ESTATE OF DONALD A. PELS, Deceased

ESTATE OF DONALD A. PELS, Deceased (14/4406/D) — This is an unopposed petition, for advice and direction pursuant to SCPA 2107, by the executors of the will of Donald A. Pels and by the current trustees of a charitable trust, a 501(c)(3) organization under the Internal Revenue Code, created by Mr. Pels under an agreement dated August 18,1992. At the time of Mr. Pels's death, he owned a one-percent interest in a cooperative apartment, one of his children owning a 99-percent interest. The executors wish to sell their interest in the apartment, which would otherwise devolve in kind upon the trust as residuary beneficiary under the will, to the co-owner. However, the estate is a "disqualified person" vis-a-vis the trust under section 4946(a)(1)(A) of the Code. The proposed sale could therefore run afoul of the self-dealing rules of the Code and the regulations thereunder unless such a transaction falls within an exception to such selfdealing rules. This court's approval is among the prerequisites to such exception (26 CFR 53.4941 [d]-1 [b] [3]). After review of the record, the court is satisfied that the proposed sale is warranted and would satisfy the other statutory prerequisites. Accordingly, the petition is granted.

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ESTATE OF DONALD A. PELS, Deceased (14/4406/D) — This is an unopposed petition, for advice and direction pursuant to SCPA 2107, by the executors of the will of Donald A. Pels and by the current trustees of a charitable trust, a 501(c)(3) organization under the Internal Revenue Code, created by Mr. Pels under an agreement dated August 18,1992. At the time of Mr. Pels’s death, he owned a one-percent interest in a cooperative apartment, one of his children owning a 99-percent interest. The executors wish to sell their interest in the apartment, which would otherwise devolve in kind upon the trust as residuary beneficiary under the will, to the co-owner. However, the estate is a “disqualified person” vis-a-vis the trust under section 4946(a)(1)(A) of the Code. The proposed sale could therefore run afoul of the self-dealing rules of the Code and the regulations thereunder unless such a transaction falls within an exception to such selfdealing rules. This court’s approval is among the prerequisites to such exception (26 CFR 53.4941 [d]-1 [b] [3]). After review of the record, the court is satisfied that the proposed sale is warranted and would satisfy the other statutory prerequisites. Accordingly, the petition is granted.

ESTATE OF DONALD A. PELS, Deceased

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