EFTA Document EFTA01978296

To: McCaffrey, Carlyn[cmccaffreyfarrnve.com) From: Jeffrey Epstein Sent Sat 11/17/2012 5:01:03 PM Subject Re: (WARNING: MESSAGE ENCRYPTEDJFW: Leon Black - form 709 would a valuation and a Qtip work to defuse the terminable interest problem. we are really concerned with the creditor issue. On Sat, Nov 17, 2012 at 11:04 AM, McCaffrey, Carlyn <[email protected]> wrote: Dear Jeff, See my responses below. Best, Carlyn Carlyn S. McCaffrey I Partner From: Jeffrey Epstein [mailto:jeevacatiOnftmaiLcom] Sent: Saturday, November 17, 2012 8:44 AM To: McCaffrey, Carlyn Subject: Re: [WARNING: MESSAGE ENCRYRTED]FW: Leon Black - form 709 now that i see you already awake? ive read many of the creditor cases , including the group i sent. possible idea 1. either before or after we change to an adversarial trustee. , client gifts the right to wife. .. I can fmd no case that deals with the compound transaction of cutting off a trust right to spouse. ( a right especially that cannot invade the whole trust. ) not the settlor -though fraudulent transfer etc. could apply. Unfortunately, if it turned out that he was making a gift of something when he transferred his ability to receive income to his wife, the gift would not be eligible for the marital deduction because of the nondeductible terminable interest rule. 2. decant the trust. . EFTA_R1_00465307 EFTA01978296 We talked about this yesterday. I think we should make it part of whatever plan we decide on. 3. new three- tiered partnership. ie management interest residual interest and preferred. ( coupon of preferred to be discussed, may be variable ) This may be an option worth thinking about. If we recapitalized BFP into common and preferred. Maybe the trustee could distribute the trust's preferred interest to Leon as "compensation" for the trustee's decision to cut off his income "right." We have to figure out how to get comfortable with the valuation issue. 4. decide on rectifying payout mistake not related to "relevant coS . As we discussed yesterday, this could be part of whatever solution we decide on. It will have the effect of reducing the value to which he may be "entitled." . 5. Since the trust is a partner in black family partners can we reorg the partnership so that it cannot distribute any cash to 2006 trust „ hence no trust acct income and Icon gets his money through the gp interest instead.? Im around all weekend at 212 772 9416 home We could, but this could be characterized as an event that "completed" the gift. ****** *****Int* IRS Circular 230 Disclosure: To comply with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained herein (including any attachments), unless specifically stated otherwise, is not intended or written to be used, and cannot be used, for the purposes of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter herein. This message is a PRIVILEGED AND CONFIDENTIAL communication. This message and all attachments are a private communication sent by a law firm and may be confidential or protected by privilege. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or use of the information contained in or attached to this message is strictly prohibited. Please notify the sender of the delivery error by replying to this message, and then delete it from your system. Thank you. *****Or**************************.n.*************** 11********************Mth*************** ****** ***kit*** Please visit htte://www.mwe.com' for more information about our Firm. EFTA_R1_00485308 EFTA01978297 The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to icevacationggmail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00465309 EFTA01978298