From:=span style="font-size:l0ptfont-family:Tahoma,sans-seritcolor:black"> V=leria Chomsky <mailto 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=> >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> 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 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 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> 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:4, 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.* 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 < 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). <mailto > > 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. If you received this email in error, please notify the sender and delete this email and it= attachments from your devices and systems. 9 EFTA_R1_01697546 EFTA02544728