Ask the Scholar

{
    "localId": "26147079",
    "label": "WHSF: Contested, 53-28",
    "core": "doc",
    "dtoType": "document",
    "citationUrl": "https://catalog.archives.gov/id/26147079"
}

{
    "id": "26147079",
    "sourceUrl": "https://catalog.archives.gov/id/26147079",
    "contentType": "document",
    "title": "WHSF: Contested, 53-28",
    "description": "This file contains:\n\nFrom Leydorf to Haigh RE: \"Estate Planning for President and Mrs. Nixon\" 6 pgs. [Subject: Personal] [Letter], 7/12/1974",
    "citationUrl": "https://catalog.archives.gov/id/26147079",
    "collections": [
        "Richard M. Nixon's Returned Materials Collection",
        "Contested Materials Files"
    ],
    "iiifBase": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/79/1470/26147079/content/presidential-libraries/nixon/RN-RET/2546065/Contested-Box-53/Contested-53-28.pdf",
    "thumbnailUrl": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/79/1470/26147079/content/presidential-libraries/nixon/RN-RET/2546065/Contested-Box-53/Contested-53-28.pdf",
    "largeImageUrl": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/79/1470/26147079/content/presidential-libraries/nixon/RN-RET/2546065/Contested-Box-53/Contested-53-28.pdf",
    "imageCount": 1,
    "hasImages": true,
    "source": "import",
    "hasTranscription": false
}

{
    "url": "https://catalog.archives.gov/id/26147079",
    "naId": 26147079,
    "levelOfDescription": "fileUnit",
    "recordType": "description",
    "ocrSource": "nara-archive"
}

{
    "seq": 1,
    "pageIndex": 0,
    "type": "document",
    "url": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/79/1470/26147079/content/presidential-libraries/nixon/RN-RET/2546065/Contested-Box-53/Contested-53-28.pdf",
    "mediaId": "d3a1fa389bfed73f",
    "ocrText": "Richard Nixon Presidential Library\nContested Materials Collection\nFolder List\nBox Number\nFolder Number\nDocument Date\nNo Date\nSubject\nDocument Type\nDocument Description\n53\n28\n7/12/1974\nPersonal\nLetter\nFrom Leydorf to Haigh RE: \"Estate Planning\nfor President and Mrs. Nixon\" 6pg\nTuesday, June 19, 2012\nPage 1 of 1\nPresidential Materials Review Board\nReview on Contested Documents\nCollection:\nStaff Secretary\nBox Number: 113\nFolder:\n[Misc. Memos: WH Staff, Salary, Schedule, Communications;\nClassified and Unclassified]\nDocument\nDisposition\n27\nReturn Private/Personal\nDOCUMENT WITHDRAWAL RECORD [NIXON PROJECT]\nDOCUMENT\nDOCUMENT\nNUMBER\nTYPE\nSUBJECT/TITLE OR CORRESPONDENTS\nDATE\nRESTRICTION\nN-1\nmemo\nLeydorf to Haig re: \"Estate\n7/12/74\n(\n[Doc.#27]\nPlanning for President and\nMrs. Nixon\".\nFILE GROUP TITLE\nBOX NUMBER\nSTAFF SECRETARY\n113\nFOLDER\n[misc. TITLE Memos: W.H. staff, salary, Schedules, Commanications;\nclassified and unclassified]\nRESTRICTION CODES\nA. Release would violate a Federal statute or Agency Policy.\nE. Release would disclose trade secrets or confidential commercial or\nB. National security classified information.\nfinancial information.\nC. Pending or approved claim that release would violate an individual's\nF. Release would disclose investigatory information compiled for law\nrights.\nenforcement purposes.\nD. Release would constitute a clearly unwarranted invasion of privacy\nG. Withdrawn and return private and personal material.\nor a libel of a living person.\nH. Withdrawn and returned non-historical material.\nNATIONAL ARCHIVES AND RECORDS ADMINISTRATION\nNA FORM 1421 (4-85)\nLAW OFFICES\nWILLIS, BUTLER & SCHEIFLY\nARTHUR B. WILLIS\nDEAN S. BUTLER\n20TH FLOOR\nJOHN E. SCHEIFLY\nFRED L. LEYDORF\nCITY NATIONAL BANK BUILDING\nIRVING M. GRANT\nDUDLEY M. LANG\n606 SOUTH OLIVE STREET\nJAMES F. CHILDS, JR.\nMICHAEL I. BLAYLOCK\nJOHN J. BARCAL\nDAVID R. DECKER\nLOS ANGELES, CALIFORNIA 90014\nSTEVEN W. PHILLIPS\nCHARLES R. AJALAT\nNEAL S. MILLARD\nDAVID L. CASE\nTELEPHONE (213) 620-1650\nJuly 12, 1974\nGeneral Alexander Haig\nc/o United States Secret Service\nS.C.P.D.\nBox 200\nSan Clemente, California\nRe: Estate Planning for President and Mrs. Nixon\nDear General Haig:\nOn June 5, 1974, we sent to Fred Buzhardt new Wills for President and\nMrs. Nixon, along with documents entitled \"Revocation of Trust\" re-\nlating to \"The Family and Literary Properties Trust\" and \"The Patricia\nR. Nixon Trust\". We have been informed by one of Fred's aides that the\noriginals of all of these documents have been executed and are in Fred's\npersonal safe, awaiting his return to his office. In my letter of June 5,\nI gave some recommendations as to disposition of the signed documents,\nand I am sure that Fred will review these and take the necessary action\nonce he returns to his office. We are, however, proceeding on the\nassumption that the various documents referred to have been executed by\nthe President and Mrs. Nixon.\nThere are several remaining points relating to the President's estate plan\nwhich need some further thought and attention. I would consider the major\nitems to be as follows:\n1.\nThe President has expressed a desire in the past, which\nhe reiterated during our meeting on May 31, to make some\nprovision for Rose Mary Woods and Mr. and Mrs. Sanchez.\nThis was considered in 1972, when the Mudge Rose firm\nput together the various documents relating to the prior\nestate plan. At that time, it was intended to designate the\nWILLIS, BUTLER & SCHEIFLY\nGeneral Alexander Haig\n2\nJuly 12, 1974\nforegoing parties as beneficiaries of certain life insur-\nance policies on the President's life, so that funds\nwould pass directly to these parties following the\nPresident's death. I believe it was intended that\n$25, 000 should be left to Miss Woods, and $25, 000\nto Mr. and Mrs. Sanchez or the survivor of them.\nI have checked with Mr. Alexander's office, and they\nhave indicated that no further action was taken relating\nto Miss Woods and the Sanchezes, and more particularly\nthat they have not been designated as beneficiaries of\nany life insurance policies. Accordingly, at this point,\nno provision has been made for them at all. I there-\nfore think this should be brought to the President's\nattention.\n\"The simplest way to make provision for these individuals\nwould be to do a Codicil to the President's Will, whereby\nhe could leave them a specific bequest of whatever\namounts he deemed appropriate. It could also be pro-\nvided in the Codicil that these bequests were to pass\ntax free to the recipients. On the other hand, some\nprovision could be made to designate them as beneficiaries\nof certain life insurance policies, which would have the\npractical effect of making the gifts somewhat more confi-\ndential, since they would then not be referred to in the\nWill. Proceeds of life insurance could also be distributed\nfree of any death taxes as far as the recipients were con-\ncerned. A third possibility would be to make lifetime\ngifts to these parties, which seems to me to be the least\ndesirable alternative at this point in time.\n2.\nIn accordance with the President's request, I did meet\nwith Earl Adams in Los Angeles, to obtain his thoughts\non the naming of possible successor executors under the\nWills of both President and Mrs. Nixon. He did agree to\nserve as a co-executor of the President's Will along with\nMr. Rebozo, but expressed the same concern we did in\nhaving a nonresident executor or co-executor, because\nof the additional cost involved and the potential mechanical\nproblems of having one executor in California and the\nother in another part of the country. Mr. Adams recog-\nnized that the naming of an executor or successor executor\nWILLIS, BUTLER & SCHEIFLY\nGeneral Alexander Haig\n3\nJuly 12, 1974\nis a very personal matter, and certainly the President\nshould give it sufficient thought and attention.\nMr. Adams mentioned three individuals who might be\nappropriate, Jack Drown, Herb Kline and Paul Keys.\nAny of these individuals could be named as co-executor\nwith Mr. Adams, or as a successor executor either to\nMr. Adams or to Mr. Rebozo. Their insertion in the\nPresident's Will, or in a successor capacity under the\nWill of Mrs. Nixon, could be done either by codicil or\nby retyping the existing Wills. Of course at this time,\nthe President may have some additional thoughts as to\nwho should be named in these capacities.\n3.\nThe basic estate plan established by the Mudge Rose\nfirm in 1972 involved the use of three living trusts. As\nindicated above, two of these trusts have now been re-\nvoked. The third trust, known as \"The Irrevocable\nLiterary Trust\" remains in existence. Since this trust\nis irrevocable, it cannot formally be revoked, but its\nonly asset is a Statement by Arthur M. Burns before\nthe Joint Economic Committee on July 26, 1972, and\nif it is desired not to utilize this Trust in the future,\nits existence can be terminated. as a practical matter\nmerely by turning this Statement over to the govern-\nment archives or some other governmental entity.\nThe Irrevocable Literary Trust is a tax exempt,\ncharitable trust. The Mudge Rose firm filed an\n\"Exemption Application\" with the Internal Revenue\nService in 1972, seeking a determination letter that\nthe Trust would qualify as a charitable trust under\nSection 501(c)(3) of the Internal Revenue Code, on the\nbasis that it was organized and to be operated exclu-\nsively for educational, charitable and literary purposes.\nOn November 8, 1972, the Internal Revenue Service\ngave a determination letter stating that the Trust is\nexempt under Section 501(c)(3) of the Code. As a re-\nsult, any contributions to the Trust would be deduct-\nible for Federal income tax purposes, and any distri-\nbutions to the Trust also would be deductible for Federal\nestate and gift tax purposes.\nWILLIS, BUTLER & SCHEIFLY\nGeneral Alexander Haig\n4\nJuly 12, 1974\nI believe this Trust has been well drafted, and would\nprovide a vehicle, either now or in the future, for\npublic viewing, study or research of the President's\npapers or other materials relating to his official or\npersonal life which have historical or commemorative\nsignificance, as well as possible distribution of these\nmaterials either to the government or to the other\nrecognized charitable organizations. Even though at\nthis point in time the President apparently is not in-\nclined to utilize this vehicle, I think there is very\nlittle to be lost in maintaining its existence. Annual\nfilings are required with various government entities,\nbut since the Trust has no particular activity this is\nnot a great burden. If it is to be continued, filings\nwill have to be made with the State of California,\nwhich have not been done in the past simply because\nof the lack of activity of the Trust. In any event,\nfurther consideration should be given as to whether to\nmaintain this Trust in existence, and as set forth below\nwhether to consider its possible utilization in connec-\ntion with the President's estate plan.\n4.\nThe present trustee of the Irrevocable Literary Trust\nis H. R. Haldeman. He has executed a document pur-\nsuant to which he appointed John D. Erlichman as succes-\nsor trustee if he, for any reason whatsoever, should\ncease to act. If this trust is to be continued in existence\nfor any significant period of time, therefore, attention\nshould be given as to the proper trustee, or successor\ntrustee.\n5.\nAt our meeting with the President in Washington in May,\nhe was quite emphatic in his thought that he does not\nwish any of his papers or materials relating to his public\nlife in any way left to the \"government\" at this point in\ntime. Accordingly, under his new Will, all of his\nproperty, including these materials, is left for the bene-\nfit of Mrs. Nixon and the children. This could, and\nprobably would, produce a substantial Federal estate\nand California inheritance tax cost, depending on the\nvalue placed on these items. Since valuation of the\nmaterials would, in itself, be a difficult problem, there\ncould be substantial and prolonged litigation relating to\nthe ultimate determination of death taxes.\nWILLIS, BUTLER & SCHEIFLY\nGeneral Alexander Haig\n5\nJuly 12, 1974\nThere is an approach which might provide some flex-\nibility in dealing with this situation, which would involve\nutilization of \"The Irrevocable Literary Trust\".\nCalifornia adopted, in 1972, a \"disclaimer statute\" which\nallows a beneficiary of an interest under a will to disclaim\nthat interest, and allow it to pass to other parties or enti-\nties named in the will. The procedures are relatively\nsimple, and provide that the beneficiary of the interest\nunder the will merely files a written document evidenc-\ning the disclaimer with the court administering the de-\ncedent's estate, within a specified period of time. The\nproperty involved is then distributed directly to the next\nperson or entity that would otherwise have received the\nproperty if the beneficiary had predeceased the decedent.\nI would like to consider the possibility of inserting in the\nWills of President and Mrs. Nixon a provision that any\nproperty they or the children might \"disclaim\" would\nautomatically be distributed to The Irrevocable Literary\nTrust. It would be intended, of course, that they would\nnot plan to disclaim any property other than some of the\npapers or other \"public\" materials. The California\nstatute makes it clear that a person may disclaim an\n\"Interest\" in property, which is defined to mean and in-\nclude \"the whole of any property, real or personal,\nlegal or equitable, or any fractional part, share or par-\nticular portion or specific assets thereof\n\". I would\ntherefore feel that the family members involved could\ndetermine those materials which they wanted to retain,\nand which would thereby be distributed to them, and\nthose in which they might have no interest, which could\nthen automatically pass to The Irrevocable Literary\nTrust. The result would be that any property actually\npassing to the Trust would be free of death taxes, which\ncould materially reduce the amount of death taxes in-\nvolved, as well as perhaps reduce the possibility of\nextended litigation over valuation of all the materials.\nThe Irrevocable Literary Trust contains adequate provi-\nsion for the sorting, classification and other handling\nof any materials distributed to it, as well as full\nauthority over the ultimate disposition of those materials,\nas long as they are distributed either to charitable or\ngovernmental entities. It therefore seems to me that\nWILLIS, BUTLER & SCHEIFLY\nGeneral Alexander Haig\n6\nJuly 12, 1974\nThe Irrevocable Literary Trust might be a valuable\ntool as a possible receptacle for some of the great\nbulk of public papers and other materials in which\nthe family might have no particular interest. They\nwould still have the full right to receive all of these\nmaterials if they wished, and certainly the right to\nretain any particular materials they wished to re-\ntain either because of their economic, sentimental\nor historical value. I think this is one major aspect\nof the President's estate plan which should be con-\nsidered very carefully.\nI have placed the foregoing thoughts on paper, primarily so all of us will\nhave something to refer to in connection with the remaining areas to be\nconsidered in connection with the President's estate plan. I of course\nwould be most happy to discuss any of these matters personally with you\nand/or the President at any time that is convenient or appropriate. Since\nvirtually each of the points referred to requires a personal decision by\nthe President, I would hope that all of them could be given some attention\nwithin the relatively near future.\nVery truly yours,\nFRED L. LEYDORF\nFLL:jc"
}