OO. kr r I I f I ! 4.Policy with Metropolitan Life Insurance Company.Number of Suppleme:ltary Contract 282952 R.B.issued to J. Glenn patsch as payee.The value of the Supplementary Contract on date of death of payee was $17~465.10 o " 1\ , / 1 ." 'f"\,", :\ ! I \ I " TOTAL (also enter under the Recapitulation,Schedule 0)$ (If more space is n~eded,insert additional sheets of same size) ESTATE OF _4__J....__G1enn__Patach _Schedule D-Page 13 om--lG-7109g.-1 INSTRUCTIONS F.OR SCHEDULE E JOINTLY O~NED PROPERTY ,All property of whatever kind or character,whether real estate,personal property,bank accounts,etc.,in which the dece- dent held at the time of his death an interest either as a joint tenant oras a tenant by the entirety,with rightofsurvivorship, must be disclosed under this schedule.The full value of the property must be included.in the gross estate,unless it can be shown that a part of the property origi-nally belonged to the other tenant or tenants and was never re- ceived or acquired by the other tenant or tenants from the de- cedent for less than an adequate and full consideration in money or money's worth.Where it is shown that the property or any part thereof,or any part of the consideration with which the property was purchased,was acquired by the other tenant or tenants from the decedentfor less than an adequate and full con-sideration in money or money's worth,there should be omitted only so much of the value of the property as is proportionate to the consideration furnished by such other tenantor tenants.For the purposes of the estate tax,a relinquishment or promised re- linquishment of dower,curtesy,or of a statutory estate created in lieu of dower or curtesy,or of other marital rights in the de- cedent's property orestate,is not to any extenta consideration in money or money's.worth..- Where the property was acquired by gift,bequest,devise,or inheritance by the decedent and spouse as tenants by the en- tirety,then only one-half of the value of the property should be included.,Where the property was acquired by the decedent and Page 14 another person or persons by gift,bequest,devise,or inheritance as joint 1anants,and their interests are not otherwise specified or fixed by law,then there should be included only such frac- tional part of the value of the property as is obtained by divid- ingthefull value of the propertyby thenumber of jointtenants. If the executor contends that less than the value.of the entire property is includible in the gross estate for purposes of the tax, the burden is upon him to show his right to include such lesser value,and in such case he should make proof of the extent, origin,and nature of the d.ecedent's interest and the interest of the deced.ent's cotenant orcotenants. In every instance a statement under the column headed "De-scription~'.mpst.discl~se whether the whole or.only a.part of the property IS mcluded m the gr6ss estate.If only a part of the property is included in the gross estate,the fair market value of tFie,whole ~ust be shown under "Descripti?n.". Property in which the decedent held an interest as a tenant in common should not be listed under this schedule,but the value of his interest therein should be returned under Schedule A,if real estate,or if personal property,unqer sucl).·other:appropriateschedule:Similarly,comimunity property lield by the decedent and s.pouse should be·returned under·the appropriate Schedules A to 1.The decedent's interestin a partnership should not be in- cluded under this schedule,but should be shown under Schedule F,"Other miscellaneous property." oor-16-71699-1 .'.'. SCHEDULE E JOINTLY OWNED PROPERTY 1.Did the decedent,at the time of his death,own any proI=erty as a joint tenant or as a tenant by the entirety, with right of survivo::,ship?If "Yes,"state the n':Ime and address of each surviving cotenant DYes X o No NAME Glenn F.Patach ADDRESS (Number.Street.City,Zone,State) 1 $ $1000.00:Series E Bond in name or J.Glenn Patsch or Olenn F.Patsch No.M82108030 B issued February...1960 2 $1000.00 Series E Bond in name or J. Glenn Patsch or Glenn F.Patsch No. M82108031 E issued February..1960 3 $500.00 u.S.savings Bond in name or J.Glenn Patsch or Glenn P.Patsch No. D580651 H -Series H-issued February..1955 lIemNo_ 4 Description Lot of ground situate on Pike street in the Borough of Houston..Washington County..Pennsylvania..having erected thereon a dwelling house and having been conveyed by J.Glenn Patsch and Wilma B.patsch..his wife..to J. Glenn patsch and Wilma B.Patsch by deed dated February 10..1948..recorded in the Recorder's Office of Washington County..Pennsylvania..in Deed Book 736 page 554· Subsequent valua-tion date Alternate value Value at date 01 death $ 1000.00 1000.00 I 500.00 15..000..00 TOTAL (also enter under the Recapitulation,Schedule 0)$ .(II more space is needed,insert additional sheets 01 same size) ESTATE OF -----.---.--v.--~ienn_--ht'Scb--------..---.-.----..------------. onr-ltl-71600-1 Schedule E-Page 15 INSTRUCTIONS FOR SCHEDULE F OTHER MISCELLANEOUS PROPERTY Under this schedule list all items of the gross estate not returnable under any other schedule,such as the following: Debts due the decedent;interests in business;insurance on the life of another;accumulated dividends (including interest pay- able thereon),post mortem dividends,and returned premiums 'on the insurance policies listed on Schedule D;claims';rights; royalties;pensions;leaseholds;judgments;reversionary or remainder interests;shares in trust funds;household goods and,·personal.effects,including wearing apparel;farm products and groWing crops;livestock;farm machinery;automobiles; etc. When an interest in a copartnership or unincorporated busi- ness is returned,submit a statement of assets and liabilities as of the valuation date and for the 5 years preceding,and state:- ments of the net earnings for the same 5 years.Goodwill must J •..... .) Page 16 be accounted for.In general,the same information should be furnished and the same methods followed as in valuing close corporations.See instructions for Schedule B on page 8. In case of an interest in a trust fund,a copy of the trustinstrumentshouldbesubmitted. Edate of nonresident not a citizen of the United States.-In the case of a nonresident not a citizlln of the United States works of art which were (1)imported into the United States solely for exhibition purposes,(2),loaned,for such purposes to , a public gallery or museum,no part of the net earnings of which inures to the benefit of any pri,vate ,stockholder or individual, ,and (3)at the time 'of the death of the owner,on exhibit,or en route to,or from exhibition,in such a public gallery or museum,;:11'e not includible in this schedule as situated in the.United States."., onr--16-71699-1 ," ,t ,. .; "", " SCHEDULE I' OTHER MISCELLANEOUS PROPERTY :1.Did the decedent,at the time of his death,own any intere-st in a copartnership onlnincorporated business? ____________________________________--D_Y_e_s_--,F No .-- 2.Did the decedent,at the time of his death,own ar:y miscellaneous property not returnable under any other schedule? .. .F.Xes 0 No .. 3.Was there anyinsurance which the decedent own3d on the life of another which is not included in the return as a part of the gross estate? If "Yes,"full details must be submitted under this schedule.0 Yes .0 No . 4.State whether the decedent's estate,his spouse,orany other person,has received,or will receive,any bonus or award as a reslt of the decedent's employment or his death.If "Yes,"full detai~s must be submitted under this schedule.DYes D No X I'~ I ~ 5 ItemNo. 1 2 3 4 Description I.C.Psisch It So.ns.In,c.,.,wageG 1952 Dodge 4 Door Sedan 1964 Dodge Stat10nWagcm The Pl;'Udentlal·Insurance Cempan .ot A!ller1ca -Policy No.57950liS :y accumUlated an4post ~ortem div1dends The Ohion Central Lite Insurance Company -Policy No.810130'·postmortemdiVidend.~ Subsequent valua-tion date $ Alternate value Value at date 01 death $ 405.08 , 75.00 3000.00 .I I t ~I TOTAL (alEO enter under the Recapitulation,Schedule 0)$ (II more space is needed,insert additional sheets 01 same size) .J.Olenn Patsch .ESTATE OF '.'.__. ._.__"". .__.__. ._ \cor-16-71699-1 Schedule F-Page i 7 INSTRUCTIONS FOR SCHEDULE G TRANSFERS DURING DECEDENT'S LIFE . -In accordance with the provisions of sections 2035-38 of therCode,the following transfers made by the decedent during his life,by trust or otherwise,other than bona fide sales for an adequate anll full consideration in money or money's worth, are subject to the tax,and must be included in the gross estate under this schedule: f (1)Transfers made in contemplation of death.-Transfers by decedents are,unless shown to the contrary,deemed to have been made in contemplation of death,if they were made within 3 years prior to death.Such transfers are not includible in the gross estate if made more than 3 years prior to the date of death._ (2)Transfers made on and after September 8,1916,taking effect at the decedent's death.A transfer made by the decedent taking effect at his death is one under which possession or enjoyment of the property can be obtained only by surviving the decedent.However,such a transfer is not treated as a transfer taking effect at death unless the decedent retained a reversionary interest in the propert9'which immediately before his death had a value in excess of 5 percent of the value of the transferred property.In the case of such a transfer made before October 8,1949,the reversionary interest must have arisen by the express terms of the instrument of transfer. ,(3)Transfers whereby the .decedent retained the possession or enjoyment of,or the right to the income ;from the transferred property if the transfer was made:. (a)After March 3,1931,and the retention is for his life, or for such a period as to evidence his intention that it should extend at least for the duration ofhis life and his death occurs before the expiration of such period;or (b)After June 6,1932,and the retention is for his life,or for any period not ascertainable without reference to his death or for any period which does not in fact end before his death. (4)Transfers (not otherwise includible)whereby the dece- dent retained the right to designate the person or persons who shall possess or enjoy the transferred property,or the incometherefromifthetransferwasmade: (a)After March 3,1931,and the right to so designate wasretainedbythedecedentalone,for his life,or for such period as to evidence his intention that it should extend at least forthedurationofhislifeandhisdeathoccursbeforetheexpira- tion of such period;or . (b)After June 6,1932,and the right to so designate was retained by the decedent,either alone or in conjunction with any.person,for his life or for any period not ascertainablewithoutreferencetohisdeathorforanyperiodwhichdoes not in fact end before his death. (5).Transfers whereby the enjoyment of the transferred property was subject at decedent's death to any change through the exercise of a power to alter,amend,revoke,or terminate,as follows: (a)In case the transfer was made before 4:01 p.m.,east- ern 'standard time,June 2,1924,and the power was reserved atthe time of the transfer andwasexercisable by the decedentaloneorinconjunctionwithapersonhavingnosubstantial adverse interest in the transferred property, (b)In case the transfer was made after 4:01 p.m.,eastern standard time,June 2,1924,and before June 23,1936,and the power was reserved at the time of the transfer and was exercisable by the decedent alone or in conjunction with any person (regardless of whether such person had a substantial adverse interest in the transferred property),or PagelS (0)In case the transfer was made after June 22,1936,re- gardless of whether the power was reserved at thetime of the transfer or later created or conferred,and without regard to the source from which the power was acquired,regardless of whether the power was exercisable by the decedent alone or in conjunction with any person,and if in conjunction with any person,regardless of whether such person hada substan- tial adverse interest in the transferred property. (6)Transferseffected bythe relinquishment in contemplation of death of his power to alter,amend,revoke,or terminate a transfer of property previously ~ade by the decedent under conditions set forth in the preceding subparagraph (5).Such transfers will not be considered to have been made in contem- plation of death unless they were made within 3 years prior to death. For more detailed information,see the Estate Tax Regu- lations.. . TransferS included in the gross estate should be valued as of the date of the d,ecedent's death or,if the alternate valuation is adopted,in accordance with section 2032 of the Code.Ifonlyaportionofthepropertyissotransferredastocomewithin the terms of the statute,only a corresponding proportion of the value of the property should be included in the value of the gross estate.If the transferee makes additions to the property,or betterments,the enhanced value of the property at the valuation date,due to such additions or betterments,should not be included under.this schedule.However,where only a portion of the value of the propert~is included,the value of the whole must be disclosed under the column headed "Description,"together with an explanation of the proportionate inclusion. To constitute a bona fide sale for an adequate and full con-sideration in money or money's worth,it must have been made in good faith,and the price must have been an adequate and full equivalent and reducible to a money value.If the price was less than an adequate and full equivalent,only the excess of the fair market value of the property,as of the valuation date, over the price received by the decedent should be included in the gross estate.For the purpose of the estate tax the relinquish- ment or promised relinquishment of dower,curtesy,or of a statutory estate created in lieu of dower or curtesy,or of other marital rights in the decedent's property or estate,is.not to any extent a consideration in money or money's worth. All transfers made bythe decedent within 3 years prior to thedateofhisdeathofavalueof$1,000 or more and all transfers made by the decedent at any time during his life of a value of $5,000 or more except bona fide sales for an adequate and full consideration,in money or money's worth must be disclosed in the return,whether the executor regards such·transfers as subject to the tax or not.If the executor believes that such a transfer is not subject to the tax a statement of the pertinent facts should be made.. In case a transfer,by trust or .otherwise,was made by a Wl'itten instrument,a copy must be filed with the return.If of public record,the copy should be certified;if not of record,the copy should be verified. The name of the transferee,date and form of transfer,and a complete description of the property should be set forth in this schedule.Rents and other income must be included as explainedunder"Execution of Return"in the "General Instructions." Nonresident not a citizen of the United States.-If the decedent was a nonresident not a citizen,the transfer must be included if the property was situated in the United States,either at the date of the decedent's death or at the.date of the transfer. cnr-lll-7169{}-1 SCHEDULE G TRANSFERS DURING DECEDENT'S LIFE xDYesD No DYes D No X Zd"Character of tral!sfer 3b.Date 3e.Amount or value 3d,Character of transfer 3D.Did the decedent,wibin 3 years immedi':ltely preceding his death,make any transfer of his property without an adequate and full cor.sideration in money or money's worth?.'. . If "Yes,"and the transfer was of an amount of $1,000 or more,furnish the following information: Zb.Date Ze.Amount or value ~I.Did the decedent make any transfer described in be first paragraph (including the six subparagraphs)of the •instructions for this schedule?i DYes ONo Za.Did the decedent,at any time,make a transfer of an amount of $5,000 or more without an adequate and full consideration in IlIJneyor money's worth,but net believed to be includible in the gross estate as indicated in the first paragraph (including the six subparagraphs) of the instructions for this schedule? If "Yes,"furnish the following information: b n o ~ o D o ~ ~, l..... 3e.Motive which actuated decedent in making transfer 4.Were there in existenc3 at the lime of the decedent's death any trus~created by him during his lifetime? I t:J Yes D No,... Value at date of deathItemNo. 1 Description ,.- Subsequent valua· tion date $ Alternate value $\ None ~..\';( \ \\. \.\.i\..0;: -TOTAL (also enter under the Recapitulation,Schedule 0)$.$ (If more space is reeded,insert additional sheets of same size) .ESTATE OF ----J;;---o-l;enn--Pa'tilc1r------------------.--------:---------------------Schedule G-Page 19 onr-16-71699-1 INSTRUCTIONS FOR SCHEDULE H POWERS OF APPOINTMENT INSTRUCTIONS FOR SCHEDULE I ANNUITIES 1.General.-Except as otherwise provided under "Annuities the decedent if they were made by the employer by reason of~nder approved plan,"there shall be included in the gross the decedent's employment.For further information see the estate under this schedule all or a portion of an annuity or estate tax regulations issued pursuant to section 2039 of the other payment receivable by any beneficiary following the death Code. of the decedent under a contract or agreement which satisfies 3.Definition.-The term "annuity"includes periodic payments the four conditions set forth below.It should be noted that for a specified period of time.The following are examples ofcondition(d)is satisfied if the contract or agreement satisfies contracts (but not necessarily the only forms of contracts) either clause (i)or clause (ii)thereof.The conditions are:providing for payments which constitute annuities or other (a)The contract or agreement is not a policy of insurance payments for the purpose of inclusion in this schedule: on the life of the decedent.(a)A contract under which the decedent immediately (b)The contract or agreement was entered into after before his death was receiving,or was entitled to receive, March 3,1931.for the duration of his life an annuity or other stipulated (0)The annuity or other payment is receivable by the payment,with payments thereunder to -continue after his beneficiary by reason of the beneficiary's having survived death to a designated beneficiary,if surviving the decedent. the decedent.(b)A contract under which the decedent immediately (d)Under the contract or agreement-before his death was receiving or was entitled to receive, (i)an annuity or other payment was .payable to the together with another person,an annuity or other stipulated decedent,either alone or in conjunction with another,for payment payable to the decedent and the other person for his life or for any period not ascertainable without refer-their joint lives,with payments thereunder to continue to ence to his death or for any period which did not in fact the survivor following the death of either. end before his death,or (0)A contract or agreement entered into by the decedent (ii)the decedent possessed the right to receive the an-and his employer under which the decedent immediately be- nuity or other payment,either alone or in conjunction with fore his death and following retirement was receiving,or another,for his life or for any period not ascertainable was entitled to receive,an annuity or other'stipulated pay- without reference to his death or for any period which did ment,.payable to the decedent for the duration of his life and not in fact end before his death.thereafter to a designated beneficiary,if surviving the dece-It is immaterial whether the annuity or other payments to dent,whether the payments after the decedent's death are the survivor are payable in a lump sum or in installments and,fixed by the contract orsubject to an option or electi?,n exe:t:- if payable in installments,whether the installments to the cised or exercisable by the decedent.However,see AnnUl- survivor are in the same amount as,or in a greater or lesser ties under approved plan." amount than,the annuity or payments to the decedent.The (d)A contract or agreement entered into by the decedent value of the annuity or other payment to the survivor is the and his emplo'yer under which at the decedent's death,prior value thereof immediately following the decedent's death.to retirement or prior to the expiration of a stated period.of 2.Portion includible.-Where the decedent contributed only a time,an annuity or other payment was payable to a desIg- portion of the purchase price of the contract or agreement,nated beneficiary if surviving the decedent.However,see there is included in the gross estate only that portion of the "Annuities under approved plan." value of the annuity or other payment receivable by the sur-(6)A contract or agreement under which the dece?ent viving beneficiary which the decedent's contribution to the pur-immediately before his death was receiving,or was entlt!ed chase price of the annuity or agreement bears to the total to receive,an annuity or other payment for a stated perIodpurchasepricethereof.For example,in a case where the value of time,with the annuity or other payment to continue to a of the survivor's annuity was $20,000 and the decedent had designated beneficiary,upon the decedent's death prior to the contributed three-fourths of the purchase price of the contract,expiration of that period of time,if surviving the decedent. the amount includible is $15,000 (%.X $20,000).Except as 4.Annuity under approved plan.-Special rules are provided otherwise provided under "Annuities under approved .plan,"in the case of an annuity or other payment under:contributions made by the decedent's employer to the purchase price of the contract or agreement are considered as made by (Continued on page 22) Page 20 cnr-16-71699-1 General.-There is includible in the gross estate under this schedule the value of certain property with respect to which the decedent possessed a general power of appointment at the time of his death or with respect to which he once possessed a general power of appointment and exercised or released that power prior to his death.A general power·of appointment is described below.If the decedent ever possessed a general power of appointment,the executor should examine the regu- lations issued pursuant to section 2041 of the Code to ascertain whether the value of the pro.perty subjecb to that power is includible in the gross estate. Definition of a power of appointment and a general power of appointment.-The term "power of appointment"includes all powers which are in substance and effect powers of appointment regardless of the nomenclature used in creating the power or of local property law connotations.For example,if a settlor transfers property in trust for the life of his wife,with a power in the wife to appropriate or consume the principal of the trust, the wife has a power of appointment. The term "general power of appointment"means a power which is exercisable in favor of the decedent,his estate,his creditors,or the creditors of his estate,with the following exceptions: (1)A power to consume,invade,or appropriate property for the benefit of the decedent which is limited by an ascer- tainable standard relating to health,education,support,or maintenance of the decedent is not a general power of' appointment. (2)A power created on or before October 21,1942,which is exercisable by the decedent only in conjunction with an- other person is not a general power of appointment. (3)A power created after October 21,1942,is not a gen- eral power of appointment if it is exercisable by the decedent only in conjunction with (a)the creator of the power,or (b)a person having a substantial interest in the property subject to the power,which is adverse to the exercise of the power in favor of the decedent. (4)If (after the application of (3»a power created after October 21,1942,is a general power and it is exercisable by the decedent only in conjunction with another person but (in addition to being exercisable in favor of the decedent, his estate,his creditors,or the creditors of his estate)is exercisable in favor of such other person,the power is deemed a general .power only in respect of a fractional part of the property subject to such power.The fractional part is determined by dividing the value of such property by the number of persons (including the decedent)in favor of whom such power is exercisable. Date of creation of power.-A power of appointment created by a will executed on or before October 21,1942,is considered a power created on or before that date if the person executing the will died before July 1,1949,without having republished the will,by codiciL or otherwise,after October 21,1942. Supplemental data.-If the decedent ever possessed a power of appointment,a certified or verified copy of the instrument granting the power,together with a certified or verified copy of any instrument by which the power was exercised or released, must be filed with the return.These copies must be filed even though it is contended that the power was not a general power of appointment,and that the property is not otherwise includible in the gross estate.•I~ •~I • • I I I I • - 'I SCHEDULE H FOWERS OF APPOINTMENT la.Did the decedent,at me time of death,possess a general Ipowerof~ppointmen~created after October 21,B42?DYes JKI No lb.On or before such date?DYes [lNo-Ila.Did the decedent,at any time,by will or otherwise,exerc:se or release (to any Zb.On or before such date? I extent)a general povrer of a~pointment created a:ter October 21,1942?DYes Xl No DYes INo :I 3.Were there in existence at the time of the decedent's death any trusts not created by him under which he posses:sed any power,beneficial interest,or trusteeship?DYes IJI No .. .i' I \ltem·Description Subsequent valua·Alternate value Value at date of deathNo.tioil date I·I \ 1 .$$.. -... " I .,J NOne '.J ,, , ':1 .,. 'I ,., \ I'.\, .. \ ,.\I ,tOTAL (also enfer under the Rec':Jpitulation,Schedule 0)$$\,\ \(If more s~ace is needed,insert additional sheets of same size) SCHEDULE I·ANNUITIES1 la.Was the decedent,imr.:lediately before his death,receivinc;;an annuity as described in paragrcph 1 of the instructions?DYes il No ,.lb.If "Yes,"was mat annuity pac pursuant to an approved plan as described in paragraph 4 of the instructiom?DYes o No IilIe.If the a<lswer to "Ib:'is "Yes,"state the ratio of the decedent's contribution to the total purchase price of the annuity.t I J Za.If the decedent was employed -:It the time of his death,did an annuity or other payment as described in ·paragraph 3(d)of the instrucjons become payable to any benefici:1ry by reason of the DYes Xl No•beneficiary's having sl.:rvived -:he decedent? !~2b.If "Yes,"state the ratic of the decedent's contributicn to the total purchase price of the annuity. I, 1 Item Subsequent valua· 1 No.Description lion date Alternate value Value at date of death -- I $$ None J I t , ;1,.~ !; I~·,TOTAL (also enter under the Recapitulation,Schedule 0)$$ (If more space is needed,insert additional sheets of same size) ESTATE OF _______JA___Olenn_Ratach______________________________________________.Schedules Hand I-P?ge 21 onr-16-716911-1 !~ ,I INSTRUCTIONS FOR SCHEDULE I-Continued (a)An employee's trust (or under a contract purchased by an employees'trusi)foi-rning a part of a pension,stock bonus,or profit-sharing plan which met all of the require- ments of section 401 (a)of the Code either at the time of the decedent's separation from employment (whether by death or otherwise)or at the time of the termination of the plan if earlier;or (b)A retirement annuity contract purchased by an em- ployer (but not by an employees'trust)~ursuant to a plan which,while not meeting all of the requirements of section 401 (a),did meet the requirements of paragraph (3)of section 401 (a)either at the time of the decedent's separa- tion from employment (by death or otherwise)or at the time of the termination of the plan if earlier. Where the annuity or other payment described in this para- graph is receivable by a beneficiary other than the executor and the decedent made no contributions under the plan toward the cost thereof,no portion of the annuity or other payment is includible in the gross estate.If the decedent made a contri- bution under the plan toward the cost thereof,there shall be included in this schedule of the return that proportion of the annuity or other payment which an amount A (the amount of the decedent's contribution under the plan)bears to B (the total amount of all contributions under the ~lan).The dece- dent's contributions under a plan which satisfies the require- ments set forth earlier in thIS paragraph do not include any amounts contributed by the employer under the plan.However, if any portion of the annuity or othei'payment is receivable by the executor,it is includible in the gross estate underthis sched- ule to the extent that it is receivable by the executor in his capacity as such.In general,the annuity or other payment is receivable by the executor if it is to be paid to him or if there is an agreement (expressed or implied)that it will be applied by the beneficiary for the benefit of the estate (such as in discharge of the estate's liability for death taxes or debts of the decedent,etc.)or that its distribution will be governed to any extent by the terms of the decedent's will or the laws of descent and distribution.If data available to him does not indicate whether the plan satisfies the requirements of sectio 401 (a)or 401 (a)(3),the executor may obtain informatio relative thereto from the district director of internal reven e for the district in which the employer has his princiPal.Placetf business.For further details,see the estate tax regulatio IS issued pursuant to section 2039 of the Code. 5.Execution of schedule.-In describing an annuity,the name and address of the grantor of the annuity should be given,or if payable out of a trust or other fund,such a description as will fully identify it.If payable for a term of years,the duration of the term and the date on which it began should be given,and if payable for the life of a person other than the decedent,the date of birth of such person should be stated. INSTRUCTIONS FOR SCHEDULE J FUNERAL EXPENSES AND EXPENSES INCURRED IN ADMINISTERING PROPERTY SUBJECT TO CLAIMS Funeral expenses and expenses incurred in administering property subject to claims should be itemized,giving names and addresses of persons to whom payable,and exact nature of the particular expense.Expenses incurred in administering property not subject to claims should not be listed on this schedule.In connection with such expenses.see the instructions for Schedule L. The total deduction for executors'commissions should be entered at item 1,the total deduction for attorneys'fees should be entered at item 2,and the deductions for funeral expenses and miscellaneous administration expenses should be itemized under the designated sections of the schedule.An item may be entered for deduction though the exact amount is not known at the time the return is filed,provided it is ascertainable with reasonable certainty,and,will be paid.No deduction may be taken upon the basis of a vague or uncertain estimate.Pre- serve all vouchers and receipts for inspection by an internal revenue agent. The executor or administrator,when filing the return,may deduct his commissions in such an amount as has actually been paid or which at that time it is reasonably expected will be paid,but no deduction may be taken if no commissions are to be collected.In case the amount of the commissions has not been fixed by decree of the proper court,the deduction will be allowed on the final audit of the return provided:(1)that the' district director is reasonably satisfied that the commissions claimed will be paid;(2)that the amount entered as a deduc- tion is within the amount allowable by the laws of the juris- diction wherein the estate is being administered;and (3)that it is in accordance with the usually accepted practice in said jurisdiction in estates of similar size and character.If the commissions claimed have not been paid at the time of the final audit of the return,the amount deducted must be supported by an affidavit.or statement signed under the penalties of perjury, of the executor stating that such amount has been agreed upon and will be paid. A bequest or devise to the executor in lieu of commissions is not deductible.If,however,the decedent fixed by his will the compensation payable to the executor for services to be ren- dered in the administration of the estate,deduction may be taken to the extent that the amount so fixed does not exceed the compensation allowable by the local law or practice. Page 22 Amounts paid as trustees'commissions should not le listed on this schedule whether received by the executor lLlting inthecapacityofatrusteeorbyaseparatetrusteeassu:h.For the deduction of such amounts incurred in administerllg prop- erty not subject to claims,see the instructions for Smedule L. When filing the return there may be deducted such an amount of attorneys'fees as has actually been paii or which at that time it is reasonably expected will be paid.If on the final audit of the return the fees claimed have not bem awarded by the proper court and paid,the deduction will Je allowed, provided the distrjct director is reasonably satisfitd that the amount claimed will be paid and that it does mt exceed a reasonable remuneration for the services rendered,taking into account the size and character of the estate and Ue local law and practice.If the fees claimed have not been paid at the time of the final audit of the return.the amount deduct~d must be supported by an affidavit,or statement signed under tie penalties of perjury,of the executor or the attorney statins that such amount has been agreed upon and will be paid. Attorney's fees incidental to litigation instituted by the beneficiaries as to their respective interests do not constitute a proper deduction,inasmuch as expenses of this character are properly charged against the beneficiaries personally and are not administration expenses as contemplated by the statute. For the deduction of attorney's fees incurred in administering property not subject to claims,see the instructions for Sched- ule L. Executors and attorneys should note that executors'com- missions and attorneys'fees constitute taxable income and that the amounts received or receivable by them as such com- pensation are cross-referenced for income tax pur.poses. Section 642 (g)of the Code provides that amounts allowedundersection2053or2054asadeductionincomputingthe taxable estate of a decedent are not allowable as a deduction in computing the taxable income of the estate for inco~e tax purposes.. Estate,legacy,succession,and inheritance taxes,property taxes which accrued after the decedent's death,and taxes on income received after the decedent's death are not deductible. Credit to a limited extent may,under "Computation of Tax," page 1,be claimed for estate,legacy,succession,and inherit- ance taxes and for Federal gift tax.-.:.. onr-16-71699-1 " \...., DEDUCTIONS SCHEDULE J FUNERAL EXPENSES ANDEXPENSFS INCURRED IN ADMINISTERING PROPERTY SUBJECT TO CLAIM3 N¢TE.-Do not list on this schedule expenses of administering propertynotsubject to claims.In connaction with such expenses,see Schedule1" ..~ If executors'commissions,a"iorneys'fee3,etc.,a1'9 cl~imed and allowed as a deduction for es:ate tax purposes,they are not allowable as a deduction in computing the taxable income of the estate for Federal income tax purposes. ItemNo.De:cription Amount 1 Executors'commissions-amount estimated/agreed upon/paid.(Strike out words not appli::::able). . . . . •. . . ...15-,-101~.'§o-­ 2 Attorneys'fees-,-amount estimated/agreed upcn/paid.(Strike out words not applicable).............•......-13-,.892-.11-- 34 5 (roNERAL EXPENSES) Speakman Funeral Home ,.;Houston"Pa....Burial oak Spring cemeterYCompanYk canonsburg"Pa.--Burial lot Gaydos Monument Compa:ny,CanonSburg,··fa....marker ... 2,,150.00' 570.00' 960.00' \\ (MISC-ELLANEO"JS ADMINISTRATION EXPENSES) 6 JosephlneM.Doi1g1as"Register ...Grant of letters 7 Washington Becord Company:...Advert.ising Letters 8 The Daily Notes ...Advertising Letters 9 Josephine M.:Douglas"Register Piling Inventor, 10 Josephine M.:Douglas"Register Certified Copies 11 Alachua County Health Department -Death Certificates 12 JOaephine M.IDouglsa"Register ...filing account 33.50 10.00 8.25 7.00 22.95 5.00 23.00 TOTAL (also enter under the Recapitulabon,Schedule 0)$3~J 789.91 (Ifmore SIlace is needed,insert additional sheets of same size) ESTATE OF ~J_.Glenn__P.atach._ 0...-1&--71699-1 Schedule I-Page 23 INSTRUCTIONS FOR SCHEDULE K DEBTS OF DECEDENT Itemize under "Debts of Decedent"only valid debts of the decedent owed by him at the time of death.Any such indebted- ness secured by a mortgage or other lien upon property of the gross estate should be listed separately under the heading of "Mortgages and Liens."If the amount of the debt is dis.puted or the subject of litigation,only such amount may be deducted as the estate concedes to be a valid claim.If the claim is contested,that fact should be stated. If the claim against the estate is founded upon a promise or agreement,the deduction therefor is limited to the extent that the liability was contracted bona fide and for an adequate and full consideration in money or money's worth,except that any such enforceable claim founded upon a promise or agree- ment of the decedent to make a contribution or gift (such as a pledge or a subscription)to or for the use of a charitable, public,religious,etc.,organization is deductible to the extent that such a deduction would be allowable as a bequest under the applicable statute. 'fht!deiludtion for property taxes is limited to such taxes.as accru,ed prior to the date of the decedent's death.Federal taxes on income received during decedent's lifetime are de- ductible,but taxes on income received after death are not deductible. Entei.·,iI].this schedule notes unsec1lred bY:Inortgage or otherlienandgivefulldetails,including names of payee,face and unpaid balance,date and term of note,interest rate and date to which interest was paid prior.to death.Care must be ta!}efl to state the exact nature of the claim as well as·the name of the creditor.If the claim is for services rendered over a p~riod of time,state the .period covered by the claim.Example: Edison Electric Illuminating Co.,for electriC service during December 1954,$25. If the amount of the claim is the unpaid balance due on a contract for the purchase of any property of the gross estate, indicate the schedule and item number where such property is returned.If the claim represents a joint and several lia- bility,the facts must be fully stated and the financial respon- sibility of the co-obligor explained.. All vouchers or original records should be preserved for inspection by an internal revenue agent. I t Page 24 MORTGAGES AND LIENS Itemize under "Mortgages and Liens"only obligations se- cured by mortgages or other liens upon property included in the gross estate at the full value thereof,or the value of the property undiminished by the amount of the mortgage or lien. If decedent's estate is liable for the amount of the indebtedness secured by such mortgage or lien (i.e.,jf the indebtedness is enforceable against other property of the estate not subject to such mortgage or lien,or if the decedent was .personally liable therefor),the full value of the property subject to the mort- gage or lien must be included il}·the gross estate under the appropriate schedule.However,if decedent's estate is not so liable,only the value of the'equity of redemption (or value of the property less the amount of such indebtedness)need be included in the gross estate.Where the decedent's estate is not liable for the amount of a debt secured by a mortgage or lien and 'the amount of the debt is greater than the value of the property subject to such mortgage or lien,it is not pos- sible to obtain a deduction for the full amount of'the ,debt by 'entering tlie full value of the property as 'a part of the gross estate and then deducting the full amount of the debt under this schedule.Notes and other obligations secured by the deposit of collateral,such as stocks,bonds,etc.,also should be listed under "Mortgages and Liens." •Identify,by indicating .under the column headed ·"Descrip-tion/t-the'partic'ular 'schedule"an"dit'eni'number where such pro.perty subJect to-the mortgage OF lien iSfr~t·u;J;ned underthegross'estate.'..•-'.'.;Io"s ':'I""'~tl.\I • '1:'1 'Real:esfatj.situate!l.o.utside the 'Qnited .States·,does not form a pal:1<.of the gross·estate -for the purpose of thetax,and no deduction may be ·/t~ken of 'any Imbi\tgag~"t1JleN;b'n,or 'any indebtedness 'in respect thereto. Show the name and address of the mortgagee,payee,or obligee,and the date and term of the mortgage,note,or other agreement under which the indebtedness is established.Show the face amount,the unpaid balance,the rate of interest,and date to which the interest was paid prior to the decedent's death.Mortgages upon,or any indebtedness with respect to,prop- erty included in the gross estate is deductible only to the extent that the liability was contracted bona fide and for ail adequate and full consideration in money or money's worth. onr-16-71699-2 SCHEDULE K Amount $30.50 9.60 111.01 500.0085.71 101.05 346.•45 ·101.33 250.00 77.297.70 Serv:l:ces . Supplies Insurance Le~;)l Services 19o4County Tax 1964 Borough Tax 1964 School Tax, Tax Adjustment Commission on sale of real estate Insurance Safe Deposlt Box Debts of Decedent-Creditor and nature of claim DEBTS OF DECEDENT AND MORTGAGES AND LIENS H.B.paXton Agency,Houston,Pat Western pennsylvania National BankJ Houston.Pa. 7 8 9 1 university C11nic.Gainesville.Florida 2 Jeffrey's DrUgStore.C nonsburg,Pa. 3 H.B.paxt~n Agency,Houston,Pa. 4 Zeman and Zeman,Canonsburg,Pat 5 Russell Marino"CountyTres.surerl Washington,Pa. 6 Wilda E.Sickles,Tax Collector" Houston,Pa. Wilda E.Slckles~Tax Collector, ,Houston.Pa. Domenick Falconi#canonsburg,Pat . H.B.B,axton Agency"Houston,Pa. Item No. 10 11 I' I: , i ItemNo. TOTAL (also enter under the Recapitulation,Schedule 0) Mortgages and liens-Description Amount $ None 1 , .,, I I TOTAL (also enter under the Recapitulation,.Schedule 0)$ (~f mere space is needed,insert additional sheets of same size) ESTATE OF -~------.J.....--Gletm--P-a~sc-b,------------------.----------_Schedule K-Page 25 anr-16-71699-1 If th~alte~atevaluation is adopted,deducti(ln for any loss is lithi'tea )fo th'e extent that such loss is not in effect allowed in the valuation of the item in the gross estate. Losses are strictly limited to those arising from fire,storm, shipwreck,or other casualty,or from theft,to the extent that ' such losses are not compensated for by insurance or otherwise. Losses in order to be deductible must occur during the settle- ment,of th~estate.Such losses.a~,not deductible if,at the- time of the filing of the estate tax return,they had been claimed as a deduction in a Federal income tax return.Depreciation in the value of securities or othe'r J)roperty does not constitute a deductible loss.In listing losses,'full particulars must be given as ,to the loss sustained and the cauSe thereof.If insur- ance or other compensation was received on account of loss, state the amount collected.The·property with respect to ~hich·theloss is claimed should be identified by indicating the particular schedule and ite~'number where such property is returned·under the gross estate. INSTRUCTIONS FOR SCHEDULE L Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims NET LOSSES DURING ADMINISTRATION EXPENSES INCURRED IN ADMINISTERIt-lG PROPERTY NOT SUBJECT TO CLAIMS Itemize under "Expenses incurred in administering property not subject to claims"amounts representing expenses incurred in administering property included in the gross estate but not subject to claims.Such amounts are deductible only if paid .before the expiration of the period,of.limitation'for assessment provide~in section 6501.of the Code.', The names and addresses of persons to whom payable and the exact nature of the particular expense should be stated.The property with respect to which the expense was incurred should be identified by indicating the schedule and item num- ber where such property is returned under the gross estate. An item may be entered for deduction though,the exact amountisnotknownatthetime,provided it is ascertainable with reasonable certainty,and,will be paid before the expirationoftheperiodoflimitationforassessmentreferredtoabove. No deduction may be taken upon the basis of a vague or uncer-' taill.estimate.Preserve all vouchers and receip,ts for inspec-tiOft"ll'y'an,ciJiternal'fil'venue'il.gent:'~~.,!",'·'1 .T~e expeIlfi,eslC9l\t,emplated under this schedule include such iteJilS as pi'inci'pal commissions pail!in.res.t!ec~of trust propertyjilcludeCl''hFthe~(tJ.'oss'estate;a)i(i attorneys"fees"itlcurred to contest the inclusion of trust property in the decedent's grossestate.'. •. / 'Page 26 ~(T ".!~~~.:")or ! _~L~t.I~·:.t.bf;,: ..<~r-l«r-71699-1 '~'I ~ .'\ \"~ .. /~j SCHEDULE L NET LOSSES DURING ADMINISTRATION AND EXPENSES INCURRED IN ADMINISTERING "PROPERTY NOT SUBJECT TO CLAIMS Item Net Imes during administration AmountNo. --.1 $ .' .None . .e. t ...; \\.,. - TOTM..(also enter under the Recapitulation,Schedule 0)$ Item Expenses incurred in ad"inistering property not subject to claims AmountNo. 1 $ None . . " .' .\ \TOTAL (also enter under the Recapitulation,Schedule 0)$\ (II more space 6 needed,insert additional sheets of same size) ·1 ESTATE OF ----J-.---Gl-etm--Pat&eh----------------------------------_ 0...-16 71699-1 Schedule L-Page 27 INSTRUCTIONS FOR SCHEDULE M BEQUESTS,ETC.,TO SURVIVING SPOUSE (MARITAL DEDUCTION) 1.Gen~ral.-In computing the taxable estate for Federal die as a result of a common disaster,and (b)the terms of the estate-tax purposes in the case of the estate of a citizen or condition (that is,the survivorship of the surviving spouse or resident of the United States,a deduction from the gross estate his failure to die in a common disaster)are fulfilled,then such (the "marital deduction")is authorized for certain property property interest is considered to have passed from the decedent interests passing from the decedent to his surviving spouse.solely to his surviving spouse.The fact that the exercise of The marital deduction is authorized by section 2056 of the Code.a power of appointment over the interest is subject to one of The marital deduction may be taken only with respect to prop-the above conditions of survivorship will not disqualify the erty interests which are included in the decedent's gross estate interest for the deduction if the terms of the condition (that (Schedules A to I,inclusive).The deduction is generally not is,the survivorship of the surviving spouse or his failure to available in case the gross estate consists exclusively of the die in a common disaster)are fulfilled. decedent's interest in property held by him and his surviving 6.Effect of disclaimer.-Any property interest disclaimed by spouse under community property laws.(See the instructions the surviving spouse is considered as passing to the person for Schedule 0.)The marital deduction is not authorized in entitled tQ receive such interest as a result of the disclaimer. the case of the estate of a nonresident not a citizen of the Where fl[~'sh'i'vivingspouse becomes entitled to receive a prop- United States,except where such decedent died a resident of erty interest as a result of a disclaimer by any other person, France.For the sake of brevity,these instructions make use such interest is considered as passing,not to such spouse,but to of the masculine gender in references to the deceased spouse and the person who made the disclaimer as though the disclaimer the feminine gender in references to the the survivor,butthe de-had not been made. ductiol1s are also authorized in the reverse situation.7.Property interests to be excluded from Schedule M.-Certain 2.Property interests passing from the decedent to his surviving property interests which passed from the decedent to his sur- spouse.-The property interests included in the gross estate viving spouse are to be wholly or partially excluded from Sched- which are considered to have passed from the decedent to his ule M,as indicated below: .surviving spouse and as to which a marital deduction is author"':..(a)In case interests in the same property passed from the ized should be listed on Schedule M.(As to certain interests decedent both to his surviving spoul'le and (for less than an which are to be excluded from Schedule M,see paragraph 7 adequate and full consideration inmoney ormoney's worth)to hereof.)Property interests which passed from the decedent to seme other person upon such conditions'that the latter per- his surviving spouse inclulie any interest taken by her (a)as son may possess or enjoy any part of the property following decedent's legatee,devisee,heir or donee,(b)as decedent's sur-the termination or failure of the interest therein which viving tenant by the entirety or joint tenant,(c)as appointee passed to the surviving spouse,then the interest which under decedent's exercise of a power or as taker in default upon passed to such spouse is to be exclude{),from Schedule M. his release or nonexercise of a power,or (d)as beneficiary of This rule applies even though the interest which passed from insurance upon the decedent's life,and also include (e)her the decedent to a person other than his surviving spouse is dower (or curtesy)interest or statutory estate in lieu thereof not included in the gross estate,and irrespectiveof when such (including her interest under community property laws to the interest passed.It is also immaterial whether the interestof extent that such interest was,immediately prior to the dece-the surviving spouse and the interest of the other person dent's death,a mere expectancy).For further information as passed from the decedent at the same time.Property inter- to property interests considered to have passed from the dece-ests which are considered as having pal!sed from the decedent dent to his surviving spouse,see paragraphs 3 to 6,inclusive,to a person other than his surviving spouse include any prop- hereof.erty interest (other than the interest which,under the rules .3.Life estate with power of appointment in surviving spouse.-stated in paragraphs 2 to 6,inclusive,are considered to have A property interest whether or not in trust,is considered as passed to the ·surviving spouse)which passed under dece- passing from the decedent to his surviving spouse (and to no dent's will or intestacy,or was transferred by him during other person)if (a)she is entitled for life to all of the income life,or is held by or devolved upon any person as his joint from the entire interest;(b)such income is payable annually tenant,as appointee under his exercise of a power,as taker in or at more frequent intervals;(c)she has the power,exercisable default upon his release or nonexercise of a power,or as bene- in favor of herself or of her estate,to appoint the entire interest;ficiary of insurance upon his life.Examples of dis.positions (d)such power is exercisable by her alone and (whether exer-of property by the decedent which are to be excluded from cisable by will or during life)is eXeTcisable byher in all events;Schedule Mare:(1)A bequest of property to his spouse for and (e)no partof the entireinterest is subject to a power in any life,with remainder to his daughter,and (2)a bequest of other person to appoint any part thereof to any person other property to his mother for life,with remainder to his spouse, than the surviving spouse.Where the foregoing 5 conditions if surviving,and if not,to his daughter and her heirs.In are satisfied only with respect to a specific portion of the entire each of these examples,the spouse's interest in the property interest,see the regulations issued pursuant to section 2056 (b)may terminate or fail,and the daughter may thereafter pos- of the Code for the determination of the portion thereof which sess or enjoy the property. qualifies for the marital deduction.(b)In case the decedent directed his executor or trustee 4.Life insurance,endowment,or annuity payments,with power to purchase for his surviving spouse an annuity,a life estate of appointment in surviving spouse.-A property interest consist-or estate for years in certain property,or any other property ing of the entire proceeds under a life insurance,endowment,interest which may terminate or fail,the property to be used or annuity contract is considered as having passed from the de-in the acquisition of such interest is to be excluded from Sched- cedent to his surviving spouse,if (a)she is entitled,to receive ule M.The ownership of a bond,note,or other contractual such proceeds in installments,or is entitled to interest thereon,obligation,the discharge of which would not have the effect with all amounts payable during the life of such spouse pay-of an annuity for life or for a term,is considered not to be able only to her;(b)such installment or interest payments are a property interest which may terminate or fail. payable annually,or more frequently,commencing not later (c)Where any property interest passing from the decedent than thirteen months after the decedent's death;(c)she has to his surviving spouse may be paid or otherwise satisfied the power,exercisable in favor of herself or of her estate,to out of any of a group of assets,the value of such property appoint all amounts payable under such contract;(d)such interest is,for the purpose of entry on Schedule M,to be power is exercisable by her alone and (whether exercisable by reduced by the aggregate value of any such asset or.assets will or during life)is exercisable by her in all events;and (e)which,if passing from the decedent to his surviving s.pouse, no part of the amount payable under the contract is subject to would be excluded under subparagraph (a)or (b)hereof. a power in any other person to appoint any part thereof to Examples of property interests which may be paid or other- any person other than the surviving spouse.Where the fore-wise satisfied out of any of a group of assets are a bequest. going 5 conditions are satisfied only with respect to a specific ofthe residue of the decedent's estate,or of a share of the resi-" portion of such proceeds,see the regulations issued pursuant due,and a cash legacy payable out of the general estate. to section 2056 (b)of the Code for the determination of the Example:A decedent bequeathed $100,000 to his wife.His po·rtion thereof which qualifies for the marital 'deduction.general estate includes a term for years (value at $10,000 in 5.Common disaster or similar cause.-Where (a)a property determining the value of his gross estate)in an office build- interest was bequeathed,or otherwise disposed of,by the de-ing;which interest was retained by the decedent under a deed cedent to his surviving spouse subject to a provision that such of the building by gift to his son.Accordingly,the portion property interest was to pass to another person (1)if such of the value of the specific bequest to be entered on Schedulespouseshouldfailtosurvivethedecedentby6months(or by Mis $90,000.~0'.~._.",• a shorter period),or (2)if the decedent and such spouse should (Cont~nued on page 30). Page 28 onr-16-71699-2 SCHEDULE M . BEQUESTS,ETC.,TO SURVIVING SPOUSE (MARITAL.DEDUCTION) t.If the decedent died testate,the person or persons filing the return should answer the following questions.Only question 4 should ':be answered in case the decedent died intestate.If the answer to any question is "Yes,"full details should be submitted with l'the r~turn.'. ~.1.Has any action been hstituted to contest the will or any provision thereof affecting any property interest listed on _this schedule or for comtruction of the will or any such provision?DYes XJ No 20.Had the surviving spOllse the right to declare an election between (i)the provisions made in his or her favor by the will·and (ii)dower,curtesy,.or a statutory interest?iJ Yes D No 2b.If a~swer to question 2:1 is "Yes:'has the surviving spouse renounced the will and elected I Zc.Elected to take under . to take dower,curtesy,or a statutory interest?DYes tJ No the will.D Yes No Zd.Does the surviving spouse contemplate renouncing the will and electing to take dower,curtesy,or a statutory interest?DYes fl No 3.According to the inform':ltion and belief of the person or persons filing the return,is any action described under question 1 designed or contemplated?DYes e No 4.According to the inforrr.ation and belief of such person or persons,has any person other than the surviving spouse asserted (or is any such assertion contemplated)a right to any property interest listed on this schedule,other than as indicated under questions 1 or 3?DYes i;)No Item No. I Description of properly interests paSSi~g to snrviving spouse under paragraph Second of La~t Will and Testament of decedentI he devis~d to his Wife ..Wilma B.Patsch "so much of my estate as she would be entitled to under the laws of the commC?nwealth of·Pennsylvania .if I had died intestate."This represents one-third of the net estate Value $ TOTAL _......................$B5-,.g.l!t..1.2- Less:(a)Federal 9state tax payable out of above-listed property interests.. . . . . . . . . . ...$_ (b)Other death taxes payable out of above-listed property interests 1 1 Total of items (a)and (b).•.••••••••••••••••••••••••••••••••••.••••••.••••••••.•••.••••••••••••;:•••.1 ....,-_ Net value of above-listed property interests (also enter under the Recapitulation,Schedule 0). . . . . . . . . •. . . ...$85,1414.72 (If more space is needed,insert additional sheets of same size) ESTATE OF _..J-•.G.lenn__.Patxch ._ cnr-I6-71699-1 Schedule M-Page 29 l._ INSTRUCTIONS FOR SCHEDULE M-Colitinued (d)Property interests are to be excluded from Schedule (c)The dates of birth of all persons,the duration of whose M to the extent that a deduction therefor is taken under lives may affect the value of the residuary interest passing to Schedules J to L,inclusive.Examples of interests to be so the surviving spouse. excluded are fees or commissions deductible under Schedule J (d)Any other information that may appear material,such and payments made in satisfaction of a claim of the sur-as that relating to any claim,not arising under the will,to viving spouse against the estate deductible under Schedule K.any part of the estate.t (e)Where a property interest passed to the surviving Example of listing of property interests on Schedule M:spouse subject to a mortgage or other encumbrance,or whereanobligationisimposeduponthesurvivingspouseincon-Item No.Description Value nection with the passing of a property interest,only the net 1 House and .lot,256 South West Street,held r' value of the interest after reduction by the amount of the by decedent and surviving spouse as joint ten- mortgage,or other encumbrance,or obligation,should be ants with right of survivorship under deed included in Schedule M.dated July 15,1937 (Schedule E,item 1)$32,500 8.Li~ting of property interests on Schedule M.-Give a full .\.2 Proceeds of Gibraltar Life Insurance Company description of each property interest listed on Schedule M,and policy No.104729,payable in one sum to sur- number the items in sequence.Indicatetheinstrument (includ-viving spouse (Schedule D,item 3)20,000 ing cla),tse or paragraph number if the instrument is so drawn)3 Cash bequest under Paragraph Six of wilL 100,000 or pro~sion of law under which each item passed to the surviv-9.Adjustment for.effect of death taxes.-The total of the ing spouse.Where possible,the schedule and item number of I I't d S h dIM t b d ed b th t fthepropertyinterestasitappearsinSChedulesAtoIshouldbevauesISeonc e u emus e re uc y e amoun 0theFederalestatetax,and the amount of State or other deathshown.•Show the value of each item before taking iato account taxes,which are payable out of,or chargeable against the prop- the effect thereon of the Federal estate tax or any other death tax.erty interests involved.(As to the computation of such amounts (See paragraph 9 hereof and the supplemental instructions on a in cases in which the Federal estate tax and the marital deduc- separate pamphlet obtainable from the district director.)The tion are interrelated see the supplemental instructions on avaluationdateordatesusedindeterminingthevalueofthehIb'bl f th di t ' t d't ) S hgrossestatearealsoapplicablewithrespecttotheinterestsseparatepampet0tamae·rom e s rIC Irec or.ucamountsoftaxesshouldbeenteredinthedesignatedspaceslistedonScheduleM.If there is included in Schedule M a be-(items (a)and (b»at the foot of Schedule M.Item (b) quest of the residue,or a portion of the residue,of the decedent's must be supported by an identification and computation of the estate,there should be submitted a copy of the computation.amount of State or other death.taxes therein shown..showing how the value of such item was determined.Such .~.'~'J J •.• _ •__._••computation should include a statement showing:10.Supplemental documebts.-='''lf property mteres~spassmgby (a)The value of all property which is included in the de-the decedent's will are listed on Schedule M,a certified copy of cedent's gross estate (Schedules A to I)but does not pass t~e 9rd~~.adlllity.ng.the.~rqlt~Rro~at'Z)p1~s.!b~s.,!b~tted with under the will,such as transfers,jointly owned prope#"tne retu:r:n..'I~;!It the bme.1lie return IS fil~d,the c~>urt of which passed to the s.urvivor on decedent's death,and the m-p~obate JUrISdICb?I?-'has.-enterQd )an~..dec:Fee mterpre.tmg the surance payable to specific beneficiaries.vy-lll or any prOVISIon thereof affectmg any of th~I~te~sts (b)The values of all specific and general legacies or de-hsted on Schedule M,or has entered.any or?er of dIstrIbutIOn, vises,with'an appropriate reference in each instance to the a copy t~~reof should also be su~mItted With the retu~..If applicable clause or paragraph of the decedent's will or the SUI'VlVmg s'p0u~e has filed ~th the court a renunc~atIOn codicil.(In any case where legacies are made to each member of the decedent s Will,or an election ,to take under the WIll,or of a class for example $1 000 to each of decedent's employ-a disclaimer of any propertyinterest,a copy thereof is required. ees,only the number ~f e~ch such class and tl:e aggregate Additional eviden<:e t?support the deduction claim may be value of property received by them need be furmshed.)requested by the dIstrIct dIrector. INSTRUCTIONS FOR SCHEDULE N CHARITABLE,PUBLIC,AND SIMILAR GIFTS.AND BEQUESTS Deductions authorized for charitable,public,and similar gifts and bequests as set forth in the Estate Tax Regulations should be claimed under this schedule.If the transfer was made by will,a certified copy of the order.admitting the will to probate, in addition to the co.py of the will,should be submitted with the return.If the transfer was made by any other written instru- ment a copy thereof should be submitted with the return,and if the instrument is of record the copy should be certified and if not of record the copy should be verified.If the transfer was made by will,an affidavit,or statement signed under the penal- ties of perjury,of the executor must be submitted,showing whether any action has been instituted to have interpreted or to contest the will or any provision thereof affecting the charitable deduction claimed underthis schedule and whether,according to his information and belief,any such action is designed or con- templated.If under the terms of the will or the law of the ju:i'isdiction wherein the estate is administered or the law of the jurisdiction imposingthe particulartax,the Federal es.tate tax or any estate, succession,legacy,or inheritance tax is payable in whole or in part out of any bequest,legacy,or devise deductible hereunder, the sum deductible is the amount of such bequest,legacy,or devise so reduced.If claim is made under this schedule for deduction of the value of the residue,or a portion of the residue,passing to chaJ:ity under the decedent's will,there should be submitted a copy of the computation showing how the value was determined.Such computation,or supporting documents,should include:(1)A statement showing the values of all s.pecific and general legacies or dc=:vises,indicat~ng whether th~y are for charitable or noncharItable uses,WIth an approprIate refer- ence in each instance to the applicable paragraph or secti.onofthedlicedent's will or codicil (in any case where legaCIes are'made to each member of a class;for example,$1,000 to each of ~decedent's employees,only the number of each suchclassandtheaggregatevalueofpropertyreceivedbythem need be furnished). Page 30 (2)The dates of birth of all life tenants or annuitants, the duration of whose lives may affect the value of the inter- est passingto charity underthe decedents'will, (3)A statement showing the value of all property which is included in the decedent's gross estate but does not pass under the will,such as transfers,jointly owned property which passed to the survivor on decedent's death,and insur- ance ;payable to specific beneficiaries,and (4)Any other infotmation that may appear material,.such as that relating to any claim,not arising under the WIll,to any part of the estate,as of a spouse claiming dower,or curtesy,or similar rights,etc. Deductions authorized for charitable,public,and similar gifts and bequests,which may be claimed under this schedule, include the interest which falls into any such bequest,legacy, devise or transfer as a result of an irrevocable disclaimer of a beque;t,legacy,devise,transfer,or power,if.the disclaimer is made prior to the date prescribed for the filmg of t~e estate tax return.The disclaimer must not only be made prIor to the date prescribed for the filing of the estate tax return (includ- ing such date as may be prescribed in an extensi?n of time granted for the filing of such return),but must be Irre~ocable at the time the deduction is allowed.For further detaIls and for events having the effect of a disclaimer,see the regulations under section 2055 of the Code. If the alternate valuation is adopted,any bequest,legacy,de- vise or transfer deductible under this schedule shall be valued for the purpose of the deduction as of the da.te of the decedent's death,with adjustment fo'r any difference In the v~lue of the property 1 year after ~s death,or at the date C?f Its sale,orexchang~within such ye!lr,excep~that no such adjustment may take into account any dIfference m value due to me;re lapse of time or to the occurrence or nonoccurrence of a contmgency. For limitations applicable to estates of nonresident aliens, see additional instructions on page 39. For further instructions,see Estate Tax Regulations. • I ".:~..:.r t'.enr-16-71699-2 SCHEDULE N CHARITABLE,PUBLIC,'AND SIMILAR GIFTS AND BEQUESTS f[tem <No. 1 ]None 'I I " ,I :j '.J } " " .., .i Name and address of beneficiary Character at institution " Amount $ TOTAL (:llso enter under tl;e Recapitulation,S-Jhedule 0) (If m~respace is needed,insert additional sheets of same size) ESTATE OF J_'!.Ol~nTh __f~t~cb ~~:_ 0=-1&-71699-1' Schedule N-Page 31 INSTRUCTIONS FOR SCHEDULE 0 RECAPITULATION 1.Limitation of deductions under Schedules J and K.-The the aggregate amounts subtracted under subparagraphs (a), total appearing on Schedule J should be entered at item 1 of (b),and (0)hereof)bears to the undiminished "Total Gross that part of Schedule 0 headed "Deductions."The totals ap-Estate." pearing on Schedule K should be entered as items 2 and 3.If Example:The value of a decedent's gross estate is $300,000 of the total of items 1 through 3 does not exceed,the value (at the which $200,000 represents his separate property and $100,000 time of the decedent's death)of the property subject to claims,represents his one-half interest in community property.Theentersuchtotalatitem4.If the total of items 1 through 3 . h d f h d ddoesexceedthevalue(at the time of the decedents'death)separate property was In erite rom his fat er.The e uc-rtionsallowedunderSchedulesJtoL(item 8 of Schedule 0)of the property subject to claims,enter instead the value (at total $45,000.The "Adjusted gross estate"is computed asthetimeofthedecedent's death)of the property subject to follows:claims plus such excess as represents amounts paid before thedateprescribedforfilingtheestatetaxreturn.See section Value of gross estate ~__$300,000 2053 of the Code and,the regulation thereunder.Reduction under subparagraph (a)!;}:.L!-$100,000 2.Computation of marital deduction.-The net value of the Reduction under subparagraph (d)(200,- property interests listed on Schedule M should be carried for-000/300,000 of $45,000)--------------------------"30,000 130,000wardtoitem9ofthatpartofSchedule0headed"Deductions."Adjusted gross estate ==$170,000 The marital deduction,which should be entered at item 11,is 4.Definition of community propertv.-For the purpose of com- limited to the smaller of (a)item 9 or (b)one-half of the "Ad-puting the "Adjusted gross estate,"the term "community prop- justed gross estate"(item 10).If the decedent and his surviv-erty"is considered to include the following categories ofingspouseneverheldpropertyundercommunitypropertylaws,property: the "Adjusted gross estate"is computed by subtracting item 8 (a)Property held by the decedent and surviving spouse froni the total value of the gross estate.as community property under the law of any State,Terri- 3.Cases involving community property.-If the decedent and tory,or possession of the United States,or any foreign coun- his surviving spouse ever held property as "community prop-try (other than such property in which the surviving spouse erty""(as defined in paragraph 4),an additional sheet must be had merely an expectant interest). attached to Schedule 0 showing the computation of the"Ad-(b)Separate property acquired by the decedent as a result justed gross estate"(item 10).In such cases the"Adjusted of a conversion (after December 31,1941-)of pro.perty held gross estate"is determined by subtracting from the "Total by the decedent and surviving spouse as community property Gross Estate"the sum of the following values and amounts:(as described in subparagraph (a)hel'eof)into their separate .(a)The value of property included in the gross estate property.A conversion of community property includes a which was at the time of the death of the decedent held by partition thereof between the decedent and his spouse or a them as "community property."transfer to themselves in joint tenancy,tenancy by the en- (b)The value of property (included in the gross estate)tirety,or other form of coownership,"irrespective of whether transferred by the decedent during his life,if at the time of such partition or transfer was effected by a single transaction such transfer the propei:ty was held by them as "community 01'a series of transactions.Where the value (atthetimeof the property."conversion)of the separate pro.perty so acquired by the de- (c)The amount (included in the gross estate)receivable .cedent exceeded the value (at such time)of·the separate as 'insurance under policies upon the life of the decedent to property so acquired by the spouse,then the part of the sepa- the extent purchased .with premiums or other consideration rate property so acquired by the decedent which is considered • paid out of property held by them as "community pro.perty."as held by the decedent and his surviving spouse as com- (Where a policy:was purchased partly with pl'operty held by munity property is the same proportion thereof which the them as "community property"and partly with other prop-value (at the time of the conversion)of the separate property erty,the amount receivable under such policy is considered so acquired by the spouse is of the value (at such time)of to have been purchased with such "community property"in the separate property so acquired by the decedent. the .proportion that the payments made with such "community (0)Property acquired by the decedent in exchange (by one property"bear to the total amount paid.)exchange or a series of exchanges)for separate property (d)An amount which bears the same ratio to item 8 of resulting from a conversion of community property,as de-the Schedule 0 as the "Total Gross Estate"(diminished by scribed in subparagraph (b)hereof. .' ,I JI,'.'~1 cnr-I6-71699-1 is computed under part II of the computa- (Coftt1nllea:on·pagl3:4)'.. a trustee.Neither does it include an interest in property over which the transferee received a power which is not a general power of appointment.In addition .to property interests in which the transferee received the complete ownership,examples of property interests with respect to which the credit may be allowed include annuities,life ~states,tenns for years,remain- der interests (whether contingent or vested),and any other interest which is less than the complete ownership of the prop- erty,to the extent that the transferee became the beneficial owner of the interest.3.Maximum amount of the credit.-The maximum amount of the credit is the smaller of: (a)the amount of the estate tax of the transferor's estate pertaining to the transfer,or (b)the amount by which (A)an estate tax on the trans- feree's estate,determined without regard to the credit pro- vided for in this schedule exceeds (B)an estate tax on the transferee's estate determined by excluding from the gross estate the net value of the transfer.Where credit for a par- ticular foreign death tax may be taken under either the sta~• ute or a death duty convention and on this return the cl'edlt actually is taken under the convention,then no creditfor that foreign death tax may be taken into consideration in comput- ing estate tax"(A)"or estate tax"(B)." The amount (a)is computed under part I of the computation of the credit. The amount (b) tion of the credit. 2.Property.-The term "property"includes any interest (legal or equitable)of which the transferee received the bene- ficial ownership.The transferee is considered to be the beneficial owner of property over which he received a general power of appointment.It does not include interests to which the transferee received only a bare legal title,such as that of Page 32 INSTRUCTIONS FOR SCHEDULE R CREDIT FOR TAX ON PRIOR TRANSFERS 1.General.-The term "transferee"as used in Schedule R and in these instructions for that schedule means the decedent for whose estate this return is filed.If the transferee received property from a transferor who died within 10 years before, or 2 years after,the transferee,a credit is allowable on this return for all or a ,part of the Federal estate tax paid by thetransferor's estate with respect to the transfer.There is no requii'ement"that the property be identified in the estate of the transferee oi.-that it be in existence on the date of the trans- feree's death.It is sufficient for the allowance of the credit that the transfer of the property was subjected to Federal estate tax in the estate of the transferor and that the specified period of time has not elapsed.Credit may be allowed with respect to property received as the result of the exercise or nonexercise of a power of appointment when the property is included in the gross estate of the donee of the power.Where the transferee was the transferor's surviving spouse,no cred,it is allowed with respect to property received from the transferor to the extent that a marital deduction was allowed the transferor's estate in connection therewith.No credit on this return is authorized for Federal gift taxes paid in connection with the transfer of the property to the transferee. SCHEDULE 0 RECAPITULATION Gros:.estate Alternate value Value at date of death Real es:ate'. Stocks and bonds '. Mortgac;-es,notes,and cash...••.•....•.•.......••................................. Insurance....•...........•.••....••••••••....•.................................. $________________________$__gg~O-QQ-t-OO ____________________________2#3~,O-86-t-oP _____________________~~_.21..o.Q#-88., ______________________________J..6~5-~-OD Jointly owned property.......•.••••••..•._.•.••••.................................•114_50.0.•_0.0 > Other miscellaneous property .....•.••.............................................--------------------------------.3.,.82l....8.5• Transfer.3 during decedent's.life,....•......•.......•.............................."0 . _ Powers of appointment............•......•.......•................................~O _ Annuities 1 •••I I ~()~,:_ TOTAL SROSS ESTATE _$ Sched-ule Deductions Amount I 1.Funexal expenses and expenses incurred in administering property subject to claims..$----~2.,,7.s9..S1 2.Debl:3 of decedent.....•........-':-----.1,..680...64 K 3.Morqages and liens.. •.... . . . . .•. . . . . . . . . . . . . . . . . . . . . . . •. •. . . . . . . . . . . . . . . . . . . .0 4.Totai of items 1 through 3 $~1I".'17':.:;: 5.Allo\lable amount of deductions lrom ite:n 4 (see note'). . . . . . . . . . . . . . . . . . . . . . . . ...$_ L L 6.Net bsses during administration . 7.Expe::lSes incurred in administering property not subject to claims _ . r •I ,I 8.Tota~of items 5 through 7 . M 9.Bequ03Sts,etc.,to survivir_g spouse $-~.•414!12 _. TOTAL ALLOWABLE DEDUCTIONS,except 3pecific exemption (totals of lines 8,11,and 12).. . . . . . . . . . . . ...$119,885.27 'Note.--See paragraph'1 of the instructio!1s. "Note.--Enter at item 10 the excess of "TOTAL GROSS ESTATE"over item 8,if the decedent and his surviving spouse at no time held property as community property.If property was ever held as community property,compute the "Adjusted gross estate"(item 10)in accord- ance with the inst-uctions and example on page 32,and attach ail additional sheet showing such computation." 0012.Charitable,public,and similar gHs and bequests . 10.Adju~,ted gross estate (see note"). 11.Net cmount deductible for bequests,etc.,to surviving spouse (item 9 or one-half of iten 10,whichever is smaller). N ESTATE OF ---J-.---(J-1eniT--Pateeb---------------------------------------------------Schedule o--Page 33 cn.r-16 71699-1 ~-~:_'~----~':~~-'-~~.~:"~--'-'~---_-........~,"".=-"'~'---------~-----~-----------------------~-----_......:-',-,-- INSTRUCTIONS FOR SCHEDULE R-Continued from pase 32 4.Percent allowable.-(a)Where ftransferee p-redeceased entered in Schedule 0 if the property entered under item 1 ot' the ftransferor.If not more than 2 years elapsed between the Schedule R were not included in the gross estate,reduced by a dates of death,the credit allowed is 100 percent of the maxi-proportionate part of the deduction,if any,taken on line 12 of mum amount.If more than 2 years elapsed between the dates Schedule 0 for charitable,etc.,gifts.Such proportionate part of death,no credit is allowed.of the deduction taken on line 12 of Schedule 0 is that portion- (b)Where transferor predeceased the ftransferee.The per-thereof which an amount A (the amount entered at item 1 oil cent of the maximum amount which is allowed as a credit Schedule R)bears to B (the value of the total gross estate less depends on the number of years which elapsed between the the amount shown on line 8 of Schedule 0). dates of death.It is determined in accordance with the Example.The following entries appear on Schedule 0:Total ; following table:gross estate--$330,000;line 8-$30,000;line 9-$160,000;line' Period of time Percent 10-$300,000;line 11-$150,000;and line 12-$10,000.The Exceeding Not exceeding Allowable amount appearing in item 1 of Schedule R is $15,000.Underthesecircumstancesifthepropertyenteredunderitem1of '2 years 2 years 100 Schedule R were not included in the gross estate,the gross 4 years 80 estate would be $315,000,the adjusted gross estate would be 4 years 6 years 60 $285,000,and the marital deduction would be $142,500.The • .~~::~:19 ~::~:'~g reduction to be made on account of the charitable deduction 10 years none is $500 ($330,~~~~~~0,000 X$10,000). 5:Computation of the credit.-The instructions which follow Item 8.Enter item 6 minus item 7. are to be applied where credit is claimed for transfers received Item 9.Enter the amount of the Federal estate tax (after from one transferor only.See instructions under "Cases in-taking into account any credits allowable for State death taxes volVing transfers from two or more transferors"for the and gift taxes,and any credit which under the statute is allow- manner of computing the credit in cases involving transfers able for foreign death taxes)which the transferee's estate. from more than one transferor.would be required to pay if the taxable estate were the amount PART I shown in item 8. Item 1.Enter the value at which the property transferred Item 10.Enter item 5 minus item 9. was included in the transferor's gross estate reduced by the fol-PART III lowing,to the extent that they affect the net value thereof to Item 11.Enter item 4 or item 10,whichever is the smaller.the transferee,(i)the amount of any death taxes payable outof or chargeable against the transferred property,(ii)the Item 12.Enter the percent of the maximum amount which amount of any mortgage or other encumbrance to which it was is allowable.See "Percent allowable"on this page. subject,(iii)the amount of any obligation assumed by the Item 13.Enter the amount obtained from multiplying item transferee in connection with the transfer,and (iv)if the 11 by item 12.., transferee was the transferor's surviving spouse,by the amount 6.Cases involving transfers from two or 'more transferors.- of the marital deduction allowed the transferor's estate in Where transfers were received from more than one transferor computing its Federal estate tax.the credit is computed in a manner slightly different from that Example.Subject to the condition that B would pay $10,000 outlined above.The name,date of death,and address of onetoC,A left to B,his surviving spouse,real property and bonds transfero'r are entered on the Schedule R provided in the return which were included in A's gross estate at values of $200,000 and the computation with respect to transfers from that tran$- and $75,000,respectively.The real property was subject to a feror is completed through part I.The same operation is mortgage of $50,000.B was required to bear the burden of completed on a separate copy of Schedule R for each of the A's Federal estate tax to the extent of $4,800 and to pay State other transferors.The computation in part II is performed death taxes of $4,000.A's estate was allowed a marital deduc-only once,regardless of the number of transferors.The en- tion of $150,000 for the property which passed to B.The tries for part II should be made on the cO,py of Schedule R amount entered in item 1 is $275,000-$218,800 ($10,000+ provided in the return.The amount entered in item 6 is the $50,000+$150,000+$4,800+$4,000)=$56,200.total gross estate less the total of the amounts entered in Item 2.Enter the value of the transferor's taxable (net)items 1 of the computations made for all transferors.The estate,increased by the applicable specific exemption shown amount entered in item 10 is apportioned to each transferor in under Schedule P or Schedule Q,and decreased by the total the proportion that the amount entered in item 1 of the com- amount of all death taxes paid in connection with the transfer putation made in connection with his transfers bears to the of pJ:operty included in the transferor's gross estate.total of the amounts entered in item 1 of all of the computa- Example.The transferor was a citizen of the United States.tions.Part III is computed separately for each transferor.Enter in item 11 the amount shown in item 4 or the amountHistaxableestatewas$250,000.The Federal estate tax paid from item 10 which is apportioned to that transferor,which- thereon was $61,780.State death taxes paid by the executor ever is the smaller,and then complete the computation.The and the beneficiaries totaled $15,000.The amount entered in total amount of the credit allowable is the total of the amounts item 2 is $250,000+$60,000-$61,780-$15,000=$233,220.ente'red in items 13 of all the computations.The addi,tionalItem3.Enter the amount of the Federal estate tax paid by S dthetransferor's estate,increased by the amounts allowed the copies of che ule ~on which com]?utations are made shouldtransfero~"s estate as (i)a credit for gift taxes,and (ii)a be attached to the Schedule R prOVIded in the return. credit for'tax on prior transfers received from a prior trans-Example.C received property from A having a net value,of feror who died during the 10-year period which immediately $100,000 and property from B having a net value of $50,000. preceded the decedent's death.A's name,date of death,and address are entered on the Sched-ule R provided in the return and the computation through partItem4.Enter that proportion of item 3 which item 1 bears I is completed with respect to the transferfrom A.On an addi- to item 2.PART ,II .tional copy of Schedule R (detached from an unused copy of the return form)similar identifying data for B is entered,andItem5.Enter the amount of the Federal estate tax (after the computation cO!TIpleted through part I.The computation taking into account any credits allowable for State death taxes of part II is made only on the Schedule R used for the computa- and g:(ft taxes,and any credit which under the statute is allow-tion of the credit on A's transfers.Except for item 6,it able for foreign death taxes)which the transferee's estate is 'made as though only one transferor were involved.The would be required to pay if no credit were allowed for tax paid amount entered in item 6 is the decedent's total gross estate' by the transferor's estate.If the tax has the effect of reducing minus $150,000 ($100,000 from A plus $50,000 from B).If,the deduction for property transferred for charitable purposes for instance,the amount entered at item 10 is $27,000,that or the deduction for property passing to the surviving spouse,amount would be apportioned to A's transfers as follows:tth~n for purposes of the amount to be entered under item 5,$100 000 such deductions shall be determined as though no credit were $100 000 '$50 000 x $27,000=$18,000.Similarly $9,000 is ap- allowed for tax paid by the transferor's estate.portionetto B's transfers.The amount entered in item 11' Item 6.Enter the value of the total gross estate less the of the Schedule R used for A's transfer is the amount shown in amount entered at item 1.item 4 or the $18,000,whichever is the smaller.Part III of the Item 7.The amount to be entered at item 7 is the aggregate computation of the credit for tax paid by B's estate is completed of the specific exemption and the deductions which would be in a similar manner. Page 34 'oor-16-71699-1 $--------------------.- $,----- $,----- $---------------------- ") t i SCHEDULE P TAXABL;;ESTATE-RESIDENT OR CITIZEN Instructions.-This Schedule Shodd Be Used only for the Estate of a Resident or Citizen of the United States i.Total gross estde '",.OQ~..~~~~~~~~}9 Z.Total aUowa'ble deductions \$__~~~~~~~_F' ~.Specific exemr:tion....................................................................60,000.00 119,885.•21 4.Total deductions plus specific exemption...•............................................................... .."54 5.Taxable estate (item I minus item 4). . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$150 ~4 •52 SCHEDULE Q TAXABLE ESTATE-NONRESIDENT NOT A CITIZEN OF THE UNITED STATES Instructions.-This schedule should be used only for the estate of a nonresident not a citizen of the United States.See instructions under "Deduction of administration expenses,clqims,etc."on page 39.See also instructions under "Specific exemption"on page 39 for amount of spec:fic exemption and names of countries,the estates of whose residents qualify for the "prorated specific exemption.II Use Form 706g (S::hedule Q (2»instead of Schedule Q in case of decedent who at the time of his death was domiciled in France or Greece and wc.s not a citizen of the Unifed Sta:es.(If the "prorated specific exemption"is claimed under the Japanese convention, the numerator of fr_e fraction set forth in item 7 is the value of the property situated in the United States and subjected to tax by both Japan and the United States.) 1.Value of gross estate in the United States (Schedule,A,B,C,D,E,F,G,H,and I)'". Z.Value of gross estate outside the United States,not i::J.cluding real property (must be supported by proof dsscribed in instructions und~r "Deduction of administration expenses,claims,etc.,on page 39)1------- 3.Value of total <;1'OSS estate wherever situated (item 1 plus item 2). 4.Gross deductions under Schedules J,K,and L..•........................................................... 5.Net deductions I:.nder Schedules J,K,and L (l:hat proportion of item 4 that item 1 bears to item 3)........•........ 6.Charitable,pul:lic,andsimilar gifts and bequests (Schedule N). 7.SpeCific exemptk>n of $2,000 (in estates qualifying ~or "prorated specific exemption,"use $2,000 or item 1 X $60,000/whichever is the greater).....................................................•......1 _ item 3 8.Total deductions plus specific exemption (item 5 plus items 6 and 7).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . •. . . ...$,_ !9.Taxable estate titem 1 minus item 3).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$ SCHEDULE R CREDIT ?OR TAX ON PRIOR TRANSFERS Name of transferor Transferor's residence at time of death IDate of transferor's death COMPUTATION OF THE CREDIT PART I-TRANSFEROR'S TAX ON PRIOR TRANSFERS.. 1.Net value of transfers :.............•.......•.......,$,_ 2.Value of transferor's estate (adjusted in accordance with instructions for item 2).....$,_ 3.Tax on transferor's estate (adjusted in accordance with instruclions for item 3),... . ...$,_ 4.Transferor's tax on prior transfera (proportion of item 3 which item 1 bears to item 2)$,_ PART II-TRANSFEREE'S TAX ON PRIOR TRANSFERS 5.Transferee's tax computed without regard to credit aUowed under this sohedule..............................$,_ &.Transferee's red.lced gross estate..•...•..................................................................$,_ 7.Transferee's decuctions (adjusted in accordance with instructions for item 7)............•...•.•....•..•••.....1 _ 8.'Transferee's red.lced taxable estate (item 6 minus ism 7).. . . .. . . . . . . . .. . . . . . .. . . . . . . .. . . . . . . . . . . . . .... . . . ...$_ ..9.Tax on reduced taxable estate............•..............•...............................................1 _ 10.Transferee's tux on prior transfers (item 5 minus item 9)"$,_ PART m-CREDIT ALLOWABLE 11.Maximum amount before application of percentaQe requirement (item 4 or item 10,whichever is smaller).........$,_ 12.Percent allowab:-e is .' 13.'Credit allowable (item 12 X item II),$ J.Glenn Patsch ESTATE OF .,.----------_ oor--UJ--71699 1 :.. Schedules P,Q,and R-Page 35 om--l&-7160ll-1 INSTRUCTIONS FOR SCHEDULE S CREDIT FOR FOREIGN DEATH TAXES 1.General.-"Credit for foreign death taxes"is allowable .Item 5.Enter that portion of item 4 which item 3 bears tg only incase the decedent was a citizen or resident of the United item 2'dStates.Credit is authorized (a)by statute or (b)by treaty.Item 6.Enter item 1 oritem 5,whichever is smaller.d Where credit is authorized by treaty there is allowable either 4.Credit under treaties.-laJ In general.-Where the provi- the credit computed'under the statute or the treaty,whichever sions of a treaty apply to the estate of a citizen or resident of is more beneficial to the estate.Unless otherwise provided by the United States,a credit is authorized for payment made of the treaty,in determining which is the greater,comparison is the foreign death tax or taxes specified in the treaty.The made between (i)the amount of the total credit authorized by circumstances under which the provisions of a treaty apply the statute for all death taxes (national and local)imposed in to an estate are set forth in "Death Tax Conventions"on page 6. the particular foreign country and (ii)the amount of the total The fo'reign death taxes specified in the treaties are as follows: credit authorized by the treaty for death taxes imposed in such CountJry Death Tax foreign country.For example,if a portion of the estate of a C d D ..s s'on dutycitizenoftheUnitedStatesissituatedintheProvinceofanadaK--~----d-------------------GommIBo~t~ccesdl N th I I d P . I 'Unite Ing om______________reat 1'1 am an or ern re an ,Quebec and is subjected to l?ominion a~d rovincla s~c,cessIOn estate duties taxes,the credit allowable IS the credIt for the DOmImon tax France .French inheritance tax computed under the treaty with Canada or the total credit for I I d'I 'sh estate dutyboththeDominionandProvincialtaxescomputedundertheNrean--------------------------NrI 't .h't .'d orway .orweglan ax on m en ances,In-• statute,whichever is the greater.Ifcredit for death taxes pal ,cluding death gifts in more than one foreign country is allowable,a separate com-Union of South Africa ,Union estate duty putation of the credit must be madewith respect to each foreign Switzerland Estate and inheritance taxes im- country.The copies of Schedule S on which the additional posed by the cantons and their computations are made should be inserted immediately follow-political subdivisions ing the copy of Schedule S provided in the return.The total Finland •__.Finnish inheritance tax,the com- amount of the credit allowable in respect of any property,munal tax on inheritances,be- whether subjected to tax by one or more than one fOl:eign coun-quests and devises,and the "POOl'S try is limited to the amount of the estate tax attnbutable to percentage" sudh property.The anticipated amount of the credit may be Australia Commonwealth estate duty computed on the return,but the credit cannot finally be allowed Greece ~Greek inheritance tax until the foreign tax has been paid and a certificate on Form Japan Japanese inheritance tax . 706CE evidencing payment thereof is furnished.Credit claimed under a treaty is in general computed on 2.Credit under the statute.-Inthe case of a citizenor resident Schedule S in the same manner as credit is computed under of the United States a credit is authorized for any estate,in-the statute with the following principal exceptions:(1)Theheritance,legacy,or succession taxes paid to a foreign country situs rules contained in the treaty apply in determining whether or its possessions or political subdivisions in respect of property property was situatedin the foreign country;(2)creditmaybe situated in that country and included in the gross estate (Sched-allowed only for payment of the death tax or taxes specified in ules A to I,inclusive,of this return).Where the decedent was the treaty and cannot be allowed for any other death taxes paid a resident of the United States but not a citizen thereof,the to that foreign country or its possessions or political subdivi- statute allows no credit unless the country of which he was a sions;(3)where specifically provided,credit is proportionately citizen or subject in imposing suchtaxes allows a similar credit shared for the tax applicable to property situated outside both. in the case of a United States citizen resident in such country.countries,or were deemed in some instances situated within . For the purpose of the credit allowed by the statute,the ques-both countries;and (4)the amount entered at item 4 of Sched- tion of whether particular property is situated in the f.oreign ule S is the amount shown at line 3 in "Computation of Tax"on .country imposing the tax is determ~ed:in accor~at;lce WIth the page 1 less the total of the amounts shown at lines 4 and 5 on ,. same principles that would b~apphed In ~e~ermInmg whe~her ·that page.Credit for payment of the foreign death taxes J?ro- similar property of a nonresIdent not a CItIzen of the Umted vided for in the treaties with Australia,Canada,the Umted States is situated within the United States for the purpose of Kingdom,Ireland,and the U:qion of South Africa must be the Federal estate tax.See "Additional Instructions for Estates claimed within 6 years from the date of the decedent's death of Nonresidents not Citizens of the United States"on page 39.(or within such further period as is provided in the case of Applying such principles,a bond is ,deemed s~tuated in the postponement of tax attributa~le to a reversionary:interest). foreign country imposmg the tax onlyIf the certIficate therefor Credit for payment of the foreI&'ll death taxes proylded fC?r ~n is physically located in that c:ountry.~share of ~orpor!1te the treaties with Norway and Fmland must be claImed Wlthm stock is regarded as situated m the foreIgn country Imposmg 6 years from the date of the decedent's.death.<;:redit for P8;y- the tax only if the iS5uing corporation is incorporated in that ment of the foreign death taxes prOVIded for In the treatIes .country.An account with 8;bank in a'fore,ign country of,a with France and Switzerland must be claimed within 5 years citizen or resident of the Umted States who IS not engaged In from the date of the decedent's death.Credit for payment of business in that foreign country is not considered to be situated the foreign death tax provided for in the treaty 'Yith G:t:eece inthat country.must be claimed within 5 years from date return IS requIred.3.Computation of credit under the statute.-Item 1.En.ter Credit for payment of the foreign death tax in the treaty with the amount of the estate,inheritanc~,legacy,,and succe~~IOn Japan must be claimed within 5 yea;rs from due date ~f tax. taxes paid to the foreign country and ItS l?ossessl0t;ls or pohtIc!l-1 For examples of computation of credIts under the treatIes,see subdivisions attributable to property whIch (a)IS ~It1;1ated m applicable regulations.. that country,(b)is subjected.to such.taxes,and (c)IS mcluded (bJ Computation of credit in cases wher~~roperty is slt~ated in the gross estate.The amount entered at item 1 should not outside both countries or deemed situated Within both countrles.- include any tax paid to the foreign country with respect to In such cases consult the appropriate treaty for details. property not situated in that country and should not mclude 5.E)!ample of computation of cre~i.t un~er the st~tute.-The any tax paid to the foreign country with respect to property decedent was a citizen of,and domIcIled m,the ,Umted States not included in the gross estate.If only a part of the property at the time of his death.The gross estate consIsted of stc?cks subjected to such foreign taxes is both situated in the toreign of United States corporations,$90,000;bonds of corporatIOns country and included in the gross estate,.it ~ll be.necessary organized under the laws of M country,$45,000;and stocks of to determine the portion of the taxes which IS attnbutable to corporations organized under the laws of M country,$75,000. such part of the property.In such a case,an addi.tional sheet Owned by the decedent but not included in the gross estate showing the computation of the amount entered at Item 1 must was real property in M country valued a~$60,000.O~the date < be attached.of death,all of the stock and bond certlfic~tt:s wet:e m a bankItem2.Enter the value of the gross estate less the total of vault in the United States.Debts and admlmstratIon expenses the deductions shown on lines 11 and 12 of Schedule O.total $20,000.The M country real property and $10,000,of the Item 3.Enter the value of the property s~tuated in the f?r-stocks of M country corporations passed to the decedent s sur- eign country which is subjected to the foreIgn taxes and m-viving spouse and th~latter item qualified for and was allowed eluded in the gross estate,less those portions of the deductions as a marital deductIon.The ar.noun~of the gro~s Federal taken on Schedules M and N which are attributable to such estate tll.X less credit for State mherltance taxes IS $25,820• .operty The amount of the M country inheritance tax imposed on thepI', .. ."c tat'h I f thItem4.Subtract the amount shown at hne 4 m.ompu Ion widow's inheritance of $70,000 is $21,000.•T e va ue 0 e of Tax"on page 1 from the amount shown at line S on that (Continued on page 37)page and enterthe result at item 4. Page 36 J ) .',INSTRUCTIONS FOR SCHEDULE S-Continued List all of the foreign countries to which death taxes have been paid,credit for'the payment of which is claimed on this return _ SCHEDULE S CREDIT'FOR FOREIGN DEATH TAXES The additional sheet showing the computation of the amount of inheritance taxes entered at item 1 sets forth as follows: Computation of portion of M country inheritance tax im-posed upon the widow's inheritance attributable to property subjected to Federal estate tax (instructions for item 1 of Schedule S)- 1.Amount of M country inheritance tax im-posed on the inheritance $21,000,00 2.Value of property situated in M country,sub- jected to M country inheritance tax and in-cluded in the gi'oss estate $10,000.00 3.Total value of property subjected to M..country inheritance tax $70,000.00 4.Amount of M country inheritance tax attrib- utable to item 2 (proportion of item 1 thatitem2bearstoitem3)$3,000.00 Total M country inheritance tax attributable to property situated in that country and included in the gross estate- 1.For widow's inheritance___________________________$3,000.00 2.For daughter's inheritance $19,500.00 3.TotaL ,______________________$22,500.00 $65,000.00 $25,820.00 , ir~~~diTi~-;_i~i~~~Cf~~-d~~th-t_;;~_;~-p~id-t~-~~;~-fu;~-~~-;-f~;~ig;-;-~-;;;;;y:-~-~~p~t~-th~-~;~dit-f~~-i;:~~~-p~id-to ~~~-~-~~~b_y-~~-fui~--;h~~t-~;;d use a separate copy of Schedule S for each of the other c::>untries.The copies of Schedule S on which the additional computations are made should be attached hereto.' daughter's inheritance is $65,000,consisting entir':lly of stocks of M country corporations.The amount of the M country in- Beritance tax imposed on the daughter's inheritance is $19,500. M country did not impose inheritance tax on the ".:londs issued by the M country corporations. -"Schedule S isfilled out as follows: 1.Amount of estate,inheritance,legacy and succession taxes imposed in the above country attributable to property situated in that country,and subjected to such taxes,and included in the gross estate (as defined by statute)~----------------$22,500.002.Value of the gross estate (adjusted)$200,000.00 3.Value of property situated in that country, and subjected to death taxes imposed in that country,and included in the grossestate(adjusted)~_ 4.Federal estate tax before allowance of creditforforeigndeathtaxes_ 5.Amount of Federal est~tetax attributable to property specified at item 3 (proportion of Item 4 that item 3 bears to item 2)~8,391.50 6.Credit for death taxes imposed in the abovecountry(item 1 or item 5,whichever is thesmaller)._____________________$8,391.50 \ j.r The credit computed on this sheet is for ~"---_ (Name of death taxor taxes), _".:.._imposed in _ ,'(Name of country) Credit is computed under the _'.-----------------------------------------------_ (Insert "treaty"or "statute"), COMPUTATION OF THE CREDIT (All amounts and values shown hereunder must'be entered in United States money) 1.Amount of estate,inheritance,legacy and succession :axes imposed in the above country attributable to propertysituatedinthatcountry"and subjected to such taxes.and included in the gross estate (as defined by statute)....$_ Z.Value of the gross estate (adjusted,if necessary,in accordance with instructions for item 2): : ,..,.$_ 3.Value of property situated in that country,and subjeded to death taxes imposed in that country,and included inthegrossestate(adjusted,if necessary.in accordance with instructions for item 3). . . . . . . . . . . . . . . . . . . . . . . . ...$_ 4.Federal estate tax before allowance of credit for foreign death taxes ,$_ 5.Amount of Federal estate tax attributable to property specified at item 3 (proportion of item 4 that item 3 bearstoitem2)....., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . •. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$_ f. ..'6.Credit for death taxes imposed in the above country (i13m 1 or item 5,whichever is the smaller).. . •. . . . . . . . . ...$_. ESTATE OF •_Schedule S-Page 37 onr-16-71699-1 INSTRUCTIONS FOR COMPUTATION OF TAX For convenience the computation of the tax on page 1 is divided into two parts.Where no credit is claimed by the estate either for Federal gift taxes,for tax on prior trans- fers,or for foreign death taxes,only Part I (consisting of items 1 through 3)should be completed.Where a credit is claimed either for Federal gift taxes,for tax on prior transfers,or for foreign death ta..xes,Part II (consisting of items 4 through 8)should be completed in addition to Part I. Example (l)illustrates the computation in Part I where a credit is claimed for State death taxes.Example (2)illustrates the computation in Part II where credits for Federal gift taxes, for tax on prior transfers,and for foreign death taxes areinvolved. PART I Item 1."Gross estate tax"is computed by means of Table A on page 40,on the value of the taxable estate shown under Schedule P or Schedule Q,as the case maybe. Item 2."Credit for State death taxes"is allowed for estate, inheritance,legacy,or succession taxes paid as the result of the decedent's death to any State,Territory,the District of Colum- bia,or possession of the United States,with respect to property included in the gross estate.The credit cannot exceed an amount which is computed by means of Table B on page 40, based on the value of the taxable estate shown under 'Schedule P or Schedule Q,as the case may be.The anticipated amount of the credit may be entered at item 2 and the Federal estate tax shown on the return computed in accordance therewith before the State death taxes have been paid,but the credit can- not be finally allowed unless,the State death taxes are actually paid and the credit therefore is claimed within 4 years after the return is filed (or within such further period provided by the statute in the case of a petition filed with The Tax Court of the United States or in the case of an extension or postponement of time),and evidence that the taxes have been paid is submitted. The following evidence should be submitted to the district director: (1)Certificate of the property officer of the taxing State, Territory,District'of Columbia,or possession of the United States showing:(a)The total amount of tax imposed (before adding interest and penalties and before allowing discount); (b)the amount of discount allowed;(0)the amount of pen- alties and interest imposed or charged;(d)the total amount actually paid in cash;and (e)the date of payment. (2)Such additional proof as the distlict director may specifically request. If practicable the evidence outlined in (1),above,should beftle~with the return,but if that is not convenient or possible, it should be submitted as soon thereafter as .practicable. Item 3."Gross estate tax less credit for State death taxes"is the amount remaining after deducting the amount entered at item 2 from the amount entered at item 1.This amount also represents the net estate tax payable unless credit is claimed either for Federal gift taxes,for tax on prior transfers or for foreign death taxes. PART II Item 4."Credit for Federal gift taxes"is allowed for the taxes imposed by chapter 12 of the Code and the corresponding provisions of prior laws,on the transfer from the decedent of property which is included in the gross estate.The credit cannot exceed that proportion of item 3 that the value of theincludedgiftbearstotheentiregrossestate,reduced by the total deductions allowed for charitable,public and similar gifts and bequests and as a marital deduction.For further informa- tion see the regulations issued pursuant to section 2012 of the Gode. Item 5."Credit for tax on prior transfers"is the amount computed on Schedule R. Item 6."Credit for foreign death taxes"is the amou~t com- puted on Schedule S.If credit is claimed for death taxes paid to more than one foreign country,the credit for the payment to each country should be computed separately andthe total there- Page 38 of entered at item 6,subject to the limitation that the amount of the credit allowable in respect of property subject to death taxes by two or more foreign countriescannotexceed the amoun~ of the estate tax attributable to such property.J'.' II EXAMPLES Example (l).The decedent,a resident of the United States, died on January 31,1955.The total gross estate is $400,000.- The value of the taxable estate shown under Schedule P iii $265,000.It is assumed that themaximum amountof the credit for State death taxes is allowable and that no other credits will be claimed.The amount of the gross estate tax shown in column (3)of TableA (on page 40),on a taxable estate equaling $250,000 is $65,700.Since $265,000 exceeds $250,000 and falls below $500,000,the amount of the gross estate tax on the exces~ of $15,000 is computed at 32 percent,the rate shown in column (4)of Table A.The $4,800 computed on such excess,added to' $65,700 equals $70,500,the gross estate tax,which should be entered at item 1 of the "Computation of Tax."In a similall \ manner,but using Table B (on page 40)it is determined that the maximum amount of the credit for State death taxes allow- ablein the case of a taxable estate of $265,000 is $4,400.There- fore,$4,400 should be entered at item 2.The gross estate tax, $70,500,less credit for State death taxes,$4,400,equals $66,100, which is the "Gross estate tax less credit for.State death taxes'and is the amount which should be entered'at item 3.As no credit either for Federal gift taxes,for tax on prior transfers, or for foreign death taxes is involved,Part II of the computa- tion should be ignored and the amount entered at item 3 is the net estate tax ,payable.The computation of the tax in this ex- ample isset up as follows: 1.Gross estate tax..$70,500 2.Credit for State death taxes___________________________4,400 3.Gross estate tax less credit for State death taxes $66,100 Example (2).The facts are the same as in example (1)ex-' cept that credits are claimed for Federal gift taxes,for tax on prior transfers,and for foreign death taxes.It is'assumed for the purpose of this example that the decedent transferred on December 1,1954,in contemplation of death,certain real' property to his daughter as a gift.The value of this real prop-. erty as of the date of the gift,and as of the time of death,was. $143,000.As a result of this gift,a gift tax of $17,775 was paid on a net gift of $110,000 ($3,000 excluded and the specific' exemption of $30,000 deducted under the gift tax provisions of the Internal Revenue Code of 1939).As the value of the transferred real property is included in the decedent's gross estate;a credit for gift tax is allowed against item 3.The gift tax credit is limited to the amount of the gift tax,$17,775,and also is limited to the proportion of $66,100,the amount of item 3,that the value of the included gift,$140,000,bears to the entire gross estate,$400,000.(It will be noted that the amount of the included gift is $140,000,which is $143,000 less $3,000,the amount excluded in determining the included gift forpurposesofthegifttax.)Since $140,000 divided by $400,000 equals 0.35,the amount of this proportion is $23,135 ($66,100 multiplied by 0.35).Since the gift tax is less than $23,135; the former amount,$17,77.5,should be entered at item 4.The credit computed on Schedule R for tax on prior transfers amounts to $1,100 which should be entered at item 5.The credit computed on Schedule S for a foreign death tax amounts to $900 which should be entered at item 6.The total of items 4,5,and 6,or $19,775,should be entered at item 7.The net estate tax payable,$46,325 (item 3 less item 7),is shown at item 8.The computation in Part II is set up as follows: 4.Credit for Federal gift taxes__::$17,775 5.Credit for tax on prior transfers_________1,100 6.Credit for,foreign death taxes____________900 7.Total of credits under Part II $19,775 8.Net estate tax payable_________________________________$46,325·"; I -......, ADDITIONAL INSTRUCTIONS FOR ESTATES OF NONRESIDENTS NOT CITIZENS OF THE UNITED STATES These instructions should be read in conjunction with the'~General Instructions"beginning on page 2 and the detailed instructions for the several schedules. "Requirement of return.-An estate tax return must be filed for •the estate of a nonresident not a citizen of the United States if the part of his gross estate (as defined by the statute) sit.uated in the United States exceeded a value of $2,000 at'the date of death.. Form of return.~A simplified form of estate tax return,Form 706NA,"United States Nonresident Alien Estate Tax Return," has been provided for use in the case of a nonresident not a citizen of the ,United States.However,the return must be IJlade on Form 706 instead of on the simplified form 706NA .under the following circumstances: (1)In case the decedent made any transfer during life or possessed,exercised,or released any power of appointment with respect to property situated in the United States,re- quiring any disclosure or affirmative answer under Sched- ule G or H of this return. (2)In case a deduction for charitable,public,and similar gifts and bequests (Schedule N),credit for Federal gift taxes,or credi~for tax on prior transfers is claimed. (3)In case the decedent,was a resident of France or a citizen or resident of Greece and a prorated allowance au- thorized by treaty extends beyond the specific exemption, such as a prorated deduction for a bequest to a foreign charity. Place for filing returns.-The return must be filed with the Director of International Operations,Internal Revenue Service, Washington 25,D.C.,U.S.A. Supplemental documents.-If the decedent died testate,a cer- tified copy of the will must be filed.Other supplemental docu- ments maybe required as explained below and under the instruc- tions for the several schedules. Death tax convention.-If a death tax convention is applicable, consult the provisions thereof and regulations issued pursuant thereto.See page 6 for list of conventions and effective dates. •Property situated in the United States.-The entire gross estate. .wherever situated in the case of a nonresident not a citizen of _the United States is made up in the same way as that of a citizen ,or resident and,therefore,includes not only all property (ex- cept foreign real property)beneficially owned by the decedent, but also joint estates with right of survivorship,tenancies by the entirety,community property,life insurance proceeds,prop- erty transferred by the decedent during his life,and property subject to decedent's general power of appointment,as more fully explained under the instructions for the several schedules.However,the taxable estate is the part of the gross estate situ- atQd in the United States,less the authorized deductions.Only the part of the gross estate situated in the United States should be set forth under the appropriate "Schedules A to I'and recapitulated under Schedule 0."The term "United States," when used in a geographical sense,includes only the States, the Territories of Alaska and Hawaii,and the Districtof Colum- bia.Property transfel:red during the decedent's life,and in- cludible in the entire gross estate wherever situated,is deemed situated within the United States if such property was so situated either at the time of the transfer or at the time of death. The following rules are applicable in determining whether property owned by a nonresident not a citizen of the United States is situated in the United States: (1)Real property and tangible personal property.-These items of property are within the United States if physicallylocatedtherein. (2)Insurance.-The proceeds of insurance on the life of a nonresident not a citizen of the United States are not situated(;in the United States. (3)Bank deposits.-See "Instructions for Schedule C"on,or.page 10. (4)Works of art.-See "Instructions for Schedule F"on page 16. (5)Written evidences of intangible property which are treated as being the property itself.-Except as provided for by treaty,these items of property are situated in the United States if physically located therein.For-situs rules appli- cable to bonds and to stock of domestic and foreign corpora- tions,see "Instructions for Schedule B"on page 8. (6)Intangible personal property,the written evidence of which is not treated as being the property itself,such as a simple debt or open account.-Such property,except as pro- vided for by treaty,is within the United States if consisting of a property right arising from or enforceable against a resident of the United States or a domestic corporation (public or private). Deduction of administration expenses,claims.etc.-Deduction may be taken of the proportion of expenses,claims,etc.(Sched- ules J to L),that the value of the part of the gross estate situ- ated in the United States bears to the value of the entire gross estate wherever situated.Items of deduction may be set forth under the appropriate Schedules J to L,irrespective of whether they were incurred or expended within or without the .United States.The marital deduction is not available in the estate of a nonresident not a citizen of the United States,except'in the case of a resident of France.However.no deduction what· ever may be taken unless the value of the entire gross estate wherever situated is entered at item 3 of Schedule Q.Real prop- erty situated outside the United States should.not be included. The entire gross estate must be valued as of the date of the decedent's death;or if the alternate valuation authorized by section 2032 of the Code is adopted,such valuation must be ap- plied to the entire gross estate.Adequate proof in support of items 3 and 4 of Schedule Q must be submitted;otherwise, this deduction will be disallowed.For this purpose there should be .submitted a certified copy of the foreign death tax return;or, if no such return was filed.a certified copy of the inventory of the estate together with the schedule of debts and charges filed with the foreign court of probate jurisdiction.Additional proof may be required in specific cases. Charitable,public.and similar gifts and bequests.-Except as provided otherwise by treaty,a deduction may be taken under Schedule N only if the transfer was to a corporation or associ- ation organized in the United States or to trustees for use in the United States.For information relative to the deduction allowable under the Death Tax Conventions with France and Greece,see the regulations issued pursuant to the conventions. Specific exemption.-Except as hereinafter provided,a spe- cific exemption of $2,000 is authorized in the case of a nonresi- dent not a citizen of the United States. In the case of a decedent who was neither a citizen nor a resident of the United States but who was a resident of Canada, France,or Finland,or who was a citizen or resident of Norway Australia,Greece,or Switzerland,or in a case where a bene- ficiary was domiciled in Japan,the Death Tax Conventions with those countries authorize,under certain conditions,a prorated specific exemption in excess of $2,000.The prorated specific exemption is the proportion of the specific exemption authorized for estates of citizens and residents of the United States that the value of the property situated in the United States bears to the value of the entire gross estate wherever situated.Sup- plemental Form 706g (Computations of Taxable Estates)has been provided for use in computing the taxable estate under the provisions of the Death Tax Conventions in the case of the estate of a resident of France or Greece not a citizen of the United States.In every other case the taxable estate of a non- resident not a citizen of the United States must be computed on Schedule Q.When Form 706g is used,it constitutes a part of the return,is to be substituted for Schedule Q and shouldbeinsertedinlieuofpage35. cnr-16-71699-4 Page 39 --~man--LaW--'RU:L=t.dlnci---------------------....(XlicI1eSS')."0 . --e8oonsbu-rg·r-Ps-.----------------------------- DECLARATION (Signature) '--1"" We/I declare under the penalties of perjury that this return:(including any accompanying statements)has been eXa.min~d by us/me~ and is,to the best of Qur/my knowledge and belief,a true,correct,and complete return,made in good faith pursuant to the Internal Revenue Code and the regulations thereunder.'.I .DECLARATION or ATTORNEY OR AGENT PREPA~ING RETURN' I declare under the penalties of perjury that I prepared this return for the person or persons named herein;and that this return (including any accompanying schedules and statements)is,.to the best of my knowledge and belief,a true,correct,and complete return based on all the information rela~illg to the matters required to be reported in this return of which I have any knowledge. (Signature) Zeman Law BUilding .----.canonsbur.g~--~~a...---------------------.----:'...(Ad<rress). TABLE A TABLE B COMPUTATION OF GROSS ESTATE TAX Rate of Taxable Taxable Tax on tax on estate estate not amount in excess over equaling exceeding column (1)amount in,column (1) (1)(2)(3)(4) (Dollars) (Dollars)(Dollars)(Percent) ---..------------5,.000 ------------3 <5,000 10,000 150 710,000 20,000 500 1120,000 30,000 1,600 14 \30,000 40,000 3,000 18 '\40,000 50,000 4,800 22 \50,000 60,000 7,000 25 60,000 .100,000 9,500 28 100,000 250,000 20,700 30250,000 500,000 65,700 3250Q,000 750,000 145,700 35 750\000 1,000,000 233,200 37 1,000,,000 1;250,000 325,700 39 1,250j 000 1,500,000 423,200 42 1,500i'000 2,000,000 528,200 45 2,000,'000 2,500,000 753,200 49 2,500,'000 3,000,000 998,200 533,000,iOOO 3,500,000 1,263,200 563,500,1000 4,000,000 1,543,200 59 4,000,:000,5,000,000 1,838,200 63 5,000,000 '.6,000,000 2,468,200 676,000,'000 '7,000,000 3,138,200 70 7,000,OOOi 8,000,000 3,838,200 73 8,'000,,000 I 10,000,000 4,568,200 76 10,OOO"ooq:---------..------6,088,200 77 ,I Page 40 .\ \ \\\. \ COMPUTATION OF MAXIMUM CREDIT FOR STATE DEATH TAXES Rate of Taxable Taxable Credit on credit on estate estate not amount in excess over equaling exceeding column (1)amount in column (1) (1)(2)(3)(4). (Dollars) (Dollars)(Dollars)(Percent) 40,000 90,000 ..._----------0.890,000 140,000 400 1.6140,000 240,000 1,200 2.4 240,000 440,000 3,600 3.2 440,000 640,000 10,000 4.0640,000 840,000 18,000 4.8 840,000 1,040,000 27,600 5.61,040,000 1,540,000 38,800 6.4 1,540,000 2,040,000 70,800 7.22,040,000 2,540,000 106,800 8.02,540,000 3,040,000 146,800 8.83,040,000 3,540,000 190,800 9.6 3,540,000 4,040,000 238,800 10.4 4,040,000 5,040,000 290,800 11.2 5,040,000 6,040,000 402,800 12.°6,040,000 7,040,000 522,800 12.8 7,040,000 8,040;000 650,800 13.6 8,040,000 9,040,000 786,800 14.4 9,040,000 10,040,000 930,800 15.2 10,040,000 -------------_......1,082,800 16.0 ESTATE OF -.------------ u.S.oGOVEANI:IENT PRINTING OFFiCE onr-16-71699-1 !, I .~ ..!'.::r..jt. J" i f• ~ •i " J i II.,, i II ./, It iI~ InterestPrincipal Payments $---_._••_--_:_--_••_-_•.-$----_••_••__••_--- ePateAmount fORM 70S I 'UNITED STATES DO NOT WRITE IN SPACE BELOW (Rev.Dec.1955)ESTAT~TAX RETURN u.'S.TREASURY (Applicable only to estates of decedents dying on or after August 17,1954.If Date received DEPARTMENT decedent died prior to August 17,1954,use Form 706,Revised December 1953.)'.~.--Internal Revenue Estates of nonresidents not c~tizens of the United States may generally file on ', Servi:e Form 706NA instead of this form.For details see page 39... Decedent's name J.&./~~IV ?Rrsc,~Date of deathI t.I)1'11>/)(,11 2·j,./9 t.; Residence (domicile)at time of death,D Citizenship (nationality)at time of//~t1/,fr!CjYJ utlJ RJi Y A:~o ,.death /j.)VIreO STf)7t;S-Oft,iVONS.1 u R 6.,r ....·........ C:OMPUTATION OF TAX (See instructions on page 38) (SPACE FOR USE OF INT~NA4t:~SERVICE) ,,Tax on return or deficien(y I---==-.....,="f'c:~-.,.......,~-il--+:,..--:rr--f 15'---------;--------.,-------- .-------..--..-...-----~--..-------_._--------.....-......._----...._--..-------------...._......_.........._----_...._-...--......-......_-_.........._...._---..---------_......_--_.._.._-.---", DETERMINATION BY INTERNAL REVENUE SERVICE :----------.--1----:--------------.--.----~------------,--,-----..--------.--------..------.----------.-.---..--.-~.--..---:--------- PART I 1.Gross eslale lax (use table A,page 40);..:;~.$_J.:(S.1~:.~}_:?_ .Z.Cre~lit for Slale death taxes (use Table B,page 40)\..••.~,, "__I_H,"""",~~""",,,()'.-;'f__O_ ,3.Gros,s estate tax \ess credit for Stc.te death taxes {item 1 minus item 2,>:This is the net amount p~yable unless '~1.'g r J J ' credit for Federal gift taxes,tax on prior transfers,or foreign de'ath taxes'is 'claimed in Part II ,$~._.J.~:_._~__!__L __._ PART II 4.CreeJit for Federal gift taxes.. .. . . . . . . . .. .. •. ••••.. . . . . .. . . . . .. .. . . . . . . .. . ...$..__.....__.:. /'5.Credit for tax on prior transfers.,...........•,'..'',' . , ".••._._ '6.Credit for fore}g'n death taxes :..1,---..;.-------1 7.Total of credits under Part II (total of items 4,5,and 6),....•...................0'••'••••0'.0 ••'••••••••••1 _ ,8.Net estate tax payable (item 3 minus item 7)..;0 0 0 ••••0 0 •••0 : 0 ,"0 0 0 ••0 " • , 0 ,•••'•••, 0 • 0 , • 0 0 0 0 •~, 0 0 • 0 0 0 , • 0 $ I.I~I~. 1.-'.r, ;. t ,. or Page 1 0"r-10-71600-2 I f 1 •I 1 I I I ------------_~I 18c.Retationshi:;>of joint depositor to decede.:lt ISd.If the decedent had a safe deposit box at the time of his death,indicate under what schedules in this return the contents are listed Ua.Did the decedent at the time of his dec.th have a safe deposit box held either alone or In the joint names of himself and another?..g]Yes 0 NoIf"Yes,"etate location ''\'\-e~rrE-lvj 'PetfNJ'Il..Y-AHI il /{./1iiOflI1L 73f1rJl<+(0 o.sT~/Y ,?~ \ t I J 1 o .Yes.'21 No GENERAL INFORMATION-Conlinued ~7c:.Address of ancillary administrator or executor (Number,street,city,zone,and State) na.Did the decedent at date of death own property in any State or country other than that of his last domicile?If "Yes,"state place of ancillary probate proceedings ., 17b.Name of ancilla~y administrator or executor .,~-C-]) ISe.If any of the contents of the safe deposit ::X>x are omitted from the schedules,explain why 19.Did the undersigned person or persons filing return make diligent and careful search for property of every kind left by the decede:1t?~Yes 0 No ., \ I1I f· i J /gj Yea 0 No 2Zc.Telephone No. SH 5'-'2 £./.0 0 .,J •..1 .l 01'.' . I,9 . 220.Name of attoney representing estate,if any ./ .ZFmlr/l RZ~Mp,tf .The election cannot be exercised unless it is sh'JWD upon the return,Form 706,and the return is filed within 15 months after the decedent's death or within the period for filing the return Cis eKtended by the District Director.. . The due date for the filing of the return Is the day of the 15th calendar month after the decedent's death numericaIly corresponding to the day of the calend.:1r month in which death occurred,except that,if there is no numerically corresponding day in such 15th month;the last day of such 15th .month is the due date.FoX'example,If the decedent died on August 31,1954,the due date Is November 30,1955. If r laced in the mails the return must be posted:.ir;ample time to reach the.Distrlct Director's cffice,under ordinary handling of the mails, on or before the date on which the return Is requir€'d to be filed.... .;.1··.1·,•. l·.:.,;'.~.:..', . 21.Did the same undersigned make diligent and careful search for the existence of any trusts created by the decedent during his lifetime or any trusts created by other persons under which the decedent possessed any power,beneficialinterest,or trusteeship?' 23.An election to hc.ve the gross estate of the de·::edent valued Of of the alternate date or dates is made by entering a check mark in theboxsetforthbelaw..o The executor eleds to have the gro~estate of :his decedent vaLled in accordance with values as of a date or dates subsequent to the de- cedent's death as authorized by section 2032 of the Code... 20.Did the same undersigned make diligent and careful search for information as to any transfers of the valueof·$5,OOO or ,m<?re made by the decedent during his lifetime withoutan adequate and fuIl consideration in money ormoney's worth?l.81 Yes 0 No ALTERNATE·VALUATION (These instructions apply only if alternate valuationis elected.For further information on this subject,see General Instructions on page 4).. 22b.Address (Nurr0er,street,city,zone,and St':1te) .....U l\1If;';Lrt.#f3/((9 . ,. • ESTATE OF .~__.~.~~.:~__.__~._Page 5 GROSS ESTATE, SCHEDULE A . REAL ESTATE Did the decedent,at the time of his death,own any real estate in the United States?DYes 0 Nov ,,' Valul II dall of dlllll 10,000.00 12,000.00 $$ .. Subaequenl valua·Allernall valulliondaleD~'iplion f'lot or ground situate 1n the Borough or~ouston.Washington County,Pennsylvania, ~nown and designated as Lot No.3 1n Block No.10 in D.C.Houston Plan or~ots.recorded in the Recorder's Office ~r washington County 1n Plan Book 1,~age 173;having erected thereon a two- ~tory frame bUilding containing store- roow~and apartment 2 fo'ot ot ground situate 1n the·Borough of H ~ouston,Washington county.Pennsylvania, 1 ounded and described as follows,to Wit: 'peg1nn1ng at a point.the intersection'.r the western boundary l1ne of Pike .,treet and the northern boundary line or, ,irat street;thence 1n a northerly (1rection along said 11ne of Pike street -~0 feet to lot'not'l or formerly of Isaac ] •paxton;thence along the line of last f a1d lot North 67°10'West 138.70 feet to .and of campbell L.Reed;thence along .est said land South 23°OS'tvest 60 jeet to the line of F1rst street afore- ~a1d;thence along said line of'First ..:treet in an easterly direction '138.70 j eat to Pike street.the place of leginning;haVing erected thereo~a. 1\AIO-StOry apartment dwelling " ,Item.No•--,., 1 I I· .. .: '.' TOTAL (also enter under the Recapitulation,·Schedule 0)$$.•}-::~,CCCI('U (If more space IS needed,IRsert additional sheets of same size) ESTATE OF .__J..,G.l.enn....Eat.s.cJ:l _ .Schedule A-Page 7 •~16-710W-l I \II I,1 \~----------------------l..,~ SCIiIEDULE Ii STOCKS AND BONDS I I l I \ I ;1 1 ! I t 0, llel1l Description (including face amount of bonds or nUl1lber of shares)Par Unit value Subsequent valUI-Alternate value Value at date of death110:tion date 1 j S#I1f2E eRNOr!/Jf..lIldl/'1 t..,$$'IS':0 0 !hSOc,.If1"'O,.{..-~O SD (,oO l~o SIIIttM!~J..I.ICAO~y'...7f;I(d' !, ~..t~Q :,[.1.);fJOo..lt~eO/Y/f1IrrA/@.5a ~.... ,'),~~,4.f}R.E~j'J/373r;H,.h;1O.TSfLs-t<tt,1 .'.:''';''')00J0......'-....,~"'.-" CO'I @ t,oo ,-.- II~~Sff~~Es We.rr~,4A'I~HIf$'11.: 1 '0 rfg~SU''i I '(IrH,FJ IfF!1fOl'liH...j?;f)H/( @ j oS:!;'/1 '11o , -"..(.~;~61 $~'1t(;;F!,.i)~3s#FJf2e s rc..e ,(.~/e(/1'PIC Co;,@,~!.S ')00 ,;,C/o I..4--7..rl..StlltR.GS 1he ~tJ,J)D Co,~...,.,Il't)t ..,~"j'."",..i ,;@ t'I ~•.'~~t.,l f 1 ;I " .".&.-....1.}I ~1''')(,)'0 ()"~JJ,.,.re,;;'5 t!lPr-ITp/'c..Co.)N().,.':'.I7-,~.:.' I @ ",;g.$'L¥,",.'...-.---.. ".. 7'3qISIt ,.,.eE!>I1-Me/G I cAI'I fI/,;1G,'<:>f~;~1~1(.1.'Z.3 '.~Co I (!>It /(..)'11 1;-.1~tI 31/.,,q~~H fl~~ft!JH /-.~~~6,/1 l~". i.Re1=u·I,#,,(o.@{lJQ,Y~1 b1J'tfJ ~~~l.:>s I-IA I<b~'?,:t-rS'H l1~os ~,.,, .'/0 106I~c.,@...11'1&.'0 ..-,I :. \...',- /0 ~0'5f/~~~.J i.C,'PrrrS&H~'.?()r.r8.i~II .' 100 I .Sorts c:E jJ~r·-:;i~, ... TOTAL (also enter uncle::,the Recapitulation,Schedule 0)$$~I;'~cl~f/6 1;Did the decedent,if a resident or citizen of the United States,own any stocks or bonds,regardless of physical location,~ at the time of his death?[l(I Yes 0 No lI.Did the decedent,if a nonresident not a citizen of the United States,own,at the time of his death,any stocks of corp)' rations organized in the United States or bonds situated in the Unitsd States as explained in the instructions?0 Yes 0 No II I I , ! It:,I4t, , 11 (;: (1ll1lore space is needed,insert additional sheats of $lime aize) I ,j I I, I 'III ESTATE 0"'. ••••._._Schedule B-P,Qg8 9 SCHEDULE C MORTGAGES,NoOTES,AND 0 CASH .1 f.).<',!I 18,0 I) ~f).DO t q.b ~ \'$",1 r ~/o.e~ o.fi,~0 1,1 Sof.,.,rY.,. Value at date of d8llbAllernatevalue ~Ye9 0 No DescriptionItem No.Subsequent valua-tion date .-1-----------------1---.:...1--:-----1-......:---- 1 (~.:>~t:>N p e /4.~en./0 •$.$ \I PM G-P.."Co·Pt ~&-y.f t<e ~~ft°V EL.GR.5 CH;e r~ ,).f1r'¥J1:;'/~.,fC.Cyt/M d7of<~/J I If I b$,v])c,H Eel ....· &~PfV,'(:.R.I(~N MOltX'oS lJlv/~ev!J c.H£CI <- .$The f{l17'1-rAl-Cu,)..p,\(/1;+;fI'j;CH"GCI < C fl,sI/I-It}lA (A18..o/~et:-INII'IC\.Dlvrb~tfJoH~ :7 \ve sTGell 'Pi';;1{syv,t:t~/A .tI11-nott 11.1".-. {j ~~t<_ .~~It I Ii/.$'R Cr'co UN'o ""f ~'rIeSTfF{2.j ?e/VN~"I/.....~I1,.,/~ilA1?OPA a- .~h;:"K _Chef:'~'"t:.fie r;~UIf;... .,,()In .0 do /I I""c !t'f.s ',(,ot{1~(,-IE.~l rle -rI2D rpot..IT~ff .I--J''-P·c·¥.0 f>~O(..e.l:..JJ ~;:p~LI...'. I .''..c)-I GCI <.. /0 fl..~,/')/tY.-;6'IV ~5();Y,RG/V1f!L...: II J IA ~,/vi ~~..,ltorE.~:C RA-Lf>H L.711-r~1J . Did the decedent,at the time of his death,own any mortgages,notes,or cash? i. I _.'l 4,~.,I ... "'6'1 0 ",' TOTAl'(also enter under the Recapitulation,Schedule 0)$ (If more space is needed.insert additional sheets of same size) ESTATE OF .._••_.~•~""__~__••~_Schedule C-Page 11- cw-18-71U99-1 .~_._~--~-~~-------'-~-'----=-----......o-.....J I II f I," Value at data of doatb o ('tIooo.4 (.) $ Alternate value $ SUbsequimt "Blue-tion dete.Description SCHEDULE D. INSURANCE Policy with Metropolitan Life Insurance Company.Number of Supplementary Contr ct 282952 R.B.issued to Jo Glenn Patsch , as payee.,The value of the supplementar-y Contraot'on,'date of death of payee was $17,465.10 ItemNo. la.Was anyinsurance on life of decedentreceivable by his estate?lID.By beneficiaries other than estate? lSr Yes 0 No 'mYes 0 No Z.Was there any insurance on the decedent's life which is not included in the return as 0 I?art of the gross estate? ~Yes 'E~No If "Yes,"0 complete explanation os to all such insurance m'ust be 1mbmitted 4 .l*i~.~~W~S'¥·-!6~·£"···E·~~····'t··-·~~~:~~~~~~~~~,~~~~·~~-~.~~~~~~~~~~~~~~~~~~~~~~~~ \_------:~~ \ ,,n, 1\/"".,\ Ii", ,I 'i ( J I : I' ,\:I;!, II{, ,I{..I 1 ~ I \I , I,, \ \ J TOTAL (also enter under the Recapitulation.Schedule 0)$ (II more space is neaded.insert additional sheets of same SiIB) 1 t I !.I ESTATE OF • • •_ '.-1e-716D~1 Schedule D-Poge 13 III I II o No 500.00 15,000.00 riYes Subsequent valua·Alternate value Value at dati of deathliondate $$ I '.'1000.00 ) II , ,1000.00 Description ..'."..,.. 1 ~lOOO.OO Ser-iea E Bond in name of-~•.Glenn patsc~or Gleon F.Pat-seh ,:'f, No.M82108030 E issued FebruaryIt 1960 " ~lO~O.OO Series E Bond in name of J.~lerJn Patsch or Glenn F.Patsch WOeJ~2108031 E issued February.1960 SCIiEDULE E lOINTLY OWNED PROPERTY '~""." ItemNo. 1.Did the decedent,at the time of his death,own any property as,a joint tenant or as a tenant by the entirety, with right of survivorship?'".. ~_1f~"Y~e~s,:."~st:9!at~e.!!th~e~n~am~e~a~n~d~~~~~:~es~s~o~fe~a~ch~sur~Vl~·Vl~·n~q~c~ot~en~a~n~t..:...,'j'----:---4AiiiiDD;AiRESS~.(NN,;u;;;tmb;;;;er~,st;;tre;;;et,"CC~itY:Z,Z;;;;on;:e,sSt.ta;i;te»)---:-:- 2' 3 ~500.00 u.S.Sav1ng8 Bond in na.me of •(.G!enn Patach or Glenn F•.Patsch No. J.5~Ot>51 H -Series II issued Februa1'"'1'.955 "o1~ ~ot of ground situate on Pike street in the Borough of Houston l Washington County,pennsylvania,having erected thereon a dwelling house and having ,been conveyed by J.G~enn Patsch and Wilma B. Pat.ch,his wife,·to J.Glenn Patsch and Wilma B.Patsch by deed dated February 10,1948,recorded in the Recorder's Office of Washington'County,Pennsylvania, in Deed Book 736 page 55~"' .,;..-'... 4 ~~Ij :\ ;1 ,1 II 11 I .,I ;\ I I,I \: \ ,.. .I I, ,I I I, I: I I TOTAL (also-enter under the Recapitulation,Schedule 0)$ (U more space is needed,insert 8ddition~1 sheets of same size) J.Glenn Patsch .ESTATE OF •._••••••.•.••_•••••••..•_•••••••••••_.__••••__••_ ,,1 <On Of)-I$./I)"V'.., Schedule E-Page 15 Z.Did ilie decedent,at ilie time of his dec.th,own any miscellaneous property not returnable under any oilier schedule? ~Yes 0 No . 3.Was iliere anyinsu::,ance which ilie decedent owned on ilie life of anoilier which is not included in the return a~a partof ilie gross estate? If "Yes,"full details must be submitted under iliis schec.ule.0 Yes t81 No 4.State wheilier ilie decedent's estate,his spouse,or any oilier person,has received,or will receive,any bonus or award as a result of the decedent's employment or his death.'If "Yes,"full details must l::e submitted under this schedule.0 Yes El No !I I'.iI , ! I i I, , I,,., I.tf~... Value al dale 01 dealll $c./o~o8 '~bO ~£)OO.OO Anernale velue $ /' .. = Subsequenl valua·tion dale -......... SCHEDULE I' OTHER MISCELLANEOUS PROPERTY DescriptionlIemNo. DYes --1-----------------,..--------1------1-------1-------.... 1 I.C,PltrS "rJ ~[fP1'I-S.,I t"-V'/~6-efO '}I l'f{')...Dbb'~41)bO~seu/,,v 3 Iq~f )o/)~~S71;110,V tNt$..~o~ if 11\e P~()nt:tI n111-Ift'~u.~il'N G-~C~t·~P,utj of !tM-E1 CPt -~II C'fllb.£1 ~er 0 't'~ /tee ·U/~cJ t..-f'7b D I1 lV 1>?D~or fl!O,,7 Etv1 iJtVI:CGNiJ5 '.' S ..-rAe ft~/oN C'&"H;~A-l.tll:;t:-ltl~lJMlfce Co r/?Pf/rN 'I ....pofl Cy ,Xh.810 I:JJ,Q , 'Po ~T M0 r<."Tt:'M 'b I V"J ,b~ffj) I.Did ilie decedent,at ilie time of his deaili,own any interest in a copartnership or unincorporated business? ,.. I ....,..,. . .I ,.: ') TOTAL (also enter under the Recapitulation,Schedule 0)$ (If more space is needed,inserl eddilional sheets of same size) ESTATE OF _.Schedule F-Paqe 17 ........1e-7100g-1 I ....... SCHEDULE G TRANSFERS DURING DECEDENT'S LIFE 1.Did the decedent make any transfer described in the first paragraph (including the six subparagraphs)of the instructions for this schedule?0 Jo'( -~~~ DYes )(1 No 3a.Did the decedent,within 3 years immediately preceding his death,make any transfer of his property without an adequate and full consideration in money or money's worth? If "Yes,"and the transfer was of an amount of $1,000 or more,furnish the follOWing information: 3b.Date 3".Amount or value 3d.Character of transfer1 J, Zo.Did the decedent,at any time,make a transfer of an amount of $5,000 or more without an adequate and full consideration in money cr money's worth,but not believed to be includible in the grossestate as indicated in the first paragraph (including the six subparagraphs) of the instructions for this schedule?..' I If "Yes,"furnish the following information:0 Yes l?J No~-"21».Date 2c.Amount or value 241.Character of transfer \ "I f 3e.Motive which-actuated decedent in making transfer G.Were there in existtmce at the time of the decedent's death any trusts cre~ted by him during his lifetime? DYes ~No Item No.I Description,Subsequent vallia-lion date •Alternate value Value at date of death 1 -..$$ ...,:"f'• ...p:".i ,"'"..·.1/1· ,. I' l'I~ t II :1 .', ,"\ r , I rI rI j' 1. TOTAL (also en~er under t~'le Recapitulation,Schedule 0) (If more space is naeded,insert additional sheets of same size) ESTATE OF ------------------.~---------------------------------------------- $$ Schedule G-Page 19 I 'I I SCHEDULE H POWERS OF APPOINTMENT la.Did the decedent,at the time of death,possess a general power of appointment created after October 21,1942?0 Yes No lb.On or before such date?0 Yes 'tI No Za.Did the decedent,at any time,by will or otherwise,exercise or release (to any Zh.On or before such date? extent)a general power of appointment created after October 21,1942?0 Yes ~No 0 Yes Rl No (II more space 's needed,msert additional sheets 01 same size) under which he pos3essed any power,beneficial interest,or trusteeship?o Yes .21 No 1Illl11 Description Subsequent value,Altarnate valu.Value al dale of de.al/lNo.tion date-1 $$ "",II f.)ft . "G ",' " ,,'.., ,, -, , , TOTAL (also enter under the Recapitulation,Schedule 0)$$ " 3.Were there in existe:lce at the time of the decedent's death any trusts not created by him SCHEDULE I ANNUITIES la.Was the decedent,immediately before his death,reCeiving an annuity as described in paragraph 1 of be instructions?"0 Yes ~No: lb.If "Yes,"was thct annuity paid pursuant to an approved planas described in paragraph 4 of the instructions?0 Yes o No Ie.If the answer to nIb."is "Yes,"state the ratio of the decedent's contribution to the total purchase price of the annuity. 2a.If the decedent was employed at the time of his death,did an annuity or oilier payment as described in paragraph 3(d)·of the instructions become payable to any benefiCiary by reason of the beneficiary's ha"ling survived the decedent?'0 Yes ~No 2b.If "Yes,"state the ratio of the decedent's contribution to the total purchase price of the annuity. ( ~, J lIem Description 'SubseQuent valua-Alternate value Value at date of deathNo.lion date 1 $$, ,, ) /rO;l~ " ..:.. TOTAL (also enter under the Recapitulation,Schedule 0)$$ (II more space is needed,insert additional sheets 01 same size) ESTAIT OF • •~• 'Schedules H and I-Page 2,1 . 0...-111-716011-1 DEDUCT!ONS SCHEDULE J FUNERAL EXPENSES AND EXPENSES INCURRED IN ADMINISTERING PROPERTY SUBJECT TO CLAIMS ----~~' NOTE.....:..Do not Ust on this scheduleexpenses of administeringproperty root subject to claims.Inconnection with such expenses,see Schedule 1. If executors'commissions,attorneys'fees,etc.,are claimed and allowed as a deduction for estate tax purposes,they are not allowable QS Q deduction in computing the taxable income of the estate for Federal income tax purposes. lIem No.Description Amount ,1 Executors'commissions-amount estimated/agreed upon/paid.(Strike out words not applicable).•••'.••••••.$.t-J-,;JJ?.'1.,-CO 2 Attorneys'fees-amount estimated/agreed upon/paid.(Strike out words not applicable).••.••...•••.•••.•..'-?1...3.~_~_._7.1 j .'."; •. I ~r '. I.:.."., ,(MISCELLANEOUS ADMINISTRATION EXPENSES) J()sefh/~€M.10()6-It!~Re&j'-:C1flltl{r()~/;~/~_ JrL,H f/\/t."'i'ol-/KeC c'.e.j G.!1.bvet.TI$/tlt..J,..('rr-e;:"~~, the bet!/y if'0 7-&..$,ItDlfelCTI ~/11/t,LI::JT~f<S JtJ.!eplJrNb 11.J)rJl,Jt.!.fJS,7(a 1 ~1://.I kG-/;VVf!!NfO':Y .Jo.£ethINb'tA,f)l>f,).GI.I1S ,~,e-eRrIFr.£f)(;.6PIt;~. lJ/Ar-H/JA Lo,HQ.4/r#J)~p1"j)GA7r1 Ct-!E:11f'ICft'1'r--.S '-......,jOS~PtI(,..,E 'II.~<J~/1t S,I?e~,Pfl-11o/&.Iit.,~~V rl r .; 2IrO,~() :(7 o."()I \ '1'0.0 <J ..:'')~I,.,;;'; , ,. ,'1' ~~,.(i) 10.00 \ t.rr 7,~o ~ "2.;....1 ~ 5,0 c,,:). j..3.00 ~; TOTAL (also enter Jlnder the Recapitulation,Schedule 0)$03 ~I 7 f r·qI, (II more space is needed.insert additional sheets of same size) ESTATE OF •••__•-----------~-------••----.- .-16-716911-1 Schedule J-Page 23 --_--.:~s~~~--,----------~•.-;-,--:-.-.------"---- SCHEDULE K DEBTS OX'DECEDENT AND MORTGAGES AND LIENS Amount Amount $~O.~O .~,bO 11/,01 '..nO,t'."~. g 5".1 I /oi,oS-':J~<a ,t4-S- ·lol,.:r~· I ~s-o,cl)I '77.Z.~ 7,70 $. ...'. TOTAL (c.lso ente~under .th~Recapitulation,Schedule 0) MortgaglU and liens Description - . ! Je.r:F~~y'5:PeLA.~S(OIf:JCIt~{)N.5£fAr?I.,?~·Suo pp l,e ~ H,{3.?",-1(7()1N'AC>£rvc,y t~ot<..S7i>P rA.',·/J{S;'l2fJ/YCe LE./V>FJI'1 t Z/;(,v7~/(~0);"o,v.s~u~t(?ttr..((-;:'141 sePvlt ES~o.WSf::'t.{11 flf'IN IJ...sOlfile4 S,Wa.MJIHtNr1'.;I q,~Co-;-'f>L /tI,/ofA t:.SIClcL,fS I~C'O/.!4oIMj101l'rf/Itt'e.f Bo~o (~1 w,'1t1iJ £.~,C~LE~fA y:.Co (-tlCiuS1~.?tV I.q Ie 4'5'C~t:>6(/itv 100MbNIe k TAL'~pI •G3N o/U.shlot t/(J'")a.-IRlC ..:W 1I.sfMG,,:"".~ #.(3.H4'tro",,'!1t..f;rvCY .~fA.sTori./~--:~.·J';Qi4!oNSALe RGAt.~t. H.13.~\(.rtl;/J}GEiY'''-/'H-{)u~r~k,7~~:/~$tJJfJ.f/}HC't:.-".W'~r.R.../'I1l7"1..f,YtH ~H.r.vSTOh.7......~G:alil'oS IT,f30:< Debts of Decedent-treditor and nature of claim 1 kl',·r(eR.~/ry'Cht.l'/~t.Jr'/f~.rVIf..I..!1$-'1(''.."S~~"t C =S' 1 Ko.lIem Item -No. i ' I( I( I( 't•f~I, t '11 . b.~ ~~ l i ~j» II I I I'U I~ I'I J, I ~' ( ;',f' TOTAL (also enter under the Recapitulation,Schedule 0)$ (U mere space is needed,~nsart additional skeels of same slle). ESTATE OF ....-...-..-....-_......-...._..._...........-..-_............_--..-....._-_......._-_.......-------..----_....._----..-..--------Schedule Ie-Page 2:5 .,. -- SCHEDULE L NET LOSSES DURING ADMINISTRATION AND EXPENSES INCURRED IN ADMINISTERING PROPERTY NOT SUBJECT TO CLAIMS ItemNo. 1 ..:I "'.0 II' 'I " ~• I ..» • • t t ... ., '.It Net losses duringadminislration •I., If•• t'-'.\i. .,. i 't ",-,'. $ Amount .'_.t '.,."'..r,~~r •...<t' TOTAL (also enter under the Recapitulation,ScheduZe 0)1-::$:..---,----- ItemNo. 1 ExpensBS Incurred In administering property lot subjact to claIm. $ / TOTAL (also enter under the Recapitulation,Schedule 0)$ (If more space is needed,insert additional sheets 01 same size) Amount ESTATE OF • •._.•__••_•••_.~__• •~••_. onr-16-716V9-1 C' Schedule L-Page 27 4.According to the information and belief of such person or persons,has any person other than the surviving spouse asserted (or is any such assertion contemplaied)a right to any property interest listed.on this schedule,other than ,.;it No as indicated under questions 1 or 3?'0 Yes 1/:1 SCHEDULE M BEQUESTS,ETC.,TO SURVIVING SPOUSE (MARITAL DEDUCTION) 1£the decedent died testate,the person orpersons filing the return should'answer the following questions.Only question 4 should he answered in case the decedent died intestate.If the answer to any question is "Yes,II full details should be submitted with the return. 1.Has any action been instituted to contest the will or any provision thereof affecting any property interest listed on d this schedule or for construction of the will or any such provision?,0Yes l!SI No 2a.Had the surviving spouse the right to declare an election betwee~(i)the provisions made in his or her favor by the ....< will and (ii)dower,curtesy,or a statutory interest?~Yes 0 No, Zb.If answer to question 2a is "Yes,"has the surviving spouse renounced the will and elected 12e.Elected to take under to take dower,curtesy,or a statutory interest?0 Yes mNo .the will.0 Yes rgJ No Zei.Does the surviving spouse contemplate renouncing the will and electing to take dower,curtesy,or a dstatutoryinterest?,DYeslZ>l.No Value o Yes ~No $ ~'.' Description 01 property inierests passing to surviving spouse ., I1 ft.b€F\.'Pf/f2Al/l.i;r/,H !eCf)/V(J O~t.~~1"Wtl..£"f1f'l1J Tt:5~£Nr o '{~:eC~D£NTJ He,'b~v,s~j)To t'i I~W,FE;vr,1M h ~,I ~""'SG.t-I ".jO fVJVCr'bF PI'!~SrA-rE A!:J ~HE wa J ~11 ~;;OW,I il-.[;.D TOlJ,..b~R -rl+[;l.-A-W~~~-rH-t:C6tvi'r7D/VW"e,([.!-tA ()~7irNII(SV'~1"M IF /IJfr~.])/t])I~T~51"If-rlG~I 77i IS 1'eG-PfCe S.G",v'J ON/:.,- ·rh I ftJ of 7/-1£,V E T ~~1'1)-r~( lIemNo, 1 3.According to the information and belief of the person or persons filing the return,is anyaction described under question 1 designed or contemplated?,' /( 'I :,1 I~ HII' II a;~ill~;1 ':t ,~ I 'I !If I I 1'1 I I "I I II \ I I' I I I r II I I I I \ I 1,1 'J Ii , I I I I ,, , I \ I $--_.-••_------------••• \;!{ I II j I ( TOTAL....................•.•..••..................................•........... Less:(a)Federal estate tax payable out of above-listed property interests.,........••.. (b)Other death taxes payable out of above.l~sted property interests...•.•••.••...,1 Net value of above·listed property interests (also enter under the Recapitulation,Schedule 0)........••.•....-_--::.:.: (II more space is needed,insert additional sh~eta 01 same size) Total of items (a)and (b).••..••••••••••••••••••••••.••:•••••••••••'••••••••••••••••••••••••••••••••.1---_ $~{~(~,lY ESTATE OF ._Schedule M-Page 29 •...-16-71699-1 SCHEDULE N ""..,', CHARITABLE,PUBLIC,'AND SIMILAR GIFTS AND BEQUESTS I !"I, .' Charatter of institutionItem No. 1 Name and address of beneficiary "·l'" ..,,, ::','1. ", ,( " ...':.. $ Amount • -j ~ I ~•.' ~. ~.. :.. i, " ,r, ....~- ",. l;.,,::.~."1.'i :".~., :......• ;.•..:.-.',.' II I:' ~.;" ..;~ ',:" •".I " .'I J /,)·.i·, " 1-'."r .~" 4,'",.... ,1 ~:-I'."~,' " f..;', ", " ,. ~'- ,,' .,; ,-''; " '"ilI, I ! !'..: ";. " <, ,- .,"~.'-~. TOTAL (also enter under the Recapitulation,Schedule 0)$ (Ifmore spate is needed,insert additional sheets of same size), .,' ESTATE OF ..~_~~._'.._~••_.._.• am-1ll-7169l1-1 , : Schedule N-Page ~l ----~._-.,--~----------------=---- ~/ . \ "":':>;-/_-- SCHEDULE 0 '-----../ RECAPITULATION Gross estate Altornate value Value at dale 01 death Jointly owned property....•..•.••••••••.•••••.••••••••.•••.••••.•.•••••.••....•........••.••_•..•••••_-.L.7-.Lfc:..c:..:...~ . . '':,."".:3 r;0-/,ft { Other miscellaneous property.••••••••••.••••••••••'••.•.••..••••••••..•..•..•........••..__.•_•••_••••••_....•_••'-_~._••L:...tl..~ Real estate,.••.•.•:.;••,..••..•••••..••••••••.•••••••,•••.••.•••.~••. . •. ••. . . . ...$....•..•..•.._..•_...$.~lQQQ:.£..:: ,, '',r"••• •n " ..'_,',,rX d3 oS:;,0&Stocks and bonds ~, .t •...........................______1~'-:.J,..__y,. Mortgages,nC?tes,and cash....•.•.•••.•.••••••••••~•••~••.•••••••'.~•••••.••.••....•~._•••_._••••••••••••....•~_Z_-.t?C?..i:lf,. Insurance.•.•~.••..•••.••••••'.••••••••••.••.•••••••.•.•••••••••'....•,...•..........•__..•_._.~••..._.••...•to..1.f:5...f.-'-q,2-,, Transfers during decedent's life :. Powers'of appointment..:•..•......•...•..•..............•..'....'.........•.'.'..... o........-_--_-----___- o ~JAnnuities:,'.~I •..1 -1-_.;..._ TOTAL GROSS ESTATE..~, " ,. . . . . . .. . . . . .. . . . . . .. ...$ Deductions $~3'03~~ Amount ..3'-7gq,.q I~.Funeral expenses and expenses Incurred in administering property subject to claims..$.__..L_••~••_•••••_. f ".'.. " ./1 ,~~{"to'-/.2.Debts 0 decedent................................................................__.~....••:••••.••.•_••• 3.Mortgages and·liens :',•.•••.•..1 0 1 If I't' 4.Total of items 1 through 3 :.........$3 J,i.f7 c>,j S 5.Allowable amount of deductions from item 4 (see nole~):..•......., $ _ _~. L L .6.Net losses during administration ...•.....•.........•.................•.•.•,..... 7:Expenses Incurred In.administering property not subject to claims .........•..••.... 8.Total of items 5 through 7 :••.•.•..•..••.....••....:. 9.Bequests,etc.,to surviving spouse ..........••.••.•..•.............•..••.••....... o o 3L/-JJ./-70,J~JI'$.-.-.:._--_.-.- I1 10.Adjusted gross estate (see note")~. 11.Net amount deductible for bequests,etc.,to surviving ~pouse (item 9 or one-half of Item 10,whichever is smaller), , . N 12.Charitable,public,and similar gifls and bequests ,,..,..0 00 ,0 0 'Note.-See paragraph 1 of the instructions.I ' ·'Note.-Enter at item 10 the excess of "TOTAL GROSS ESTATE"over item 8,If the decedent and his surviving spouse at no time held property as community property.If property was'ever held as c:>mmunity property,compute the'"Adjusted gross estate"(item 10)in accord. ance with the instructions and example on page 32,and attach an additional sheet shOWing s~ch comIlutation... ESTATE OF ._.__....._..•_••~~.~•••.......••_..~.•._._.•_._.•••.••••••••••••...•__••__.~•._•.•.;._~••__ c...-16-7109lrl o Schedule o-Page 33 "~~""",:_~- $.._----_._-----_..._- $-----$----- $-------------'---------- SCHEDULE P TAXABLE ESTATE-RESIDENT OR CITIZEN Instructions.-This Schedule Should Be Used only for the EstClte of a Resident or Citizen of the United StCltes l~Total grOGS estate.............•.......•...•..•..••..•..........••.•••••••••••••••.•.........,..... . . .....$_.J..i_~_~}~_L:;l 2.Total allowable deductions ,......•..•..••••...•..$1_1__-~.~t."j.- 3.Specific exemption '..:','. . ••. •. . ••••. . . •. .. . •. . . .60,000.00 ~g~1 4.Total deductions plus specific exemption...•.....•.......•.'•.•..••.•.•.•••••••••..........••.......•........~, ,-,I'.\S.Taxable estate (item 1 minus item 4).... . . .... . . . ...... . . . .... . . . . . .... . . . . . . . . ..... .... . . . . . . . . . . . . . . . ...$I~0 ""~'1 ,5"~ SCHEDULE Q TAXABLE ESTATE-NONRESIDENT NOT A CITIZEN OF THE UNITED STATES Instructions.-This schedule should be used only for the estate of a nonresident not a ci:izen of the United States.See instructionsunder"Deduction of administration exper.ses,claims,etc."on page 39.See also instructions under "Specific exemption"on page 39 for amount of specific exemption and names of countries,the estates of whose residents qualify for the "prorated specific exemption.II Use Form 7069'(Schedule Q (2»insteCld of Schedule Q in case of decedent who at the time of his deClth WclS domiciled in FrClnce or Greece and was not a citizen of tho United States.(If the "prorated specific exemption"is claimed under the Iapanese convention. the numerator of the fraction set forth in item 7 is the value of the property situated in the United States and subjected to tax by both Iapan and the United States.) 1.Value of gross estate in the United States (Schedules A,B,C,D,E,F,G,H,and I):..•....•.... 2.Value of gross estate outside the United States,not including real property (must be supported by proof dQscribed in instructions under "Deduction of administration expenses,claims,etc.,on page 39)••••••••••••••••••••••••••••.1 _ 3.Value of total gross estate wherever situated (item 1 plus item 2)",". 4.Gross deductions under Schedules I,K.and L..•....•............................................••.•.•.••. S.Net deductions under Schedules I,K,and L (that proportion of item 4 that item 1 bears to item 3)......•...•...... 6.Charitable,public,and similar gifts and bequests (Schedule N;'. 7.Specific exemption of $2,000 (in estates qualifyinq for "prorated specific exemption,"use $2,000 or item 1 X $60,000,whichever is the greater).••••....••••...••.................•.•...•...••..•...••.....1 _ item 3 ,', 8.Total deductions plus specific exemption (item 5 plus items 6 and 7)'.....•......•..••............$,_ 9.Taxable estate (item 1 minus item 8):'.. . . . . . . . . . . . . . ...$ COMPUTATION OF THE CREDIT PART I-TRANSFEROR'S TAX ON PRIOR TRANSFERS 1.Net value of transfers..............•.....:...•••....................•..•.....•.•.....•••....•........•..$_ 2.Value of transferor's estate (adjusted in accordance with instructions for item 2)...............................$_ 3.Tax on transferor's estate (adjusted in accor~ance with instructions for item 3)................................$_ 4.Transferor's tax on prior transfere (proportion oE item 3 which item 1 bears to item 2)...•....•..•••..•••.......$_ PART II-TRANSFEREE'S TAX ON PRIOR TRANSFERS 5.Transferee's tax computed without regard to credit anowed under this sohedule.. .. ••. . . •. . . . . .. . . •. .. . . •. ...$_ 6.Transferee's reduced gross estate ~$_ 7.Transferee's deductions (adjusted in accordailce with instructions for item 7)••••.•.•••••••••••••••.•••••••.•..1 _ 8.Transferee's reduced taxable estate (item 6 minus item 7), "$._ 9.Tax on reduced taxable estate '::..1 _ 10.Transferee's tax on prior transfers (item 5 minus item 9);... •. •. • ••. • •.•.$_ PART III-GREDIT ALLOWABLE U.Maximum amount before application of percentaQe requirement (item 4 or item 10,whichever is smaller)...,..."$_ 12.Percent allowable i3 • 13.Credit allowable (it9m 12 X item II):.. . .. . .. . . . . .. . . . . . . . . .. . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . ...$ T' 'f T " Name of transferor Transferor's residence at time of death SCHEDULE R CREDIT FOR TAX ON PRIOR TRANSFERSIDateoftransferor's death ESTATE OF ...nn ••nnn_nn_n__n __•n jnn n .n ._n _Schedules P,Q,and R-Page 35 ,, INSTRUCTIONS FOR SCHEDULE S":"'Continued - daughter's inheritance is $65,000;consisting entirely of stocks of M country corporations.The amount of the M country in- heritance tax imposed on the daughter's inheritance is $19,500.M country did not impose inheritance tax on the bonds issued by the M country corporations. -.Schedule S is filled out as follows:- I 1.Amount of estate,inheritance,legacy and succession taxes imposed in the above country attributable to property situated in that country,and subjected to such taxes,and included in the gross estate (asdefinedbystatute)$22,500.00 2.Value of the gross estate (adjusted)$200,000.00 3.Value of property situated in that country, and subjected to death taxes imposed inthatcountry,and included in the grossestate(adjusted)$65,000.00 4.Federal estate tax before allowance of creditforforeigndeathtaxes________________________$25,820.00 5.Amount of Federal estate tax attributable topropertyspecifiedatitem3(proportion ofitem4thatitem3bearstoitem2)$8,391.50 6.Credit for death taxes imposed in the above country (item 1 oritem 5,whichever is thesmaller)------~---------$8,391.50 The additional sheet showing the computation of the amount of inheritance taxes entered at item 1 sets forth as follows: Computation of portion of M country inheritance tax im- posed upon the widow's inheritance attributable to property subjected to Federal estate tax (instructions for item 1 ofScheduleS)- 1.Amount of l\I country inheritance tax im-posed on the inheritance_.$21,000.OQ 2.Value of property situated in M country,sub- jected to M country inheritance tax and in-cluded in the gross estate $10,000.00 3.Total value of property subjected to M..country inheritance tax .___$70,000.00 4.Amount of M country inheritance tax attrib- utable to item 2 (proportion of item 1 thatitem2bearstoitem3)._____________$3,000.00 Total oM country inheritance tax attributable to property situated in that country and included in the gross estate- 1.For widow's inheritance .•$3,000.00 2.For daughter's inheritance ~._$19,500.00 3.TotaL $22,500.00 SCHEDULE S CREDIT FOR FOREIGN DEATH TAXES List all of the foreign countries to which death taxes have been paid,credit for the payment of which is claimed 0l'!-this return _ .ii-~~~dit"i~-~i~i~~d-f~~-d~~fu-t"~~_;~-p~i~lt~-~;;~~-fu;:;~-~~~-f~~~ign-~~~;t;y~-~-~~p~t~-th~-;;~~dit-f~~-t~~~~-p~;id-t;;"~;;~:;;~~;;h_y-~;-thi;-;h~t-~;;d use a separate copy of Schedule S for each of the other countries.The copies of Schedule S on which the additional computations are made should be attached hereto. The credit computed on this sheet is for ..• • _ ,(Name 01 death taxor taxes),.',,' ~• . . • . •..._.~._____imposed in __.~.~. . .__. •_ ,(Nameof country) Credit is computed under the _... •~..~~_ ,(Insert "treaty"or "statute"),. COMPUTATION OF THE CREDIT (All Clmounts cmd values shown hereunder must be entered in United StCltes money) I.Amount 01 estate,inheritance,legacy and succession taxes imposed in the above country attributable to property .situated in that country,and subjected to such taxes.and included in the gross estate.(as defined by statute)....$..:._ 2.Value of the gross estate (adj~sted,if necessary,in accordance with instructions for item 21.,•..••,•••...',' ','..•..$_._ 3.Value of property situated in that country,and subjected to death taxes imposed in that COWttry,and included inthegrossestate(adjusted,if necessary,in accordance with instructions for item 3)'.'.•._.. . . . .. . . . ....$ . • ' 4.Federal estate tax before allowance of credit for foreign death taxes.."'.':..$...__.__• _ r S.Amount of Federal estate tax attributable to property specified at item 3 (proPortion of item 4 that item 3 bears to item 2)'.. . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . .. •. •. •. . . . . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . •. . . . $_ 6.Credit for death taxes imposed in the above country (item 1 or it9m 5,whichever is the smaller).. . •. . ••. . •. . ...$__.•••••_••__._ ESTATE OF ._~••• •__-• • •._:_ cnr-16-7169ll-1 Schedule S-Page 37 "-..t.•·:c.AA.........-&...:;;;..-.:---~... ;-. .. • DECLARATION Ij 1 •J I~, 2~1v)~~/..;)~J B(tf,.~O~/YO/\·.s6l!at...f I (l,-·-·-----------·-·---------(Add'ress)"·------·--·--------·-...-.- .. L~_L__1J.~.f.~_b__h_~__t~Pl~_0 .~r-(SIgnature) ____._.~l!_~t.\.~(.- (Dote) We/I declare under the penalties of perjury that this return (including any accompanying statement:!)has been examined by us/me;' and is,to the best of our/my knowledge and belief,a true,correct,and complete return,made in good faith pursuant to the Internal Revenue Code and the regulations thereunder.. ) DECLARATION or ATTORNEY OR AGENT PREPARING RETURN I declare under the penalties of perjury that I prepared this return for the person or persons named herein;and that this return (including any accompanyingschedules and statements)is,.to the best of my knowledge and belief,a true,correct,and complete return based on all the information relaiing to the matters required to b~reported in this return of which I have any knowledgp.! '.'I I')(r /' 1 I r.,;.Z(fl ll'.,-/,...J)\,\J ',,1 "f", ______~_~_:L _~_~..)~I__-:A.JQ.1p.h---~-~-~-0'1-~-~--------.-~------._._.fJ_li_Q!!_!~i_/L!.!L£_t--T!.-~-.-.~--· (Date r (SIgnature)(Address).. TABLE A TABLE B CO?atPUTATION OF GROSS ESTATE TAX I Rate of Taxable Taxable Tax on tax on estate estate not amount in excess over equaling .exceeding column (1)amount in column (1) (1)(2)(3)(4) (Dollars)(Dollars)(Dollars)(Percent)----_....._-------5,000 ------------3 5,000 10,000 150 7 10,000 20,000 500 11 20,000 30,000 I,600 14 30,000 40,000 3,000 18 40,000 50,000 4,800 22 50,000 60,000 7,000 25 60,000 100,000 9,500 28 100,000 250,000 20,700 30 250,000 500,000 65,700 32 500,000 750,000 145,700 35 750,000 1,000,000 233,200 37 1,000,000 1,250,000 .325,700 39 1,250,000 1,500,000 423,200 42 1,500,000 2,000,000 528,200 45 2,000,000 2,500,000 753,200 49 2,500,000 3,000,000 998,200 53 3,000,000 3,500,000 1,263,200 56 3,500,000 4,000,000 1,543,200 59 4,000,000 5,000,000 1,838,200 63 5,000,000 6,000,000 2,468,200 67 6,000,000 7,000,000 3,138,200 70 7,000,000 8,000,000 3,838,200 73 8,000,000 10,000,000 4,568,200 76 10,000,000 ------_..-......_---6,088,200 77 COMPUTATION OF MAXIMUM CRE'DIT FOR STATE DEATB TAXES Rate of Taxable Taxable Credit on credit on estate estate not amount in excess over equaling exceeding column (1)amount in column (1) (1)(2)(3)(4) (Dollars)(Dollar3)(Dollars)(Percent) 40,000 90,000 ------------O.8 90,000 140,000.400 1.6 140,000 240,000 1,200 2.4 240,0.00 440,000'3,600 3.2 440,000 640,000 10,000 4.°640,000 840,000 18,000 4.8 840,000 1,040,000 27,600 5.6 1,040,000 1,540,000 38,800 6.4 1,540,000 2,040,000 70,800 7.2 2,040,000 2,540,000 106,800 8.0 2,540,000 3,040,000 146,800 8.8 3,040,000.3,540,000 190,800 9.6 3,540,000 4,040,000 238,800 10.4 4,040,000 5,040,000 290,800 11.2 5,040,000 6,040,000 402,800.12.°6,040,000 7,040,000 522,800 12.8 7,040,000 8,040,000 650,800 13.6 8,040,000 9,040,000 786,800 14.4 9,040,000 10,040,000 930,800 15.2 10,040,000 -----..._...._----1,082,800 16.0 !I I J G t..EN f0 P~-ISCTfESTATEoJ!....• • • • • •••_ Page 40 u.I.aQVUHlllUIT '.,NTINGO,.,.ICI cnr-l&-71609-1 c· NO.64'of 01965 A~A. and #74 of 1967 O.C. DATE ESTATE OF J.GLENN PATSCH,DEC'D ATTORNEY _ Itl LTNF AID FILE: Feb.23,1968--0PINION,MARINO,P.ID. #74 cf 1967 oc $5.00 Mar.lU,1968--CORRECT$D ORDER, #74 of 1967 oc $2.50 Nov.6,1968--oShe~f'~Returnon~i~$2.50 #64 of 1965 AA ."..·:~·7! '"", IN THE ORPHANS'COURT OF WASHINGTON COUNTY,PENNSYLVANIA Estate of: J.Glenn Patsch, Deceased ) )No.74 of 1967,O.C. ) -"t ANSWER TO NEW MATTER IN DEFENDANTS ANSWER TO PETITION FOR CITATION IN ABOVE CAPTIONED PROCEEDING 1.The averments of fact in paragraph five (5)under New Matter are admitted to be correct,but it is averred they are im- material,not relative to the matter before the Court as the Wilma B.Patsch Estate is not a party in this proceeding. 2.The averments of fact in paragraph Six (6)under New Matter are admitted to be correct,but it is averred they are im- material,not relative to the matter before the Court as the Wilma B.Patsch Estate is not a party to this proceeding. 3.The averment in paragraph seven (7)under New Matter that the Executor of the J.Glenn Patsch Estate on August 22,1966 delivered to Edward p.Patsch,Executor of the Estate of Wilma B. Patsch Estate a check in the amount of $2583.12,payable to the Wilma B.Patsch Estate,is admitted.It is averred this is not relative to the issue as the pa}~ent was not made to Edward p. Patsch,individually,and he has never received this money from the Wilma B.Patsch Estate.It is further specifically denied that this payment was inadvertently,erroneously and unwittingly made by the Executor of the J.Glenn Patsch Estate or that the estate of Wilma B.Patsch was not entitled to said sum of money or that it was an overpayment.It is averred that said payment was made without request for same by Edward p.Patsch,Executor of the Wilma B.Patsch Estate and for reasons set forth in the letter of Adolph L.Zeman,Executor,to Adam L.Sanders,Attorney ~.•. ~. ~ .ijrn for Wilma B.Patsch Estate,dated August 22,1966,a photo of which is attached hereto and marked Exhibit A.It is further averred that Edward p.Patsch,Executor of the Wilma B.Patsch Estate believed at the time said payment was received,that Adolph L.Zeman,Executor,had collected said sum,before paying it,and that it was not paid out of the $30,000.00,reawarded to the Executor of the J.Glenn Patsch Estate,until the Federal Estate tax return in said estate had been audited,which $30,000. or the part not needed to settle the Federal Tax,had already bee awarded by Court to Edward p.Patsch and Glenn F.Patsch,half and half,as sole residuary legatees. 4.It is admitted that the averments in paragraph Eight (8)of New Matter that the Estate of Wilma B.Patsch has been re- quested to return said sum of $2583.12,and failed to do so,are true.It is specifically denied that said failure to return said sum has rendered it impossible for Adolph L.Zeman to make distri bution in accordance with the Courts Decree of Distribution of August 25,1965,and averred if he misused the $30,000.00,or any part of it,reawarded to him,he did so at his own risk,and should be surcharged. 5.The averm~ts in paragraph nine (9)of New Matter tha Edward p.Patsch is one of the heirs and devisees of J.Glenn Patsch,entitled to share in the distribution in his estate,and is also Executor of the Estate of Wilma B.Patsch and sale devise under her Will,are admitted.It is denied that if the Wilma B. Patsch estate retains said sum of $2583.12,that Edward p.Patsch will be unjustly enriched.It is averred that said sum was due the Estate of Wilma B.Patsch,as Adolph L.zeman,Executor,paid additional Federal Tax on $7749.37,of assets in settling the Federal Estate Tax in the J.Glenn Patsch Estate,a~ounting to $2325.74,and thereby caused the Wilma B.Patsch Estate to pay approximately $700.00 more Federal Tax.It is further averred --_.~-I• Adolph L.Zeman,Executor,should have delivered a second check for $2583.12,to Edward p.Patsch,individually,and that it was requested.It is further averred that Adolph L.Zeman,Executor, has made no application for refund of this $2325.74 additional tax paid,insofar as Edward p.Patsch has been informed. 6.In answer to paragraph ten (10)of New Matter,Edward p.Patsch,denies that the J.Glenn Patsch Estate is entitled to reimbursement from the Wilma B.Patsch Estate in the amount of $2583.12,or that said sum should be deducted from his share of the residuary estate of J.Glenn Patsch.It is averred that said sum was due the Wilma B.Patsch Estate or Adolph L.Zeman, Executor of the J.Glenn Patsch Estate should be surcharged for paying $2325.74 additional Federal Tax on assets he did not have I and causing the Wilma B.Patsch Estate to pay approximately $700.00 more Federal Tax on its share in the same assets. WHEREFORE,Edward p.Patsch,original Petitioner,showing as aforesaid,prays your Honorable Court to order Adolph L.Zeman, Executor of the J.Glenn Patsch Estate to distribute and pay in full to Edward p.Patsch,one-half (1/2)of the reaward of $30,000.00,plus $2857.71 overpayment received,plus 1965 and sum of $16,863.22,plus interest on same from Novecber lst,1966, 1966 interest on the $30,000.00,of $1075.59,less $150.00 accountants fee and $56.~5,paid out on 1966 Income Tax,or a IIInetI I all in accordance with the Decree of Distribution of your Honorable Court dated August 25~1965. ~ 'i fM~P~ Edward p.Patsch ....."""","W;'........ COMMONWEALTH OF PENNSYLVANIA) COUNTY OF WASHINGTON :55: ) Personally appeared before me,the undersigned'authority, Edward p.Patsch,an individual,who,first being duly sworn according to law,deposes and states that the facts set forth in the foregoing Answer are true and correct. CkRP(l6L ~. Edward p.Patsch Sworn to and subscribed before me, a Notary PUblic,this 1//t;/day o:f ~4u:t ,1967. ,--tib.-J Jl g-.Jpu G, Notarl Public My Com.Exp:March 26,19~7 Washington,Washington County,Penna. .\ .... .. ., .,,. ~-i ' ..-L "J I ..•. ! • ',1 QcAJ2/IJ ,f~:J 'W1 a'J1---7-~---O ----.' 'f ¢': "'"<>-;.8 Q ~~ltp.~~~{}f '":91\i v '-.",!I ",-a·=~-.~~~-~~F"' '\ IN THE ORPHANS'COURT OF WASHINGTON COUNTY,PENNA. No.74 of 1967;O.C. Estate of: J.Glenn Patsch,, \, Deceased '~,'. ANSWER TO NEW MATTER IN DE- FENDANTS ANSWeR TO PETITION FOR CITATION IN ABOVE CA?TTONWO PROCEEDING '/-~~- c. -~•.I'~:... Q ;;; WASHINGTON,FA. WA$JIINCTON TRUST BUILDING I ?-'V --7'1- =~ ~",., (:-""'2--==-"'0 I fl:=7 CJ ';',) ~~:: ."~:; .,c' In ;~R ~v~~\~'"..·~II i ~~ 'ADAM L.SANDERS L ATTORNEY AT LA"W ,,; :-----... \~...,;"::'...2 "......''",~.<: .'c,") • ~""""""-- (:) ___L ~ ".), I 'I I -(,. J ~.....'...A'-, c...,\! \ ·1...;,1 ,".' ...,." '.,'..:'.,. 'I., ':"~."':'" ,"'" "J. 6000.00 1500.00soo.OO 2000.00 600..00 ,}OO.OO ;030..00 100525000 1200.00 lS065.00 650000 750.00~h" "·28533.37 .16.l~OoOO 2200.00 '.'300000 "525.00 •;'r".' .,'~0 :.' ,. "l' '.,, 'r' ..",.:'. ..' "'", .,. •'C'.,,.•••"1,:'.. 'a..,-,••.'j • "~.,;.....~.-",-'.... "..'". • •~.:'i.-.,'<:.: /....",0';,\.-, .'.':'."·,'1....__..-....~..CD'_AiJg6iD..,~""t......""l .'".'.-;;~A ~"'l1 ~7......,t.\-.to "..·G;,p'V.'~•." ,",.',. ,.'.,,:.'.:'.,.-','•.*'~~"'",.! -'.<-.'.... .,...' ,~.,... "..'. Hoists Ja.cka and StcmCiS Toola and Equ1Imlent .CQmpre~ftQ~;J 1-1180 Toola ~~op~rty values.. . , ,Chart1era ~. . 'Houaton Boro : ~rorth Stro~bM.e crwp Oanonsbur~t Bore,",'.', 18000.00.~.'~..',.:.,,..'.;.."..lb~'75 '00 •..:I..(",~I,.. ..,. O'..ltote.nd1D8 Rece1vables from .Property sa.1.ca.,''2054.00 Caah on Hand "..,,',',';~ 'Bonds and stocks.",.""..."..' "Cred1t oa~ds a.,;ot .,. ~1ro ..Batteries.tmd Aocooa~rlea,' ,Se~oe station Equlp Furn1ture &:Otf100 Equip ;., ..'..Parts.~d B1ns ~." .,.-.~ " ,:'.t. ...·., •'i·~, ·...~ ,\ Acc.t Reca1W.De t ..I.' ,.'.;.~...... ...I t t .. -.., -).'.'. l~,....t ".:' ·, II':.".\,;':,.,,'..','Shop EqU1~ent ~~'...~ \\. \ ." " ." .-//.-~?:"'6! . ..-->~. "·.,c.,•.._.,,,.~._••.~••~,,;.••~':'~~_...::~...:~..;~iw..~.~~~.....:.;,..:~~~~".:.:~~.1.._. .1 \.., I I.C.Patsch &Sons as of Morch 22,1964 ;I :i i, I, I,I• i. 11" .J..~ Chimento 288.63 Christoff 8.51 Ciancl1i L~~ber C0182.05 Codol 18.89 Cowden,~m~28.15 Cowden,Loia 61.89 Cowden,Robt.159.07 Co~denp Russell 1~9.7l Craig,John 90.16 Crecmer,Mrs.72.80 Crcemer,~rn.38.64 Culp,'Linn 15.90 C~~er,Jemes 274.90 Cumcr,Jos.6~.50 Davis.Ben 4.00 Davis,JeGn 100.00 Davis,Eohn 6~.59 Docker 269.64 Dentel 24.44 Dietz,Herman 465.79 Chucks Body Shop 86.74 Dodd,Dan 386.76 Donaldson 10.48 Doresio 55.15 Douglas,Ray 169.10 Dugan 106.00 Dykstra 85.46 Edear,Harold 260.02 Egbert 4.?0 Englehart 16.70 English 16.80 Eneott,Joe 65.75 Ferris,Jack 67.65 Fife,Ray '41.06 Finney 22.92 Fort Pitt Bridge 79.95 Fort Pitt Fixtures 73.65 Foster 20.21 Fowler·8.38 Furman '64.)9 Gt.rnble 24.42 Gasmire 8.88 Gifford,Rev 345.49.Gisoni,lUke 53.73 Guttman Oil 754.54GuttmanSupply46.20 Gray,Cl~rence 4.70 Gray,Gene 293.46 Greco,Ralph 82.27 Green Bros.46.00 Green,K~nny 127.07 Griffith,Max 20.46 Griffith,~~.Jr.-79.70 Grufmon 36.33 8.93 102.50 36.00 30.00 15.00 369.'00 59.50 37.44 84.04 140.02 47.66 41.54- 35.00 14.90 ,757.19 ~4.'i'1 3.05 39.80 96.54 9.65 59.4724.17 6.15 36.84 60.00 19.72 75.00 49.9110.00 75.9729.0728.77 17.00 29.05 3.00137.05 68.98 "454.00 15.60 33.05)17.9732.0) 51.44-638.61 267.62 40.07 79.596.51 162.50 13.54 131.82 36.08 6.43 Adams Aboris Alderson ..T. Alderson,"'.Ambrose Andresik (2) Antonelli Arts Auto Art l;!etals Ashof! Bc:llentine Backncr Bo11nzki Benner Barnes' B~d:lllion Belinsky Dell Bernardw.C.Black Agcy Blsnock Blue Star Bodenham Bodner DO\'lers BOWInnn Braud1gan Brig1sh Broda Bromley Drown Brown Brown Buckles Burgess Burns Bush Bdrbour Cn'in !,11lling Co. Pottery CnntsrEll CarIB Cleaners Carter..A.M. 'cart.er..A. Csrter,Elden Csrter,Larry Caruso Casper Cernova C1nd-;r Block Ch,:1rtiers h:"s '.Chile \ ~,.i '-'\ \..~i i, ·i 1 1 4 Hall,Henry 6.80 McClure,Bob 46 0 02 Htll.Hay 141.08 Navrolsk1,Edwin 9.00 Hallam 152.79 Oliverio,Helen 201.93 Hampshin 35.00 Palm~r.Jack 9.15 Hanna,Mrs •.John 76.96 Pates,W111itm 74.95 H.&D.Co.2J.45 Paxton,Hugh 8.JO H.&M Const.2~.94 Pe11igrini 3005 Harkey.W.F.1014.52 G.W.Peoples 37.87 . Hart,Alex 4.20 P~ta 45.34 Henderson.C.37.84 Peters,R~v.449.Sg Herriott,Roy Jl.08 "Pct~rson,Don 50~90 Hervol,Dorot.hy 10.45 Pittsburgh ,Coal 74.2L.. Hincy,\1m.11.25 Plunkett,Paul 126.16 Hoch,Stan 45.95 Polk,Louis 60.00 Horton,James 18884 Po11Bck,John 38.25 Hott,James 62.00 Po11prd,Robert 115.19 Houston.Boro 57.07 Powell,C.25.00 Howcraft,Anna 39aOO Powers,Rache~l 42.20 Ingram,Dr.21.89 Quattro,Louis 8.40 Johnson.,Austin 19.50 .Raciborski,Jos.163.)0 Johnson,ilr~w 26.35 Ramaee,Robt.33.37 Johnson;R1ch~rd 294.09 R6nkin,Rev.221.79 Jones,Jack 02.20.RAnkin,Hupp 50.00 Kavou18kis 187.49 Reed,Lydia.3.50 Ke1so t Kenny 23.04 Reynolds,Nency 10.93 Kelso,S.N.0.15 Reynolds,Rodge.14.14 Kerrig~n,John 5.10 'Rhodes,Jack'38.59 Keystone Gas 161.88 Richards,John 44.73 Kovctch,John 9.40 Riggle,Walter .9.12 Koziel,John 244.00 Hittenhouse,Frllnk 7.04 Ku1ckouski,Steve 13.85 'Rocoo,Louis 73.03 Langley,William 90.80 Ross,Max 98.65 Lazor,Mike 85.93 Rozanc,Anthony 90.59 Lauze,Ray 24.02 Rubottom,Ep.rl 75.66 Le\'lis,Dave 37.03 Rukis,William.41.57 Liechti,Walter .131.39 Rydle,Beatrice 22.58 Lindstrom,F.C.317.90'Roth,Harold 77.25 Livingston 20.41 Schmalz,William 3.40 Luisi,Anthony 107.34 .Schmidt,Ed ~.37.00 Luldch 29.63 .Schmitt.Catherine.24.10IvlcKnieht~Jos..12./~2 Schultz,Donald 6.35 ~ccarrelt,Leman 92.03 .Scott,Wil11~m 48.00McC~rrcl ,R~L.436.54 Sefton,John·85.19 McClure,Harold 32.28 S~sler,Altha 15.89 McCullough,Nelson 64.50 Sethmao,Albert 5.00 NcClure,Bcm55.oo ..'Shoupe,Jim 65.10 McCormick,Roy 92.59 Shean,Jim 24.23Kc11h~ney,Hey 25.14 Sharik,Frnnk 59.17 2.~cGo\'lan,l vJilliam'185.21 Shubs,Paul 20.00 McMillen,Orvill 92.98 Shuster,Robert 207.92 .HeNery,Ann 11.66 Simpson,Normsn 83.99 NcNary Earl 46.94 Smith,George 24.98 McWilliams,Earl 10.23 Smith,Kathryn 397.16 1.J1c\'li11iams.John 423.93,Sobrash."Y .91.35 14ath1a,Vic 18.51 Soak!,Franl~.70.95 Monda,John 19.07 "Speakman,Wil11em 5.95 Moore,Malcolm 463.)5 Sprowlo,Jay 'l095~12 1 ~Moore,Russ6+110.24 Steele,Helen 27.19 i "':!CyOTS,Mabel 11.44 Stevenson,Ed 24.05 ~ /."".',"_.~..',.:,.h'-H~""·""""'-"':"""""""""'_"'---"''''''..•~_\"'.•:~;.~""".......;,.-.•..u...~"'~........,.....'.................."',',......._._.....~..,.........J .,,, , I , '.1.1'~ Jj J 1 ',1 " i.IIIl<ii ~,.':J 'c'l ·1 1 J, .1 l; 1 • !.,:..~.~..-,~,: '. ," ."~...- .'.~ ..", .' -". ~."~;•:r", ",' ,.'." ,, i.'," .':. '••l' '., '.. .. ".' ...\ ", ,..'.--~ ,.~ ':...~.,.. .'..•".'* .~. .\' :L" .....<t:. I"·"·•i'. ".'.-:".~~.~.~".""..".' ..:....:' :.,',',' ..,'::,';':t.'," ,...~ "" ,.' ....,. ~,: ,'"...~...~.'.'"'..'..'.."'.,~ •'.0 <.' ".~... .;''. h "I.~.. ,.. ,. ..~.,.' ..:',~.;."..j ~.... 435.70 112.40 76 ..11 9.06 72 ..47 95.82 13.70 1U8 ..UO 47.78 184.15 ' .51.1~.. 7b.2J 4.,.28 5)..1~5 3.23 44.07 .687.42 164l~.67 dtihm(ufi 11.55 27.71v ,'212.25 ,86.42 169.40 69.93 ' 13.31 12 ..60 10.00 25.00 23.25 '.' 109.00 22.10 35.9.3 '...1901.80 6.68 33.9l~ 296.25 .2mS:J'7 ..,....'..::' "..~. ."'....'. ......; Stevens,Ho\yDrd Stev~ns,Jim Stewprt,CI~rence Stsdnbrook,Ray Strimel Bros. :Strimel,Norman Schussler"Phil, ~ickles,Halden 'l'arolli,Vii lliem Templeton,Milton Templeton,Willle.m Thom~s,Robert." Thomes,Ronnie . TolD nd p Walter ,Tollge~e Service Ullom~Harry , .Johnson,Hflrold' Veron!l}.DanH.V.i.D. Wageett»Chas. riarholak,John AAA Wep.ver.Cha s. \l'eaver,Harold' \'ihite,Shan ' ~Jh1te.t'/ood'. Whoolery,Robt. Wilkerson,Edison Williams,Allen Yanosik,John Yingling,Harvey Young,Dr/ayne ' Zalazn1k,Frank, Zern~n;Robert' ,ZielinskyZemsky , .Young,Gary ,:Tt)~al ".''.'"., ',.j ;.'\••,....",', ":.,.,~'I ":C',; /_;~-----'--_---'-'--'-"-----'-,--"'....--'-'-.:~.~~---'-'----'------,~----'-,~-~=--j·....:--'-"c~·~'~,-~_.,~_";_._",·~~,;,;.~~-,,-=,,:,'_,,_.,,,~.)L..,~,~./,:'......';"~"",~~~"',;'l...~.~:"l··<"'~·':'·<:;.-:~_,~4"·:''''j.~.,,-..,.,,~,...;:,At"_e,,,'.<.~ I, Invcn l.ory of used ca.rs aa of I·laroh 22,1964 Sor1o.1 If Kind ,Type Va.1Ud \JOO1\'rl~j.3l~'6 60 Ford \1u6on 5"/5.00 5502227498 60 Plymouth \"laGon '575.00 \ 1I266124366 59 PlylilOUth .SedD.n :;00.00 'I 56021193:54 60 DodGe Sedan 575.00 II-i9KC146729,61 Ford Onv:Conv 875.00 tOlC6-n.;211164 60 Chev Conv 900.00 137BGl18332 58 Fon Sedan 27S.00 I3217108751j.Dodge Sedan 75 .00 '1 LP242964 5)"1 Ply Scda."l 175.00 j!80342969 50 Dogo Trlt To,~T~ok llOO.OO . 4212120377 61 Dodge Sdn 875.0",, I 2\'l52~'ll01977 61 Ford Sdn 895.00 'J :1\312111222 59 DOIlSG Scln :;00.00 •l'5422126556 62 Dodge Sdo 850.00 35003~1l-5 56 Dodse SdD 200.00 3101161274 60 Ply Edn 575.00 i R 723154 54 Nuoh Sdn 75.00 1G18B;tY 2387~58 Ford Sdn 275.00 11635723657PlySdo225G00 A59 N 233125 59 Chev Sdn '.00.00 i 3525:::475 57 Dodge Sdu 225.00 1: 5413207 60 Renault Sdn 150.00 r3222401455Dodee8dn25.00 'jN755H2112855.Pont1ac Sdn 35.00 158Ply't!agon 150.00 V27275 59 Raob1er \'1agon 75.00 j55J11E53496I·t 55 !-!ercury Sdn 25.00 55 Ddo~G wagon 25.00 j 59 Ply Sdn 150.00 ..':I~8'.';F520103 58 I,!ero ..;Sdn 75.00 35009410 56 Dode;e Sdn lOO.OO 14201847 55 Ply Sdn 25.00 II 35274188 57 Dodge Sdn 100.00 i 368H5ij025 55 01ds Sdn 50.00 ,), 35U97611 56 Dodge Sdn '85.00 ~ LP148J 53 Ply Sdn'50.00 5J}l·r.E81693M 54 Norcury San 35.00 '..,"-,1 USBTl18764 56 Ford 'Sdo 50.00 ..I 35'.;90860 56 DodGe Sdn 40.00 :t.• 16397168 57 Ply Sdn '75$00 .fI J:J>2107373 5a Ply Wa.gon .SWl \'lag ,75.00 .. 'j 16213171 57 Ply Sdn 10O.OJ'la31211~36617 59 Dodge Sdn Scm 300.00 i LP2~.045::-1 53 P1'r 'Sdn 100.00oJ, 18100522 50 Pl'S:L'"l 20.00 .~ 59lJ1OO672 59 Chev Sdn 300.00 15\.;02 4919 57 DeSota Sdn 200-00 j1633:;'3(;9 57 Ply Sdn 100.00 37299790 57 Dodge,san 150.00 J VB57H123108 57 Chov \18.(5 100.00 ." -; 42D225~82 00 DOclgG ' 'Sdn 4~~.OO ,.l 55211.40'2 ,55 HorcuIT S<1n .00 ~, 92139 56 Int 'rruok .250.00 , j .~ '"l '! ~ ".'~ ,,'._,._~~_,~-""'""'~~~~·_;;-'<"~L""'~"'~~!_"~'~~:;;";'~·~,~~I,(~~.k..,·~....~._~;._~~~~~~..h.,.._-"'".,~,"~"i..'''M'.;....:':':,d..:..~...,~,..,';;':'-~ .".' . " 200.00 . 250 00.75~OO l;.oo .00 "5 00~.. • ., .i ~,.<t I ",.......-.. " " ....~"-. ".~. t '.~ •J... ,. .~..,'~ " " .", .,~"" ."... .. •P,,, " '. .',". .'-,:.... ,~o D9Q.go Dlm\p J+9 Panol Dd fS ..50,lnt .U111t Van ,', 59,Dodso , .',".. 41 Dod{)e . '..::".'..',' 5S:iiy 5~:-.:.<":~::,""."55'Ply'.' .,.._.,.:...~"", 53'Ply'.,.-.t,. .•'. 59 stu~Bot\v . ,..... .55'Fly ·57 DodgG59,Ply 55'Doase 57'Do<1go .,' "·. .. I ··' t 82552''{26 81171t233 AB3064D4 M3~2112011 I ...,'.. (~t : , t,· I.II.I··...... I:-..,I"".~,. I',,' .'. .... " I I }:t . I ' ".'-:..'.:-.," ~.'.' ,;'..'.:of,"•...'t~• t, .I ,~ '.'.' .::::.:: .:,',''..,., "''''. .~'."I,". ",". .',' .'. "... 't' ". "..' ·',4 -,..' ." I,•~.".~~:. '.~.'.'.: I : I,, ..I "I .'t·'. :. i '.... ',' f,"",.(,'~,;."",) j,....,t ."'.,',' ,1<". I·.-:,.,.. ~".. .;I,,·'.,,'.-"/ ""••c .....,."_. ,."'to "., ~.~...~. ",.'.' ,".., ...._.... Acct ?aynblo aG of H~~ch 22 59 Jh27 ' 43.'75178.00 60.00 60.00 22.Jl8 52.00 105030 1027.23 ' 46.56 ' 168.18 7.665.88 .6.~326.49 181.74 2073.4552.00 349.70 ,268.56 314.2J} 79.33 157.89 4.00 1.69 i.5128.48 88.10 .22.62 24.32 10.00 7.72 3651.72 48.33 27.95 52 J1-9.3620.80 121.48 2062.26 ~8.25 ltl •.2S 3.25 125.00lS.76 351171~ 325.00 331.1~ 212.05 90.00 5.33'84.05 37.65 ..., Factory ~'Io:.or Parts Co l~atl Adv Co \'lJPA ~'ash Adv Co ~atl Auto Dealors Aaaoo /Hushing Obl30r"ior WAR 0 AGhlaud Rof1ning It II And;;BroG~'T1ro Amotc~~Pr1nt1ng Co A!:ol"'lcan Pam Core B1l"oh Bu~1noGs.~i~h1naa Bonnott.Auto Supp11er BellTole Ccon 011 Co Carnes Auto \'i'l'Elokers Chry8101"Corp Col Gas Co Canon Auto . Coll Tiro C1t1zons Water Co .Crad!t Burea.u CUI:lmins Hator Co Duq Linon SOrv1C6 A E Dyke' Dail;Notes Falconi rIotors Rorror1 .'i'lm"holakIJ Yerui:o _', Guttman 0..,1 Gonor~l Auto Trim Genera.l \'101c11ng Gooclyoal"T1re &Rub ..o.., Gut;'1:\un SuPPl1', l·~aJ:'chc:mto Ins Aetna Ina ,H \'1 J-o:i.:fo~s Kor~~J Co L1&~ton1n3 Express no.~or Body l~~onoa Flower I-I &1l z.!~\itot ~hn H Hl11sr Hopar Ed{;.Co :?Ail IHS Xruat P RR co F1tn9Y Bowes Po~~~~rod Electr10 F-~.~tn::'urg Auto :ii>pr1ng.."." ."-.-,,;',#_*+*'h~"+di·;'ti' PyrD.Oid 011 Co 200.06 Rt #19 Auto 117.24 Rogonoy Products 120.65 Roy &RoynoldD Co 47.70 Std Auto Partn 1109.88 steral'to Spoed 27.00 Shuron Auto lirockers 70.00 stol:::'.rt Eotors 4.ir5 l!~l"CD.nt'.lo Tc.x 4.34 XOl:n (j;County 1.98 County Tuxos 394.20 Rocd '.:.a::t 4.02 R d in 6.P.n0::1.0\n.1:'OJ, SOhool Tax 14.34 l:ard Electric Co 172.l~3 Adamo Avo Station ,46.94...._--_.."""_.......__.. ~ote.l 23723.35 ...- .~,-. I' ----------------------l ;'I ,, I, ii I " Art HotD.la Prod, C1o.nol11 NoiGh DeG1onann1", -' Re~o1ablo from salo of ~op~rty I C P~tooh &,Bons :24000 00 27-,93 0 00 ln6000 ,185.00 ' •••J ".."" t, .........' " ,' " ,", '".. 5 " " • " \; •1 .', ','. ", '"..','.~':- T' ,,' ,',," '>_1 ",';..'~n;...":.:..&~_.:;,;·,"_';.._;;,-:~:r.r,:>_,~~;;~·.:..~_O,j!f:e~~~~~·::J;:.·~~~,..J·*'i-....·S;;,.·,.:~;..:-,ii.;.j4~r ;.'.':",~~'A'"..ll;''''aMo~J'·l'.... .. Liabilities as of Na~ch 22 I C Putsch &Sons Inc Aceto Due as of March 22 Pay Roll Propert...tunIS .'l'otal 23723 ..35 1878.62 . 3768.32 29371.09 :I~ I, J'I.ssats,238297 ..37 L1abilities 29371.09 Total number of Shares 3270VOO Approx value to ¢~65.375 Total ...._---------- 21°926.28 p~r aharG Ij-j t 1LI' •II J, • I1, J I~ ., I,, j 1 .1·, •'.,,. ..JI*~'.•~••:.., t, e 'ra.:C0S IC.?o.tacU &.Sona Ino ;. Chc.rt1oro T,·rp. Houston Boro Canonnburg countj 13.67 't5..67.7.Un Lj·2.00 1.;.32026 .l653.1r6 251.3°462Q17,. 8.09.61 ~otal .------- ..3.768.82 f,• ". ,"" '": .:i I '. :j 1:; ~ j lJ 4'.j ", .I< 1,I.1 i\!I,'., •:;,.,,~ .j 1 ',1 1 'j ,I 1 j "., L,~-~ 1 'i J.:.. '., ., :..,,..' ~f ,t ,~ .... "', .•,.•.•-,I .'.'..... "-:......',.~ ",.4 "i " \. .' ~'." ,;''.. ~..I~j I, Propert.J'Value Of I C P~tach &Sana Inc I .~'....i .....~,.r(.·," Boro of Canonsburs Fa j •~I 'I 1215.00 2 250.00 2100.00 '13500.00 19065~OO 1200.00 _..------- 1530.00 690.00 6L~5.co 3540.00 750.00 2020 .00 1350.00 ' 45000.00 450..,iO.00 Total ----~~-~ 100525.00 Total (2250.00) N0 StrabG.n<~Trip 3 Lots Ncar SNPJ 2.628 -Acre Lots 25-26-27 ~ucl1d 0 •.45 Acre . Ser"'ilce Sta BOI'O Ol Houston Lot 8-9 Elk 5 Collier St Lot A Lot 5-6-7 Adj Collier ' 'Lot 36'Fer,;,ls ~,Lot 3 Blk ... Lot 8~9-l0 Coll1er Loi..4-5 Br1ck BIg a~of Pike at Brick Bld8 No P1ke St Lot 17L~2.38 Acre 2j..05-ACl"O Surf 17-:6232 DB 9SG.336 -Lot 1 Blle 5 Lot 1 Klk 4 Lot 8,Blk 5 Chartlers Twp Total 1455.00 675.00 225.00 675.00---------3030.00 } -t, ~I j- ~, :'; "~l, I, I j• " .I I -'"",..~.l•.',.~l_,..,,Ii.~~".' 1\ I. Stat.6Uent of.'Patooh ,Br')f~.Inc i Acct R0ceivaole 'J. I.. ...'.. ,. .28.650.51 3J100.oo 1 0371:0.00 13:?50 .00 . '(~V.vv 10400.0 1'otal------- ,.,1'\"7.",~o ~..c;;v J;),J .;JJ:.. 5949.94 Total ";--.-~--;'­ \.~J.£j~u.~rl J.uOO ld8.6u per.13m' .•I ~.., 1 ./",: ,,.1;I ...',-,...'":.:' ",., ,." ~.. .:. '....:.,.. Tu"aJ.o:i.'SnB..4.'OS"..~,- .-.:.'/Approx vaJ.ue to tn'b"rio .t"". .:..'"\l~ Ta.xes ,; ., "VJ.luG :01'"li:4lld'ami Bldgs ~....,.',......'!'It Pla0snt T\'lp ,~:-.',:....',~North ~t.:.moone Twp .IChal"t1·ara TWP'.f~.'.....,~..'.Ceoil Tup.,. licDon,alcl Jjoro ~~nOnGp}U'6 .;B9ro :- ., .a ,,'~;_ ;.....~,,~ ".' .. 1'1:1.techl,Bran Inc Aoota Roce1vublo Phil .ArnonoCh~rt1ors ~vp School Dlnt rUel,C1v..nG111 ,Cllno Fl"lan.k Ho 11 J:.u.Jon Horton II It Jubonko KorriGan Konoolt1 B K:;.lonz Pa.rrino Prosto Co RiWO Roth Roth' Sotto str1.rDDal .Thoma ~oms10 . ,. • 329.2'+ lOJ:..O.OO 3600.00 1100.00 901C/7/i> 205.82 565e uO 1001.77 676O.G71570.00 125.00 1800.00 ~1.:~LJ.21 75.00 1091.80 :;J~o.00 ~500.00 4691.06 1~50.00 ;;"(0.\)0 42060.;)1 " , I 'I i ,, I II{ , Ij I :1II '<•-'••-'-~,.,:.- Lots in Al11non planunaold or deVolopod 43690.00 1'ote..l ' 1°3740.00 . "11 II 1200.00 10S:;o •oJO 2350.vo 13()j.OO 300J.00 G000.vO ,65,;0.00 3Soo.vo 7i tvo.ao 2000.00oo,:v.ou 500.00 9000.00 ,. 6.5 Acreo551>7 II13fl 141 LiJi4' 59.rr 51.8 119.17 19.407 Ll-l 21.174 5.9 5.594 Lot and bldG •Land Jpd DldSG Iro.luoa J?D.toch Bron Inc •,l' ., .'1 .••.1 jeJ .. I' ~{t Pleasant T\'1P 100 Aores ' 232 48 4500.00 19800.00 .l~350.00 Total '28650.00 750.00 10400.00 3600.00 1200.00 1500.00 1350.00 300.00 300.00 .l}OO.00 10000.00 Total 18350.00 North Strabano Twp 1.027 Acres 26.31 0.446 Ceo1l T\trp 163.2t> 20.01)'1- 5.647 15.98 1.75 1.151 lots Equity in Glad~ed Farm HcDonald Boro Lots (3')'Canonsburg Boro Houses and Lota on C~11e60 St Total .500.00 2500.00 400.00 34.00.00 --'f I ~ ". J •I , j"•• \,, ,~ ~. l~orth strn.oune Chart10rn TWp Coc11 Twp ., Co.nonOOw."g Boro \If~.h 00', .'." ,..• ..', ..'. "'\.. C'•~otaJ. . . o ,\ '.t .-' '. ,1 ~-f' IN THE ORPHANS'COURT OF WASHINGTON COUNTY,PENNSYLVANIA Estate of J.Glenn Patsch Deceased ). ~No.74 of 1967,o.C.~ ANSWER TO PETITION FOR CITATION TO SHQW CAUSE WHY DISTRIBUTION SHOULD NOT BE MADE IN ACCORDANCE WITH ADJUDICATION OF COURT TO THE HONORABLE P.V.MARINO,PRESIDENT JUDGE: AND NOW comes Adolph L.Zeman,Executor of the Estate of J.Glenn Patsch·and for Answer to the Petition for Citation at the above number says: 1.The averments contained in Paragraphs-l through 9 \ inclusive,of the Petition are admitted to be correct. ,t 2.In answer to the averments of Paragraph 10 of the Petition,it is admitted that said Executor received interest in the amount of.$1006.10 for the year 1966 from the Western Pennsylvania National Bank,depository of the funds of this Estate.In addition thereto,there is an item of accumulated interest in said account of $69.49,being interest that accrued in the year 1965. 3.Said Executor further avers that he caused an income tax return to be filed in this Estate for the year 1966 and has paid to the District Director of Internal Revenue the sum of $56.85 in payment of said tax. 4.It is admitted that the petitioner has requested pay- ment of the sum set forth in Paragraph 11 of the Petition and that •. the Executor has refused to pay said sum for the reasons hereinafter set forth at length in New Matter. NEW MATTER 5.The Adjudication and Decree and Schedule of Distri- bution as filed in this Estate by your Honorable Court reads as follows: Edward P.Patsch (Adam L.Sanders,Esq.) Executor of the Estate of Wilma B.Patsch, widow,now deceased,bequest as set forth in Paragraph Second of the Will rl so much of my estate as ••..•.if I had died intestate,"including·the following assets, held in kind and distributed as such as the values as shown (appraised value). A 1/3 interest in 356 shares of Patsch Bros., Inc.and a 1/3 interest in 1090 shares of I.C.Patsch &Sons,Inc.,subject to the terms of an agreement entered into ·on the day of May,1965j together with $43,117.09 cash $89,250.54 6.Pursuant to the said Schedule of Distribution the interests in the stocks in kind were assigned to the Estate of Wilma B.Patsch,subject to the terms of the agreement referred to and entered into on the..day of May,1965,and at the same time 7.Notwithstanding payment in full by the Executor of the amount awarded to the Estate of Wilma B.patsch,the Executor under date of August 22,1966,delivered to Edward.P.Patsch, Executor of the Estate of Wilma B.Patsch,a check in the amount of $2583.12 ..The Executor avers that this payment was inadvertently, erroneously and unwittingly made to the said Edward P.patsch,· Executor of the Estate of Wilma B.Patsch,and that the Estate of -2- .- Wilma B.Patsch was not entitled to the.receipt of said sum and,therefore,avers an overpayment to the Estate of the said Wilma B.Patsch in the amount of $2583.+2. 8.Upon the discovery of the error,the Executor made demand upon the Estate of Wilma B.Patsch for the return of said sum,but this ·request was denied and refused and the said Edward P.Patsch,Executor of the Esta~e of Wilma B.Patsch persists in retaining said sum,re?1dering it impossible for the Executor to make distribution in accordance with the terms of the Adjudication and Decree and Schedule of Distribution in the Estate of J.Glenn Patsch. 9.The Executor is advised,believes and,therefore, avers that the said Edward P.Patsch,one of the.heirs of J.Glenn Patsch,entitled to share in the distribution in his Estate,is also Executor of the Estate of Wilma B.Patsch and is.the sole devisee under the Last Will anQ Testament of Wilma B.Patsch.The Executor therefore avers that if the said Edw9rd P.Patsch, Executor of the Estate of Wilma B.Patsch,is permitted to retain the aforesaid sum of $2583.12,it will result in his unjust enrich- ment and to xhe detriment of the s~id Edward ?Patsch and Glenn Ferris Patsch as residuary distributees in th~Estate of J.Glenn Patsch. 10.The Executor avers that upon the reimbursement of the said sum of $2583.12 by Edward P.Patsch,Executor of the Estate of Wilma B.Patsch,he stands ready and willing to make distribution to the persons entitled thereto in accordance with the Decree and Schedule of Distribution in the Estate of J.Glenn Patsch. WHEREFORE,the Executor of the Esta"e of J.Glenn Patsch -3- .. prays that the Citation heretofore issued be discharged and dismissed. -4- ,. COMMONWEALTH OF PENNSYLVANIA COUNTY OF WASHINGTON j ss: Personally appeared before me,the undersigned authority, ADOLPH L.ZEMAN,Executor of the Estate of J.Glenn·Patsch,who, being duly sworn according to law,deposes and says that the facts '~"." set forth in the foregoing Answer are Sworn to and ,'s&b§cribed before me ...~~thiS.~~~day of ~.~...-~ ::I"6March,~-,19 7. ~~~~ ......"......,Pu~1IoC8AIiDthIItW.IIII....COuntJ,PI..,GIU&sa..EQIra "......,887 and correct. r • • • ,., r j .- No.74 of 1967,o.C. ESTATE OF J.GLENN PATSCH DECEnSED ~ tJ-o /1./("0{, --~- ANSWER TO PETITION FOR CITA- TION TO SHOW CAUSE WHY DISTRIBUTION SHOULD-NOT BE MADE ~ACCORDANCE WITHADJUD.'TION.OF QPURT.-..I •,-,----.----"~--- :\:'.":..-,t.\'.-:)0-'..- ::.v,)..: t 'y I ..~vJ(.-::.(,.,")(,.\. ZEMAN &ZEMAN LAWYERS ZEMAN LAW BUILDING CANONSBURG,PA. I ?u -7'1-Lr I _1 ___,.1",~--=,__"'''j.,~'l''.•~,."~--......~Itt':i~'.'......· '.." U.S,TREASURY DEPARTMENT INTERNAL REVENUE SEF~VICt:: Of'rtICE:OJ1 YI-lS OIGTI1lCT 01 Ar::CTon P.o.oox :l4flO PITTGlJUFHHi.PA.Ilsaao ,"""...,,... :-...'~, :-\-~olph ~::;:-n~Ecquir~ Z..::"l.ln BU:l...l.\.lin~ C..J:)::lO::l:nbure,Penna.15.317 -----------~--ll:STh.1"E 0,. J.CIer.:'.P.:;''. .'\' Tr':c if,enclosed for you"r 'Information and files a copy of a report covcrlnq an ,~>;ar:il:1c~il:r...:~tL :::.::1 dinG obovc-ncrmcJ estate.You have Indicated your agreement to thl)cjiustrr:~r.t cf t;-;.':";". Lc::.,;~tY Gr.own in the report, ••:".)CC":C of a deficiency,you will 00 prosented at an early dell)with (l bill for pc~:,:;:"",t v~U·,. r.;",l.clor.cy in tox,together with interest,provided the full cmaunt due hen r.ot Gl,,·.:j,i,'.:.1 •_;1.~..., '...11..:.:c-:c of en ov.:':assc';,smor.t,it will bo processed and yo\,!will receive cr check !r.l)cr'j;:.'.! t -.....:,:;;ses:;:ront and interest,provided there are no oU1standinO tuxcn (/(.;<::io,;t wh:ch t;:·I- r ~-:.\.i De credited. I ~;~1;:;...ct a f:nal dosinQ lotto.disclosing the Federal eatate tax liability of t:',i~ct,tc~..;.Ti: .:.;..:tax clcsing lotter ...vill be mailed ofter the estate tax roturn,Form 705,hoa tec~i~.~~Jy , - \:....~.Q Q;\d eJPProvcd,aCId afta.all administrative action has beon completed. '. r'"I. (t '",..,....Ie 1 J:-;.",'+~•.....I •io ............• ,10 .,. t't:"".~.. 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'e"."H'~~",;,,..;.i Ift,~C .' ""'o....'p."fO'lf'rd .t.to 'lot ••t...~u'•__.·t ..! p~.'"0"'\'1 O".~II.'!~.\1,,'01 ('"'I,C'''''1lJ ·;or .....r.:)'"~~'''.{J t(')'''c..~"'~".'II ::.111(:,0'" .n C P',OI ""0'101 ~V~'\"''''1\1 .t.l....('_ In.lot It.)l ',.'1'I)".IrH....,.,r :t,,1 ~Il'"".:t'._chon i.:i}·:j s ·OISTIIleT O'HECTOR OF IHTERI<AI..REVi:KUE .'1 ~ " t";'1:,"._-:•.~.,:",.". .. .. I IN THE ORPHANS'COURT OF WASHINGTON COUNTY,PENNSYLVANIA Estate of: J.Glenn Patsch Deceased ) ;NO.~Of 1967,O.C. )-. PETITION FOR CITATION TO SHOW CAUSE WHY DISTRIBUTION SHOULD NOT BE MADE IN ACCORDANCE WITH ADJUDICATION OF COURT. TO THE HONORABLE p.V.MARINO,PRESIDENT JUDGE: The Petition of Edward p.Patsch,aN individual,respectfull represents: 1.J.Glenn Patsch,formerly of 114 W.McMurray Road, Canonsburg,Pa.,died,testate,on March 22,1964,and on March 30,1964,letters testamentary on his estate were granted by the Register of Wills of Washington County,Pa.,to Adolph L.Zeman, Zeman Law Bldg.,Canonsburg,Pa. 2.The name of your Petitioner is Edward p.Patsch,now residing at 2685 Schaaf Drive,Columbus 9,Ohio,and he is a son of J.Glenn Patsch,deceased. 3.Adolph L.Zeman,Executor as aforesaid,filed a First and Final Account in the Estate Qf J.Glenn Patsch,deceased,to Number 64 of 1965 A.A.,and on August 25th,1965,the Orphans' Court of Washington County,Penna.,made an Adjudication and Decree of Distribution in this estate,to which no exceptions were filed. 4.Under the Will of the deceased,J.Glenn Patsch, and in the Decree of Distribution,one-half (1/2)of the resid- uary estate of the deceased was awarded to Edward p.Patsch,the audit having been closed to creditors,none appeari~g on the date of the audit. 5.In said Decree of Distribution a reaward of $30,OOO.O~ t was made to Adolph L.Zeman,Executor for Federal Estate Tax contingencies,"after the tax is fully settled and the accountant liability ceases,the balance of this award remaining shall follow the Decree of Distribution herein made,and no further formal accounting to the Court shall be necessary". 6.On October 14,1966,Adolph L.Zeman was notified that the Federal Estate Tax Audit was closed and he received a check from the Treasurer of the United States in the amount of $2857.71,in payment of the overpayment of this Federal Tax by him,as Executor,plus interest. 7.In the year 1966,Adolph L.Zeman,Executor,received from the Western Penna.National Bank the sum of $1006.10,inte- rest on the $30,000.00,reawarded by the Court to him,being one years interest on this money. 8.The amount of the reaward,plus the overpayment received,plus the interest received,total $33,863.81. 9.Adolph L.Zeman,Executor,hired a C.p.A.,John H.Miller,Jr.,to assist him in connection with the Federal Audit and his bill was $150.00,payment of which:your petitioner does not object to. 10.The interest received ($1006.10)by the Estate of J.Glenn Patsch,in 1966,would necessitate the filing of a 1966- 1041 Income Tax Return,which after deductions would.likely amoun to the estate owing a small amount of income tax for 1966,paymen of which is not objectionable to your Petitioner. 11.Your Petitioner has repeatedly since October 14,1966, through his Attorney,Adam L.Sanders,requested payment of his half of the residue awarded to him,namely,$16,856.90,less his half of the 1966 Income tax,if any,from the Executor of the J. Glenn Patsch Estate,but all of it is still unpaid• .WHEREFORE,your Petitioner,showing as aforesaid,prays You= ...;;;Ii& • Honorable Court to issue a Citation to the said Adolph L.Zeman, Executor of the J.Glenn Patsch Estate,requiring him to appear in Court,answer this Petition and show cause why he should.not distribute and pay in full the one-r-a1f of the residue due Edward p.Patsch,plus interest at the legal rate,from November 1st, 1966. q~~'1 i.-i--.eb.<c Attorney for Petitioner , -' COMMONWEALTH OF PENNSYLVANIA) :SS: " COUNTY OF WASHINGTON ) Personally appeared before me,a.Notary Public,Edward p. Patsch,who,first being sworn by me according to law,did depose and state that the facts set forth in the foregoing Petition are true and correct,to the test of his knowledge,information and belief. ~~~Pf1J;J; Edward p.Patsch Sworn to and.subscribed before me this .1 s~day of .;;r~'U;;Ch ,1967 Notary Public ,My Com.Exp:y~&/>9 ~Z .....'" .:~~~ • IN THE ORPHANS'COURT OF WASHINGTON COUNTY,PENNSYT.....VANIA (" Estate of: J.Glenn Patsch, Deceased ) : ). ) No.of 1967,O.C.---- ORDER OF COURT" .AND NOW,,:27·~_,19<57,upon consideration of the foregoing Petition and on motion of Adam L.Sanders,Attorney for the Petitioner,it is Ordered and Decreed,that the prayer of the Petition is granted and that a Citation be issued,directed to Adolph L.Zeman,Executor of the estate of J.Glenn Patsch, deceased,commanding him to appear and answer this Petition and to show cause why he should not complete the distribution of said estate and pay to Edward p.?atsch the one-half of the resi- due due him in accordance with the Decree of Distribution of this Court dated August 25,1965,at No.64 of 1965 A.A.,plus inte- rest from November 1st,1966. Ci tation Returnable to y(I(f'YI.VJ1fL,y go ~6 7;//00; a~~':@~M.,~ocR. BY THE COURT ~ ~f 1--~-~~~------~_._-_."""9 IN THE ORPHANS'COURT OF WASHINGTON COUNTY,PENNA. No.-7'tj or 1967,O.C. PETITION FOR CITATION ,TO SHOW CAUSE WHY DISTRIBUTION SHOULD Nor BE MADE IN ACCORDANCE WITF ADJUDICATION OF COURT. :b. .., Ie::>"' o i,oocn o -To <t>;-., ~'t a ,",--:i ....~..; o Q /a 6 ~.7'.3 WASHINGTON TRUST BUILDING ,,- Deceased J.Glenn Patsch ADAM L.SANDER'S Estate or: ATTORNEY AT LAW WASHINGTON,PA. p. .'".'"\j _0'7'~f'\"-?~~<.;.;.----~\'~,~c._f 0 '~':I ,~_"U,',....\~~o'.~:;,r,)• .('....F'!"~:.2:\1-:-.:."~.,\j'"1,-,~_~\~.'.1(' ).;~.:\;.':1 :--..,:'CJ"",.,...~~";\~:~" .-':,;.j~~~,..,~. ,,,~~~,.~~r-;r::;::r..~~~:~~).:-~; ~.~::--:'";>G) .'J '-:X::::S :/, " 1i /~i l L,~~=~~!~ ~C\~ri ~.~~~<i1~..N~r ~J\~'-~'X ~"---...; "\-J ~':~~tL~,~ r-,..y~r-',:'~,~'.- J ' ~~~d '~ .,.-I IN THE ORPHANS'COURT OF WASHINGTON COUNTY, PE~NSYLVANIA ESTATE OF J.GLENN PATSCH, THE HONORABLE P.VINCENT MARINO, President Judge of the said Court. • IN RE: ~Deceased.z<~>-Ul Z ZIIIQ, ioI-~EFORE: :r Ul.. :=. ) ) ) )No.74 of 19617,O.C. ) ) ) PROCEEDINGS ON RETURN DATE ON PETITION FOR CITATION TO SHOW CA USE , i• ..=~APPEARANCES:..iWl 5 ..J< u gTIME:.., :t..,.. N ADAM L.SA NDERS,ESQ.,of Washington,Pa., representing the estate. Monday,March 20,1967,at10:00A.M.,EST . is a hearingdate I think.In the matter of the estate of J.Glenn Gladden and Mr.Stevens,I have asked to go first because all I need Patsch,Kumber 74 of 1967."O.C.,the return date on the fetition The Court will hear motions and petitions. If the Court please,with permission of Mr. CIl"THE COURT:0:III I-0:~MR.SANDERS: III0: I-0: :JoU .J~ui&:II.o for Citati-::m to Show Cause is this morning at 10:00.There has been an answer filed to the petition with new matter in it to which I have filed an answer.Mr.Adolph Zeman is the Executor and attorney.I assume that ~hat needs to be done is to fix a date for hearing.I would prefer not to have it in March,as I have eight accounts to file I . 2 and a week to file them in.And Mr.Zeman,.1 don't believe he is present. stake here or are they all legal questions? petiti9n and there are certain things in his answer that we have to the petition Mr.Zeman admits the fi:,s t nine paragraphs of the admitted. • THE COURT: :MR.SA NDERS: <z<~~IIIZ ZIIICI. iol-~THE COURT: xIII ;MR.SANDERS: Mr.Sanders,:ire there any factual issues at I would say legal questions.And in the answer What would be the necessity for a hearing? Well,it could be a decision renderea,I think, questions in his answer which are not in the petition involving said that because it's customary to have a hearing.He has raised I• .." !:i.. It:l-UIo .I< UC on the papers filed.If the Court wanted to do that.I merely I\:• ;: ~additional assets,which we have not m:mtioned at all in cur pet ition. a" II~THE COURT:Those would be factual issues,wouldn't they. I: '?~MR.SANDERS:Well,they probably would if there is nothing in l- I::J8 our petition,in my opinion,is a factual issue,but there is in his .J.; ~answer that could be.I state in the pe~ition,and it is m v firm~u ,) conviction they are not a part of tl:is proceedin~s.We don't even have a right to ask him to account for addiW>naLassetsu::ltil they have been collected. THE COURT: MR.SANDERS: We are going to set a date for a hearing. April.3 or 10 wou~d be agreeable to me or anytime aftel'the firs t of April. THE COURT:We will fix j'ol:r hearing date for Tuesday, 3 • "\• r\,i,', • April 11 at 10:00 o'clock A.M. *********** <z<~>-1IIZ ZIIIII. Zol-e>z x Ul<~ ..:2II: Iii~1 hereby certify that the proceedings and evidence are contained <u g tully and accurately in the notes taken by me on the hearing of the above.., x.. .:;cause,and that this copy is a correct transcript of the same. .n0:IIIt-o:oIll.III0: t-Ill::l3 The foregoing record of the proceedings upon the hearing of the .J0( ¥above cauee is hereby approved and directed to be filed ....::> I ... i ill THE ORPHANS'COURT OF WASHill3TON COUNTY,PENtJSYLVANIA ill RE: Estate of J.GLENN PATSCH, Deceased. ( ) ( ) ( ) ( OPINION No.74 of 1967,O.C. P.V.Marino,P.J.February ~1968. Which came first,the chickec 0:-the egg? Two cf the most capable counsellors at this bar preE·ent this question to the court,in but slightly chang;;d variation.A citation issued from this court at the instance of one lawy~r,requiring the otter lawyer,as executor of the estate of J.Glenn Patsch,deceased,to show cause why final distribution should not be made in accorda1ce with the schedule contained in the adjudication of the court.In said adjudication of August 25,1965,the court reawarded the sum of $30,000 to the executor for FederE,l Estate Tax contingencies,2..dding !lafter the tax is fully settled and the acc.ountant's liability ceases,the balance of this awa:-d remaining shall follow the Decree of Distribution herein made,and no further forma"L accounting to the Court shall be necessary". Adolph L.Zeman,Esqui~0:this bar,is the executor who was cited.On October 14,1966,the executor received notice that the Federal Estate Tax audit was closed,and a refu"1d of $2857.71 was made to him by the., Internal Revenue Service as there had been made by the executor an over- payment of said amount.The exe~utor alEo collected interest in the sum of $1006.10 on deposit of the $30,000 in a bank~ng institution.Petitioner ..." 0(, j '1 there is no good reason why most of th:"s :utld should not be distributed by the executor.We shall order him to distribute the said $30,000,plus the interest credited to this d.ate,making payment of one-half to the Wilma B.Patsch Estate and one-half to Edward P.Patsch.All other funds shall be retained by the executor ?ending further order of court. By the.Co.urt,r '-..\\ll I -3- r;A~'\~ 'p.J. f' !) it.; " " i ~~"I ( "'h !;'" L',"1 J. In the Orphans I Court of Washington County,Pennsylvania No,74 of 1967,O.C. luRe: Estate of J.GLENN PATSCH, Deceased. . - -r _. OPINION rfrt uJ (Ma!ino,P.J.) .tY~., ./,-~I'--./-.--. -.,,.. . ........-. ORPHAN'S COURT WASHINGTON.PA. ~2 i~~~ I ___ J IN THE ORPHANS'COURT OF WASHINGTON COUNTY,PENNSYLVANIA INRE: Estate of J.GLENN PATSCH~ ) ) ) ) ) ) No.74 of 1967,O.C. ORDER EXTENDING TIME FOR THE FILING OF -EXCEPTIONS Al\D NOW~this 26th day of February 1968.it appearing that there may be a clerieal error on the last paE"e of the opinion of this award filed on February .23,1968.and it appearing that the Honorable p.V.Marino is presenUy on his annual vacation and the undersigned not seeking to be placed in a position to attempt to correct the same does extend the time for the fHing of exceptions to thirty (30)days from the date of said opinion. ~k Specially Presi ing , IN THE ORPHANS'CoJURT OF ·WASHINGTON COUNTY,PENNSYLVANIA INRE: Est3.te of .J.GLENN PATSCH, Deceased. ( ) ( ) ( ) ( No.74 of 1967,O.C. C02-RECTED ORDER AND NOW,Mar·~h 14,1968,the Opinion of this Court dated Feb:-uary 23,1868,in the 8.bJve entitled matter is corrected,as to the last two sentences on page 3 of said Opinion,to read as follows: We shall orde:-tim to distribute the said $30)000)plus the interest credited to this date,~aking payment of one-half to Glenn Ferris Patsch and one-half to Edward P.Patsch.All other funds shall be retained by the executor pending further order of court. ~\ -I In the Orphans I Court of Washington County,Pennsylvania No.74 of 1967,o.C. In Re: Estate of J.GLENN PATSCH, Deceased. 9,---------------, ~ I) r f oJ Y -c?,t::?/UJ' 111,\'----\I7~ CORRECTED ORDER (Marino,P.J.) "., C -- ,,t , ORPHAN'S COURT W"itSHINGTON,PA. ~2 -~-