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This file contains:
Last Will and Testament of Patricia R. Nixon, with attachments. 11 pages. [Financial Records], 8/14/1972
Administrative Procedure for implementing Estate Plan. 3 pages. [Memo], n.d.
Richard Ritzel to Dean re: disposition of all copies of the Nixon's wills and trust agreements. 1 page. [Letter], 9/29/1972
I.R.S. Exemption Application for The Richard M. Nixon irrevocable Literary Trust, with attachments. 10 pages. [Form], 8/14/1972
Power of Attorney, I.R.S. Form 2848, appointing attorneys John Alexander and Richard Ritzel to represent the Trust with regards to tax matters. 2 pages. [Form], 9/2/1972
Jay Rotz to John Alexander re: request for additional information in order to process exemption application for the Nixon Literary Trust. 2 pages. [Letter], n.d.
John Alexander to Dean re: Haldeman's response to the I.R.S. letter about the exemption application for the Nixon Literary Trust.2 pages. [Letter], 10/11/1972
J. F. Monahan to Nixon Irrevocable Trust via Mudge, Rose, Guthrie & Alexander re: approval of exemption application. 2 pages. [Letter], 11/8/1972
John Alexander to Rose Mary Woods re: filing tax return for the Trust, and asking when the President will change the Trustee, with attachments. 3 pages. [Letter], 5/8/1973
Mudge, Rose, Guthrie & Alexander to I.R.S. re: tax return of the Nixon Irrevocable Literary Trust, with attachments. 9 pages. [Letter], 5/14/1973
Revision of Estate Plan to include transfer of San Clemente property to Federal Government, not scanned, see duplicate 9:1. 10 pages. [Financial Records], 10/23/1972
front of White House manila envelope marked "Personal - Private Estate Plan". Not scanned. 1 page. [Other Document], n.d.
Scholar Source Context
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localId
26126222
label
WHSF: Returned, 9-7
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
26126222
sourceUrl
contentType
document
title
WHSF: Returned, 9-7
description
This file contains:
Last Will and Testament of Patricia R. Nixon, with attachments. 11 pages. [Financial Records], 8/14/1972
Administrative Procedure for implementing Estate Plan. 3 pages. [Memo], n.d.
Richard Ritzel to Dean re: disposition of all copies of the Nixon's wills and trust agreements. 1 page. [Letter], 9/29/1972
I.R.S. Exemption Application for The Richard M. Nixon irrevocable Literary Trust, with attachments. 10 pages. [Form], 8/14/1972
Power of Attorney, I.R.S. Form 2848, appointing attorneys John Alexander and Richard Ritzel to represent the Trust with regards to tax matters. 2 pages. [Form], 9/2/1972
Jay Rotz to John Alexander re: request for additional information in order to process exemption application for the Nixon Literary Trust. 2 pages. [Letter], n.d.
John Alexander to Dean re: Haldeman's response to the I.R.S. letter about the exemption application for the Nixon Literary Trust.2 pages. [Letter], 10/11/1972
J. F. Monahan to Nixon Irrevocable Trust via Mudge, Rose, Guthrie & Alexander re: approval of exemption application. 2 pages. [Letter], 11/8/1972
John Alexander to Rose Mary Woods re: filing tax return for the Trust, and asking when the President will change the Trustee, with attachments. 3 pages. [Letter], 5/8/1973
Mudge, Rose, Guthrie & Alexander to I.R.S. re: tax return of the Nixon Irrevocable Literary Trust, with attachments. 9 pages. [Letter], 5/14/1973
Revision of Estate Plan to include transfer of San Clemente property to Federal Government, not scanned, see duplicate 9:1. 10 pages. [Financial Records], 10/23/1972
front of White House manila envelope marked "Personal - Private Estate Plan". Not scanned. 1 page. [Other Document], n.d.
citationUrl
collections
Richard M. Nixon's Returned Materials Collection
Returned White House Special Files
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1
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yes
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no
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26126222
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Richard Nixon Presidential Library
White House Special Files Collection
Folder List
Box Number
Folder Number
Document Date
Document Type
Document Description
9
7
08/14/1972
Financial Records
Last Will and Testament of Patricia R.
Nixon, with attachments. 11 pages.
9
7
n.d.
Memo
Administrative Procedure for implementing
Estate Plan. 3 pages.
9
7
09/29/1972
Letter
Richard Ritzel to Dean re: disposition of all
copies of the Nixon's wills and trust
agreements. 1 page.
9
7
08/14/1972
Form
I.R.S. Exemption Application for The
Richard M. Nixon irrevocable Literary Trust,
with attachments. 10 pages.
9
7
09/02/1972
Form
Power of Attorney, I.R.S. Form 2848,
appointing attorneys John Alexander and
Richard Ritzel to represent the Trust with
regards to tax matters. 2 pages.
9
7
n.d.
Letter
Jay Rotz to John Alexander re: request for
additional information in order to process
exemption application for the Nixon Literary
Trust. 2 pages.
Wednesday, June 17, 2009
Page 1 of 2
Box Number Folder Number Document Date
Document Type
Document Description
9
7
10/11/1972
Letter
John Alexander to Dean re: Haldeman's
response to the I.R.S. letter about the
exemption application for the Nixon Literary
Trust.2 pages.
9
7
11/08/1972
Letter
J.F. Monahan to Nixon Irrevocable Trust via
Mudge, Rose, Guthrie & Alexander re:
approval of exemption application. 2 pages.
9
7
05/08/1973
Letter
John Alexander to Rose Mary Woods re:
filing tax return for the Trust, and asking
when the President will change the Trustee,
with attachments. 3 pages.
9
7
05/14/1973
Letter
Mudge, Rose, Guthrie & Alexander to I.R.S.
re: tax return of the Nixon Irrevocable
Literary Trust, with attachments. 9 pages.
9
7
10/23/1972
Financial Records
Revision of Estate Plan to include transfer of
San Clemente property to Federal
Government, not scanned, see duplicate 9:1.
10 pages.
9
7
n.d.
Other Document
front of White House manila envelope
marked "Personal - Private Estate Plan". Not
scanned. 1 page.
Wednesday, June 17, 2009
Page 2 of 2
9
Copy No. 6
of 8 copies
I, PATRICIA R. NIXON, a resident of the County of
Orange, State of California, make, publish and declare this
to be my Last Will and Testament, hereby revoking any and
all other Wills and Codicils thereto by me at any time
heretofore made.
FIRST: I declare that I am married to RICHARD M.
NIXON, that the following children have been born of our
marriage, both of whom are now living: PATRICIA NIXON COX,
born February 21, 1946 and JULIE NIXON EISENHOWER, born
July 5, 1948, and that I have no deceased children. I fur-
ther declare that I have made no provisions for my said
children in this, my Will because other provisions have
been made for their benefit by myself and my said husband
during our lifetimes.
SECOND: I expressly refrain from exercising any
power of appointment or other similar power exercisable by
my Will, whether general or limited, granted to me under
any Agreement of Trust executed by my husband and myself
during our lifetimes.
THIRD: I direct that my Executor shall select,
from among all of the tangible personal property owned by
me or in which I have an interest and which is not held as
part of the principal of that certain trust known as The
Family and Literary Properties Trust created by myself and
my husband, RICHARD M. NIXON, during my lifetime, and with-
out regard to whether or not my said husband may have a
community property interest or quasi-community property
right in the same, all of those items prepared by or for
me or by or for my said husband during my lifetime which
relate to the events of my official or personal life or
the official or personal life of my said husband and which
have historical or commenorative significance, including,
without limitation, books, documents, papers, letters,
correspondence, memoranda, pamphlets, pictures, photographs,
plats, maps, films, television tape recordings, motion
pictures and sound recordings, both on record and on tape,
as well as items given to me during my lifetime which are
commonly referred to as memorabilia, including, without
limitation, awards, plaques, medal, membership or achieve-
ment certificates, gavels, symbolic currency, keys and
figurines, commemorative and personal photographs, flags,
banners, works of art, including sculptures, paintings,
etchings and drawings, books, both inscribed by the author
or donor and uninscribed and religious items, and I give
and bequeath the items so selected by my said Executor to
the then acting Trustee or Trustees of that certain trust
known as The Family and Literary Properties Trust, created
under an Agreement of Trust made and executed the same day
as the date of this, my Last Will and Testament, by and
between myself and my said husband, as Settiors and my said
husband, as Trustee, to be added to the principal of said
trust and thereafter held, managed, utilized and disposed
of in accordance with a_l of the terms and provisions of
said Agreement of Trust, including any modifications or
amendments thereto made prior to or after my death. Any
determination made by my Executor that an item of tangible
-2-
personal property owned by me or in which I have an interest
at the time of my death relates to the events of my official
or personal life or to the official or personal life of my
said husband and has historical or commemorative signifi-
cance shall be final, binding and conclusive upon all persons
or entities interested in my estate.
FOURTH: I give and bequeath to my husband, RICHARD
M. NIXON, if he shall survive me, all articles of tangible
personal property owned by me or in which I have an interest
and which are not held as part of the principal of The Family
and Literary Properties Trust, and which are not disposed of
under the provisions of Article THIRD of this, my Will, in-
cluding, without limitation, my household furniture and fur-
nishings, pictures, plate, rugs, china, silver, glass, orna-
ments, books, personal clothing, jewelry and other personal
effects, automobiles and their accessories and all other
similar items of tangible personal property, together with
any and all policies of insurance on or in connection with
any of such tangible personal property. If my said husband
shall predecease me or if my said husband and I shall die
under circumstances that make it impossible to establish
the order of our deaths by proof, then I give and bequeath
such tangible personal property and insurance policies to
such of my children as shall survive me, to be divided among
them as they shall agree, but as nearly as practicable into
shares of equal value.
FIFTH: I give, devise and bequeath all the rest,
residue and remainder of my estate, real, personal and mixed,
-3-
of every name, nature and kind whatsoever and wheresoever
the same may be situated, including any legacy hereinbefore
made which shall have lapsed (but excluding any property
over which I have been granted a power of appointment or
other similar power exercisable by my Will, whether general
or limited, it being my intention to refrain from exercising
any such power), all of which is sometimes hereinafter
referred to as my residuary estate, to the then acting Trus-
tee or Trustees of The Family and Literary Properties Trust,
to be added to the principal of said trust and thereafter
held, managed and disposed of in accordance with all of the
terms and provisions of said Agreement of "Trust, including
any modifications or amendments thereto made prior to or
after my death.
SIXTH: I direct that my Executor or Executors
shall certify the amounts of any and all estate, trans-
fer, inheritance or succession taxes, whether federal or
state or other, including any and all interest and penalties
assessed thereon, payable on any property which is devised
and bequeathed under the provisions of this, my Will, or
any Codicil thereto, or on any other property which snall
constitute a part of my taxable estate, (i) if I shall have
survived my husband, RICHARD M. NIXON, but not if my said
husband and I shall die in or as the immediate result of a
common accident or disaster, to the then acting Trustee or
Trustees of that certain trust known as The Patricia R. Nixon
Trust and created under an Agreement of Trust made and exe-
cuted the same day as the date of execution of this my Last
Will and Testament, by and between myself and my said hus-
-4-
band, as Settlors and JOHN D. EHRLICHMAN, as Trustee, or
(ii) if I shall not have survived my said husband or if my
said husband and I shall die in or as the immediate result
of a common accident or disaster, to the then acting Trustee
or Trustees of The Family and Literary Properties Trust.
The then acting Trustee or Trustees of either trust, as the
case may be, is or are authorized to rely upon any certifi-
cation from my Executor or Executors as to the amount of
such taxes, interest and penalties without further inquiring
into the accuracy or correctness of any such certification.
SEVENTH: I nominate, constitute. and appoint my
husband, RICHARD M. NIXON, as Executor of this, my Will.
If my said husband shall fail to qualify as such Executor or,
having qualified, shall for any reason whatsoever cease to
act as such prior to the completion of the duties of said
office, then I nominate, constitute and appoint C. G. REBOZO
and JOHN D. EHRLICHMAN as successor Executors of this, my
Last Will and Testament to act in the place and stead of my
said husband. If either of said persons shall fail to qual-
ify as such Executor or, having qualified, shall for any
reason whatsoever cease to act as such prior to the comple-
tion of the duties of said office without a successor Execu-
tor having been named to act in his place and stead, as
provided herein, then I direct that no successor Executor
need be appointed to act in the place and stead of such
person, but that the person qualifying or continuing to act
as Executor hereunder may act as sole Executor of this, my
Last Will and Testament, with all of the rights, powers,
privileges, duties, exemptions and discretions conferred
-5-
upon my Executor or Executors under any of the provisions
of this, my Will.
I authorize and empower any two Executors
at any time acting hereunder, acting jointly, or any sole
Executor at any time acting hereunder, to appoint a successor
Executor or successor Executors to act in their, his or her
place and stead or, in the case of a sole Executor, to ap-
point an additional Executor to act with him or her here-
under, any such appointment or appointments to take effect
immediately or upon the happening of such future contin-
gency as shall be specified in the instrument or instru-
ments of appointment, and to revoke any contingent appoint-
ment prior to the happening of such future contingency as
shall be specified in the instrument of appointment. Each
additional or successor Executor appointed pursuant to the
provisions hereof shall have all of the rights, powers,
privileges, duties, exemptions and discretions conferred
upon my Executor or Executors under any of the provisions of
this, my will. Each appointment of a successor Executor
hereunder, and each revocation of a contingent appointment,
pursuant to the provisions hereof shall be made by an in-
strument in writing executed by the persons empowered to
make such appointment, duly acknowledged.
I direct that neither my husband, said
C. G. REBOZO, said JOHN D. ERRLICHMAN nor any successor or
additional Executor or Executors appointed pursuant to the
provisions hereof shall be required to give or file any bond
or other security for the faithful performance of his, her
or their duties as such Executor, Executors or Executrix in
-6-
any jurisdiction whatsoever.
EIGHTH: (A) I authorize my Executor or Executors
to sell, lease, mortgage, or encumber by deed of trust the
whole or any part of my residuary estate at either public or
private sale, with or without notice, subject only to such
confirmation as may be required by law. I further authorize
my Executor or Executors either to continue the operation of
any property or business belonging to my estate for such time
and in such manner as my Executor or Executors may deem ad-
visable and for the best interest of my estate, or to sell
or liquidate the property or business at such time and on
such terms as my Executor or Executors may deem advisable
and for the best interest of my estate. Any such operation,
sale or liquidation by my Executor or Executors, in good
faith, shall be at the risk of my estate and not at the risk
of my Executor or Executors, and the profits and losses
resulting therefrom shall inure to or be chargeable to my
estate as a whole.
AUTHORIZE
(B) I further my Executor or Executors to
invest and reinvest the whole or any part of my residuary
XRN
estate (including surplus cash and the proceeds from the
nsr
sale or liquidation of any assets of my estate) in any in-
vestment which my Executor or Executors, in their sole
discretion, may deem advisable and for the best interest of
my estate, subject only to such court authorization as may
be required by law.
(C) I authorize my Executor or Executors
to file a joint return with my spouse for the year in which
I passed away, even though my spouse, and not my estate, is
-7-
thereby benefited.
IN WITNESS WHEREOF, I have hereunto set my hand
and seal this pigth day of August
, in the year One
Thousand Nine Hundred and Seventy-two.
Latinia R. mix [L.S.]
Signed and sealed by the above-named
Testatrix, PATRICIA R. NIXON,
in our presence, and published and
declared by her to us to be her
Last Will and Testament, and there-
upon we, at her request and in her
presence, and in the presence of
each of our names other, as have witnesses nereunto 1972. this residing subscribed at day 23
180-Ho-Kus, nud Jersey
then 4 residing at / Beebraw Place
New york Men york 10022
residing at 7416 Admiral Drive
Alexandria, Vaginia 22307
-8-
ELECTION AND WAIVER
I, RICHARD M. NIXON, husband of PATRICIA R. NIXON,
hereby certify that I have read the foregoing Will of my
wife and fully understand that my wife by this Will disposes
of some of our community property, including my one-half
thereof, now owned or hereafter to be acquired, and not
held as part of the principal of any trust created by my
said wife and myself during our lifetimes. Being fully
satisfied with its provisions, I hereby elect to accept
and acquiesce in the provisions of the foregoing Will, waiv-
ing all claims to my share of any community property disposed
of thereunder and all other claims that I .may have upon any
of the property disposed of by said will, but not including
property exempt from execution, my right to a probate home-
stead nor my right as a beneficiary under any insurance
policies on my wife's life. This instrument is not a
transfer or release of my right, title or estate in any of
any community property disposed of under said Will now owned
or hereafter to be acquired, is revocable by written instru-
ment executed by me and delivered to my wife during her
lifetime, and it shall be effective and valid for any pur-
pose only after the decease of my wife upon the condition
that the foregoing Will shall be duly admitted to probate
by a court of competent jurisdiction and that it shall not
be successfully contested or probate revoked.
Signed at
Mashingtin D.C.
this day, 14th Auguse
1972.
On this 14th day of Auguse
, 1972, at
Fashington you
, RICHARD M. NIXON, husband
of PATRICIA R. NIXON, executed the foregoing instrument
in our presence and we, at his request and in his presence,
hereby sign below as witnesses residing to his at 23 signature. Besphwork Yoad
No-No-Kus, New Jersey
Other 11 residing at / Place
New york Kn
residing at 7416 Admiral Drive
Elexandria, Virgunia 22307
-2-
LAST WILL AND TESTAMENT
of
PATRICIA R. NIXON
Dated: August 14, 1972
MUDGE ROSE GUTHRIE & ALEXANDER
20 BROAD STREET, NEW YORK, N.Y.
7
MEMORANDUM
Administrative Procedure for Implementing
Estate Plan
1. Prior to the execution of any of the documents,
the assets to be transferred to each trust must be determined
and the appropriate schedules prepared. With respect to The
Family and Literary Properties Trust, it is expected that the
initial transfer will encompass a large volume of Materials,
using, in part, the lists of Memorabilia previously sent to us
by John Dean, with additional transfers of Materials and Hard
Assets to be made as soon as is reasonably possible. The
Deeds to the various parcels of real property which will be
transferred out of joint names into the name of the Trustee
will have to be prepared by local counsel in the jurisdictions
in which the respective properties are located. The Trustee
should be described in each Deed as follows: "Richard M.
Nixon and his successors, as Trustee of that certain trust
known as The Family and Literary Properties Trust, created
under an Agreement of Trust made and executed the
day
of
, 1972, by and between said Richard M. Nixon
and Patricia R. Nixon, as Settlors, and said Richard M.
Nixon, as Trustee." None of the Deeds will, however, be
recorded as that might require that the Trust Agreement
likewise be recorded if the property covered by the Deed was
2
ever sold. Rather, delivery of the Deeds to the Trustee will
be relied on for purposes of establishing passage of title. A
trust bank account will be opened and, except for small amounts
to be retained in existing bank accounts for convenience, all
existing bank accounts closed and the balances deposited in the
trust account. None of the household or office furniture or
other like items of tangible personal property will be trans-
ferred to the trust, those items to be retained in individual
names and disposed of by Will. With respect to The Irrevocable
Literary Trust, only a token transfer of Materials will take
place at the time it is executed. A ruling will then be obtained
from the Internal Revenue Service that transfers to this trust
are deductible for income, estate and gift tax purposes. The
Materials selected for transfer to this trust should be such that
it or they can immediately be made available for public display,
study or research. The simplest procedure would seem to be for
the Trustee to arrange to display the Materials transferred to
this trust through government facilities made available by the
Administrator of General Services. With respect to The Patricia
R. Nixon Trust, only a token transfer of $10.00 will take place
at the time the trust is created. This trust will then remain
dormant until after the President's death, when Hard Assets
will be poured over into it for administration.
2. Once the Schedules showing the assets to be trans-
ferred in trust have been completed and attached to the Trust
Instruments, the documents should be executed in the following
order:
3
(a) The Irrevocable Literary Trust.
(b) The Patricia R. Nixon Trust.
(c) The Family and Literary Properties Trust.
(d) The Wills.
The signatures on all of the Trust Agreements must be nota-
rized. None of the witnesses to the Wills should be members of
the family or the Trustee or any potential Trustee of any of
the three trusts.
3. Change of beneficiary designations must be ob-
tained for all insurance policies, with the new designations
to be as follows:
"The then acting Trustee or Trustees of
that certain trust known as The Patricia R. Nixon
Trust, created under an Agreement of Trust made
and executed the
day of
, 1972,
by and between Richard M. Nixon and Patricia R. Nixon,
as Settlors, and John D. Ehrlichman, as Trustee."
4. On a periodic basis after the initial transfer
of Materials (recommend every three months), those Materials
which have come into existence since the last transfer should
be transferred, by Deed of Transfer, to The Family and
Literary Properties Trust for sorting and classification
Any Hard Assets acquired subsequent to the initial transfers
will similarly have to be transferred to The Family and
Literary Properties Trust.
8
September 29, 1972
Mon. John Dean
Counsel to the President
Executive Office Building
Pennsylvania Avenue
Washington, D. C.
Dear John:
I am forwarding with this letter four sets of
duplicate copies of the Mills, the Trust Agreements and
the Instruments appointing Successor Trustees. To will
hold the originals of these documents in a separate vault
maintained in the name of the firm.
As is indicated, eight copies of the signed
documents have been made. Do plan to deliver one set of
the copies to the attorney who acted as our California
counsel in connection with the preparation of the final
documents. He has arranged to hold his copies in a special
safe deposit box with very limited access. Except for two
copies of the Irrevocable Literary Trust Agreement, which
had to be filed with the Internal Revenue Service in con-
nection with the ruling that that Trust is exempt for
income, estate and gift tax purposes, the remaining copies
of all of the documents will be held at our office.
Best wishes.
Sincerely,
nn
Richard S. Ritzel
RSR:kw
Enc.
Enclosed By
Mailed By
Delivered By
Delivery No.
9
U.S. ASURY REVENUE SERVICE
To to provide
FORM
with to Director
(Rev. April 1965)
(ïo 53 mark o; :: by J principal officer of the organization claiming exemption)
for your District.
For use of organizations applying for exemption under section 501(a) and described in section 501(c)(3) of the Internal Revenue Code, which
are organized and operated (or will operate) exclusively for one or more of the following purposes (check purpose(s)):
Religious
Charitable
Scientific
Testing for Public Safety
Educational
For the prev ention of cruelty to children or animals
Literary
Every organization that claims to 1.5 скожурі must furnish the information and data specified in duplicate. If any university
fails to ou mil the information and deta required, this application will not be considered on its morits and the organization WITH
De notified accordingly.
This application shall be open to public inspection in accordance with section 6104(c)(1) of the Internal Revenue Code.
See separate assuctions for Form 1023 to properly answer the questions below.
la. Full name of organization
b. Employer identification number
The Richard M. Nixon Irrevocable Literary Trust
2. Complete address (number, street, city or town, State and Postal ZIP code)
3a. Is the organization
b. If "Yes," in which State and under which law (General corporation, not for profit, membership, education
incorporated?
eleemosynary, etc.)? Cite statutory provisions.
Yes
No
4a. If not incorporated, what is form or organization?
D. Date incorporated or
C. Month and aay on which
organized
annuc. accounting period
Trust
8/14/72
5a.
Has
organization
filed
Federal
income
tax
b. II "You," form number of return filed and Internal Revenue
C. Year(s) hire.
You
District where filed.
return(s)?
No
G. Alter July i, 1930, did the cructor of your organization (if wast). or a contributor to your organization, or a creti.
...1.1 blood), spouse, or dont of mah or c., contributor, or a corporation controlled directly
creato. or contribute ent the transactions (or education) water below? NOTE: If you
supplate that to of the transacach (or activities) enumerated is 6a through 6., en
bie
d. Purchase any securities or other
C. Borrow any not of your income C. occurs?
in
only from you?
NO
e. Soll any securities or other property to
Receive CITY compensation from you?
you?
C. Have any pan of your services mace available 10
1. Receive any of your income or
him?
NO
only cincr transaction?
7. Have you inc and or do you ,dar to issue membership, clock, or other certificale 5 evidencing voting power in the c. A water?
Co. Are you the outgrow .: or communication of any form of products cor(s)?
b. Do you have capital stock issued as outsiansing?
C. Have you made or do you plan to me 0 any distribution of your property to shareholders or members?
d. D.S you receive or do you expue. to receive 10 parcent or more of your assets from any organization, group cf affilion } or
ganizations (afiliated through stockholding, common ownership, or otherwise), any individual, or members of G family group
(brother or sister whether whole or holl blood, spouse, uncestor, or lineal descendant)?
e. Does any part or will any part of your receipts represent payment for services of any character rendered or to be rendere i by
you?
i. Are you now, have you :VCT OF GO you plan 0 10 agaded M carrying on propaganda, or otherwise adved and C.
saine or
G. Do you participate or plan opartici, of or may IF in (including the publishing or distributing of claimants) any politic
compaign on behalf of or .:. opportion to any candide for : uble: office?
h. Have you made or do you pian to make any payments to members or shareholders for services rendered or to be rendered?
i. Does any part or an you plan to have any part of your net income inure to the benefit of any private shareholder or individual?
j. Are you now or are you planning to be affiliated in any manner with any organization(s)?
k. Do you hold or plan to nold 10 percent or more of any class of stock or 10 percent or more of the total combine VOLLE
power of stock in QTY corporation?
Page 2
any State or any court (including a Court of Probate, Surrocate's Court, elc.) ever declared whether you were or were not organized
for charitable, etc., pu poses?
Yes
No.
If "Yes," ottach copies in duplicate of portinent administrative or Justi-
copied in duplicate of the following:
C copy of your crticles of incorporation, or if not incomporated, a copy of your constitution, articles of association. declc-
office document whereby you were created selling 'orth your crima and purposes, a copy of all amendments 'hereto,
proposed.
your hylaws or other similar code of regulations, all amendments thereto, and any changes presently proposed.
-'e statement of assets and liabilities as of the end of each annual accounting period (or as of the date of the filing of this
you were in existence for less than a year).
diciment of receipts and expenditures for each annual accounting period of operation (or for the period for which you were in exist-
: less than C year).
which clearly indicates what State statutes or court decisions govern the distribution of assets upon dissolution. (This state-
be critted II your charter, certificate, or other instrument of organization makes provision for such distribution.)
matement 0² the specific purposes for which you were formed. We not quote from 0" make reference to your articles of incorp
of association, declaration of truel, or other doe ament whereby you were on ated for this question.)
templaining in detail each fund-roising activity and each but a 45 enterprise you have engeged in or plan to engage 111.
copies o. all agreements, CRV, with other publics for the conduct of each activity or business enterprise
which à scribes in dejail the na'ure of each of your delivities which you have checked on page 1, activities which you spon-
clivities.
which explains fully ony specific activities that you hav engurs di in or sponsoted and which have been discontinued.
nent and termination and the reasons for discontinue
which describes the purposes, other than in payment for services rendered or supplies furnished, for which your funds are
be expended.
k. A schedule indicating the name and position of each officer, director, trustee, etc., of the organization and the relationship, if any, by
blood, marriage, adoption, or employment, of each such person to the crealor of the organization (if a trust), to any person who has
made C substantial contribution to the organization, or to a corporation controlled (by ownership of 50 percent or more of voting stock
cr 80 percent or more of value of all stock), directly or indirectly, by such creator or contributor. The schedule shall also indicate
the time devoted to position and compensation (including salary and expense account allowance), if any, of each officer, director,
tructee, etc., of the organization.
I. A copy of each lease, if any, in which you are the lessee or lessor of property (real, personal, gas, oil, or mineral) or in which you own
an interest under such lease, together with copies of all agreements with other parties for development of the property.
SIGNATURE AM
Under penalties of perjury, I declare that I have examined this application, including accompanying statements, and to the best of my knowledge
and belief it is true, correct, and complete.
Trustee
Date
Signature of other
Title
GPO 1971 0 108-167
FORM
1023
(REV. 4-65)
EXEMPTION APPLICATION
(Form 1023)
The Richard M. Nixon Irrevocable Literary Trust
c/o H. R. Haldeman, Trustee
Statement with respect to Question 8d:
It is expected that, except for such necessary
cash and securities as may be contributed for the purpose
of paying expenses, the only assets of this trust will be
items of tangible personal property, such as books, papers,
letters, photographic and sound reproductions and memora-
bilia which relate to the events of the official or personal
life of Richard M. Nixon or of his wife, Patricia R. Nixon,
and which have historical or commemorative significance.
(See the definition of "Materials" in the attached Trust
Instrument, which term will be used to describe such items
hereinafter in this Application.) The major contributions
to this trust will be made by Richard M. Nixon and Patricia
R. Nixon. Other persons may, however, also make contribu-
tions to this trust from time to time in the future. In
particular, it is anticipated that members of Richard M.
Nixon's Presidential Cabinot and Staff and others may
transfer Materials to this trust. At the present time,
the sole asset of this trust is a letter dated July 27, 1972
from The Honorable Arthur F. Burns, Chairman of the Board
Statement, Question 8d
Page 2
of Governors of the Federal Reserve System, to Richard M.
Nixon, with the enclosure referred to in that letter, a
copy of a statement made by Mr. Burns to the Joint Economic
Committee on July 26, 1972, which letter and enclosure were
contributed by the owner thereof, Richard M. Nixon.
EXEMPTION APPLICATION
(Form 1023)
The Richard M. Nixon Irrevocable Literary Trust
c/o H. R. Haldeman, Trustee
Statement with respect to Questions 10c and 10d:
The sole asset of this trust is a letter dated
July 27, 1972 from The Honorable Arthur F. Burns, Chairman
of the Board of Governors of the Federal Reserve System,
to Richard M. Nixon, with the enclosure referred to in
that letter, E. copy of a statement made by Mr. Burns to
the Joint Economic Committee on July 26, 1972. The afore-
mentioned asset also is the only asset received by the
trust since the date of its creation. The trust has no
liabilities, nor has it made any expenditures since the
date of its creation.
EXEMPTION APPLICATION
(Form 1023)
The Mchard M. Nixon Irrevocable Liverary Trust
c/o H. R. Haldeman, Trustee
Statement with respect to Question 10f:
This trust was created by Richard M. Nixon to
serve as the legal receptacle for contributions of Materials,
to be made by himself, his wife, Patricia R. Nixon, and by
others, and, as the legal owner thereof, to make those
Materials available to the general public for inspection,
study or research. The Trustee is authorized to make
suitable anrangements for public use of trust Materials
with any public or private exempt organization, including
a Presidential Library bearing Richard M. Nixon's name.
EXEMPTION APPLICATION
(Form 1023)
The Richard M. Nixon Irrevocable Literary Trust
c/o H. R. Haldeman, Trustee
Statement with respect to Question 10g:
This trust has not yet engaged in any fund-
raising activities, nor has it any plan to engage in
any such activities.
EXEMPTION APPLICATION
(Form 1023)
The Richard M. Nixon Irrevocable Literary Trust
c/o H. R. Haldeman, Trustee
Statement with respect to Question 10h:
The sole activity of this trust will be to
accept contributions of Materials and, in turn, to make
those Materials available for public inspection, study or
research, probably through the facilities of some other
exempt organization. There is no present intention of
incurring any expenses in arranging for the care, pres-
ervation and exhibition of trust Materials. If, as
presently contemplated, the trust Materials are made
available to the public through some other exempt
organization, it is expected that such organization
will bear all costs involved. If, however, expenses
are incurred, the trust itself will solicit funds for
the purpose of paying the same. No decision has yet
been made as to whether, if a solicitation of funds should
become necessary, a public appeal would be made.
EXEMPTION APPLICATION
(Form 1023)
The Richard M. Nixon Irrevocable Literary Trust
c/o H. R. Haldeman, Trustee
Statement with respect to Question 10i:
This trust has not engaged in any activities
which have been discontinued.
EXEMPTION APPLICATION
(Form 1023)
The Richard M. Nixon Irrevocable Literary Trust
c/o H. R. Haldeman, Trustee
Statement with respect to Question 10j:
It is not anticipated that this trust will
expend funds; see Statement with respect to Question 10h.
EXEMPTION APPLICATION
(Form 1023)
The Richard M. Nixon Irrevocable Literary Trust
c/o H. R. Haldeman, Trustee
Information required by Question 10k:
Relationship to
Substantial
Time Devoted
Trustee
Contributor
Compensation
to Position
H. R. Haldeman
Assistant to the
None during
Time incident
President
Richard M.
to duties
Nixon's
lifetime*
*After the death of Richard M. Nixon, the Trust Instrument
authorizes the payment of compensation to the Trustee, as
allowed under the law of California by statute or custom,
provided, however, that no Materials held by the Trustee
can be sold for the purpose of generating revenues to pay
his compensation.
10
Form
2040
(Rev. san. 1970)
Power of Attorney
Depart movit of the Treasury
Interns Venue Service
(See Separate Instructions)
Name, address including ZIP code, and identifying number of taxpayer(s)
H. R. HALDEMAN, as Trustee under Agreement of
Trust dated August 14, 1972
1600 Pennsylvania Avenue, Washington, D.C. 20500
hereby appoints (name, address including ZIP code, and telephone number of appointee(s))
JOHN H. ALEXANDER and RICHARD S. RITZEL,
both of Mudge Rose Guthrie & Alexander,
20 Broad Street, New York, New York 10005;
Tel: 212-422-6767
as to represent the taxpayer(s) before any office of the Internal Revenue Service with respect to (specify
Internal Revenue tax matters and years or periods):
A request for ruling as to the deductibility under
the provisions of sections 170, 2055 and 2522 of the
Internal Revenue Code of contributions, bequests, legacies,
devises, transfers and gifts to the trust created under
the above described Agreement.
Said Morney(s)-in-fact (or either of them) shall, subject to revocation, have authority to receive confidential information and
full power to perform on behalf of the taxpayer(s) the following acts with respect to the above tax matters:
@Wike through any of the following which are not granted.)
To receive, but not to endorse-and collect, checks in payment of any refund-of-Internat Revenue toxes,-penalties, or
interest.
Io execute-waivers (including offers-of waivers)- of-restrictions on-assessment-or collection-of deficiencies in-tax-and
-waivers errefund.
Ta execute-consents-extending the statutory period collection of taxes.
To execute.closingagreements under-section.7121 of the InternaLRevenue Code
-To delegate authority one substitute-another-representalivc-
Other acts (specify)
Any and all acts deemed necessary or appropriate
in connection with the above matter.
Copies of notices and other written communications addressed to the taxpayer(s) in proceedings involving the above matters
should be sent to (Name, address including ZIP code, and telephone number):
JOHN H. ALEXANDER, Mudge Rose Guthrie & Alexander,
and
20 Broad Street, New York, New York 10005; Tel: 212-422-6767
This power of attorney revokes all prior powers of attorney and tax information authorizations on file with the same Internal
Rew name office with respect to the same matters and years or periods covered by this instrument, except the following:
(Specify to whom granted, date, and address including ZIP code, or refer to attached copies of prior powers and authorizations)
Signature of or for taxpayer(s)
If signed by a corporate officer, partner, or fiduciary on behalf of the taxpayer, I certify that I have the authority to execute
this power of attorney on behalf of the taxpayer.
Holdema
Sept
1972
(Signature)
(Title, if applicable)
(Date)
(Signature)
(Title, if applicable)
(Date)
Form
2848
(Rev. 1-70)
If the power of attorney is granted to an attorney, certified public accountant, or enrolled agent, this declaration must be
completed.
I declare that I am not currently under suspension or disbarment from practice before the Internal Revenue Service,
and that:
I am a member in good standing of the bar of the highest court of the jurisdiction indicated below; or
I
am duly qualified to practice as a certified public accountant in the jurisdiction indicated below; or
I am enrolled as an agent pursuant to the requirements of Treasury Department Circular No. 230.
Jurisdiction
Designation
(Attorney, C.P.A.,
(State, etc.)
or Enrollment
Signature
Date
or Agent)
Card Number
Attorney
New York
Aug. 18, 1972
Attorney
New York
Sept. 7, 1972
If the power oi attorney is granted to a person other than an attorney, certified public accountant, or enrolled agent, it
must be witnessed or notarized below.
The person(s) signing as or for the texpayer(s): (Check and complete one.)
is/are known to and signed in the presence of the two disinterested witnesses whose signatures appear here:
(Signature of Witness)
(Date)
(Signature of Witness)
(Date)
appeared this day before a notary public and acknowledged this power of attorney as his/her/their voluntary act and deed.
NOTARIAL SEAL
(Signature of Notory)
(Date)
(If required)
U.S. GOVERNMENT PRINTING OFFICE 1970-0-371-313
of the Treatur,
RECEIVED
Str 19.2
SEP
27
T:MS:EO:R:3
Mr. John H. Alexander
Mudge, Rose, Guthrie & Alexander
20 Broad Street
New York, New York 10005
Re: The Richard M. Nixon
Irrevocable Literary Trust
Dear Mr. Alexander:
We are considering the application for recognition
of exemption which you recently submitted on behalf of The
Richard M. Nixon Irrevocable Literary Trust. We find that
we need additional information before we can complete
our consideration of the application.
Under section 508 (b) of the Internal Revenue Code of
1954, as amended by the Tax Reform Act of 1969, all
applicants for recognition of exemption under section
501(c) (3) of the Code are required to submit a declaration
as to whether they are or are not a private foundation.
If you believe that the Trust is not a private
foundation, indicate which subsection of section 509(a)
applies to its situation and provide supporting
information. This declaration should be accompanied by
a statement from the Trustee that there is a reasonable
basis in law and fact for the status claimed.
In addition, we need the following information over
the signature of the Trustee:
1. The complete mailing address of the Trust
and the location of its principal office.
2. The month and day on which the Trust's
annual accounting period ends.
Please send the above information within 30 days SO
that we may complete our consideration of the Trust's
application. When you reply, please include T:MS:EO:R:3-GVS
as part of our address.
- 2 -
Mr. John H. Alexander
Re: The Richard M. Nixon Irrevocable
Literary Trust
If we do not hear from you within this time, we
will assume that you do not want us to consider the
application further, and will close the case. After that
date, any inquiries should be addressed to the local
District Director for the area in which the Trust has
its principal office.
Thank you for your cooperation.
Sincerely yours,
day its
Action
Chief, Rulings Section
Exempt Organizations Branch
12
October 11, 1972
John W. Dean, III, Esq.
Counsel to the President
The White House
Washington, D. C.
Dear John:
I am enclosing herewith a copy of the letter
from the Internal Revenue Service, dated September 27,
1972, that Dick Ritzel and I spoke to you about, re-
lating to the Irrevocable Literary Trust. In answer
to the specific questions asked, along the lines of
our talk yesterday, I suggest that Bob Haldeman sign
a letter substantially as follows:
"Hr. Jay H. Rotz, Acting Chief
Rulings Section
Exempt Organizations Branch
Internal Revenue Service
Washington, D. C. 20224
Your Ref: T:MS:EO:R:3-GVS
Dear Mr. Rotz:
In answer to the requests for informa-
tion contained in your letter of September 27,
to Mr. John I.. Alexander, I wish to advise as
follows:
With respect to the status of the Richard
M. Nixon Irrevocable Literary Trust I am advised
that on the basic of the existing facts there
does not appear to to any ground for claiming
Enclosed By
Mailed By
Delivered By
Delivery No.
-2-
that the trust is not a private foundation
within the meaning of the applicable provisions
of the Internal Revenue Code.
The complete mailing address of the trust
and the location of its principal office are:
c/o Mudge Rose Cuthrio & Alexander
20 Broad Street
New York, New York 10005
The annual accounting period of the
trust will be the calendar year and the period
will accordingly end on December 31 of each year.
Very truly yours,"
I suggest that you send the letter to me for
forwarding to the Internal Revenue Service.
Best regards.
Sincerely yours,
JHA:fj
Encl.
John H. Alexander
Enclosed By
Mailed By
Delivered By
Delivery No.
13
3
Department of the Treasury
Internal Revenue Service
Washington,
DC 20224
Date:
In reply refer to:
NOV
B
1072
T:MS:EO:R:3
DO 13
The Richard M. Nixon Irrevocable
Literary Trust
c/o Mudge, Rose, Guthrie &
Alexander
20 Broad Street
New York, New York 10005
Gentlemen:
We have considered your application for recognition of
exemption from Federal income tax under section 501 (c) (3) of
the Internal Revenue Code of 1954.
Based on the information supplied, and assuming that your
operations will be as stated in your application, we have
determined that you are exempt under section 501 (c) (3) of the
Code. Any changes in your purposes, character, or method of
operation must be reported to the District Director, Manhattan,
which is your key district for exempt organization matters, so
he may consider the effect of the change on your exempt status.
You must also report any change in your name or address.
We have further determined that you are a private foundation
as defined in section 509(a) of the Code. In this letter we are
not determining whether you are a private operating foundation
as defined in section 4942(j)(3) of the Code.
You are not required to file Federal income tax returns
unless you are subject to the tax on unrelated business income
under section 511 of the Code. If you are subject to this tax,
you must file an income tax return on Form 990-T. In this
letter we are not determining whether any of your present or
proposed activities is unrelated trade or business as defined in
section 513 of the Code.
You are required to file the annual information return,
Form 990, on or before the 15th day of the fifth month after the
end of your accounting period, which ends December 31st. If you
have assets of $5,000.00 or more at any time during the year,
you must also fild an Annual Report. You may use Form 990-AR
for this purpose. Failure to file Form 990-AR (if required) or
Form 990 by this date may subject you and/or a principal
officer to a penalty of $10.00 for each day during which such
failure continues, up to a maximum of $15,000.00.
- 2 -
The Richard M. Nixon Irrevocable Literary Trust
Donors may deduct contributions to you as provided in
section 170 of the Code. Bequests, legacies, devises, transfers,
or gifts to you or for your use are deductible for Federal
estate and gift tax purposes if they meet the applicable
provisions of sections 2055, 2106, and 2522 of the Code.
You are not liable for social security (FICA) taxes
unless you file a waiver of exemption certificate as provided
in the Federal Insurance Contributions Act. You are not
liable for the taxes imposed under the Federal Unemployment
Tax Act (FUTA).
You need an employer identification number even if you
have no employees. If an employer identification number was
not entered on your application, a number will be assigned to
you and you will be advised of it. Please use that number
on all returns you file and in all correspondence with the
Internal Revenue Service.
We are informing your key District Director of this action.
Please keep this ruling letter in your permanent records.
Sincerely yours,
(signed) J. F. Monahors
Chief, Rulings Section
Exempt Organizations Branch
I
14
-
May 8, 1973
PERSONAL and
CONFIDENTIAL
Miss Rose Mary Woods
Personal Secretary to the President
The White House
Washington, D. C.
Dear Rose Mary:
Attached is a memorandum relating to the
Wills of the President and Mrs. Nixon and the re-
lated trusts established as part of his Estate Plan.
As you will note, our immediate problem is to file a
return with the Internal Revenue Service, and this
return must be signed by the Tr: stee of one of the
Trusts. The Trustee is Bob haldoman. Dick Ritzel
and I assume that, either now or later, the President
will wish to consider whether to make any change in
the choice of executors and trustees. I have talked
briefly with Len Garment about it and he suggested
that you take up the memorandum with him.
Best regards.
Sincerely,
JMA:fj
per
Encl.
Enclosed By
Mailed By
Delivered By
Delivery No.
MEMORANDUM
The President's
Estate Plan
May 8, 1973
(1) The Irrevocable Literary Trust. (a) Internal
Revenue Service filing. By May 15, 1973 the trustee of this
trust must file an annual information return for calendar year
1972 with the Internal Revenue Service. The attached Form
990-PF is the return which must be filed. It should be signed
by the trustee and returned to us for routine filing. Mr.
Haldeman is the trustee.
(b) Registration with the California Attorney General.
California law requires the registration of this trust with
the California Attorney General. As a practical matter this
filing can be deferred for the time being, but ultimately will
have to be effected. At that time the trust instrument will
become a public document.
(2) Trustees, Executors and Successors. It occurs
to us that either now or at some later point the President may
wish to consider whether any changes should be made in the
executors of his and Mrs. Nixon's Wills, and in the trustees
of the three trusts created in connection with the Estate Plan.
The attached list shows the executors and trustees. The acting
trustees can resign at any time or be removed by the President.
The designations of successor trustees can be revoked either
by the acting trustees or by the President. Subject to the
approval of the President, a resigning trustee, before actually
resigning, may appoint his successor. If no successor is
appointed then the President can appoint one.
A change of trustees would require the execution of
appropriate written instruments. A change of executors can
be accomplished by codicil or new wills. We usually recommend
a new will to avoid public disclosure, through filing of the
old will and the codicil, of the change.
John H. Alexander
Richard S. Ritzel
my
ESTATE PLAN
Trustees, Executors and Successors
The Family and Literary Properties Trust
Trustee
- Richard M. Nixon
First Successor Trustee - H. R. Haldeman
Second Successor Trustee - John D. Ehrlichman
The Irrevocable Literary Trust
Trustee
- H. R. Haldeman
Successor Trustee
- John D. Ehrlichman
The Patricia R. Nixon Trust
Trustee
- John D. Ehrlichman
Successor Trustee
- H. R. Haldeman
Will of Richard M. Nixon
Executors
- C. G. Rebozo
John D. Ehrlichman
Will of Patricia R. Nixon
Executor
- Richard M. Nixon
Successor Executors
- C.G. Rebozo
John D. Ehrlichman
- -
May 14, 1073
Internal Revenue Service Center
11601 Roosevelt Blvd.
Philadelphia, Pa. 19155
The Richard 11. Nixon Irnevocable
Literary Trust
I. D. No. 23-7234029
Dear Sirs:
Enclosed herewith is the return of the above
captioned trust (Form 990-PF) for calendar year 1972.
As is indicated in the return, the Vi lue of
the Trust's assets do not exceed $5,000, and hence no
annual report (Form 9 D-A7) is required.
Please acknowledge receipt of the enclosed
return by starning and returning to us in the envelope
provided the copy of this letter enclosed for such
purpose.
Very truly yours,
In Pgat
WJK:sb
Enclosure
Enclosed By
Mailed By
Delivered By
Delivery No.
Return of Private Foundation
Form 999-FT
Exempt from Income Tax
1972
Department of the Treasury
Internal Revenue Service
Under Section 501(c)(3) of the Internal Revenue Code
For the calendar year 1972, or fiscal year beginning
, 1972, and ending
19
Name of organization
The Richard M. Nixon Irrevocable
Employer identification number
(See instruction 0)
Please type,
Literary Trust
23-7234929
print or
Address (number and street) c/o Mudge Rose Guthrie
Date of exemption letter
attach label.
See instruction
Alexander & Mitchell, 20 Broad Street
Nov. 8, 1972
City or town, State and ZIP sede
Fair market value of assets (See
O.
instruction 8)
New York, New York 10005
Statement Attached
Enter the name and address used on your return for 1971 (if the same as above, write "Same"). If none filed, give
reason.
If exemption application is
None filed, Trust created August 14, 1972
pending, check this box
Part I.-Income and Charitable Distributions (Under Section 4942)
1 Gross profit from all business activities (Attach a statement explaining how each business
1971
1972
activity not reported on Form 990-T contributed importantly to your exempt purpose)
-0-
2 Interest
-0-
3 Dividends
-0-
Income
4 Gross Rents
-0-
5 Gross Royalties
-0-
6 Net short-term capital gain (see instructions)
-0-
7 Amounts includible as income modifications under section 4942(f)(2)(C)-(see instructions)
-0-
a Other income (attach schedule)
-0-
9 Gross income (add lines 1 through 8)
-0-
10 Compensation of officers, directors, and trustees-see instructions
N
11 Other salaries and wages
12 Other employee benefits
0
13 Investment, legal, accounting and other professional services
14 Interest
N
Exponditures
15 Taxes-see instructions
16 Depreciation (straight line), Amortization and Depletion (cost)
E
17 Rent
18 Other expenses (attach schedule)
19 Total expenditures (add lines 10 through 18)
-0-
20 Adjusted net income (line 9 less line 19)
-0-
Note: Lines 21 through 28 need not be completed for any year the foundation claims operat-
ing foundation status under 4942(j)(3).
21 Minimum investment return from line 4 or 5, Part III
-0-
22 Enter the higher of line 20 or 21
-0-
23 Enter sum of exciso tax under section 4940 and income tax under Subtitle A for applicable year
-0-
24 Distributable amount (line 22 less line 23-for 1970 see in-
1970
stributions
structions)
25 Adjustments (if any) to line 24 as provided in Regulations under
section 4942 (attach schedule)
26 Distributable amount as adjusted (line 24 plus line 25)
27 Qualifying distributions applied to 1970, 1971 and 1972 from line 13, Part V
28 Undistributed income as of end of taxable year beginning in
1972 (line 26 less line 27)
-0-
Part II
1 Gross contributions, gifts, grants and similar amounts received-see instructions Statement Attached
2 Gross dues and assessments from members and affiliates
3 Enter your principal activity codes from last page of instructions
C62
0921
4 The books are in care of
Mudge Rose Guthrie Alexander
Mitchellephone
No.
212-422-6767
5 Located
at 20 Broad Street, New York, New York 10005
Pay in full with return. Make check or money
6 Excise taxes (see instructions) on investment income from Part VIII
order payable to Internal Revenue Service
-0-
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief it is
true, correct, and complete. If prepared by e person other than taxpayer, his declaration is based on all information of which he has any knowledge.
5/12/73
He /Neman
Trustee
Date
Signature of officer or trustee
Title
5/7/73
Mudrie Tuther Alexander the the & 20 Broad Street, New York,
Date
Signature and Emg. Ident. or Sec. Sec. No. of preparer
Address
New York 10005
13-5260370
Form 990-PF (1972)
Page 2
Part III.-Minimum Investment Return for 1971 and 1972 (Operating Foundations See Instructions)
1 Fair market value of assets not used (or held for use) directly in carrying out exempt
1971
1972
purpose (see section 4942(e) and the regulations thereunder):
(a) Monthly average of securities at fair market value
Statement
(b) Monthly average of cash balances (exclude cash held for charitable, etc., purposes)
Attached
(c) Fair market value of all other investment assets
(d) Total (sum of lines (a), (b), and (c))
2 Acquisition indebtedness with respect to line 1 assets
3 Line 1 less line 2
4 Organizations organized after May 26, 1969:
(a) For 1971 enter 6% of line 3
(b) For 1972 enter 51/2% of line 3
-0-
5 Organizations organized before May 27, 1969; for 1972, enter 41/8% of line 3
-0-
Part IV.-Qualifying Distributions (See Instructions)
1970
.
1971
1972
1 Amounts paid (includir ; administrative expenses) to accomplish purposes described
in sections 170(c)(1) and 170(c)(2)(8) (For 1972-should agree with line 13,
Part VI-see instructions)
2 Amounts paid to acquire assets used (or held for use) directly in carrying out pur-
poses described in sections 170(c)(1) and 170(c)(2)(B)
3 Amounts set aside for specific projects which are for purposes de-
scribed in sections 170(c)(1) and 170(c)(2)(B)
4 Total (add lines 1, 2, and 3)
N
O
N
E
Part V.-Treatment of Qualifying Distributions (Under Section 4942(h) and (i))
1970 qualifying distributions applied under:
Corpus
1970
1971
1972
1 4942(h)(1)(6) to the taxable year
2 4942(h)(1)(C) to corpus
1971 qualifying distributions applied under:
3 4942(h)(1)(A) to immediately prior year
4 4942(h)(2) to corpus (election required-see instructions)
5 4942(h)(1)(8) to the taxable year
6 4942(h)(1)(C) to corpus
7 Excess distribution carryover from 1970 under 4942(i) applied
to 1971
1972 qualifying distributions applied under:
8 4942(h)(1)(A) to Immediately prior year
9 4942(h)(2) to other prior years or corpus (election required-
see instructions)
10 4942(h)(1)(B) to the taxable year
11 4942(h)(1)(C) to corpus
12 Excess distribution carryover from 1970 and 1971 under 4942(i) applied to 1972
13 Total qualifying distributions applied to 1970, 1971 and 1972 (add lines 1
through 12)
14 Distributions included in lines 2, 4, 6, 9 and 11 that were treated by the private
foundation filing this return as a distribution of corpus under section 4942(h)
(see Instructions):
(a) because of the application of section 4942(g)(3)(A) to the foundation as re-
cipient of contributions from another private foundation
(b) because of the application of section 170(b)(1)(E)(ii) to the foundation as a
recipient of contributions from an individual
Total-add (a) and (b)
Form 990-PF (1972)
Page 3
Part VI. Analysis of Disbursements for Exempt Purposes for 1972
(a)
(b)
Expenses Directly
For Active Conduct
Administrative and
Of Exempt Activities
Other Expenditures
(see instructions)
1 Compensation of officers, directors, and trustees (see instructions)
2 Other salaries and wages
N
3 Other employee benefits
4 Legal, financial and other professional services
O
5 Interest
6 Taxes (see instructions)
7 Rent
8 Other (attach schedule)
N
9 Total-add lines 1 through 8
10 Enter total from column (a), line 9
11 Contributions, gifts, grants and similar amounts paid (see instructions)
E
12 Program related investment (as defined in section 4944(c))
13 Total-add lines 9, 10, 11 and 12 (must agree with Part IV, line 1 for 1972)
Part VII Private Operating Foundations (Sce instructions and Question 1, Part X)
1 Enter dates of rulings or determination letters (if any) that the organization is an operating foundation for taxable year be-
ginning in (a) 1970
(b) 1971
(c) 1972
(Fill in the columnar headings applicable to the most recent taxable year of Operating Foundation status. If such status
is claimed for more than one year, attach a schedule similar to schedule below for each such year.)
Taxable Year
Prior Three Years
Total
Enter year(s)
2 (a) Adjusted net income as defined
in section 4942(f)
(b) 85% of line (a)
(c) Qualifying distributions directly
for active conduct of exempt pur-
poses
3 Complete the alternative test in (a),
(b) or (c) on which the organization
relies.
(a) "Assets" alternative test-enter:
(i) Value of all assets
(ii) Value of assets qualifying
under section 4942(j)(3)
(B)(i)
(iii) 65% of line (a)(i)
(b) "Endowment" alternative test-
enter ½ of minimum investment
return
(c) "Support" alternative test-
enter:
(i) Total support other than
gross investment income
(ii) Support from general pub-
lic and 5 or more exempt
organizations as provided
in section 4942(j)(3)(8)
(iii)
(iii) Largest amount of support
from an exempt organiza-
tion (see instructions)
(iv) Gross Investment income
Form 990-PF (1972)
Page 4
Part VIII.-Excise Tax on Investment Income (Section 4940)
1 Interest
-0-
2 Dividends
-0-
Income
3 Gross rents
-0-
4 Gross royalties
-0-
5 Net capital gain (from Part IX, line 2)
-0-
6 Total income. Add lines 1 through 5
-0-
7 Compensation of officers
8 Other salaries and wages
N
Deductions Attributable
9 Other employee benefits
To Investment Income
10 Interest
11 Taxes
o
12 Rent
13 Investment, legal, accounting and other professional services
N
14 Depreciation (straight line) and depletion (cost)
15 Other deductions
16 Total deduc ons. Add lines 7 through 15
E
17 Net investment income (line 6 less line 16)
-0-
18 Domestic organizations-Excise tax, 4% of line 17. Enter here and on.page 1, Part II, line 6
-0-
19 Foreign organizations: (a) Enter total of lines 1 through 4
Tax
(b) 4% of line (a)
(c) Tax withheld at source
(d) Tax due (line (b) less line (c)). Enter here and on page 1, Part II, line 6
(e) Overpayment (line (c) less line (b)) (See instructions)
Foreign organizations-Enter book value $
and fair market value $
of
assets held within the United States for investment.
Part IX.-Capital Gains and Losses (Under Section 4940)
b. Description (Examples:
C. How acquired
a. Kind of property. Indicate security,
100 sh. of "2" Co.,
P-Purchase
d. Date acquired
8. Date sold
real estate or other (specify)
2-story brick, etc.)
D-Donation
(mo., day, yr.)
(mo., day. yr.)
1
N O N E
f. Gross sales price
g. Depreciation allowed
h. Cost or other basis
i. Gain or (loss)
(or allowable)
and expense of safe
(f plus E less h)
Complete only for assets showing gain in column i and owned by the foundation on 12/31/69
m. Enter losses from col. i. and gains
j. F.M.V. as of 12/31/69
k. Adjusted basis
I. Excess of col. 1
(excess of col. i gain over col. I, but not
as of 12/31/69
over col. k, if any
less then zero)
2 Net capital gain (loss). If gain, also enter on line 5, Part VIII
3 Net short-term capital gain (loss) as defined in section 1222(5) and (6)
4 Net long-term capital gain (loss) as defined in section 1222(7) and (8)
Part X.-Questions
File Form 4720 if question J(2), K(2)(a) or (b), or N(2) is answered "No" or question L(2), or M is answered "Yes."
Yes
No
A During the taxable year, has the organization (a) attempted to influence any national, State, or local legislation,
or (b) participated or intervened in any political campaign?
X
If "Yes," attach a detailed description of such activities and copies of any materials published or distributed by the
organization in connection with such activities.
B Have you engaged in any activities which have not previously been reported to the Internal Revenue Service?
X
If "Yes," attach a detailed description of such activities.
c Have any changes not previously reported to the Internal Revenue Service been made in your governing instru-
ment, articles of incorporation, or bylaws, or other instruments of similar import?
X
If "Yes," attach a copy of the changes.
Form 990-PF (1972)
Page 5
Part X.-Questions (Continued)
Yes
No
D Have you filed a tax return on Form 990-T for this year?
E Was there a substantial contraction during the year?
If "Yes," attach a schedule for the disposition(s) for the year(s) showing type of asset disposed of, the date(s)
disposed, the cost or other basis, the fair market value on date of disposition and the names and addresses of the
recipients of the assets distributed. (See general instructions N)
F Did you file the annual report required by section 6056 (see Form 990-AR for instructions)?
G At the time of filing Form 990-PF for 1972, does the organization satisfy the requirements of section 508(e)?
See General Instruction R
If "Yes," have such requirements been satisfied by:
(1) Language in the governing instrument (original or as amended). or
(2) Enactment of State legislation effectively amending the governing instrument and the governing instrument
contains no mandatory directions which are in conflict with such State legislation
H Has the organization attached the list of States (or entered the name(s) below, if enough space) referred to in gen-
*
See
eral instruction P and furnished copies of Forms 990-PF and 990-AR (or equivalent report) to State officers as
required by general instruction Q?
X
belo
Name of State(s)
California (Situs of Trust)
I Does the organization claim status as an operating foundation within the meaning of 4942(j)(3):
(1) for calendar year 1972 or fiscal year beginning in 1972
(2) for calendar year 1971 or fiscal year beginning in 1971
Not Applicable
(3) for calendar year 1970 or fiscal year beginning in 1970
Not. Applicable
If "Yes" for (1), (2) or (3), complete Part VII.
J Self-dealing (section 4941):
(1) Have you engaged in any of the following acts during the year either directly or indirectly, with one or more
disqualified persons (see instruction B, Part X, for definition)—
(a) Sale, exchange, or leasing of property
(b) Lending of money or other extension of credit
(c) Furnishing of goods, services, or facilities
(d) Payment of compensation (or payment or reimbursement of expenses)
(e) Transfer of any part of your income or assets
(f) Agreed to make any payment of money, or other property, to a government official (as defined in section
4946(c)) other than an agreement to employ such individual for any period after the termination of his
government service if such individual is terminating his government service within a 90-day period
(2) If any of questions 1(a) through 1(f) is answered "Yes," were all of such acts in which the foundation engaged
excepted acts described in section C, Part X of the instructions?
K Taxes on failure to distribute income (section 4942) (not applicable to an operating foundation as defined in 4942(j)(3)):
(1) Did you at the end of taxable year 1972 have any undistributed income (line 28, Part I) with respect to the taxable year 1970 or
taxable year 1971?
(2) If "Yes," is the organization applying the provisions of section 4942(a)(2) (relating to incorrect valuation of assets) with respect
to such undistributed income for (a) 1970
(b) 1971
If "Yes," to (a) or (b), see General Instruction A for Part X.
L Taxes on excess business holdings (section 4943):
(1) Did you hold more than a two percent direct or indirect interest in any business enterprise (see instructions—
"Definitions") at any time during the year?
(2) If "Yes," has the foundation purchased or have disqualified persons purchased stock in a business enterprise
since May 26, 1969, which resulted in excess business holdings (direct or indirect) which are subject to tax
under section 4943 and which was not reported on a prior year's return?
M Taxes on investments which jeopardize charitable purpose (section 4944):
(1) Did you invest any amount in such a manner as to jeopardize the carrying out of your exempt purposes during the year?
X
N Taxes on taxable exp litures (section 4945):
(1) During the year did you pay, or incur a liability to pay for any of the following-
(a) To carry on propaganda, or otherwise attempt to influence legislation by attempting to affect the opinion of the general
public or any segment thereof or by communicating with any member or employee of a legislative body, or by communicating
with any other government official or employee who may participate in the formulation of legislation
(b) To influence the outcome of any specific public election, or to carry on, directly or indirectly, any voter registration drive
(c) As a grant to an individual for travel, study, or other similar purposes by such individual
(d) As a grant to an organization, other than a charitable organization described in paragraph (1), (2), or (3)
of section 509(a) of the Code
(e) For any purpose other than religious, charitable, scientific, literary or educational purposes or for the pre-
vention of cruelty to children or animals
(2) If any of questions 1(a) through 1(e) is answered "Yes," were all of such transactions excepted transactions
described in section D, Part X of the instructions?
(3) With respect to Part (1)(d) of this question, if you answered "Yes," did you apply the exception in item 9 of
section D, Part X of the instructions?
If "Yes," attach the statement required for such exception.
*
No Form 990-AR or equivalent report required to be filed with I.R.S.
as trust assets do not exceed $5,000 in value. Accordingly, no
Form 020-AB or 290-PF required to be filed with state officers under
Form 900-PF (1972)
Page 6
Part XI.
A. Substantial Contributors (if more space is needed, attach schedule).
Name
Address
Richard M. Nixon
The White House, Washington, D.C.
B. Compensation of Officers, Directors and Trustees
Time
Name and address
Social security
Title
devoted to
number
Compensation
position
H. R. Haldeman
As required
Trustee
by duties
None
Total
C. Compensation of Five Highest Paid Employees (Other than included in B above-see instructions)
Name and address of employees paid more than $30,000
Social security
Title
Compensation
number
N
0
N
E
Total number of other employees paid over $30,000
D. Five Highest Paid Persons for Professional Services (Sce Instructions)
Name and address of persons paid more than $30,000
Type of service
Compensation
N O N E
Total number of others receiving over $30,000 for professional services
Form 990-PF (1972)
Page 7
Part XII.-Delance Sheets
Bc ginning of Taxable Year
End of Taxable Year
(A) Amount
(8) Total
(C) Amount
(D) Total
Assets
1 Cash: (n) Savings and interest-bearing accounts
(b) Other
Statement Attached
2 Accounts receivable net
3 Notes receivable net (attach schedule)
4 Inventories
5 Gov't coligations: (a) U.S. and instrumentalities
(b) State, subdivisions thereof, etc.
6 Investments in nongovernmental bonds, etc. (attach
schedule)
7 Investments in corporate stecks (attach schedule)
8 Mortgage loans (number of loans
)
9 Other investments (attach schedule)
10 Depreciable (depletable) assets (attach schedule):
(c) Held for Investment purposes
(b) Less accumulated depreciation
(c) Held for charitable purposes
(d) Less accumulated depreciation
11 Land: (n) Held for investment purposes
(b) Held for charitable purposes
12 Other assets (attach schedule)
13 Total assets
Liabilities
14 Accounts payable
15 Contributions, gifts, grants, ctc., payable
16 Mortgages and notes payable (attach schedule)
17 Other liabilities (attach schedule)
18 Total liabilities
Not Worth (Fund Balances)
19 Principal Fund
20 Income Fund
21 Total Net Worth (Fund Dalances)
22 Total liabilities and Net Worth (line 18 plus line 21)
Part Analysis of Changes in Not Worth
Statement Attached
1 Total net worth at beginning of year
2 Adjusted net income under section 4942 from Part I, line 20, for 1972
3 Gross contributions, gifts, grants and similar amounts received from Part 11, line 1
4 Gross dues and assessments from members and affiliates from Part II, line 2
5 Net gain from sale of assets not included in line 2 above (see instructions)
6 Other increases (itemize):
7 Total of lines 1 through 6
8 Disbursements for exempt purposes from Part VI, line 13
9 Taxes under: (a) Chapter 42 $
and (b) Subtitle A $
Total
10 Other decreases not included in line 8 or 9 (itemize) see instructions:
11 Total of lines 8, 9 and 10
12 Total net worth at end of year (line 7 less line 11)
U.S. GOVERNMENT PRINTING OFFICE:1172-O-456-241 52-0859706
THE RICHARD M. NIXON IRREVOCABLE LITERARY TRUST
(Taxpayer I.D. No. 23-7234929)
Statement attached to and made a part
of Form 990-PF for calendar year 1972:
The sole asset of the trust, a letter dated July 27,
1972 from The Hon. Arthur M. Burns, Chairman of the Board of
Governors of the Federal Reserve System, to Richard M. Nixon,
with the enclosure referred to in that letter, a copy of a
statement made by Mr. Burns to the Joint Economic Committee on
July 26, 1972, was contributed upon the creation of the trust
on August 14, 1972 by Richard M. Nixon. The letter and enclos-
ure are of nominal value - certainly less than $5,000.
Since the purpose of the trust is to hold books,
papers, letters, photostatic and sound reproductions, memorabilia
and other like items which relate to the events of the official
or personal life of Richard M. Nixon or his wife, Patricia R.
Nixon, and which have historical or commemorative significance,
said letter and enclosure are being held by the Trustee directly
for the exempt purpose of the trust.
Revision of Estate Plan To Include
Transfer of San Clemente Property
To Federal Government
Dated: October 23, 1973
MUDGE ROSE GUTHRIE & ALEXANDER
20 BROAD STREET, NEW YORK, N.Y.
SUMMARY
Revision of Estate Plan To Include
Transfer of San Clemente Property
To Federal Government
(1) Need for preservation of basic structure of plan.
The present estate plan is structured to take full advantage of
the interplay of the applicable rules dealing with California
community property and the estate tax marital and charitable
deductions. Because of this, the plan should result in a tax-
free transfer of all family assets and Presidential memorabilia,
papers, etc., upon the death of the first as between the President
and Mrs. Nixon to die. If the plan is to be modified and the
same tax result achieved, the modification should leave the basic
structure of the present plan intact. Also, because questions
involving California community property were involved, the
present plan was reviewed and approved by California counsel.
Approval of California counsel should likewise be obtained before
any proposed modification of the plan is implemented.
(2) The San Clemente property under the existing plan.
Upon the President's death, the San Clemente property will be
transferred to The Patricia R. Nixon Trust. If Mrs. Nixon sur-
vives the President, the property will be made available to her
for her exclusive use. All expenses relating to the property
will be paid by the trust. After the President's death, Mrs.
Nixon has the absolute power to direct a retention or sale of
the property and, upon a sale, the purchase of a replacement
residence. Mrs. Nixon also has the power to dispose of the prop-
erty by Will. If she does not exercise the latter power, or if
she does not survive the President, the property or the proceeds
of sale will be held in separate continuing trusts for the bene-
fit of Patricia and Julie. A minor amendment to the plan could
be made to provide that if Mrs. Nixon does not exercise her power
of appointment the San Clemente property would pass to the federal
government. If this were done, however, Mrs. Nixon could still
exercise her power and change the intended result.
(3) Alternate dispositions to include transfer to
federal government. Two alternate dispositions of the San
Clemente property to include a transfer to the federal government
appear possible:
(a) Transfer with retained life estate. Upon the
2
President's death, the San Clemente property would be trans-
ferred to the federal government, subject to Mrs. Nixon's
right to the exclusive use of the property during her life-
time. Mrs. Nixon or a family trust would remain responsible
for payment of all expenses related to the property. A
partial reduction in real estate taxes should result from
such a transfer, and the transfer should generate a personal
income tax deduction for Mrs. Nixon. Mrs. Nixon would,
under this arrangement, lose a great deal of flexibility in
her choice of a residence, in that if she abandoned her life
estate she would have to look to other family assets to
purchase a replacement residence. There are, however, his-
torical precedents for such a transfer - the Eisenhower farm,
the LBJ Ranch, and the Roosevelt residence in Hyde Park were
all transferred to the government subject to arrangements
to allow Mrs. Eisenhower, Mrs. Johnson and Mrs. Roosevelt
to live on the respective residences for the duration of
their lives.
(b) Option to purchase. The federal government would
be granted the right to purchase the San Clemente property upon
the death of the last survivor as between the President and
Mrs. Nixon, or prior thereto if it was offered for sale to
anyone. The purchase price would be set at an amount equal
to the family cash investment. The option would not, how-
ever, become firm until the President's death. The family
cash investment would thus be subject to eventual recovery
for use by family members. Also, if the government declined
to exercise the option, the full fair market value of the
property would become available to family members. In any
event, Mrs. Nixon would, under this arrangement, be provided
with some flexibility as to her choice of a residence, in
that if she decided that she no longer wished to live at San
Clemente she would be provided with the proceeds of sale re-
ceived from the federal government or, if the option was not
exercised, from others, to purchase a replacement residence.
John H. Alexander
Richard S. Ritzel
Revision of Estate Plan To Include
Transfer of San Clemente Property
To Federal Government
(1) Need for Preservation of Basic Structure of Plan
The estate plan adopted August 14, 1972 by the execu-
tion of Wills and three separate Trust Agreements creating
The Family and Literary Properties Trust, The Irrevocable
Literary Trust and The Patricia R. Nixon Trust is structured
to take full advantage of the interplay of the rules with
respect to California community property and the estate tax
marital and charitable deductions. Because of this, the
transfer of family assets and Presidential memorabilia,
papers, etc., upon the death of the first as between the
President and Mrs. Nixon to die should not be subject to
federal or California estate or inheritance taxes.
The essential elements of the plan are that (1) as to
community property, since a theoretical possibility exists
that the surviving spouse could reject the testamentary
arrangements made for his or her benefit and could claim
his or her community property outright, it is the surviving
spouse who is transferring his or her share of the community
property in trust, (2) as to property other than community
property passing to or for the benefit of the surviving
spouse, the same is received either outright or in trust
subject to a general testamentary power of appointment and
thus qualifies for the estate tax marital deduction, and
(3) as to any property not passing to or for the benefit of
the surviving spouse, the same passes for charitable pur-
poses and thus qualifies for the estate tax charitable
deduction. Therefore, under the plan, the family assets
and Presidential memorabilia, papers, etc., passing to or
for the benefit of the surviving spouse represent the sur-
viving spouse's share of the community property or qualify
for the estate tax marital deduction and the Presidential
memorabilia, papers, etc., passing for charitable purposes
represent the deceased spouse's community property and the
balance of his or her other property after allowance of the
estate tax marital deduction.
If the same tax result is to be sought upon any modifi-
cation of the present plan, the modification should be
2
structured so that the above described interplay of the
rules with respect to California community property and
the estate tax marital and charitable deductions is pre-
served.
Also, it should be noted that the present plan was
reviewed and approved by California counsel because of
the fact that questions with respect to California com-
munity property law were involved in its formulation.
Any proposed modification of the plan should likewise be
reviewed and approved by California counsel before that
modification is implemented.
(2) The San Clemente Property under the Existing Plan
Upon the President's death, the San Clemente property,
together with all other family assets except Presidential
memorabilia, papers, etc., will be transferred to The
Patricia R. Nixon Trust. The property so transferred,
representing a portion of Mrs. Nixon's share of the community
property and, possibly, assets qualifying for the estate tax
marital deduction, will be made available to Mrs. Nixon for
her exclusive use. All real estate taxes, insurance costs and
other expenses incurred in maintaining or improving the
property will be paid out of the income generated by other
trust assets, and, if necessary, out of the principal of
the trust.
If the income and principal of the trust does not pro-
vide adequately for Mrs. Nixon and at the same time cover
the San Clemente expenses, Mrs. Nixon can direct that a
sale of certain Presidential papers or memorabilia be
made and that the proceeds be used for such purposes. Cer-
tain nonsensitive Presidential memorabilia, papers, etc.,
also representing a portion of Mrs. Nixon's share of the
community property and, possibly, assets qualifying for the
estate tax marital deduction, will be retained in The Family
and Literary Properties Trust upon the President's death
for such purposes. Such sales will, however, be limited
to $100,000 per year and to an aggregate of $2,000,000.
Mrs. Nixon will have the exclusive power to direct the
retention or sale of the San Clemente property and, if a
sale is made, the purchase of a replacement residence.
Mrs. Nixon can also, in her Will, dispose of the San
Clemente property in any manner she may desire, including
a transfer to the federal government for public purposes.
3
If Mrs. Nixon does not exercise her power to dispose of
the San Clemente property by Will, or if she is not
living at the time of the President's death, the property
will either be held by the Trustee of The Patricia R.
Nixon Trust or be sold, with the property or the proceeds
of sale to be held in separate trusts for the benefit of
Patricia and Julie and their children. Federal and Cali-
fornia estate and inheritance taxes will be imposed on the
transfer of the property upon the death of the last survivor
as between the President and Mrs. Nixon.
It should be noted that by a minor amendment to the trust
agreement under which The Patricia R. Nixon Trust was created,
it could be directed that the San Clemente property would
pass to the federal government upon Mrs. Nixon's death if
she failed to exercise the general power of appointment
granted to her under that agreement. If this were done,
however, Mrs. Nixon could always, by exercising her power of
appointment, change the intended result. If Mrs. Nixon did
not exercise her power and the property did pass to the
federal government, no federal or California estate or inherit-
ance taxes would be imposed on the transfer at her death.
(3) Alternate Dispositions to Include Transfer to Federal
Government
(a) Transfer with Retained Life Estate.
Basic Plan. Upon the President's death, the
San Clemente property would be transferred to the
federal government, subject to Mrs. Nixon's right, if
she is then living, to the exclusive use of the prop-
erty during her lifetime. (It is assumed that if Mrs.
Nixon is the first to die, the President would want
to continue to exercise exclusive control over the
San Clemente property.)
Mrs. Nixon's Obligations Subsequent to the
Transfer. Absent any conditions in the instrument of
transfer to the contrary, Mrs. Nixon would remain
responsible for payment of real property taxes,
ordinary maintenance expenses, interest on any out-
standing mortgage, and a "just" proportion of any extra-
ordinary assessments. In addition, if there was a
mortgage on the property which had to be satisfied
by the federal government during the term of her life
estate, Mrs. Nixon would probably be required to re-
imburse the government, either by continuing to pay
4
interest on the amount of the mortgage satisfied or
by the payment of a lump sum based on the current
value to her of having been relieved of the obligation
to pay interest on the outstanding mortgage.
The instrument of transfer can provide that
the federal government, as remainderman, must assume
some or all of the obligations normally imposed on the
life beneficiary. Obviously, however, if too many
obligations are shifted to the federal government,
the cost of carrying the property would exceed the
value of the remainder interest in the property and
the gift might be rejected.
Impact on Real Estate Taxes. The California
Constitution and Revenue and Taxation Code specifically
exempt federal property used for public purposes from
taxation. The Revenue and Taxation Code also recog-
nizes that less than an entire interest in real prop-
erty, e.g., a life estate, can be subjected to real
property taxes. Accordingly, when real property is
transferred to the federal government subject to an
intervening life estate, the value of the remainder
interest should be exempt from local real property
taxes. (At Mrs. Nixon's current age, her life estate
in the property, determined actuarily, would be worth
approximately 61% of its current value. A 39% reduc-
tion in real property taxes should, therefore, result
if the remainder interest was vested in the federal
government.) This point will ultimately have to be
confirmed by California counsel.
Impact on Family. A transfer with a retained
life estate would have an adverse financial and per-
sonal impact on the family. Although Mrs. Nixon would
be entitled to use the property during her lifetime,
she would still be required to pay real estate taxes
(although possibly at a slightly reduced rate) and to
maintain the property. More importantly, she would
forfeit a considerable amount of flexibility with re-
spect to her choice of a residence. If she deter-
mined that she did not wish to continue to live at
San Clemente, she could, of course, abandon her life
estate, but she would receive no compensation for
doing so to enable her to purchase a replacement resi-
dence. Having abandoned her life estate, the property
would become the federal government's exclusively,
and Mrs. Nixon would have to look to other family
assets to provide her with a residence. Finally, upon
Mrs. Nixon's death, full ownership of the property
would pass to the federal government, and thus, no
portion of the family investment in the property, nor
any appreciation resulting subsequent to that invest-
ment, would ever be recovered for use by family
members.
Tax Considerations. The transfer should be
considered for tax purposes to have been made by Mrs.
Nixon. Thus, Mrs. Nixon should be entitled to a
current income tax deduction in the year of the transfer
and, to the extent not used in that year, for five years
thereafter. Also, since the transfer will theoretically
be made by Mrs. Nixon, it will have no bearing on the
President's estate tax return. (If a transfer was made
during the joint lives of the President and Mrs. Nixon,
with both of them retaining joint and survivor life
estates, a federal estate tax would be payable upon the
death of the first to die. For this reason, the possi-
bility of effecting a joint transfer has been rejected.)
The amount of the income tax deduction avail-
able to Mrs. Nixon would be the actuarial value of the
remainder interest passing to the federal government.
Thus, it would depend upon (1) the fair market value of
the property transferred, (2) Mrs. Nixon's age at the
time of the transfer, (3) the amount of any outstanding
mortgage affecting the property, and (4) the obligations
with respect to the property assumed by Mrs. Nixon and
the federal government. For example, if the property
had a fair market value of $500,000 exclusive of any
mortgage, if the normal rights and obligations were
assumed, and if Mrs. Nixon was 65 years of age at the
time of the transfer, the current income tax charitable
deduction available to her would be approximately
$221,000.
Historical Precedents. General and Mrs.
Eisenhower, after he left office, transferred their
Gettysburg farm to the Interior Department as a na-
tional park site. They retained the right to live on
the property transferred during their joint lives and
the survivor for six months after the death of the
6
first to die. After the transfer, no change in the
day-to-day operation of the farm occurred, and General
Eisenhower continued to pay all expenses of main-
tenance. The property was, however, removed from the
local tax rolls and no further real property taxes
were paid. (In light of the California law on this
subject, it would appear doubtful that a similar
result could be obtained for the San Clemente property.)
Subsequent to General Eisenhower's death, Mrs.
Eisenhower decided that she wanted to continue to live
on the property, and negotiations with the Interior
Department resulted in the granting of a "Use Permit"
permitting her to continue to occupy the residence
and some surrounding acreage. Under the terms of
the Use Permit, Mrs. Eisenhower pays all ordinary
expenses relating to maintaining the residence.
The balance of the property is maintained by the
Interior Department.
Mr. Johnson, after he left office, similarly
arranged for a transfer of the LBJ Ranch for eventual
use as a national park site, but with Mrs. Johnson
to have the right to live on the ranch for the term
of her life. The transfer of Mr. Roosevelt's Hyde
Park residence also was made during Mr. Roosevelt's
lifetime, with arrangements being made to permit
Mrs. Roosevelt to continue to occupy a cottage on
the premises for the duration of her life.
(b) Option to Purchase.
Basic Plan. The federal government would be
granted the right to purchase the San Clemente prop-
erty upon Mrs. Nixon's death or prior thereto, if it
is offered for sale to anyone. The option would not,
however, become firm until the President's death since
it is assumed that if Mrs. Nixon is the first to die,
the President would wish to retain exclusive control
over the property during his lifetime. The purchase
price to the federal government would equal the family
cash investment, including the cost of improvements
paid for by the family.
Impact on Family. During Mrs. Nixon's life,
assuming she is the survivor, real property taxes
would have to be paid and the property would have to
be maintained with family assets. Mrs. Nixon would,
7
however, be provided with much more flexibility with
respect to her choice of a personal residence after
the President's death than with a transfer with a
retained life estate. If she decided that she no
longer wished to live at San Clemente, she could
offer the property for sale, thus triggering the
option. Unlike the situation with the life estate,
however, the proceeds of sale would be available to
purchase a replacement residence. In any event, if
the government exercised its option upon Mrs. Nixon's
death, the cash investment in the property would be
recovered for use by family members, If the govern-
ment failed to exercise its option, the entire prop-
erty or its proceeds upon sale would become available
for use by family members.
Impact on Real Estate Taxes. The position
could possibly be taken with local tax authorities
that the option price established the fair market
value of the property for the family's purposes and
that the real property tax assessment on the prop-
erty should, accordingly, be based on that price.
Since the cash investment would presumably be lower
than the fair market value, a reduction, or at least
a stabilization, of real property taxes should follow
if this position was accepted.
Tax Considerations. The underlying testa-
mentary instruments would make it clear that the
entire San Clemente property represented a portion of
Mrs. Nixon's share of the community property and that
she was the one who was granting the option. Thus,
the grant of the option should have no effect on the
President's estate for federal estate tax purposes.
In Mrs. Nixon's estate, however, the property should
be subject to estate taxation, at least at the option
price. The option grant should also have no effect
on Mrs. Nixon's income tax liability unless she
offered the property for sale during her lifetime and
the option was exercised. At that time, an income
tax charitable deduction should become available to
her.
John H. Alexander
Richard S. Ritzel
THE WHITE HOUSE
Personal- Private
Estate Plan