EFTA02378926.pdf

From: Halperin, Alan S Sent: Sunday, November 1, 2015 9:08 PM To: jeffrey E. Subject: Fw: December 1 Decantings Here you go. Thanks. Alan Alan S. Halperin I Partner Paul, Weiss, Rifkind, Wharton & Garrison =LP Sent: Sunday, November 1, 2015 3:27 PM To: Brad Wechsler; Ada Clapp Subject: Re: December 1 Decantings Brad and Ada, over the weekend, I had several long telephone conversations =ith Jeffrey. One planning strategy which emerged from the calls was the id=a of Leon using borrowed funds from one or more third parties and possibly=LLC- owned art to satisfy the debt owing to APO1. Thereafter, APO1 would have cash, which will be decan=ed. Then AP0O1 would lend money back to Leon who, in turn, would re-pay th= loans owing to third parties. When the dust settles, Leon will continue t= owe the trust substantial funds. But the trust will have basis in the "new" loan, so ultimate repayme=t (if made after death) will not trigger tax. Further, it puts some distan=e between the earlier sale and restructuring (in old trusts) and the note =made by the new trust). The trick will be finding outside sources to provide the loans on a short- term basis. We also discussed whether, in connection with the decantings, the family be=eficiaries should provide releases and, if so, should they have separate c=unsel and should the releases be supported by accountings. The releases an= accountings would cover the period since the last release. =br> =effrey then raised the question whether APO01 should mimic the provisions =f APO1, where there is a one-fund trust beyond Leon's life (and Debra's li=e), or whether the trust should be divided innto separate trusts at the death of the survivor of Leon and Deb=a. =br> =e discussed whether APO1 decanting will include right to any future remain=er interests from existing GRATs (Jeffrey says no). These items will take time to navigate and implement, particularly the poss=ble third party loans, accountings and releases. One obvious question is w=ether the December 1 deadline will be pushed back. Alan Alan S. Halperin I Partner 1111101101 From: Brad Wechsler Sent: Sunday, November 1, 2015 2:1O PM To: Ada Clapp I EFTA_R1_01391723 EFTA02378926 Reply To: Brad Wechsler Cc: Halperin, Alan 5; Jeffrey Epstein Subject: Fw: December 1 Decantings Brad and=Ada, over the weekend, I had several long telephone conversations with Jef=rey. One planning strategy which emerged from the calls was the idea of Le=n using borrowed funds from one or more third parties and possibly LLC- owned art to satisfy the debt owing to=APO1. Thereafter, APO1 would have cash, which will be decanted. Then=APOO1 would lend money back to Leon who, in turn, would re-pay the loans o=ing to third parties. When the dust settles, Leon will continue to owe the trust substantial funds. But the tr=st will have basis in the 'new' loan, so ultimate repayment (if made after=death) will not trigger tax. Further, it puts some distance between the ea=lier sale and the note. The trick will be finding outside sources to provide the loans on a short-term basis= We also =iscussed whether, in connection with the decantings, the family beneficiar=es should provide releases and, if so, should they have separate counsel a=d should the releases be supported by accountings. The releases and accountings would cover the period since =he last release. Jeffrey =hen raised the question whether APOO1 should mimic the provisions of APO1,=where there is a one-fund trust beyond Leon's life (and Debra's life), or whether the trust should be divided inn=o separate trusts at the death of the survivor of Leon and Debra.</=iv> We discu=sed whether APO1 decanting will include right to any future remainder inte=ests from existing GRATs (Jeffrey says no). These it=ms will take time to navigate and implement, particularly the possible thi=d party loans, accountings and releases. One obvious question is whether t=e December 1 deadline will be pushed back. Alan Alan S. Ha=perin I Partner 111111111111 Origi=al Message From: Brad Wechsler Sent: Sunday, November 1, 2015 2:10 PM To: Ada Clapp Reply To: Brad Wechsler Cc: Halperin, Alan 5; Jeffrey Epstein Subject: Fw: December 1 Decantings Ada/alan-as you can see I am copying jeffrey on this from our friday call as an fyi fo= him. Thx, b Sent from my Verizon Wireless BlackBerry From: Ada Clap Date: Thu, 29 Oct 2015 19:56:42 +0000 • Subject: Decem •er 1 Decantings 2 EFTA_R1_01391724 EFTA02378927 Attached for tomorrow's meeting are: = Action Steps to Decant publishing assets. = List of Documents needed to accomplish item 1. = Action Steps to Decant non-publishing assets. = List of Documents needed to accomplish item 3. Ada Clapp Chief Legal Officer Elysium Management LLC This communication and any attachment is for the =ntended recipient(s) only and may contain information that is privileged, =onfidential and/or proprietary. If you are not the intended reci=ient, you are hereby notified that further dissemination of this communication and its attachments is prohibited.&nbs=; Please delete all copies of this communication and its attachments and n=tify me immediately that you have received them in error. Thank you.=nbsp; This message is intended only fo= the use of the Addressee and may contain information that is privileged a=d confidential. If you are not the intended recipient, you are hereby not=fied that any dissemination of this 3 EFTA_R1_01391725 EFTA02378928 communication is strictly prohibited. =lf you have received this communication in error, please erase all copies =f the message and its attachments and notify us immediately. date-last-viewed 0 date-received 1446413024 flags 8590195713 gmail-label-ids 18 5 remote-id 559131 4 EFTA_R1_01391726 EFTA02378929