Petition to Divide a Trust into Separate Trusts in Accordance with 20 Pa. C.S.A.§7191[SEE CAPTION AT 1.3.1 ]
DECREE
Now, ____________________, 20 ____ upon consideration of the annexed Petition, it is hereby ORDERED and DECREED that the Residuary Trust under the Will of Joseph B. Dunn, Deceased be divided into three separate Trusts, each to be composed of one-third of the present Trust; one Trust to be held for the benefit of each of Joseph B. Dunn, III, Mary E. Evans, and John J. Dunn.
____________________
J.
[Petition on following page]
[SEE CAPTION AT 1.3.1 ]
PETITION
The Upstanding Trust Company respectfully states that:
1. It is the Surviving Trustee of the Residuary Trust under the Will of Joseph B. Dunn, Deceased who died on July 7, 2001. A copy of his Will is attached hereto as Exhibit "A."2. There is presently pending before this Court Petitioner's First Account, which has been filed because of the death of Testator's widow, Jane R. Dunn, the life tenant and Co-Trustee, on January 12, 1999.3. By ITEM 4.B.2. of his Will, the Testator directed that after the death of Jane R. Dunn, the Trust income is payable equally to his children, Joseph B. Dunn, III, Mary E. Dunn (now Mary E. Evans), and John J. Dunn. The Testator further provided that the Trustee may invade principal in an amount not to exceed $20,000 for each child in order to allow the child to enter into a business enterprise.4. By Item 4.B.3. of his Will, the Testator directed that one-third of the Trust is to be distributed to Joseph B. Dunn, III, when he attains 40 years of age or to his issue, per stirpes, in the event he dies before attaining age 40; one-third is to be distributed to John J. Dunn when he attains 40 years of age or to his issue, per stirpes, in the event he dies before attaining that age; and the remaining one-third is distributable upon the death of Mary E. Evans to her issue, per stirpes.5. The Trustee has been requested to exercise its power to invade principal in the amount of $20,000 in order to permit John J. Dunn to purchase a retail shoe store located at 14 E. Upland Street, Philadelphia, Pennsylvania.6. The two remaining children, Joseph B. Dunn, III, an ordained minister, and Mary E. Evans, a college professor, are unlikely to request that the principal of the Trust be invaded to enable either to enter into a business enterprise.7. At present the parties in interest are as follows: Joseph B. Dunn, III | Children: | None |
Mary E. Evans | Children: | Mary Ann Evans, a minor (born 4/22/92) Joanne Evans, a minor (born 12/l/93) Peter Evans, a minor (born 5/l/96) |
John J. Dunn | Children: | John J. Dunn, Jr., a minor (born 6/26/95) |
8. Consents to the division of the Trust by all adult parties in interest and by Robert Jones, Esq., the Guardian and Trustee ad litem appointed to represent the interests of minors and unborn and unascertained remainder beneficiaries, are attached.9. The reasons the division is desired are the following: a. The invasion of principal will thereafter create an inequity with respect to the payment of income unless an adjustment is made to recognize the principal payment to John J. Dunn. The income beneficiaries are in disagreement as to the method of adjustment to be made.b. Since the income beneficiaries are unable to agree about the future division of the income, the same conflict will arise when each share of trust principal is distributable as explained in paragraph 4 above.c. Since two shares of the Trust principal are distributable to two income beneficiaries upon attaining 40 years of age and the third share is to remain in trust during the life of Mary E. Evans, it is desirable that different investment policies be followed for the several branches of the family to meet satisfactorily their separate present and future financial needs and plans.d. If the Trust is divided, certain economies will be realized in the future upon the termination of each separate share in filing an account for that Trust alone. Wherefore, Petitioner respectfully requests this Court to order the Residuary Trust under the Will of Joseph B. Dunn, Deceased be divided into three separate Trusts, each to be composed of one-third of the present Trust; one Trust to be held for the benefit of each of Joseph B. Dunn, III, Mary E. Evans and John J. Dunn.
UPSTANDING TRUST COMPANY
By:____________________
Title:
[SEE AFFIDAVIT AT 1.4.2 OR VERIFICATION AT 1.4.3 ]
[SEE CAPTION AT 1.3.1 ]
CONSENT TO DIVIDE TRUST
I, Joseph B. Dunn, III, hereby consent to the division of the Residuary Trust under the Will of Joseph B. Dunn, Deceased into three separate Trusts, each to be composed of one-third of the present Trust; one Trust to be held for the benefit of each of Joseph B. Dunn, III, Mary E. Evans and John J. Dunn.
____________________
Joseph B. Dunn, III
Amendments to 20 Pa. C.S.A. § 7191 enacted in 1999 permit a trustee to divide a trust into separate trusts without court approval. Also, some governing instruments may so provide. Consents of all other parties in interest including the guardian and trustee ad litem are no longer mandated by statute but should be attached if available. This form may be adapted to a petition to combine trusts in accordance with 20 Pa. C.S.A. § 7192, or to a petition for change of situs of a trust in accordance with 20 Pa. C.S.A. § 725.