Fwd: Marital Trusts
Max,
I presume it is clear that the recent proposal transmitted by Harry's lawyer that I should be satisfied with a handout of 100k a year from the Marital Trust is too disgraceful for comment. I would like to know what further information you require for reimbursement for tax payment. We have previously transmitted a great deal of financial information in order for you to reimburse our taxes, including proof of payment and more. Exactly what more do you require, and with what justification? We see little reason that you cannot act on the information already provided. As for the claim about concern for my later years, that has been thoroughly refuted.
Noam
Noam -
Thanks for your message and your inquiry. I would like to reply in some detail, but before I do so please tell me whether you are now represented by legal counsel. If you are then I believe I'm obliged to copy your counsel on our exchanges. I would also plan on copying Rich Kahn, since my last communications about distributions to you from the trusts have been with him.
Please also bear in mind that since (according to Rich) you are preparing to bring a legal action against me, I have been in contact with my firm's malpractice insurance carrier. As my exchanges with you may also need to be reviewed with our carrier that may delay (and/or limit) my responses.
Max
I am not represented on this issue, so you can send the information to me directly, copying Richard Kahn.
Noam
Thank you for your reply.&n=sp; As you indicate that you are not being represented by counsel I will re=ly directly to you, with a copy to Rich (as you suggest). Please consider:
= As a starting p=int, let me note that I think you and Rich may have misunderstood (at least=initially) the terms of the settlement that Harry proposed through his attorney. Rich and I discussed this in a call about 10 da=s ago and I'm hoping that misunderstanding has been cleared up, but=as I'm not a party to your exchanges (and Rich's exchanges)=with Harry's attorney I can't be sure. I'm al=o not certain whether the terms of the proposed settlement have changed. All I can s=y for sure is that characterizing the offer as one in which distributions t= you cannot exceed $100K per year is not consistent with my understanding o= what has been offered.
= As you know, Ha=ry's attorney has commenced a legal action that is intended to faci=itate my resignation and the appointment of a successor trustee to take my place. Since you've wanted me removed for some tim= and since I've said (from the first time you and I met) that I onl= wanted to serve as trustee if all the family members wanted me to serve, I=E2nm looking forward to resigning as soon as the court determines how I am to do so and how my successor is to be selected.</=:p>
= Given that my r=placement is impending, it might be worth waiting until my successor is in p=ace before responding to my requests for financial disclosure, as it's possible that my successor won't share my views as t= what the trustee of the trusts needs to know before making decisions about=distributions. Likewise, if my successor will be identified soon it m=ght make sense for me to hold off on any distributions and leave it to the new trustee to work with you on figuring all of this ou=. In this regard I'm kind of a "lame duck" tr=stee, wouldn't you say?
= To the extent t=at you want to push forward while I remain the trustee, let me again state t=e basis for financial disclosure by you. It is that, as trustee, I owe a duty to you and I owe a duty to your children (as the r=mainder beneficiaries of the trusts). For the present my primary duty=is to you and it is to distribute to you all income earned by the trusts, n=t of expenses, and to distribute to you (or pay on your behalf) additional monies as reasonably needed to=the extent that your income from other sources is not sufficient to support=your reasonable expenses. Notwithstanding your statement that "As for the claim about concern for my later years, th=t has been thoroughly refuted" it has not been refuted in the context of my trusteeship and it remains my d=ty to consider distributions in light of the possibility that you will have=a reasonable need for distributions from the trust for many more years, and=perhaps in increasing amounts, depending on your circumstances in the future.
= As for the spec=fics of disclosure, what I need to consider is (a) what your income was in 2=17, since that was the basis for the tax payments you seek to have reimbursed, (b) what your income is likely to be this year and=going forward, (c) what your expenses were in 2017 and are likely to be in 2=18, and (d) whether any of your income (or other resources) are being used f=r purposes that the trust cannot support (such as gifts to third parties). So far, Rich has pro=ided me with some rough information about your 2017 expenses. There a=e some gaps in that information, but nothing that can't be cleared u= pretty easily (I think). Rich has also assured me that you have not made any gifts that have diminished your resources and=l assume you would confirm that to me. What I don't have at this point is enough information about your inc=me, so that I can consider what the gap is between your expenses and your i=come, which is the gap the trusts might help to close up. With respec= to your income in 2017, all I can see is that your income tax obligations seem to be much higher than they were prev=ously. I'm assuming that reflects a jump in income from (i) t=e profit made on the sale of the condominium, and (ii) large withdrawals fr=m your IRA. If you want to provide me with more information (bearing in mind what I noted in item #3, above) then info=mation about your 2017 income and what your income is likely to be this yea= is what I most need.
I hope this is helpful and w=ll wait to hear more from you and/or Rich.
Max
A. Max Kohlenberg
Richard Kahn
HBRK Associates Inc.
5=5 Lexington Avenue, 4th Floor
New Y=rk, NY 10022
Begin forwarded message:
- From: Max Kohlenberg (email address redacted)
- Date: July 7, 2018 at 7:43:24 AM EDT
- To: 'Noam Choms=y' (email address redacted)
- Cc: 'Richard Kahn' (email address redacted)
- Subject: Marital Trusts
- Body fragment visible: "Noam —</=span>"
- Notes: several email addresses are redacted and the header contains HTML/encoding artifacts (e.g., =&t;, =/span)