EFTA02576254.pdf

From: Alan S Halperin < > Sent: Tuesday, October 22, 2013 7:16 PM To: Jeffre Epstein Cc: Subject: Timing of Funding GRAT Jeffrey, I understand that you have had some discussions with Leon about when the GRAT is to be funded. At this point, I understand that the current thinking is to wait until after the dividend is announced (in November). Is that correct? In that regard, please let me point out one thing, As you know, for gift tax purposes, the value of publicly traded stock generally is the mean between the high and low on the date of transfer. If there is a run up on value on a particular day, for gift tax purposes, only a portion of the run up is considered. On a separate point, I understand that you asked about the provision allowing a spouse to make trust property productive. I have several comments. First, this provision is triggered only if Leon dies during the GRAT term. Second, as you know, this provision is tax driven, and is designed to satisfy the marital deduction rules. Third, I could reverse the presumption: rather than require the spouse to consent to investing in unproductive productive, we could require the conversion to productive property only if directed in writing (we will make this change). I am happy to discuss. Alan IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Click Here for More Information <http://www.paulweiss.com/files/tbl_s29Publications/FileUpload5679/5647/230.pdf> Alan S. Halperin I Partner Paul, Weiss, Rifkind, Wharton & Garrison LLP 1285 Avenue of the Americas I New York, NY 10019-6064 (Direct Phone) I (Direct Fax) <mailto > I www.paulweiss.com <http://www.paulweiss.com/> This message is intended only for the use of the Addressee and may contain information that is privileged and confidential. If you are not the intended recipient, you are hereby notified that any dissemination of this communication is strictly prohibited. If you have received this communication in error, please erase all copies of the message and its attachments and notify us immediately. EFTA_R1_01748259 EFTA02576254