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contained marketable securities with a net asset value (NAV) of
$1,401,347, and the Rothschild IRA contained marketable
securities with a NAV of $1,219,063. On the estate’s original
Form 706, the estate reduced the NAV of the Harris IRA by 21
percent to $1,102,842 to reflect the anticipated income tax
liability from the distribution of its assets to the
2(...continued)
Section 5.5H. The Brokerage Firm named in the
Application is designated by the Account Holder with
authority to provide the Trustee with instructions, via
confirmations or otherwise, implementing his or her
directions to the Brokerage Firm to purchase and sell
securities for his or her account.
Thus, although the account holder cannot personally sell the
securities, he may do so through the brokerage firm and trustee.
The Harris IRA Agreement provides:
5.6 Neither the Grantor nor any Beneficiary may
borrow Trust property from the Trust or pledge it for
security for a loan. Margin accounts and transactions
on margins are prohibited for the Trust. No interest
in the Trust shall be assignable by the voluntary or
involuntary act of any person or by operation of law or
be liable in any way for any debts, marital or support
obligations, judgments or other obligations of any
person, except as otherwise provided by law. No person
may engage in any transaction with respect to the Trust
which is a “prohibited transaction” within the meaning
of Code Section 4975.
5.9 * * *the Trustee shall have the following
powers * * * (d) to purchase, sell assign or exchange
any Trust property and to grant and exercise options
with respect to Trust property.
Here, again, although the IRA itself cannot be sold, the trustee
has the power to sell the underlying assets.
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Last modified: May 25, 2011