From: Noam Chomsky Imailto:=Pont <mailto > J Sent: Saturday, May 20, 2017 4:18 PM To: Diana Chomsky < <mailto >> Cc: Avi Chomsky < <mailto »; Harry Chomsky au> <mailto: Subject: Re: taxes lust back from a couple of days in E=gland, packed with talks, interviews and the rest. Valeria and I had thought of staying on for a few days for ourselves, but we can't manage that th=se days, due to very intense commitments. Turning to your letter, about the fa=ily relationship, we can put that aside. That's stable, enduring, permanent.=font size="3"> The rest of the letter, however, I f=nd puzzling. I'll explain. And these are matters we ought to clear up. You say that there is "some major disagreement about what the basic facts are" and that there is a difference of perspectives. That&=39;s what I find puzzling. I don't know of any disagreement about the basic facts, and I know of only one perspective: the one I outlined in my letters. I reported what the facts are -- will review the matter briefly again below -- and outlined my perspective, based on the only relev=nt facts I know of, which to my knowledge are complete. I'm not awa=e of any other relevant facts, hence see no basis for any other perspective (whatever that perspective may be). If I'm missing some facts, basic or not, I'd of course like to be a=are of them, and also of the source for them so that I can check and discover on what the picture is based. But since I haven't heard of any ot=er facts beyond those I outlined (and more that simply fill out the same pictu=e), I don't understand the disagreement and don't see any alternative p=rspective. And I don't understand the suggestion about an outside "expert." In fact, find the suggestion very strange, and would even if there were some factual basis for it. Even stranger when there is no factual basis, as far as I am aware -- and if there is, again, I'd like to know what i= is and, crucially, what is the source. So far I haven't seen anyt=ing. To review the basic facts briefly, M=mmoy and I worked out the estate planning a long time ago, with Eric Menoyo and (later) Palmer Dodge when he moved there. Our general plan at that time, about 20 years ago, was for everything to go to you after the two of us died. We took for granted that M would survive me. Therefore, putting aside the trusts designated specifically for you, the rest (apart from IRAs) was put in trusts in M's name for her to acc=ss for the rest of her life. The intention, of course, was that these would be accessible to the survivor — and we took for granted that = would survive me. Things didn't turn out as we=expected. It turned out, contrary to our assumptions, that I was the survivor, not M. And when I remarried, things changed again. Because the pension went almost entirely into M's trust, what remains of the pe=sion is very small, actually less than Social Security. And, importantly, it doesn't go to Valeria after my death. And I have no access to the tr=sts, only to one IRA (and another small one). 8 EFTA_R1_01879335 EFTA02643867

I wasn't paying much attention, =ut we discovered that until last year, the one IRA to which I have access was being used to distribute money to the family, up to the legal limit, which amounts to about half the annual required withdrawals from the IRA. Furthermo=e, taxes and management fees for the whole estate, most of which we have no access to, were being withdrawn from our IRA, carrying us well beyond the required withdrawal. In addition there were other expenses, like Wellfleet ($50,000 annually), Alex's annual medical bills, Max's bi=ls, and others. That has all led to rapid depletion of the IRA -- again, the only source we have access to in the estate. We were therefore compelled to make extra withdrawals, since there is almost no other source of income and we have other regular expenses (like Anthony). The family distributions along with full taxes and management fees for the whole estate, exhausting the IRA, made no sense, but it was my fault for not paying attention and simply assuming that sensible decisions were being made. Wrongly it turns out. The same was true of the decision to=move from Lexington to the Cambridge apartment. I had assumed, mistakenly, that I owned the Lexington house, and that the sale would cover the purchas= of the apartment. Turns out that that was mistaken and the three of you actually owned the house -- again, my mistake; not paying attention. We also received very poor advice. We should never have bought this apartment, which we can't possibly afford. I had assumed tha= the proceeds of the Lexington house would come to me when the house would be sold. Therefore, we followed Max's and Sam's advice and to=k out a mortgage for half the price of the apartment, and a loan from one of your trusts (that is, a trust in M's name) for the other half, i= order to buy the apartment, expecting that as soon as the Lexington house sold, we would immediately pay off the mortgage and the loan. Of course, that never happened, since the house was not mine. We therefo=e have to deal with the mortgage and the loan. The mortgage we have been payin= it off slowly. The much bigger problem is the loan -- which, it turns out, has a substantial interest rate, so that it grows every year. We not only have to sell the apartment, which is too expensive for us, but to do so quickly, or it will never be possible to pay off the loan from the trust, which grows every year. More bad advice. We're dealing with all of this. We've cut back our life styles to below what either Valeria or I had been used to in the past -- not poverty of course, but cutting back on lots of things= And we're making plans to accommodate to the circumstances, which wel-=;II tell you about when they are in place. For me, it's of course a great r=lief that all of you will be financially quite well off when I die. But I also want to make sure that Valeria will be able to be independent just as she was all her life. We're very happy together. Her coming into my life was not only a surprise -- I'd expected to spend my last years alone -- but also a real blessing for me. Valeria has given up quite a lot, for all the obvious reasons: family, her life in Brazi=, and so on. I don't have to explain why I'm concerned about he= welfare after I die. Those are the basic facts. If =here is something I'm overlooking, or unaware of, I of course would like to know about it -- and also to know the source, because it would be quite a surprise and I'd like to check. I've looked into all of the=e matters carefully and think I have a complete picture. This is something I'd never done in earlier years, simply placing my trust in others -- n=t always wisely, it turns out. 9 EFTA_R1_01879336 EFTA02643868

For these reasons, I don't see w=at the disagreement is about, and don't know what any other perspective could be based on. And I think all of this should be cleared up, as quickly as possible. And to repeat the obvious, our relat=onships are unaffected. They remain what they always were: loving, caring, stable and permanent. D On Tue, May 9, 2017 at 6:38 PM, Diana Chomsky «=font <mailto > wrote: Dear Doddoy,= We read with distress your last exchange with Harry about the Marital Trust= as well as your long letter to the three of us from January. It seems like there is some major disagreement about what the basic facts are. It's easy to understand why you would be angry with us, based on yo=r understanding of the facts - although we are operating out of love and concern for you, not out of greed for ourselves, it is clear to us that you don't see it this way. Although it is very upsetting to us to see t=is and to realize how you are interpreting our decisions, it does feel like at this point there is probably nothing to be gained from arguing about the facts. As long as we're not able to sit down and talk about the sit=ation with some expert guidance, we probably won't be able to reconcile our p=rspectives. We just wanted to reiterate that despite these deep differences in understa=ding, our family relationship is very important to us and we love you very much and hope that our relationship with you can continue - all three of us. Love, all three From: Noa= Chomsky < =font> <mailto To: Harry=Chomsky < <mailto Cc: Avi C=omsky < =font> <mailto Chomsky < =g.uk <mailto > > Date: 19/=4/2017 14:55 Subject: =e: taxes signals. I'm sorry that I have not made myself clear. > > > > », Diana You are the trustee for the marital trust, not for my assets. We are in charge of our assets. There are no mixed 10 EFTA_R1_01879337 EFTA02643869

As I have explained, the marital trust was set up many years ago on the assumption that the funds would be available both to Carol and me, and to the survivor -- which we took for granted would be Carol, which is why it is in her name. After I appointed you as trustee a few years ago, you certainly have the legal right to determine whether funds should be available, even for partial tax payments as in this case. I am indeed surprised, in fact shocked, that you feel that you cannot permi= a small payment from the marital trust -- even less that what I was providi=g annually as distributions and for Alex's health care -- without insisti=g on some professional supervision of my financial affairs. It of cours= never would have occurred to me over the years to ask for anything similar.=br> That is the sole issue. Nothing else. We take care of our own financial affairs, just as you do of yours. It is no one else's c=ncern. The marital trust, and that alone, is your proper concern, since the time when I appointed you as trustee. I will not ask for anything further from the marital trust, and there is no reason for you to ask again to be involved in our financial affairs. On Wed, Apr 19, 2017 at 2:00 PM, Harry Chomsky > wrote: Dear Doddoy, It sounds like you are very angry about my decision yesterday, and I'm deeply sorry that it has come to this. I still hope that we can sit down at a meeting someday and resolve this. I'd like to use the f=nds from the marital trust to support you, but I can't do that without some understanding of your overall financial picture. If we were to meet with any professional advisor of your choosing, I'm confident we could work out a plan that ensures your long-term solvency and comfort, helps Valeria after your death, and uses the marital trust in a way that we both agree is reasonable and sustainable. It would be up to you how much detail to share with me at this meeting and how much to keep private. The more I understand your circumstances, the better I can fill my role as trustee. You are sending me mixed signals about whether you want me involved in your financial affairs or not. Several times you've declared that your own IRA is plenty, you are managing fine without using the marital trust, and you don't want to discuss it with me anymore. But yest=rday you came to me out of the blue, demanded a six-figure sum on three hours L; notice, and reacted angrily when I insisted on taking time to discuss it first. You can't have it both ways. I am the trustee for pa=t of your assets, like it or not, and you have to decide whether to include me in a genuine ongoing conversation (with professional advice) about your finances, or forgo your access to this money. I'd like to know wh=ch it is going to be. Please don't ask for further trust distributio=s until we have begun a conversation. I will be ready for the conversat=on anytime you like. On Tue, Apr 18, 2017 at 11:18 AM, Noam Chomsky < > wrote: It's hard to express my feelings about your unwillingness to permit the marital account to contribute to the taxes, or the demand for inspection and review of our financial affairs. Hardly the pattern for many years, but we will manage on our own. D Oxfam works with others to overcome poverty an= suffering Oxfam GB is a member of Oxfam International and a c=mpany limited by guarantee registered in England No. 612172. Registered office: Oxfam House, John Smith Drive, Cowley, Oxford, OX4 2111.<=r> A registered charity in England and Wales (no 202918) and Scotland (SC 039042) 11 EFTA_R1_01879338 EFTA02643870

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