EFTA02544720.pdf

From: Valeria Chomsky < Sent: Saturday, December 16, 2017 2:20 PM To: jeffrey E. Cc: Noam Chomsky Subject: Fwd: Clarifications Jeffrey, Before our call, could you please r=ad the e-mail below? This is from January and February 2017, but it shows =eborah's position then, but how she disguised it. The blue font =s Deborah's comments to Noam's letter to his children, and my comm=nts in green with my initials (VC). You can see that, then, Deborah =nsisted that the Trustees were not part of Noam's estate and that I wo=Id be receiving Noam's full estate -- which is a false statement4=A0 Noam has also two IRAs and although Noam wanted to put both in my names= I told him that the one he "inherited from Carol" should go to =is children. Noam thinks that Deborah has b=en very cooperative and helpful. But we know why. Valeria Forwarded message F=om: Deborah Pechet Quinan < <mailto >> Date: Tu=, Feb 14, 2017 at 1:54 PM Subject: RE: Clarifications To: Valeria Ch=msky < <mailto », Gene Landy < <mailto Cc: Noam Chomsky < <mailto >> Dear Valeria, I agree with you completely! Ple=se see my explanation and comments below. I hope they are helpful.=C2* I'm happy to talk as well, any time. All my best, <=pan class="gmail-"> Deborah Deborah Pechet Quinan, Esq. LL.M. Shareholder EFTA_R1_01697538 EFTA02544720 Chair, Trusts & Estates Group 255 State Street, 7th Floor I Boston, M= 02109 Direct: <tel: > I Cell: Assistant - Jayne Mahoney: Office: <tel: > I Fax: = <tel: e-mail: > www.riw.com I From: Valeria Chomsky [mailto >1 Sent: Tuesday, February 14, 2017 1:10 PM To: Deborah Pechet Quinan; Gene Tandy Cc: Noam Chomsky; Valeria Chomsky Subject: Clarifications Deborah, I would like to have things even clearer and l=think the nomenclature we use is extremely important to establish the trut= of the facts and not give false ideas and illusions to anyone, including =urselves (Noam and me) in our communication. So I would like if you could review the files and let us know about these =ssues. First, I think we need to refer to the IRA acc=unts by their identification numbers, not as the "large" or &quo=;smaller", even because the one that is larger it had been used for o=her family members (distributions, taxes, Wellfleet, medical expenses, etc) and might become the "smaller,", even because it =eep being used for our living costs and other expenses (mortgage, lawyers,=accountant, etc). DPQ: Thi= is a good idea. By "identification numbers" do you =ean the account numbers at Bainco (which will change when you change managers) or =ome other numbers? Noam's estate (even when he is not</=> making use of it, has no access to it, or has transferred it to his c=ildren), as far as I know, involves the following: 1) IRA Accounts (Bainco has listed at least three different Ac=ount numbers when sending the "IRA/ESA Distribution Request" For=s, so I am not sure how many there are for sure, but the Account numbers t=at have appeared in Bainco's forms are the following ABA500094, ABA950422, ABA950307. These Accounts were recently renamed as &=uot;A2A" replacing the "ABA", but maintaining their followi=g respective numbers. 2 EFTA_R1_01697539 EFTA02544721 2) Noam Chomsky Revocable Trust=/u> 3) Carol Chomsky Non-Exempt Trust 4) Carol Chomsky Exempt Trust=/u> 5) Gull Haven Lane <=p> 6) Lexington house 7) Noam's Intellectual Property<=u> 8) Cambridge Apartment (subject to a mo=tgage and a loan to Carol Trust) Items (2), (3), (4), (5) and (6) already have =oam's children as the beneficiaries. From these assets Noam has designated one of t=e IRAs to me. So, it is NOT correct to say that "Valeria receives the totality of Noam's estate&quo=; -- as you wrote. DPQ: We are speaking from two different per=pectives, I as a lawyer for whom the term "estate" technic=lly means everything passing from Noam at his death. This would be Noam's IRAs, the Cambridge home (in his name currently), his intel=ectual property, and his tangible personal property. I don't=think he has rights to change the disposition of Carol's trusts or=Gull Haven Lane at his death. I will check. You are receiving the totality of the assets that Noam can pass to another at his death, exc=pt for what is in his revocable trust (until the trust is revised after we=meet in March) and possibly the smaller of the two IRAs (I do not have the=beneficiary designation yet). You receive these under the terms of his new Will. Does this help? l=am happy to use the terminology you are most comfortable with, and I am gl=d that you raised this issue. Thank you. When Bainco s=nds us the forms for the IRA distribution, they do not always include the =RA account from which the withdrawal is being made. Noam used to sig= the forms without having the information filled in. But considering the amount that was available in the larger IRA in 2015 an= the one that is there now, it seems that most, if not ALL the major distributions are being made from therIRA account that Noam has designated me as the beneficiary. Our livi=g expenses, taxes, Wellfleet rent, distribution to 10 family members seeme= to have been withdrawn from this one IRA though this is now not being done. So if something is left from this IRA, I will =e entitled to receive whatever is left there. DPQ: Yes. This is my understanding a= well. I believe you can also be named the beneficiary of the smaller IRA if Noam would like that. I will check on this and on the=current designation when I receive the documents from Bainco. We wil= 3 EFTA_R1_01697540 EFTA02544722 be able to plan for the best account for the distributions to come out of=as we make progress in understanding the whole situation. The materials from Bainco will help a great deaL=C2. I have some additi=nal comments below (in green). Valeria Forwar=ed message From: Deborah Pechet Quinan < <mailto >> Date: Fri, Feb 10, 2017 at 3:22 PM Subject: FW: Letter from the three of us (Avi, Diane, Harry) To: "Valeria Chomsky ( >)„ <mailto > &g=;, "Noam Chomsky ( <mailto > )" < <mailto >> Cc: Gene Landy < <mailto >> Dear Valeria and Noam, Please see my clarifying comments embe=ded in the text of the letter, below, and please let me know if you have any questions or comments. Best, Deborah Deborah Pechet Quinan, Esq. LL.M. Shareholder Chair, Trusts & Estates Group 255 State Street, 7th Floor I Boston, M= 02109 Direct: <tel: > =C24> Cell: <tel:-> </=pan> Assistant - Jayne Mahoney: Office: <tel: pan style="font-size:11ptfont-family:Calibri,sans- serif;color:rgb(31,73=125)"> I Fax: <tel: > <=pan style="font-size:llpt;font- family:Calibri,sans-serif;colocr l .,73=125)"> e-mail: -< > www.riw.com j 4 EFTA_R1_01697541 EFTA02544723 From:=span style="font-size:l0ptfont-family:Tahoma,sans-seritcolor:black"> V=leria Chomsky <mailto >1 Sent: Monday, January 30, 2017 12:41 PM To: Gene Landy Subject: Fwd: Letter from the three of us (Avi, Diane, Harry)=u> Gene, <1=> Hope the operation=went well. <1=> Thank you so much =or your advice. Noam wrote this answer and I think it is polite and covers=everything. Do you have any advice? <1=> Valeria <1=> <1=> Forwarded message From: Noam Chomsky < <mailto■ >> Date: Mon, Jan 30, 2017 at 12:30 PM Subject: Fwd: Letter from the three of us (Avi, Diane, Harry) To: Valeria Chomsky < <mailto >> Very good to talk to you yesterday evening, Diane. Read your letter carefully of course. Many times.. And needless=to say, very glad to know of your concerns. I would, however, like t= clarify some very serious misconceptions. I have no idea what information you are receiving, but it is completely fal=e. In fact, I do not even understand how you are receiving this info=mation. Whatever the source, it is radically wrong. We have in=fact seen some highly misleading information from Bainco. In the category of our expenses, they have included all sort= of things that do not belong there, such as distributions, airline expens=s but not the fact these were reimbursed as planned, and many other quite =isleading calculations. However, whatever the source of what you have heard, it is completely mistaken. Our expenses in fact have gone down, but not entirely. In Lexington w= were living rent free. As I explained to Avi, I thought the house w=s in my name, and we would never have agreed with the advice from Max and =am to move into an apartment in Cambridge if we hadn't thought that the sale of the Lexington house would cover =he new apartment. That was very bad advice, and if I'd known tha= I did not own the Lexington house, I never would have accepted it. As it now stands, we have expenses for the apartment that we never had befo=e. We cannot figure out what is happening to royalties, but we are b=rely receiving them. There is virtually no pension because, about 20=years ago, it was restructured as an IRA which we then invested in the estate that will be left to the three of you=when I die. DPQ: Is this=the smaller IRA at Bainco? The large one is being left to Valeria based on the change in ben=ficiary designation 5 EFTA_R1_01697542 EFTA02544724 that you informed us of, and regarding which I await w=itten documentation from Bainco when they provide the materials I have requested. VC: There are three IRA accounts, acco=ding to the IRA/ESA Distribution Request Forms that Bainco has been sendin= us along the years, as I mentioned above in this letter. I would like if you could check on this. DPQ: Of course. As soon as we =et the materials from Bainco. <=LI> As I also explained to Avi, years ago when the estate was planne=, the prime concern of the lawyers was avoiding estate taxes. The in=estments were assigned to trusts in Mommy's name, since we assumed that I would die first.4>=A0 The intention of course was that the money would be available to the su=vivor, but things did not work out as we had anticipated and now, as the trusts are written, it seems that I have no access to them. OPQ:40=A0 This is not entirely accurate as Noam is the income beneficiary of thes= trusts and must receive all the net income annually, and he is also entit=ed to principal distributions as the trustees "consider advisable". At my death, =he estate goes to you. D=Q: Carol's trusts are left to the children at Noam's=death. Except for the small amount of assets currently in Noam4>=99s revocable trust (we will be updating this trust after we meet in March), Noam's es=ate is left to Valeria under the terms of his new will and pursuant to the=beneficiary designation of the large IRA at Bainco which I am awaiting doc=mentation to confirm. The term "estate" references the totality of a decedent's assets so the balance of C=rol's estate, i.e. the Marital Trusts, go to the children, but Noa='s estate does not. VC: We have not been informed that Noam has been=receiving ANY of the Trusts net income nor principal distributions. <=span>DPQ: Yes, this is a concern. When we receive the materials from Bainco we=should be able to determine where the required net income distributions ar= being deposited. Principal is paid at the discretion of the trustees.40=A0 They made some principal distributions to pay Noam's income taxes and estimates last year.<=> That leaves us with the IRA. I did not realize this, but t=ough Bainco was aware that the IRA was my only source of funds, and was of=course diminishing, they continued to make distributions to ten family recipients. We were al=o paying almost $50,000 a year for Wellfleet, and paying other expenses, l=ke Alex's medical bills. It seems that we were also paying taxes=for the entire estate. DPQ: I think Noam is refe=ring to Carol's Marital Trusts here. Am I correct? 4>=A0 VC: No, Deborah. The money for all this ha= been coming from distributions from the IRA (and most of it, if not ALL, =rom the one Noam has designated me as the beneficiary). DPQ:=C24, Thanks Valeria. Just to give you an idea of the scale, there is an automatic $30=,000 deduction a year from the IRA. DPQ: In the interest of being accurate the Minimum Required Distribution changes somewhat each =ear depending on market fluctuations and Noam's age. This is=not a deduction from the IRA, rather, this is the minimum distribution to =oam as required under our tax laws. This is perhaps just a semantic point. Distributions and taxes come close to the total deduction from t=e IRA, and other expenses of the kind just mentioned (plus Anthony) carry =xpenses well beyond the funds coming in. VC: Although a requirement under the tax laws, t=e distributions (withdrawals) from the IRA were being used for donations t= family members and other expenses that we should not be responsible for, considering that the IRA =s the only stable source of money left for Noam. DPQ: Agreed. Plainly, we cannot continue any of this while living on a diminishing IFtA.-C2. I did request that a marital trust pay the taxes on the IRA, but Har=y insisted on conditions that I could not possibly accept, and I was very =urprised, frankly, that any conditions were even considered. Perhaps that had to do with the serious miscon=eptions about our expenses, whatever their source. 6 EFTA_R1_01697543 EFTA02544725 Naturally, I want make sure that when I die, Valeria will at lea=t have a place to live and something to live on. 0PQ: I might re-word this=as it is Noam's intent as expressed to me and Gene that Valeria re=eives the totality of Noam's estate, and not just an amount that w=ll give her subsistence. VC: Again, Deborah. This is the main and extreme=y important point of my letter. I might be entitled to receive whate=er will be left from one of the IRA, if something will be left, but not the "totality" of Noam's =state. DPQ: I hope=l was able to clarify above what I meant. I think the lack of clarit= here stems from the fact that Noam earned everything and a lot of those assets were placed in Carol's name prior to her death for estate t=x minimization purposes, so they became part of "Carol's e=tate". I am happy to include these items in the term 4>=9CNoam's estate" if you wish as that reflects the totality=of assets that pass at Noam's death, whether through trusts set up by Carol (the Marit=l Trusts) or from Noam directly. She came here, abandoning everything in Brazil, to be with me in-tiny last years. We are very happy together, and care for each other.=C2* It is a joy I never anticipated after Mommy died and after the years I spent alone.</=> That's the situation. It is entirely different from wh=t you heard. Again, I do not know what the source of your informatio= is, but it is completely inaccurate. I should add, perhaps, that in earlier years, I was indeed carel=ss about expenses, leaving it to Mommy. Valeria has taken over, and =or the past three years, both of us have been monitoring expenses carefully and know exactly what i= coming in and what is being spent. We have all the facts very clear=y laid out, and are planning accordingly. I am glad that the three o= you will be well taken care of from the estate, the way it was planned years ago. DPQ: As above the reference here should be to Carol.=99s Marital Trusts, just to be clear that the that is the children40=99s inheritance. VC: I disagree, Deborah. The reference here shou=d be to what corresponds to reality -- Noam's children will=be taken care from his estate. Not only from Carol's Marital Trust that were composed by Noam as the grantor, =stablished to make use of the guarantees for the children and tax issues, =ut still part of Noam's estate, as we all know. DPQ: Understood. Frankly, I always assumed that I would be able to disregard fina=cial concerns in my last years, but as a result of careless and faulty dec=sions taken long ago, and some bad recent advice, that is not the way things are turning ou=. D=/u> <1=> <1=> On Sun, Jan 29, 20=7 at 10:35 PM, Diana Chomsky < <mailto >> wrote:=/p> Dear Doddoy and Valeria, It was really nice to talk to both of you just now - we'll have to =o it more often. As I mentioned, I'm sending you a letter from all three of us (Avi =nd Harry in copy). We decided to write this letter because we are very worried about what =e've been hearing from you about your financial situation and the =mount of stress it is causing you. We have been worried for many months now, but the situation seems to be be=oming more and more dire and we feel like we can't just stand by a=d watch it happen any more. We want to help find solutions that might be l=ss drastic than what we understand you are considering. 7 EFTA_R1_01697544 EFTA02544726 We have heard you express that you don't have enough money, and thi= is leading you to make big decisions that we're afraid could have har=ful consequences for you. Moving is exhausting, and moving twice in three years even more so. We would hate to=see you to leave your condo unless you somehow aren't happy there. Mov=ng out of the Boston area would be more disruptive still -- again, we'= happily support that if it's what you both want for yourselves, but you shouldn't have to do it because of m=sconceptions about money. Teaching classes could be both rewarding and dra=ning for you; doing it just to chase down a little bit of extra salary mon=y does not make sense in your circumstances. And we definitely don't want to see you drop services that are importa=t to your research and your legacy, like your journal subscriptions or Ant=ony's invaluable work on your publications. Most of all, we are concerned that you are experiencing such high level= of stress that are simply misplaced. We don't understand why you need to worry about money. We know that=you have several million dollars in your IRA and that you receive hundreds=of thousands of dollars each year in IRA distributions, as well as significant income from royalties and oth=r sources. Of course, many of your expenses have risen, because of some wo=derful changes you've made in your life: adding Valeria to the family,=moving to Cambridge, and enjoying some sightseeing as part of your travels. We've been thrilled to see your l=fe develop like this. We were relieved that money did not pose an obstacle=to you living this phase of your life in the best way possible for you, as=well as providing some long-term support for Valeria. But something else has changed very dramatically in the way your money =s flowing. Your spending has shot up, way out of proportion to the expense= we're aware of. It looks to us as if the money is just disappearing. You have enough money to support =he lifestyle you and Valeria have been living, but not enough to keep spen=ing at the rate you have been. We understand that it is distressing and even frightening to worry abou= the money running out. We can see why you are grasping for solutions like=considering disruptive lifestyle changes and looking for other sources of money. We know these decisions ar= ultimately up to the two of you to take, but they are not the solutions w= want for you. We don't want you to suffer the strain and dislocation;=and also we don't believe these small changes to your cash flow will solve the bigger problem of your startlingl= high spending rate. Some may even cost more money than they save.<=pan style="color:black"> We believe that you two -- while you are both brilliant at so many thin=s -- have never developed the practical skills of money management. Your t=oubles began when you stopped working cooperatively with the professionals who had always succeeded in h=lping you meet your goals in the past. We want you to find some financial =rofessional who can help you live your lives comfortably and free of finan=ial worry. They can help you outline your goals, both as two individuals and as a couple; show you what resourc=s you have; figure out if you have enough to meet your goals; figure out i= you have been spending money faster than you need to; and suggest the lea=t painful compromises you might make to save money, if that proves necessary after all. They can do this w=th utmost discretion. But you need to make it a priority to find the right=person, communicate promptly and openly with them, and take their advice s=riously. It pains us to see you trying to figure it all out on your own and comi=g up with horrifying and ineffective solutions. You should be enjoying you= life together and feeling confident about your futures. You've earned a lot of money through a l=fetime of hard work -- please get the help you need to use it effectively.=/span> You also need to make a clear decision about the role you want the rest=of your family to have in your financial affairs. The three of us would be=delighted to join you and your financial advisor in discussing the whole family's circumstances, incl=ding the history of your estate planning and the many gifts you've giv=n us. We used to discuss this regularly with Max and Bainco, and they woul= help us develop unified plans to meet the whole extended family's needs. Meetings like this don't requir= us to share all the details of our private financial affairs with each ot=er, the way one does with one's individual advisor -- but the more we =hare, the more opportunities we may find to help each other. It is up to you whether to continue this kind of open dis=ussion with us. 8 EFTA_R1_01697545 EFTA02544727 =riting this letter is not something we are undertaking lightly. We are doi=g this because we are truly, deeply, concerned about your acute distress a=d about what this is doing to your relationships with your loved ones (especially us). Love, Avi, Diane and Harry Oxfam works with others to overcome pov=rty and suffering O=fam GB is a member of Oxfam International and a company limited by guarant=e registered in England No. 612172. Registered office: Oxfam House, John Smith Drive, Cowley, Oxford, OX4 21Y.<=r> A registered charity in England and Wales (no 202918) and Scotland (SC 0390=2) </a </=> NOTICE: This email with its attachments, if an=, is intended solely for permitted use by authorized recipients. If you ar= not an authorized recipient of this email, your retention, transmission, =isclosure, or use of this email is prohibited. If you received this email in error, please notify the sender and delete t=is 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. 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