-26-
trust; and (5) decedent desired to retain final say on investment
decisions, although WTC could be permitted some involvement.
Shortly thereafter, on September 4, 1997, Mr. Sweeney met
with Mr. Howard and Ms. Hickok of WTC. The following issues were
among those addressed at this conference. (1) With respect to
the burden of capital gains tax on future asset sales, Mr. Howard
and Ms. Hickok clarified that the concern previously raised
focused on precontribution gain, and they agreed that operative
partnership tax rules under section 704 resolved their concerns.
(2) In connection with fulfilling fiduciary duties, Mr. Howard
and Ms. Hickok indicated a desire to obtain consents from
beneficiaries of various WTC trusts participating in the business
trust transaction. (3) As to the investment company issue, the
participants discussed the stock concentrations within the
relevant portfolios and broached as a topic for further research
whether contributing only DuPont stock to the business trust
could avoid the problem. (4) Regarding the length of the trust’s
existence, the WTC representatives expressed interest in a 30- to
40-year term, while Mr. Sweeney suggested at least a 40- to 50-
year term. (5) On the matter of investment decisions, Mr.
Sweeney stressed that decedent wanted the trust structured so
that he would have the final vote and control, to which Mr.
Howard and Ms. Hickok ultimately agreed so long as WTC had some
input. (6) Lastly, as to WTC’s fees, Mr. Howard and Ms. Hickok
Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 NextLast modified: May 25, 2011