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foundations “naturally” deal with their donors and
their donors’ businesses.
If a substantial donor owns an office building,
the foundation should look elsewhere for its office
space. (Interim rules provided in the case of existing
arrangements are discussed below.) A recent issue (May
1969) of the American Bar Association Journal
discussing an instance of an attorney purchasing assets
at fair market value from an estate he was representing
suggests the problems even in “fair market value” self-
dealing:
The Ethics Committee said that it is
generally “improper for an attorney to
purchase assets from an estate or an executor
or personal representative, for whom he is
acting as attorney. Any such dealings
ordinarily raise an issue as to the
attorney’s individual interest as opposed to
the interest of the estate or personal
representative whom he is representing as
attorney. While there may be situations in
which after a full disclosure of all the
facts and with the approval of the court, it
might be proper for such purchases to be made
* * * in virtually all circumstances of this
kind, the lawyer should not subject himself
to the temptation of using for his own
advantage information which he may have
personally or professionally * * *”
S. Rept. 91-552, 29, 30-31 (1969), 1969-3 C.B. 443, 444. To the
same effect, see also TRA ‘69 Blue Book 31, 32.
c. Sec. 4975 (ERISA ‘74)
By 1974, the Congress reached similar conclusions about the
same sorts of transactions involving employees plans.
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