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<DIV><FONT size=4>I have a client who is a trustee of an inter vivos
trust. The trustors were grandparents of 4 grandchildren (two are clients
kids and the other two are nephews).</FONT></DIV>
<DIV><FONT size=4>The only asset is a lake cabin.</FONT></DIV>
<DIV><FONT size=4>Only two of the beneficiaries want to have anything to do with
the cabin. The 4 have come to an agreement that the client’s kids will buy
out the others and have agreed on a price.</FONT></DIV>
<DIV><FONT size=4>I am wondering if the grandkids were, pursuant to a TEDRA
agreement, to purchase the other grandkids’ beneficiary interest in the trust
(as opposed to the land itself after termination of the trust) and the trust
continued, whether there would be any excise tax payable? I assume so but
wanted to check.</FONT></DIV>
<DIV><FONT size=4>Would there be any benefit in selling/buying a beneficiary’s
interest rather than simply terminating the trust and having a sale of the real
property?</FONT></DIV>
<DIV><FONT size=4></FONT> </DIV>
<DIV><FONT size=4>josh</FONT></DIV>
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<DIV><STRONG><SPAN style="FONT-SIZE: 18pt; COLOR: #004080">Joshua F.
Grant</SPAN></STRONG><SPAN style="COLOR: #004080"><BR></SPAN><SPAN
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O. Box 619<BR>Wilbur, WA 99185<BR>509 647 5578</SPAN><SPAN
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