EFTA00673658.pdf

From: Valeria Chomsky To: "jeffrey E." <jeevacationggmail.com> Subject: Some information Date: Sun, 06 Aug 2017 13:04:15 +0000 One of our lawyers sent us this. Noam was not aware of these investments at Millennium. And we don't receive any statements at all from them. "After discussion with Mr. Katz, I do understand the "manual adjustment" of $150,000. This relates to the calculation of your IRA yearly required minimum distribution (RMD ), which is based on the year-end IRA valuation. Bainco uses two third parties to act as the holders of your investments. - Pershing holds the publicly-traded investments. - Millennium holds the "special" private investments, which as we discussed, have mostly failed. I am not sure what form of Millennium statement you receive. I have asked Bainco for a copy of this. For tax purposes, the IRS requires that you withdraw from the IRA at least the RMD amount each year, with penalties if you do not do so. The year-end balance of the Millennium account was $150,000. For that reason, Bainco added this amount to the Pershing account balance to make up the number used to calculate the RMD. This was the "manual adjustment." The Millennium account number has now decreased by $75,000, due to the write off of the "Outsmart" investment. Therefore, next year the "manual adjustment" will be less. As we have discussed, you have a potential daim against Bainco for recommending these various private investments in the first place. If you want to bring such as claim, let me know. As discussed in my previous memorandum, such claims will be barred by the applicable statute of limitations if not filed in court in a timely fashion. Regarding the Bainco fee amounts and the allocation of this company's fees, I asked Mr. Katz for more information, which he said would be forthcoming next week. Deb sent you an email on August 2 that addressed the ownership of your condo in Cambridge. If you have additional questions about that, please let her know. EFTA00673658 And below are comments by Noam (in bold) to the estate planning lawyer. Max and I spoke on Monday, and he indicated that other than the Bainco statements he has not prepared any accounts for the trusts of which he is the co-trustee. He indicates that, to his knowledge, everything appears on the Bainco statements. I attach to this email a statement for all three trusts as of 6/30/17 that Max forwarded to me, and his email to me is below. I indicated to Max that when I serve as trustee it is my custom to prepare a summary of the year's financial activity, including a beginning of year balance and end of year balance for all assets, for the trust beneficiaries. Max will prepare an account for each year, for each of the marital trusts for you, if you would like him to do so. I believe the trusts will be responsible for payment for the preparation of the accounts though we did not directly discuss this. Please let me know if you want Max to prepare the accounts for the marital trusts for his periods serving as trustee. Yes, we would like to have these. With regard to Noam's revocable trust, Noam and Harry are the current co-trustees; Max has no involvement in the financial management of this trust even though he has sent us a copy of the statement that is sent to you quarterly. He should not be receiving this statement any longer for your revocable trust. Please let me know if you would like to have me copied on it instead. Yes, it should go to you (and to us). The promissory note liability for your Cambridge home, along with the value of the home and the mortgage, appear on page 1 of the attached statement. However, based on my records (which I am reviewing), it appears that the home, the promissory note, and the mortgage are all in Noam's individual name, not in his trust. Therefore, it appears that the trust owns only $10,000 worth of units in a venture capital limited partnership. Could please tell us as soon as possible about the facts of the matter. This trust will be revoked by you and replaced with a new trust, referenced below, of which you and Valeria will serve as co-trustees. Please let me know if there are any bank accounts, or any other assets, in the name of Noam's revocable trust that are not held by Bainco. A quick review of your bank statements, which you can scan to me, will reveal this information. There are no other assets associated with the revocable trust. EFTA00673659 I have your estate plan drafts for review, including new trusts for each of you, and am a few days late in getting them to you. I will be getting those to you shortly for review. Could you please let me know your travel schedule, so that I have a sense of when we might all be able to get together to review everything? We will be in Cambridge for most of August, with a few days away. By early September we expect to have moved to Tucson. And could you please send me the deed, by-laws, lease, etc. for your Cambridge home? I have requested this in the past and need it to confirm my analysis of Valeria's rights in the coop should you pass. We will send these. EFTA00673660