EFTA02550516.pdf

From: Noam Chomsky Sent: Friday, December 8, 2017 3:57 PM To: jeffrey E.; Valeria Chomsky Subject: Fwd: FW: Distributions for Tax Payments from Carol S. Chomsky Marital Trusts What's your suggestion about what I should do nex=? Forwarded =essage From: Valeria Chomsky</=> Date: Fri, Dec 8, 2017 at 7:56 AM To: "jeffrey E." <[email protected] <mailto:jeevacation=gmail.com» Cc: Noam Chomsky < From M=x, below Deborah's email. Forwarded message F=om: Deborah Pechet Quinan Date: Fri, Dec 8, 2017 at 9:02 AM Subject: FW: Distributions f=r Tax Payments from Carol S. Chomsky Marital Trusts To: "Noam Chom=ky >, "Valeria Chomsky Ric ar Ka n Dear Noam, Valeria and=Richard, </=pan> Please see Max =99s response below to the email I sent him yesterday. I also forward=d you yesterday the voice mail that Max left me and I await your responses= I want to make sure that we are all on the same page as to next steps before I respond to Max. </=pan> Deborah =/span> </=pan> Deborah Pechet Qui=an, Esq. LL.M. =AO EFTA_R1_01706166 EFTA02550516 Shareholder Chair, Trusts & E=tates Group <https://maps.google.com/?q=255+State+Street,+7th+Floor%C2%A0%7=%C2cYcA0Boston,+MA+02109&entry=gmail&sou rce=g> <https://maps.google.com/?q=255=State+Street,+7th+Floor%C2%A0%7C+%3Chttps://maps.google.com/?q%3D255%2B Sta=e%2BStreet,%2B7th%2BFloor%25C2%25A0%257C%25C2%25A0Boston,%2BMA%2B02109%26e=try%3Dgmail%26so urce%3Dg%3E%C2%A0Boston,+MA+02109+%3Chttps://maps.google.c=m/?q%3D255%2BState%2BStreet,%2B7th%2BFI oor%25C2%25A0%257C%25C2%25A0Boston,=2BMA%2B02109%26entry%3Dgmail%26source%3Dg%3E&entry=gmail&s ource=3Dg> I <https://map=.google.com/?q=255+State+Street,+7th+Floor%C2%A0%7C+%3Chttps://maps.goog=e.com/?q%3D255%2 BState%2BStreet,%2B7th%2BFloor%25C2%25A0%257C%25C2%25A0Bos=on,%2BMA%2B02109%26entry%3Dgmail%26s ource%3Dg%3E%C2%A0Boston,+MA+02109+%3C=ttps://maps.google.com/?q%3D255%2BState%2BStreet,%2B7th%28F loor%25C2%25A0%=57C%25C2%25A0Boston,%2BMA%2B02109%26entry%3Dgmail%26source%3Dg%3E&entr==gmail& source=g> Boston, MA 02109 <https://maps.google.com/?q=3D255+State+Street,+7th+Floor%C2%A0%7C%C2%A0Boston,+MA+02109&entry=g=ail&s ource=g> Direct: 617.570.3521 <tel:(617)%20570-3521> chttps://maps.google.com/?q=255+State+Street,+7th+Floor=C2VOA0%7C+%3Chttps://maps.google.com/?q%3D255%2B State%2BStreet,%2B7th%2BFlo=r%25C2%25A0%257C%25C2%25A0Boston,%2BMA%2B02109%26entry%3Dgmail%26so </=pan> From: Max Kohl=nberg [mailto:m <nllil l• ] Sent: Thursday, December 07, 2017 i To: Deborah Pechet Quinan Cc: Noam Chomsky Subject: RE: Distributions for Tax Payments from Carol S. Chomsky Marital Trusts Deborah —<1=> </=pan> I have received your m=ssage and look forward to replying in greater detail in due course. =or this evening please let me note the following: </=pan> <=u>1. As I have noted t= you, I do not agree with your assertion that I would be reasonably exerci=ing my discretion by making substantial principal distributions from the t=usts without some inquiry into the circumstances surrounding Noam's request. I remain willi=g to discuss the scope of that inquiry, but I will not make the requested =istributions without learning more. 2 EFTA_R1_01706167 EFTA02550517 <=u>2. While I acknowled=e that Harry, as trustee, is barred from participating in any decisions ab=ut principal distributions, I do not in any way agree that this prevents m= from discussing your message with him, which I intend to do momentarily. As a co•trustee of the t=ust he is entitled to be informed of all trust matters, whether or not he =as ultimate authority as to any particular matter. He and his sister= are also entitled to know of Noam's request, even if I choose not to follow any advice that they might offer.=/u> <=u>3. As to practical m=tters, please note that I do not have any mechanism by which I can make di=ect payments from the trust accounts. (I note this due to your refer=nce to payment by check — there is no check writing capacity for either trust account.) All trust asset= are held at Bainco. </=pan> <=u>4. I contacted Bainc= when I received your message, to give them notice that a request for fund= may be forthcoming. I was told that (a) it was already too late to =nitiate any fund transfers today, and (b) there is only a modest amount of cash in each of the trust accounts. <=u>5. If I request that=Bainco liquidate holdings to raise cash it is unlikely that funds will be =vailable before early next week. <=u>6. If Bainco were to=liquidate assets to raise cash substantial capital gains taxes may be trig=ered. <=u>7. Lastly, please no=e that the team at Bainco informed me that very substantial withdrawals we=e made from Noam's IRA this year (which I was not aware of, of cou=se) and on each occasion that they distributed cash to Noam from his IRA they contemporaneously informed his accountants =f the amounts withdrawn, so it is hard to understand why no timely plannin= was undertaken to address his tax liabilities, leaving us instead with th= tax payment emergency that you describe. I will look forward to=discussing this with you further tomorrow, if you are available.=/u> </=pan> Thank you,</=> </=pan> Max </=pan> </=pan> 3 EFTA_R1_01706168 EFTA02550518 A. Max Kohlenbergc/=> Howland Evangelista Ko=lenberg Burnett, LLP One Financial Plaza =E2 Suite 1600 Providence, Rhode Isla=d 02903 </=pan> This email and any att=chments thereto are intended only for use by the addressee(s) named herein=and may contain legally privileged and/or confidential information. =f you are not the intended recipient of this email, you are hereby notified that any dissemination, distribution o= copying of this email, and any attachments thereto, is strictly prohibite=. If you have received this email in error, please immediately notif= me by return email and permanently delete the original and any copy of this message or attachment. Than= you. </=pan> </=pan> </=pan> </=pan> From: Deborah =echet Quinan Sent: Thursday, December 07, 2017 4:18 PM To: Max Kohlenberg Cc: Noam Chomsky Subject: Distributions for Tax Payments from Carol S. Chomsky Manta= Trusts Max - 4 EFTA_R1_01706169 EFTA02550519 At Noam Chomsky's direction I am writing to =ormally request two distributions on his behalf to be made from the Carol =. Chomsky Marital Trusts, as follows: $150,000 for 2017 federal estimated taxes which we a=k that you remit directly to the US Treasury on Noam's account (I =o not have a voucher); and $109,271 for 2016 taxes paid from Noam's IRA=and penalties incurred. As I know you are aware, distributions from the mari=al trusts are to be made in your sole discretion. Your co-trustee, H=rry Chomsky, has no say in making discretionary distribution decisions per the ter=s of the trust. Therefore there is no need for you to confer wit= Harry and you are able to accede to this request promptly and without delay. As I know you are also aware, the trust contains no =tandard requiring you to consider Noam's other financial resources= You are obligated to reasonably exercise your discretion, and making the =017 income tax payment for Noam from these trusts is more than reasonable under any analysis. In addition, Noam's income tax liability for=2016 was unnecessarily increased due to your refusal to make the 20=6 income tax payments from the trust. As a result, Noam had to withd=aw $109,000 from his IRA to make 2016 income tax payments and $271 in tax penalties were incurred. These =ithdrawals unnecessarily and unreasonably increased Noam's 2016 and 2017 income tax liabi=ities because the marital trusts had more than sufficient funds to allow y=u to make these 2016 tax payments from assets that would not incur ordinar= income tax on every dollar distributed. Again, this distribution of $109,271 is a reasonable exercise of your disc=etion under any analysis. Please confirm that you will take care of these paym=nts before the close of business tomorrow. Please remit the $150,000 =heck directly to the federal taxing authorities and fax me a copy of the c=eck and remittance correspondence. See my fax number below. I =ill send you another email shortly with directions for you to remit the $109,271 distribution. Deborah Deborah Pechet Qui=an, Esq. LL.M. =AO Shareholder Chair, Trusts & E=tates Group chttps://maps.google.com/?q=255+State+Street,+7th+Floor%C2%A0%7=%C2%A0Boston,+MA+02109&entry=gmail&sou rce=g> <https://maps.google.com/?q=255=State+Street,+7th+Floor%C2VOA0%7C+%3Chttps://maps.google.com/?q%3D255%2B Sta=e%2BStreet,%2B7th%2BFloor%25C2%25A0%257C%25C2%25A0Boston,%2BMA%2B02109%26e=try%3Dgmail%26so urce%3Dg%3E%C2%A0Boston,+MA+02109+%3Chttps://maps.google.c=m/?q%3D255%2BState%2BStreet,%2B7th%2BFI oor%25C2%25A0%257C%25C2%25A0Boston,=2BMA%2B02109%26entry%3Dgmail%26source%3Dg%3E&entry=gmail&s 5 EFTA_R1_01706170 EFTA02550520 ource=3Dg> <https://map..google.com/?q=255+State+Street,+7th+Floor%C2%A0%7C+%3Chttps://maps.googre.com/?qc/o3D255%2 BState%2BStreet,%2B7th%2BFloor%25C2%25A0%257C%25C2%25A0Bos=on,%2BMA%2602109%26entry%3Dgmail%26s ource%3Dg%3E%C2%A0Boston,+MA+02109+%3C=ttps://maps.google.com/?q%3D255%2BState%2BStreet,%2B7th%2BF loor%25C2%25A0%.57C%25C2%25A0Boston,%2BMA%2B02109%26entry%3Dgmail%26source%3Dg%3E&entr==gmail& source=g> Boston, MA 02109 <https://maps.google.com/?q=30255+State+Street,+7th+Floor%C2%A0%7C%Cr/a0Boston,+MA+02109&entry=g=ail&s NOTICE: This email with its attachme=ts, if any, is intended solely for permitted use by authorized recipients.=lf you are not an authorized recipient of this email, your retention, transmission, disclosure, or use of this email is prohibited. 1= you received this email in error, please notify the sender and delete thi= email and its attachments from your devices and systems. NOTICE: This email with its attachments, if any, is intended solely for per=itted use by authorized recipients. If you are not an authorized recipient=of this email, your retention, transmission, disclosure, or use of this em=il is prohibited. If you received this email in error, please notify the sender and delete this email and it= attachments from your devices and systems. 6 EFTA_R1_01706171 EFTA02550521