Estate of Duilio Costanza - Page 4

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          October 1992, when he was 73 years old, he sought financial                 
          advice from his attorney, John M. Spath.  Mr. Spath suggested               
          that decedent’s trust sell the restaurant and retail/office                 
          properties to Michael in exchange for a SCIN.  The key component            
          of the SCIN would be its provision that it would be canceled, and           
          no more payments would be due, if decedent died before it was               
          fully paid.  Mr. Spath suggested that this arrangement would both           
          achieve decedent’s retirement goals and minimize the amount of              
          estate tax that would be payable on his death.                              
               Decedent accepted his attorney’s advice, and the transaction           
          was carried out in December 1992 and January 1993.  Michael                 
          executed a SCIN in the face amount of $830,000 in exchange for              
          the two properties.  The terms of the SCIN provided that Michael            
          would repay it in monthly installments over a period of 11 years.           
          The SCIN provided for the payment of interest at a rate which               
          increased every 24 months.  The initial interest rate was 6.25              
          percent, and the rate increased by one half percent at each 24-             
          month interval, until reaching a final rate for the last 12                 
          months of 8.75 percent.  The SCIN also provided that, if decedent           
          died before the principal and interest had been paid, it would be           
          canceled and no more payments would be required.                            
               Michael’s obligations under the SCIN were secured by a                 
          registered mortgage on both properties.  The documents effecting            
          the transaction, including the quitclaim deeds, the mortgage and            

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