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Certified Mail Article Number: Whereas defined pursuant to Supreme Court Annotated Statute: Trinsey v. Pagliaro !.C. Pa.

"#$% &&# '. Supp. $%(: Statements of counsel in their briefs or their arguments are not facts before the court and are therefore insufficient for a motion to dismiss or for summary )udgment. *+A,SA-: defined: A term applied to that species of testimony given by a .itness .ho relates not .hat he /no.s personally but .hat others have told him or .hat he has heard said by others. A statement other than one made by the declarant .hile testifying at the trial or hearing offered in evidence to prove the truth of the matter asserted. 'ed.,.+vid. 01"2c3. *earsay includes any statement made outside the present proceeding .hich is offered as evidence of the truth of matters asserted therein. Also included as hearsay is nonverbal conduct .hich is intended to be the e4uivalent of a spo/en assertion. Such conduct is called assertive con duct. 5nder 'ed.,.+vid. ,ule 01"2a3 conduct .hich .as not intended as an assertion at the time it .as done is not hearsay. Such conduct is called nonassertive con duct. 'ed.,.+vid. ,ule 01"2c3 also provides that assertions .hich are offered to prove something other than the matter asserted are not hearsay. *earsay evidence is testimony in court of a statement made out of the court the statement being offered as an assertion to sho. the truth of matters asserted therein and thus resting for its value upon the credibility of the out6of6court asserter. Mutyambi7i v. State 88 Md.App. 99 8$8 A.&d 9 " " 9"0. +vidence not proceeding from the personal /no.ledge of the .itness but from the mere repetition of .hat he has heard others say. That .hich does not derive its value solely from the credit of the .itness but rests mainly on the veracity and competency of other persons. The very nature of the evidence sho.s its .ea/ness and as such hearsay evidence is generally inadmissable unless it falls .ithin one of the many e:ceptions .hich provides for admissibility 2see e.g. 'ed.,.+vid. 018 01%3. ;lac/<s =a. !ictionary Si:th +dition 2page (&&3 'ictio legis ini4ue operatur alieni damnum vel in)uriam. 'iction of la. is .rongful if it .or/s loss or harm to anyone. =es fictions naissent de la loi et non la loi des fictions. 'ictions arise from the la. and not la. from fictions. The NAM+ >?*N !?+ is a fiction. Please be a.are the NAM+ .as created by the STAT+ people are not the NAM+ and the NAM+ is not people the NAM+ is the C+ST5@ A5+ T,5ST created by the STAT+ for the ;eneficiary 2people3. The public record being the highest form of evidence freeborn spiritual being on the land being of sound mind competent over the age of eighteen do hereby certify verify state claim and declare forever .ithout abandonmentB ,eal Property 2on +arth3B Personal Property 2body3B and +cclesiastical Property 2soul3 together .ith all trusts probate rights titles interests droit droit both absolute and contingent as are due and as might become due no. e:isting and as might hereafter arise and as might be suffered by imposed on and incurred by !ebtor for any and every reason purpose and cause .hatsoever C.ithout the 5.S. Should this not be true then let the record be corrected or it .ill stand as truth. Time is of the essence. Trusts: Common =a. and @,C 91"2c3283 basic definitions distinctions and rules regarding trusts and @,C 91"2c3283. Much of the focus is on State common la. concepts regarding trusts. State la. creates legal interests and rightsB federal ta: la. designates .hat interests or rights so created shall be ta:ed. Morgan v. Commissioner 81# 5.S. (0 01 2"#%13. There is no uniform or model la. of trusts adopted by most States although a fe. uniform la.s relating to certain aspects of trusts have been .idely adopted. What is a trustD Eind of organi7ationB Trusts are one of the ma)or forms of organi7ation for federal ta: purposes along .ith corporations partnerships and governmental units. ,estatement definitionB The ,estatement 2Second3 of Trusts 2"#9#3 2hereafter F,estatementF3 G & defines a trust generally as a fiduciary relationship .ith respect to property sub)ecting the person by .hom the title to the property is held to e4uitable duties to deal .ith the property for the benefit of another person .hich arises as a result of a manifestation of an intention to create it. ,egs definitionB ,eg. 81".((1"6%2a3 defines a trust as an arrangement created either by .ill or inter vivos

Certified Mail Article Number: declaration .hereby trustees ta/e title to property for the purpose of protecting and conserving it for the beneficiaries under the ordinary rules applied in chancery or probate courts . . . . Henerally spea/ing an arrangement .ill be treated as a trust under the @nternal ,evenue Code if it can be sho.n that the purpose of the arrangement is to vest in trustees responsibility for the protection and conservation of property for beneficiaries .ho cannot share in the discharge of this responsibility and therefore are not associates in a )oint enterprise for the conduct of business for profit. The regulations emphasi7e the non6business character of the activityB thus a trust for State la. purposes may be treated as a corporation or partnership for federal ta: purposes. *o.ever both definitions emphasi7e a relationship among several parties. Who are the parties to a trustD Parties Trusts are defined in terms of parties 2grantor trustee beneficiary3 and relationships pertaining to the trust property. HrantorB +very e:press trust has one or more grantors .ho contribute the property to the trustee and state the terms of the trust. The grantor is deemed a substantial contributorIdis4ualified person .ith respect to the trust under @,C 91(2d32&32A3. ?ther names for the grantor include: creator donor founder settlor Trustor. TrusteeB The trustee or trustees receive the property and hold it for the benefit of one or more beneficiaries. The trustee is the legal o.ner of the property but must use it for the benefit of the beneficiaries. As a fiduciary he o.es the beneficiaries duties of loyalty and care. The trustee may be an individual or organi7ation. ,estatement G 8(0. Trust companies and ban/s speciali7e in acting as trustees in addition to conducting ban/ing and loan business. The grantor and trustee ordinarily may be the same person and may create the trust by declaring that he holds certain property in trust. ,estatement G 8%#2a3. The sole trustee and sole beneficiary may not be identical because the purpose of a trust is to separate the legal and e4uitable interests. ,estatement G ""9. ;eneficiaryB The beneficiary also /no.n as the cestui 4ue trust is the beneficial or e4uitable o.ner of the property. The beneficiary is said to have the FuseF of the property and can appeal to the court for an accounting or replacement of the trustee to ensure proper use of the property. See ;lac/Js =a. !ictionary 29th +d. "#(#3 Fuse.F PropertyB Alternative names for the property transferred to the trust are the: Capital Corpus +state Principal ,es Can a trust e:ist .ithout assetsD Assets re4uiredB ;y definition a trust is a legal relationship .ith regard to property. Thus the common6la. rule is that a trust does not e:ist .ithout a res. Am. >ur. &d FTrustsF G %(. The res may be of nominal value 2e.g. K"3. A charitable trust may be created by a transfer 2inter vivos or by .ill3 by the o.ner 2or a person .ith a po.er of appointment3 of property to another person to hold the property upon a charitable trust. ,estatement G 8%#. Alternatively the o.ner may simply declare that he holds his property upon a charitable trust66no transfer of title is necessary. @d. A promise to transfer property to the trustee does not create a trust unless the promise is enforceable as a contract. @d. A trust that lists no assets in its 'orm "1&8 balance sheet should be re4uired to cite the proper State la. that it nonetheless e:ists as a valid trust under State la.. Can a trust e:ist .ithout a trusteeD Trusts Still +:istsB Trustees may die resign become incompetent or be removed as trustee by the court for

Certified Mail Article Number: cause 2e.g. mismanagement3. See Am. >ur. &d FTrustsF G &9%. @f a trust loses its trustees the court .ill appoint others66a trust .ill not fail for lac/ of a trustee unless the settlor manifests a contrary intent. ,estatement G 800 8#(. Similarly if a transfer of property to trust is ineffective only because no trustee is named in the instrument of conveyance or the trustee is dead or incapable of ta/ing title a charitable trust is created. ,estatement G 8982&3. @f a trust loses all of its trustees during the application process the determination specialist should ordinarily .ait until the ne. trustees are appointed before recogni7ing e:emption to ensure that the trust .ill in fact continue. Also as discussed belo. the number and identity of the trustees could be a material factor in determining .hether the trust serves a private interest. !oes a trust have to be registered .ith the StateD No State 'ilingB 5nli/e corporations ==Cs or limited partnerships trusts generally do not file their governing instrument .ith the State to become legal. *o.ever a .ill that includes a testamentary trust is filed .ith the court as part of the .ill probate process. A fe. States have adopted Article L@@ of the 5niform Probate Code .hich re4uires the trustees of all trusts to register in the court of the principal place of administration of the trust. The 5niform Probate Code imposes penalties on the trustee for failure to register but does not invalidate the trust. The trust instrument usually indicates the State la. under .hich the trust is organi7ed. @f it doesnJt the determination specialist should ascertain the State la. and get a representation from the trust that it is properly organi7ed under the State la. particularly if there is doubt as to the validity of the trust. =i/e other nonprofit organi7ations trusts must /eep orderly financial boo/s and records and minutes of meetings and decisionsIresolutions by their trustees. See @,C $11"B ,ev. ,ul. 9#6#9 "#9#6" C.;. $&( *o. are courts involved in the regulation of trustsD Court ProceedingsB Courts are involved in the administration of trusts in many .ays. Trustees 2particularly of testamentary trusts3 may be re4uired to account to the court for their administration of the trust both periodically and upon termination. ;eneficiaries may sue for an accounting or to replace the trustee. ,estatement GG 80( 8#". The trustee may voluntarily account to the court for the courtJs approval and the trusteeJs o.n protection. ,estatement G &$1. Trustees may bring legal proceedings to receive instructions from the court on the proper course of action. ,estatement G 8#%. =egal proceedings involving the administration of trusts are usually proceedings in chancery. Am. >ur. &d FTrustsF G 8&%. Trusts .ith their separation of legal and e4uitable property interests arose under +nglish la.. *istorically +ngland had t.o court systems courts of la. and courts of e4uity or chancery. =a. courts applied fi:ed rules .hereas the e4uity courts applied more fle:ible principles of )ustice based on considerations of e4uity or fairness. =a. courts handled claims for money or property .hereas e4uity courts handled 4uestions .hether a person should be re4uired to do certain acts and under .hat conditions. Most States have abolished the separate courts of la. and chancery but many vestiges of the separate systems remain. ,estatement G & Comment f. ;y statute the State court of )urisdiction for trusts is often a special court /no.n as Probate Surrogate or ?rphanJs Court. ;lac/Js =a. !ictionary Fprobate court.F These courts have )urisdiction over probate of .ills and administration of trusts and estates as .ell as cases involving guardianships and minors.