The sale or exchange of property to a disqualified person while held by an estate or trust in which a foundation has an interest or expectancy is an act of indirect self-dealing.
However, a transaction involving a private foundation's interest or expectancy in property held by an estate (or revocable trust, including a trust that has become irrevocable on a grantor's death), regardless of when title to the property vests under local law, is not indirect self-dealing if:
The administrator, executor, or trustee has the power to sell the property or to reallocate it to another beneficiary, or is required to sell the property under the terms of an option to which the property was subject when the estate or trust acquired it,
The transaction is approved by the probate court having jurisdiction over the estate (or by another court having jurisdiction over the estate, trust, or private foundation),
The estate (or trust) receives at least the fair market value of the foundation's interest or expectancy in the property at the time of the transaction, considering any option to which the property was subject when it was acquired, and
a. Results in the foundation's receiving an interest or expectancy at least as liquid as the one it gave up,
b. Results in the foundation's receiving an asset related to the active conduct of its exempt purpose, or
c. Is required under the terms of any option binding on the estate or trust.