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February 19, 2017

ReportEstate Evaluation

John and Jane Doe

Presented By:

Adam AdvisorInvestment Advisors

265 Anystreet

AnyCity, AnyState, AnyZip

Estate Evaluation is a tool to assist you in exploring potential estate planning opportunities. However, this presentation is not your estate plan or a specific recommendation for your estate plan. Inclusion of any particular option and the use of the term “Proposed Plan” within this analysis does not constitute a recommendation of a particular option over any other planning alternative. Other alternatives may be more appropriate for your particular situation. Neither Brokerage Unlimited, Inc. (BUI) nor your advisor guarantees or expresses an opinion regarding the accuracy of the system or the output and will not be liable to any person for any damages arising from the use or misuse of Impact’s software, or from any errors or omissions in the same. I understand and agree that BUI and my advisor assume no duty to update this software or to notify me of any errors in the software or applicable changes in the law.

Numeric examples in this presentation illustrate various estate planning concepts, based on certain assumptions detailed in this analysis. The furnishing of accurate data by you will help ensure the value of this analysis. However, all rates of return are hypothetical and are not a guarantee of the future performance of any asset, including insurance or other financial products. Calculations in this report are only estimates. This presentation does not attempt to illustrate the precise legal, tax, accounting, or investment consequences of a particular planning alternative. Actual results may vary substantially from the figures shown. The precise consequences of a particular planning alternative depend on many variables, some of which may not be accounted for or fully described in this presentation. Unless otherwise indicated, the income tax and generation-skipping transfer implications of particular transactions are not reflected in this analysis.

No attorney-client relationship is established between you and any attorney who prepared and/or presented this report. Your own legal and tax advisors should be consulted before you make any estate or business planning decisions (or change title to any assets or change beneficiary designations) to determine (1) the suitability of a particular planning alternative, and (2) the precise legal, tax, investment, and accounting consequences of that alternative. BUI and its agents, employees, and registered representatives do not give legal, tax, accounting, or investment advice. This presentation and any other oral or written communications shall not be construed as such.

IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, thisnotice is to inform you that any U. S. federal tax advice contained in this presentation is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the InternalRevenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this presentation.

Important Notes

Current SituationThis analysis uses the information you provided.

Liquid Assets $7,330,000Retirement Plans $1,150,000Fixed Assets $227,000Residences $1,380,000Your total value if death occured today: $10,087,000

Using the estimated rates of return you provided, thecombined gross estate in 2041 would be $25,344,392

Assuming John dies in 2041,Estimated taxes, expenses, probate, and debts $541,306

Assuming Jane dies in 2042,Estimated taxes, expenses, probate, and debts $3,189,431Income tax on income in respect of decedent1 $393,365

Shrinkage $4,124,102

Total to family after both deaths $22,059,306An additional amount would go to charity $100,000Total distribution to family and charity $22,159,306

Portion of the estate in 2042 84%

Effects of Current Situation

Proposed StrategyThe proposed strategy, without the recommended new life insurance, wouldincrease the portion going to the family and charity to $23,207,092

The proposed strategy, including the recommended new life insurance, wouldincrease the portion going to the family and charity to $25,058,923

Executive Summaryfor John Doe, age 60, and Jane Doe, age 59

1 Heirs must pay the tax on income in respect of decedent, usually associated with inheriting qualified retirement plan assetsand annuities.

1 of 38 February 19, 2017

Scenario Name Current Situation Strategic Alternative

AssetsIRA - IRA

Disposition At Death Rollover To Spouse Net To Charity

ExpensesGift Expense - Annual Exclusion Gifts to Adam Not included ExistsGift Expense - Annual Exclusion Gifts to Elizabeth Not included Exists

Life InsuranceLife Insurance Policy - Term Life Insurance Policy

As Of Date Apr. 14, 2015 Apr. 16, 2015Life Insurance Policy - Term Life Insurance Policy

As Of Date Apr. 14, 2015 Apr. 16, 2015Life Insurance Policy - New Survivorship Life InsurancePolicy

Not included Exists

TransactionsTransaction - Stop Insurance Policy Not included ExistsTransaction - Stop Insurance Policy Not included Exists

Estate AssumptionsJohn's Will

Use Living Trust No YesJane's Will

Use Living Trust No YesBequest To Charity Exists Not included

The Assumptions page and the Additional Details page can provide more details for the items included within ascenario.

Major DifferencesThe complete analyses of scenarios being compared should be reviewed for differences. The chart below shows thedifferences in these two scenarios:

SummaryYour Proposed Plan with new life insurance could provide the following after both deaths.

Gifts $1,920,697Irrevocable Life Insurance Trust $3,053,566Family Trust $9,082,039Net Distributions to Heirs $11,104,638less: Income Tax on Income in Respect of Decedent ($374,305)

Total to Family $24,786,635Charitable: Trusts, Bequests, and Gifts $272,288

Total Distributions to Family and Charity $25,058,923

Executive Summary (Continued)for John Doe, age 60, and Jane Doe, age 59


1 1

2 2

3 3

4 4

5 5

6 6

Executive Summary (Continued)

How Much Will You Leave For Your Heirs?

Action PlanIssue Proposed Action

Revocable trust, while well drafted, is missing several key provisions including trustee removal, generation skipping and beneficiary creditor protection provisions.

Meet with a qualified estate planning attorney to review the Revocable Trust Review checklist contained within this Report and update trust as necessary.

Durable powers of attorney are approximately 12 years old and risk non-acceptance by certain financial institutions.

Meet with a qualified estate planning attorney to draft and execute new durable powers of attorney.

Health care powers of attorney are missing essential HIPAA provisions and require immediate attention.

Meet with a qualified estate planning attorney to draft and execute new health care powers of attorney.

Revocable trust provides for charitable gift to be distributed to specific charitable beneficiary. However, gift is not currently designed in a tax efficient manner.

Consider removal of charitable gift provision from revocable trust and instead name charity as a partial beneficiary of qualified retirement accounts/IRAs to maximize tax efficiency of gift.

Projected estate value significantly exceeds projected estate tax exemption at life expectancy, potentially subjecting estate to significant estate taxation.

Consider implementation of a gifting program maximizing annual exclusion gifts. A portion of the annual exclusion gifts could be directed to an irrevocable life insurance trust, wherein the trustee would significantly leverage gifted funds into a much larger sum provided by a survivorship life insurance policy.

Given significant liquidity provided within the estate as well as the short time horizon to retirement, it does not appear the current income replacement term life insurance policies are necessary.

Consider allowing current term insurance policies to lapse after survivorship coverage is in place. Alternatively, term insurance policies should be gifted or sold to an irrevocable life insurance trust to remove death benefits from taxable estate.

$2,899,617 or 13.09% MORE TO YOUR HEIRS!

$20,500,000

$21,000,000

$21,500,000

$22,000,000

$22,500,000

$23,000,000

$23,500,000

$24,000,000

$24,500,000

$25,000,000

$25,500,000

Current Situation Proposed Strategy


Primary:

Primary:

Primary:

-

Bob DoeJack Doe

Fiduciary Trust Company--

Document Not Provided

1st Contingent:2nd Contingent:3rd Contingent:4th Contingent:

3rd Contingent:4th Contingent:

1st Contingent:2nd Contingent:

Irrevocable Trust: Husband WifePrimary:

Beneficiary Trusts:Primary:

Health Care Power of Attorney: WifeJane Doe John Doe

1st Contingent: Bob Doe Bob Doe

Husband

4th Contingent: - -

2nd Contingent: Jack Doe Jack Doe3rd Contingent: - -

4th Contingent: - -3rd Contingent: - -

Wife

WifeJane Doe John Doe

1st Contingent: Bob Doe Bob Doe

Husband

Husband

- -- -

Jane Doe John DoeBob Doe Bob DoeJack Doe

2nd Contingent: Jack Doe Jack Doe

Durable Power of Attorney:

Last Will and Testament:

2nd Contingent:3rd Contingent:4th Contingent:

1st Contingent:Jack Doe

John and Jane Doe or the Survivor of ThemBob DoeJack Doe

Fiduciary Trust Company

Current Document Appointments

Primary:1st Contingent:

Revocable Trust:

2nd Contingent:3rd Contingent:4th Contingent:


1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

31.

32.

33.

34.

Tax planning family share provides flexibility to spouse to access assets for needs

Provides for protection of assets for children upon spouse’s remarriage

Includes trustee’s gifting powers upon Grantor’s incapacity

Includes provisions for payment of expenses and taxes upon death

Protects beneficiary’s inheritance from bankruptcy, divorce, lawsuits & creditors

Provides contingent distribution if a beneficiary is deceased √

X

√

√

√

Trust prevents assets from being used to satisfy a trustee’s legal obligation

Provides for distribution upon death of Grantor and Grantor’s spouse

Provides for “common trust” to treat children according to need, not equality

Authorize Trustee to Create GST Exempt & Non-Exempt Shares

Provides for tangible personal property to be distributed in separate writing

Provides for distribution of remaining tangible personal property

√

XIncludes restrictions on payments from qualified retirement plans

Tax planning marital share provides flexibility to spouse to access assets for needs

Includes death trustee appointment provisions

Includes trustee removal provisions

Includes trustee vacancy provisions if no named trustee can act

Revocable Trust Review

Authorizes a trustee to appoint a co-trustee

Authorizes appointment of an independent special trustee

Includes sufficient trust identification including specific trust name

Provides for reliance upon certification of trust

Provides for amendment and revocation of trust

Provides specific family information for identification purposes √

N/A

√

Provides definition of incapacity without court intervention

Provides for distributions from trust upon Grantor’s incapacity to Grantor

Provides for distributions from trust upon Grantor’s incapacity to family

Provides for after-born children

√

√

√

Tax planning family share provides flexibility to family to access assets for needs

Includes estate tax planning provisions

Tax planning marital share provides distribution of all income to spouse

Includes specific provisions relating to payment of estate taxes from trust

Authorizes trustee to make tax elections coordinated with personal representative

Includes provisions for resignation of a trustee

Includes incapacity trustee appointment provisions

√

√

√

√

√

√

√

√

√

√

X

X

X

√

√

√

X

√

X

X

√


35.

36.

37.

38.

39.

40.

41.

42.

43.

44.

45.

46.

47.

48.

49.

9

15

16

18

21

22

27

33

Revocable Trust Review (Continued)

√

√

Authorizes trustee to terminate small testamentary trusts

Authorizes trustee to pay funeral expenses or other debts of deceased beneficiary

Includes comprehensive trustee powers

Includes spendthrift provision restricting beneficiary’s right to transfer interest in trust

Provides for removal of spouse as trustee and beneficiary upon divorce or annulment

Provides comprehensive definitions

The trust does not provide trustee removal provisions. Accordingly, court action would be necessary to remove an acting trustee.

The trust does not authorize gifting upon a Grantor's incapacity. Such a provision is useful to continue a gifting program already established by Grantors for tax planning purposes.

The trust does not restrict payments from qualified retirement plans. Payment of expenses with qualified retirement plan assets can lead to adverse income tax consequences.

The trust does not authorize a trustee to implement generation skipping tax planning. If generational planning is desired, inclusion of such a clause is suggested.

Provides for retirement plans and life insurance policies payable to the trust

Provides for trustee compensation

Authorizes trustee to employ professionals to advise/assist trustee

Includes provisions requiring trust accounting to beneficiaries

Provides for decision making if more than one trustee is acting

Provides for delegation of power exercise by trustee to co-trustee

√ - Document Sufficiently Provides Necessary Clause X – Document Fails to Sufficiently Provide Necessary Clause√/X – Document Provides Necessary Clause But Does so Insufficiently

√

√

Authorizes trustee to merge or sever trusts

IMPORTANT NOTES

√

√

√

√

X

X

√

√

√/X

√Provides remote contingent distribution if no named beneficiaries are living

Provides for distributions for underage or incapacitated beneficiaries

√

The trust does not provide for distributions to children or other family members upon incapacity. Addition of such a provision is suggested.

The trust does not provide for distribution of tangible personal property by separate writing. Such a clause allows changes in distribution of such property without amending the trust.

The trust does not provide protection of trust assets upon the spouse’s remarriage. Such a provision can preserve trust principal for trust beneficiaries.

The trust does not protect a beneficiary’s inheritance from creditors and divorcing spouses. If creditor protection for beneficiaries is a planning objective, such provisions should be included.


37

43

45

Revocable Trust Review (Continued)

The trust does not authorize the trustee to merge or sever trusts. Such a provision can offer flexibility and simplicity in administering trusts for beneficiaries.

The trust does not properly provide for retirement plans payable to the trust. If a retirement account is payable to the trust, it could lead to unintended income tax consequences.

The trust does not authorize the trustee to pay funeral or other expenses of a trust beneficiary. Such a provision allows a trustee to use trust assets for the benefit of a deceased beneficiary.


AssetsFor estate planning purposes, assets can be categorized by their availability to pay taxes and expenses atdeath. Availability of assets depends on two things:

Ownership—the title to the asset determines how it passes at death.1.Type of Asset—certain assets can be converted to cash more quickly than others.2.

Checking Account $73,000 $73,000Savings Account $126,000 $126,000Money Market Account $312,000 $312,000Investment Account $677,000 $677,000Investment Account $5,653,000 $5,653,000Investment Account $489,000 $489,000

Liquid Assets

IRA $800,000 $800,000IRA $131,000 $131,000Roth IRA $132,000 $132,000Roth IRA $87,000 $87,000

Retirement Plans

Household Contents $150,000 $150,000Motor Vehicle $32,000 $32,000Motor Vehicle $45,000 $45,000

Fixed Assets

Personal Residence $900,000 $900,000Florida Home $480,000 $480,000

Residences

Total Values Today $7,262,000 $707,000 $2,118,000 $10,087,000

John Jane Joint Total

Values from Prior PlanningYour prior planning affects the values your heirs will receive if you were to die today.

Life Insurance on John1

Life Insurance on Jane1

Prior Planning Total

$1,500,000$500,000

$2,000,000

Total Value if Death TodayThe summary of your values today equals theTotal Values Today of $10,087,000 plusValues from Prior Planning of $2,000,000

Total Value if Death Today2 $12,087,000

Summary of ValuesYour Current Plan

1 May be in the estate if death today based on ownership and beneficiary designations.2 Includes values that may not be part of taxable estate.


This analysis assumes that both John and Jane die today. The total value of your assets today considersyour income as well as the portion of existing assets used to provide the spending patterns detailed inthe assumptions.

John'sAssets

Jane'sAssets

Values at Death Today $8,321,000 $1,766,000

Adjustments at John's DeathCash Flow AdjustmentLife Insurance in Estate1

Estate Total in 2015

$67,167$1,500,000$9,888,167

$3,008

$1,769,008Combined Estate Total $11,657,174

Your Current Plan TodayTotal Value of Assets

1 Incidents of ownership or beneficiary designation cause inclusion of death proceeds in the estate.


Combined Gross Estate$11,657,174

in 2015

Taxes, Expenses,Probate and Debts

$257,0831

$2,577,028Remaining Estate

at Jane's death$2,792,856

$3,393,063Marital Trust$3,677,235

in 2015


$433,841

Family TrustNet Distributions to Heirsless: Income Tax on Income in Respect ofDecedent

Total to FamilyCharitable: Trusts, Bequests, and Gifts

Total Distributions to Family and Charity

$3,930,000$7,436,250

($210,992)$11,155,258

$100,000$11,255,258

Bequests

$3,930,000Family Trust$3,930,000

Your Current Plan TodayJohn Dies in 2015, Jane Dies in 2015

1 Debts of $45,330 are deductible for estate tax calculations even though some of these debts were not paid but transferred tothe surviving spouse.

10 of 38 February 19, 2017

At John's Death in 2015Combined Gross EstateThe Combined Gross Estate is $11,657,174. Included are assets owned by John and Jane plus lifeinsurance of $1,500,000 with ownership such that the death proceeds are considered as part of theestate at John's death.

Taxes, Expenses, Probate and DebtsTentative Tax Base (after expenses, deductions and adjustments): $5,430,0001

Federal Estate Tax before Credits $2,117,800Applicable Unified Credit2 $2,117,800Missouri State Tax $0Total Net Taxes Due $0

Remaining EstateJane's Assets at John's death $1,769,008plus Other Funds (Net Inheritance) $808,020Remaining Estate at John's death

includes IRA Rollover of $808,020$2,577,028

Remaining Estate at Jane's death in 2015with growth at assumed rates

includes IRA Rollover of $808,020

$2,792,856

Marital TrustAt John's death, a Marital Trust is created. The trust is valued at $3,393,063. With growth at assumedrates, the Marital Trust is worth $3,677,235 at Jane's death.

Family TrustA Family Trust is established at John's death, using assets valued at $3,930,000. With growth atassumed rates, the Family Trust is worth $3,930,000 at Jane's death.

Value of Other Items at First Death

At Jane's Death in 2015Taxes, Expenses, Probate and Debts1

Tentative Tax Base (after expenses, deductions and adjustments): $6,273,750

Federal Estate Tax before Credits $2,455,300Applicable Unified Credit2 $2,117,800Missouri State Tax $0Total Net Taxes Due $337,500

Value of Other Items at Second DeathCharitable Bequests $100,000

Your Current Plan TodayExplanation of Values on Flowchart

1 See the Estate Calculations page for further details on expenses and deductions.2 American Taxpayer Relief Act of 2012 provides for an Applicable Exclusion amount of $5,000,000, indexed for inflation after

2011. The Basic Unified Credit is $1,945,800, indexed for inflation after 2011. Unused Applicable Exclusion amounts may bepassed to the surviving spouse ('portability'), provided an election is made on a timely filed estate tax return of the deceasedspouse (DSUEA). The Applicable Unified Credit amount is the Basic Unified Credit plus 40% of the DSUEA used at death, ifany.

11 of 38 February 19, 2017

Summary of Total Distributions to Heirs and OthersValues at Second DeathTotal Net Distributions to Family $11,155,258Charitable Bequests $100,000Total Charitable Trusts, Bequests and Gifts $100,000Total Distributions to Family and Charity $11,255,258

Your Current Plan TodayExplanation of Values on Flowchart (Continued)

12 of 38 February 19, 2017

This analysis assumes that John dies in 26 years and Jane dies 1 year later. The growth of your assetsuntil death considers your income as well as the portion of existing assets used to provide the spendingpatterns detailed in the assumptions.

2015 $305,000 $319,558 $375,195 $10,546,927 $8,730,884 $1,816,0432016 311,100 354,082 502,608 11,049,535 9,189,634 1,859,9022017 317,322 372,160 521,676 11,571,211 9,670,363 1,900,8482018 323,668 381,928 550,787 12,121,998 10,178,842 1,943,1562019 330,142 391,925 581,697 12,703,695 10,716,761 1,986,934

2020 21,739 275,505 424,771 13,128,466 11,191,042 1,937,4242021 33,195 274,888 466,464 13,594,930 11,588,312 2,006,6182022 33,793 328,615 437,287 14,032,218 11,940,495 2,091,7232023 34,401 347,583 442,707 14,474,925 12,293,728 2,181,1972024 39,148 358,228 461,397 14,936,322 12,658,975 2,277,347

2025 148,409 367,306 525,721 15,462,042 13,048,345 2,413,6982026 153,588 415,477 506,086 15,968,128 13,457,746 2,510,3822027 159,001 417,122 534,783 16,502,911 13,891,403 2,611,5082028 164,660 427,584 555,891 17,058,802 14,341,512 2,717,2902029 170,578 440,200 575,980 17,634,782 14,806,827 2,827,955

2030 176,768 453,631 596,401 18,231,183 15,287,446 2,943,7372031 182,887 467,624 617,442 18,848,625 15,783,918 3,064,7072032 189,580 481,244 640,127 19,488,752 16,297,251 3,191,5012033 196,212 494,958 664,059 20,152,811 16,828,796 3,324,0152034 203,031 508,879 689,193 20,842,004 17,379,278 3,462,726

2035 210,108 523,256 715,341 21,557,345 17,949,368 3,607,9772036 217,446 538,123 742,524 22,299,868 18,539,770 3,760,0982037 225,049 553,487 770,796 23,070,664 19,151,227 3,919,4372038 232,921 569,362 800,208 23,870,873 19,784,514 4,086,3592039 240,300 585,763 830,812 24,701,685 20,440,816 4,260,869

2040 247,718 602,417 862,970 25,564,655 21,120,885 4,443,770

Endof

YearExpected

Income

TotalOutgoing

PaymentsChange

in Assets

Values Today

Endof Year

AssetValues

$10,087,000

John'sAssets

$8,321,000

Jane'sAssets

$1,766,000

Values at John's death after 26 years $21,120,885 $4,443,770

Adjustments at John's DeathCash Flow AdjustmentEstate Total in 2041

-$115,139$21,005,746

-$105,123$4,338,647

Combined Estate Total $25,344,392

Your Current PlanProjected Growth of Assets

13 of 38 February 19, 2017


in 2041


$541,3061



$10,199,797Marital Trust$10,513,417

in 2042


$3,189,431

Family TrustNet Distributions to Heirsless: Income Tax on Income in Respect ofDecedent



$9,082,039$13,370,632

($393,365)$22,059,306

$100,000$22,159,306

Bequests

$8,640,000Family Trust$9,082,039

Your Current PlanJohn Dies in 2041, Jane Dies in 2042

1 Debts of $1,471 are deductible for estate tax calculations even though some of these debts were not paid but transferred tothe surviving spouse.

14 of 38 February 19, 2017

At John's Death in 2041Combined Gross EstateThe Combined Gross Estate is $25,344,392. Included are assets owned by John and Jane.



Remaining EstateJane's Assets at John's death $4,338,647plus Other Funds (Net Inheritance) $1,624,642Remaining Estate at John's death

includes IRA Rollover of $1,624,642$5,963,289


includes IRA Rollover of $1,624,642

$6,146,646






Federal Estate Tax before Credits $6,515,555Applicable Unified Credit2 $3,461,800Missouri State Tax $0Total Net Taxes Due $3,053,755

Value of Other Items at Second DeathCharitable Bequests $100,000

Your Current PlanExplanation of Values on Flowchart

1 See the Estate Calculations page for further details on expenses and deductions.2 American Taxpayer Relief Act of 2012 provides for an Applicable Exclusion amount of $5,000,000, indexed for inflation after


15 of 38 February 19, 2017

Summary of Total Distributions to Heirs and OthersValues at Second DeathTotal Net Distributions to Family $22,059,306Charitable Bequests $100,000Total Charitable Trusts, Bequests and Gifts $100,000Total Distributions to Family and Charity $22,159,306

Your Current PlanExplanation of Values on Flowchart (Continued)

16 of 38 February 19, 2017

This analysis assumes that John dies in 26 years and Jane dies 1 year later. The growth of your assetsuntil death considers your income as well as the portion of existing assets used to provide the spendingpatterns detailed in the assumptions.

2015 $305,000 $371,470 $323,249 $10,494,982 $8,704,911 $1,790,0702016 311,100 405,980 450,045 10,945,027 9,137,379 1,807,6482017 317,322 425,819 466,620 11,411,647 9,590,581 1,821,0662018 323,668 435,312 495,446 11,907,092 10,071,389 1,835,7032019 330,142 445,095 526,013 12,433,106 10,581,467 1,851,639

2020 21,739 328,466 358,630 12,791,735 10,866,082 1,925,6532021 33,195 394,147 321,545 13,113,281 11,106,663 2,006,6182022 33,793 412,955 320,274 13,433,555 11,341,832 2,091,7232023 34,401 422,670 328,496 13,762,051 11,580,854 2,181,1972024 39,148 432,611 341,106 14,103,157 11,825,810 2,277,347

2025 148,409 440,780 399,172 14,502,329 12,088,631 2,413,6982026 153,588 487,986 372,962 14,875,290 12,364,909 2,510,3822027 159,001 490,640 392,638 15,267,928 12,656,420 2,611,5082028 164,660 500,476 405,876 15,673,804 12,956,514 2,717,2902029 170,578 512,116 417,994 16,091,798 13,263,844 2,827,955

2030 176,768 526,479 427,985 16,519,783 13,576,046 2,943,7372031 182,887 539,733 439,700 16,959,483 13,894,776 3,064,7072032 189,580 552,260 452,874 17,412,356 14,220,855 3,191,5012033 196,212 566,780 464,749 17,877,106 14,553,091 3,324,0152034 203,031 579,818 478,857 18,355,963 14,893,238 3,462,726

2035 210,108 592,952 493,695 18,849,659 15,241,682 3,607,9772036 217,446 608,468 506,925 19,356,584 15,596,485 3,760,0982037 225,049 622,772 522,181 19,878,764 15,959,327 3,919,4372038 232,921 637,221 538,180 20,416,945 16,330,586 4,086,3592039 240,300 654,077 552,613 20,969,557 16,708,688 4,260,869

2040 247,718 669,456 569,424 21,538,982 17,095,212 4,443,770

Endof

YearExpected

Income

TotalOutgoing

PaymentsChange

in Assets

Values Today

Endof Year

AssetValues

$10,087,000

John'sAssets

$8,321,000

Jane'sAssets

$1,766,000

Values at John's death after 26 years $17,095,212 $4,443,770

Adjustments at John's DeathCash Flow AdjustmentEstate Total in 2041

-$108,529$16,986,682

-$105,123$4,338,647

Combined Estate Total $21,325,329

Effects of Planning and New Life InsuranceProjected Growth of Assets

Premiums may vary based on many factors, including the age, sex, and health of the insured. This presentation is not validunless accompanied by an illustration of proposed policy values.

17 of 38 February 19, 2017


in 2041


$20,5001



$6,701,540Marital Trust$6,847,155

in 2042


$1,563,092

GiftsIrrevocable Life Insurance TrustFamily TrustNet Distributions to Heirsless: Income Tax on Income in Respect ofDecedent



$1,920,697$3,053,566$9,082,039

$11,104,638

($374,305)$24,786,635

$272,288$25,058,923

Irrevocable LifeInsurance Trust

Bequests

$8,640,000Family Trust$9,082,039

Effects of Planning and New Life InsuranceJohn Dies in 2041, Jane Dies in 2042

Premiums may vary based on many factors, including the age, sex, and health of the insured. This presentation is not validunless accompanied by an illustration of proposed policy values.1 Debts of $500 are deductible for estate tax calculations even though some of these debts were not paid but transferred to the

surviving spouse.

18 of 38 February 19, 2017

At John's Death in 2041Combined Gross EstateThe Combined Gross Estate is $21,325,329. Included are assets owned by John and Jane.



Remaining EstateJane's Assets at John's death $4,338,647plus Other Funds (Net Inheritance) $1,624,642Remaining Estate at John's death

includes IRA Rollover of $1,624,642$5,963,289


includes IRA Rollover of $1,624,642

$6,092,863






Federal Estate Tax before Credits $5,004,892Applicable Unified Credit2 $3,461,800Missouri State Tax $0Total Net Taxes Due $1,543,092

Effects of Planning and New Life InsuranceExplanation of Values on Flowchart

Premiums may vary based on many factors, including the age, sex, and health of the insured. This presentation is not validunless accompanied by an illustration of proposed policy values.1 See the Estate Calculations page for further details on expenses and deductions.2 American Taxpayer Relief Act of 2012 provides for an Applicable Exclusion amount of $5,000,000, indexed for inflation after


19 of 38 February 19, 2017

Value of Other Items at Second DeathIrrevocable Life Insurance Trust (ILIT) $3,053,566Charitable Bequests $272,288Gifts (not including life insurance premiums) $1,920,697

Summary of Total Distributions to Heirs and OthersValues at Second DeathIrrevocable Life Insurance Trust (ILIT) $3,053,566Total Net Distributions to Family $24,786,635Charitable Bequests $272,288Total Charitable Trusts, Bequests and Gifts $272,288Total Distributions to Family and Charity $25,058,923

Effects of Planning and New Life InsuranceExplanation of Values on Flowchart (Continued)


20 of 38 February 19, 2017

RegularGifts

Gifts ofPremiums

Gifts totaling $100,000 ($10,000 per year for 10 years) used to help pay for life insurance premiums. If death occurs at the end of 10 years, this gift has a value of $1,000,000 to beneficiaries.

Gifts totaling $100,000 ($10,000 per year for 10 years) plus the appreciation (growth) for 10 years have a value of $156,455 to the beneficiaries.

$1,000,000

$100,000$100,000

$156,455

In this example, the first bar shows gifts exactly equal to the life insurance premiums. The appreciationof these gifts is based on an annual growth rate of 8%. The second bar shows the same gift being usedin payment for life insurance premiums. The life insurance would have a value equal to the policy cashvalue prior to the death(s) of the insured(s). At death in 10 years, the value to the beneficiary would bethe death proceeds, or $1,000,000 in this example.

In each case, the same assumptions are made concerning the taxation of gifts. It is also assumed thatthese gifts will be outside the insured's taxable estate. If excluded from taxable estate, insuranceproceeds will be income and estate tax free. (Exceptions not considered here are gift taxes paid withinthree years of death and any transfer of life insurance within three years of death.) This example showsequal gifts and assumes equal estate and gift taxation.

"Leveraging" gifts with life insurance describes how smaller gifts, used to pay life insurance premiums,may purchase a larger death benefit. The difference between the cumulative premiums, adjusted forgrowth, and the death benefit will depend on a variety of factors, such as when death occurs and thegrowth rates assumed. No existing policy values have been used to pay or "finance" new life insurance.

This is a hypothetical situation. It is not intended to illustrate any particular life insurance product. Any insurance proposedshould be accompanied by a complete illustration of proposed policy values.

Leveraging Gifts with Life InsuranceUsing Gifts to Purchase Life Insurance

21 of 38 February 19, 2017

During Your Lifetime

Assets passto beneficiariesof the Trust -your family

IrrevocableLife InsuranceTrust

Trust receivesdeath proceeds

Trust purchaseslife insurance

InsuranceCompany

Trust usesdeath proceeds

to purchase assets

You make gifts to Trust

Your Heirs

Estate Taxes

At Death

Your Estate

An Irrevocable Life Insurance Trust (ILIT) can be designed for many specialpurposes.

Although there are numerous ways to create and fund these trusts, usually you make annual gifts to thetrust. Based upon current withdrawal rights given to beneficiaries, these gifts are designed to qualify forthe gift tax annual exclusion. The trust purchases life insurance on your life using the gifts to pay thepremiums. The gifts will help to reduce your taxable estate.

At your death, the life insurance proceeds are paid to the trust as beneficiary. The irrevocable lifeinsurance trust generally receives the policy proceeds free of income taxes (see IRC 101(a)), and withproper planning, the proceeds may be excluded from your estate for estate tax purposes. The trust mayuse the proceeds to purchase assets from your estate, or to make loans to your estate (provided thatthere is no obligation to make such loans). The executor uses this cash to help pay estate taxes andexpenses. The assets purchased by the trust may then be distributed to the trust beneficiaries—yourchosen heirs, or the trust may continue to hold the assets for the benefit of the beneficiaries as providedin the trust agreement.

How a Life Insurance Trust WorksUsing an Irrevocable Life Insurance Trust

22 of 38 February 19, 2017

John Dies First in 2041Current Plan Proposed Plan

John's Gross Estate $21,005,746 $16,986,682Liabilities ($1,471) ($500)

A. Net Estate $21,004,274 $16,986,182

Probate and Administrative Fees $519,835 $0Final Expenses $20,000 $20,000

Estate Expenses

B. Total Expenses $539,835 $20,000

C. Adjusted Gross Estate (A-B) $20,464,439 $16,966,182

Marital Deduction $11,824,439 $8,326,182Includes Marital Trust $10,199,797 $6,701,540

Deductions

D. Total Deductions $11,824,439 $8,326,182

E. Total Additions $0 $0

F. Tentative Tax Base (C-D+E) $8,640,000 $8,640,000

Federal Estate Tax before Credits $3,401,800 $3,401,800Applicable Unified Credit1 ($3,401,800) ($3,401,800)State Tax $0 $0

Taxes and Credits

G. Total Net Taxes Due $0 $0

H. Distributions atJohn's Death (C-G) $20,464,439 $16,966,182

Estate CalculationsCalculations at First Death

1 American Taxpayer Relief Act of 2012 provides for an Applicable Exclusion amount of $5,000,000, indexed for inflation after2011. The Basic Unified Credit is $1,945,800, indexed for inflation after 2011. Unused Applicable Exclusion amounts may bepassed to the surviving spouse ('portability'), provided an election is made on a timely filed estate tax return of the deceasedspouse (DSUEA). The Applicable Unified Credit amount is the Basic Unified Credit plus 40% of the DSUEA used at death, ifany.

23 of 38 February 19, 2017

John Dies First in 2041Current Plan Proposed Plan

John's Gross Estate $21,005,746 $16,986,682less Liabilities ($1,471) ($500)less Total Expenses ($539,835) ($20,000)less Total Net Taxes Due ($0) ($0)

After Tax Estate $20,464,439 $16,966,182

Reduction after Taxes and Expenses 3% 0%

Distributions of Estate AssetsJohn's Bequests $0 $0Marital Deduction $11,824,439 $8,326,182

Includes Marital Trust $10,199,797 $6,701,540Family Trust $8,640,000 $8,640,000

Value of Gifts $0 $1,827,213Other Distributions

Estate Transferred to HeirsDistributions Following First Death


24 of 38 February 19, 2017

Jane Dies Second in 2042Current Plan Proposed Plan

Jane's Gross Estate $16,660,063 $12,940,018Includes Marital Trust $10,513,417 $6,847,155

A. Net Estate $16,660,063 $12,940,018

Probate and Administrative Fees $115,676 $0Final Expenses $20,000 $20,000

Estate Expenses

B. Total Expenses $135,676 $20,000

C. Adjusted Gross Estate (A-B) $16,524,387 $12,920,018

Charitable Bequests $100,000 $272,288Deductions

D. Total Deductions $100,000 $272,288

E. Total Additions $0 $0

F. Tentative Tax Base (C-D+E) $16,424,387 $12,647,730

Federal Estate Tax before Credits $6,515,555 $5,004,892Applicable Unified Credit1 ($3,461,800) ($3,461,800)State Tax $0 $0

Taxes and Credits

G. Total Net Taxes Due $3,053,755 $1,543,092

H. Income Tax onIncome in Respect of Decedent $393,365 $374,305

I. Distributions atJane's Death (C-G-H) $13,077,267 $11,002,621

Estate CalculationsCalculations at Second Death

1 American Taxpayer Relief Act of 2012 provides for an Applicable Exclusion amount of $5,000,000, indexed for inflation after2011. The Basic Unified Credit is $1,945,800, indexed for inflation after 2011. Unused Applicable Exclusion amounts may bepassed to the surviving spouse ('portability'), provided an election is made on a timely filed estate tax return of the deceasedspouse (DSUEA). The Applicable Unified Credit amount is the Basic Unified Credit plus 40% of the DSUEA used at death, ifany.

25 of 38 February 19, 2017

Jane Dies Second in 2042Current Plan Proposed Plan

Jane's Gross Estate $16,660,063 $12,940,018less Liabilities ($0) ($0)less Total Expenses ($135,676) ($20,000)less Total Net Taxes Due ($3,053,755) ($1,543,092)less Income Tax on IRD ($393,365) ($374,305)

After Tax Estate $13,077,267 $11,002,621

Reduction after Taxes and Expenses 22% 15%

Distribution of Estate AssetsJane's Bequests $11,104,100 $9,129,454Family Trust $9,082,039 $9,082,039

Irrevocable Life Insurance Trust $0 $3,053,566Life Insurance Available

Value of Gifts $0 $1,920,697Charitable Bequests $100,000 $272,288Other Transfers to Heirs $1,873,167 $1,600,879

Other Distributions

Total Estate Transferred $22,159,306 $25,058,923

Increased Distributions to Heirs and Others from New LifeInsurance and Additional Planning $2,899,617

Estate Transferred to HeirsDistributions Following Second Death


26 of 38 February 19, 2017

2015 $10,171,733 $375,195 $10,546,927 $14,5582016 10,546,927 502,608 11,049,535 42,9822017 11,049,535 521,676 11,571,211 54,8382018 11,571,211 550,787 12,121,998 58,2602019 12,121,998 581,697 12,703,695 61,783

2020 12,703,695 424,771 13,128,466 253,7662021 13,128,466 466,464 13,594,930 241,6922022 13,594,930 437,287 14,032,218 294,8222023 14,032,218 442,707 14,474,925 313,1822024 14,474,925 461,397 14,936,322 319,080

2025 14,936,322 525,721 15,462,042 218,8972026 15,462,042 506,086 15,968,128 261,8902027 15,968,128 534,783 16,502,911 258,1212028 16,502,911 555,891 17,058,802 262,9242029 17,058,802 575,980 17,634,782 269,621

2030 17,634,782 596,401 18,231,183 276,8632031 18,231,183 617,442 18,848,625 284,7372032 18,848,625 640,127 19,488,752 291,6642033 19,488,752 664,059 20,152,811 298,7462034 20,152,811 689,193 20,842,004 305,848

2035 20,842,004 715,341 21,557,345 313,1482036 21,557,345 742,524 22,299,868 320,6772037 22,299,868 770,796 23,070,664 328,4372038 23,070,664 800,208 23,870,873 336,4412039 23,870,873 830,812 24,701,685 345,463

2040 24,701,685 862,970 25,564,655 354,6992041 25,564,655 -8,793,509 16,771,147 267,347

Endof

Year

Beginning ofYear

AssetsChange in

Asset Values

End ofYear

Asset Value1

Net AssetsUsed for

Cash Flow2

Current Plan

Asset SummaryAll Assets

John Dies in 2041, Jane Dies in 2042

1 Assets equal total income less outgoing payments plus net effects of cash flow plus existing assets.2 See Net Adjustments for Cash Flow page.

27 of 38 February 19, 2017

2015 $305,000 $0 $0 $0 $0 $305,0002016 311,100 0 0 0 0 311,1002017 317,322 0 0 0 0 317,3222018 323,668 0 0 0 0 323,6682019 330,142 0 0 0 0 330,142

2020 0 0 21,739 0 0 21,7392021 0 0 33,195 0 0 33,1952022 0 0 33,793 0 0 33,7932023 0 0 34,401 0 0 34,4012024 0 0 39,148 0 0 39,148

2025 0 0 86,071 0 62,338 148,4092026 0 0 87,620 0 65,967 153,5882027 0 0 89,197 0 69,803 159,0012028 0 0 90,803 0 73,857 164,6602029 0 0 92,437 0 78,141 170,578

2030 0 0 94,101 0 82,667 176,7682031 0 0 95,795 0 87,092 182,8872032 0 0 97,519 0 92,061 189,5802033 0 0 99,275 0 96,937 196,2122034 0 0 101,062 0 101,969 203,031

2035 0 0 102,881 0 107,227 210,1082036 0 0 104,733 0 112,713 217,4462037 0 0 106,618 0 118,432 225,0492038 0 0 108,537 0 124,384 232,9212039 0 0 110,491 0 129,809 240,300

2040 0 0 112,480 0 135,238 247,7182041 0 0 56,123 0 738,534 794,656

Endof

Year SalaryOther

Income1

SocialSecurity

2

Earnings(Cash,

Dividends)

RetirementPlan

Distributions

TotalExpected

Income

Current Plan

Income SummaryTotal Income Received


1 Other Income includes any estimated tax refunds for the prior year.2 Benefits may be reduced for earnings from current work prior to full retirement age (FRA). FRA for John is age 66 and FRA for

Jane is age 66 and 2 months.

28 of 38 February 19, 2017

2015 $200,000 $0 $4,089 $115,470 $0 $319,5582016 205,200 0 4,089 144,793 0 354,0822017 210,535 0 4,089 157,536 0 372,1602018 216,009 0 4,089 161,830 0 381,9282019 221,625 0 4,089 166,210 0 391,925

2020 227,388 0 4,089 44,028 0 275,5052021 233,300 0 4,089 37,499 0 274,8882022 239,365 0 4,089 85,161 0 328,6152023 245,589 0 0 101,994 0 347,5832024 251,974 0 0 106,254 0 358,228

2025 258,526 0 0 108,781 0 367,3062026 265,247 0 0 150,230 0 415,4772027 272,144 0 0 144,978 0 417,1222028 279,219 0 0 148,364 0 427,5842029 286,479 0 0 153,721 0 440,200

2030 293,928 0 0 159,704 0 453,6312031 301,570 0 0 166,054 0 467,6242032 309,411 0 0 171,834 0 481,2442033 317,455 0 0 177,503 0 494,9582034 325,709 0 0 183,170 0 508,879

2035 334,178 0 0 189,078 0 523,2562036 342,866 0 0 195,257 0 538,1232037 351,781 0 0 201,706 0 553,4872038 360,927 0 0 208,435 0 569,3622039 370,311 0 0 215,452 0 585,763

2040 379,939 0 0 222,478 0 602,4172041 832,198 0 0 231,276 0 1,063,474

Endof

YearLifestyle

Expenses

Gifts NotIncluding Life

Insurance

LifeInsurancePremiums

Tax Paymentsand

WithholdingsDiscretionary

SpendingOutgoing

Payments

Current Plan

Outgoing Payments SummaryOutgoing Payments


29 of 38 February 19, 2017

2015 $10,171,733 $323,249 $10,494,982 $66,4702016 10,494,982 450,045 10,945,027 94,8802017 10,945,027 466,620 11,411,647 108,4972018 11,411,647 495,446 11,907,092 111,6432019 11,907,092 526,013 12,433,106 114,954

2020 12,433,106 358,630 12,791,735 306,7272021 12,791,735 321,545 13,113,281 360,9512022 13,113,281 320,274 13,433,555 379,1622023 13,433,555 328,496 13,762,051 388,2692024 13,762,051 341,106 14,103,157 393,463

2025 14,103,157 399,172 14,502,329 292,3702026 14,502,329 372,962 14,875,290 334,3982027 14,875,290 392,638 15,267,928 331,6392028 15,267,928 405,876 15,673,804 335,8162029 15,673,804 417,994 16,091,798 341,538

2030 16,091,798 427,985 16,519,783 349,7112031 16,519,783 439,700 16,959,483 356,8462032 16,959,483 452,874 17,412,356 362,6792033 17,412,356 464,749 17,877,106 370,5692034 17,877,106 478,857 18,355,963 376,787

2035 18,355,963 493,695 18,849,659 382,8452036 18,849,659 506,925 19,356,584 391,0232037 19,356,584 522,181 19,878,764 397,7222038 19,878,764 538,180 20,416,945 404,3002039 20,416,945 552,613 20,969,557 413,777

2040 20,969,557 569,424 21,538,982 421,7382041 21,538,982 -8,735,695 13,033,885 0

Endof

Year

Beginning ofYear

AssetsChange in

Asset Values

End ofYear

Asset Value1

Net AssetsUsed for

Cash Flow2

Proposed Plan with New Life Insurance

Asset SummaryAll Assets


Premiums may vary based on many factors, including the age, sex, and health of the insured. This presentation is not validunless accompanied by an illustration of proposed policy values.1 Assets equal total income less outgoing payments plus net effects of cash flow plus existing assets.2 See Net Adjustments for Cash Flow page.

30 of 38 February 19, 2017

2015 $305,000 $0 $0 $0 $0 $305,0002016 311,100 0 0 0 0 311,1002017 317,322 0 0 0 0 317,3222018 323,668 0 0 0 0 323,6682019 330,142 0 0 0 0 330,142

2020 0 0 21,739 0 0 21,7392021 0 0 33,195 0 0 33,1952022 0 0 33,793 0 0 33,7932023 0 0 34,401 0 0 34,4012024 0 0 39,148 0 0 39,148

2025 0 0 86,071 0 62,338 148,4092026 0 0 87,620 0 65,967 153,5882027 0 0 89,197 0 69,803 159,0012028 0 0 90,803 0 73,857 164,6602029 0 0 92,437 0 78,141 170,578

2030 0 0 94,101 0 82,667 176,7682031 0 0 95,795 0 87,092 182,8872032 0 0 97,519 0 92,061 189,5802033 0 0 99,275 0 96,937 196,2122034 0 0 101,062 0 101,969 203,031

2035 0 0 102,881 0 107,227 210,1082036 0 0 104,733 0 112,713 217,4462037 0 0 106,618 0 118,432 225,0492038 0 0 108,537 0 124,384 232,9212039 0 0 110,491 0 129,809 240,300

2040 0 0 112,480 0 135,238 247,7182041 0 0 56,123 0 738,534 794,656

Endof

Year SalaryOther

Income1

SocialSecurity

2

Earnings(Cash,

Dividends)

RetirementPlan

Distributions

TotalExpected

Income


Income SummaryTotal Income Received


1 Other Income includes any estimated tax refunds for the prior year.2 Benefits may be reduced for earnings from current work prior to full retirement age (FRA). FRA for John is age 66 and FRA for

Jane is age 66 and 2 months.

31 of 38 February 19, 2017

2015 $200,000 $28,000 $28,000 $115,470 $0 $371,4702016 205,200 28,000 28,000 144,780 0 405,9802017 210,535 30,000 28,000 157,284 0 425,8192018 216,009 30,000 28,000 161,302 0 435,3122019 221,625 30,000 28,000 165,470 0 445,095

2020 227,388 30,000 28,000 43,079 0 328,4662021 233,300 32,000 28,000 100,847 0 394,1472022 239,365 32,000 28,000 113,589 0 412,9552023 245,589 32,000 28,000 117,081 0 422,6702024 251,974 34,000 28,000 118,637 0 432,611

2025 258,526 34,000 28,000 120,254 0 440,7802026 265,247 34,000 28,000 160,738 0 487,9862027 272,144 36,000 28,000 154,496 0 490,6402028 279,219 36,000 28,000 157,257 0 500,4762029 286,479 36,000 28,000 161,637 0 512,116

2030 293,928 38,000 28,000 166,551 0 526,4792031 301,570 38,000 28,000 172,163 0 539,7332032 309,411 38,000 28,000 176,849 0 552,2602033 317,455 40,000 28,000 181,325 0 566,7802034 325,709 40,000 28,000 186,109 0 579,818

2035 334,178 40,000 28,000 190,775 0 592,9522036 342,866 42,000 28,000 195,602 0 608,4682037 351,781 42,000 28,000 200,991 0 622,7722038 360,927 42,000 28,000 206,294 0 637,2212039 370,311 44,000 28,000 211,766 0 654,077

2040 379,939 44,000 28,000 217,516 0 669,4562041 312,363 0 28,000 223,695 0 564,058

Endof

YearLifestyle

Expenses

Gifts NotIncluding Life

Insurance

LifeInsurancePremiums

Tax Paymentsand

WithholdingsDiscretionary

SpendingOutgoing

Payments


Outgoing Payments SummaryOutgoing Payments


32 of 38 February 19, 2017

Assumptions as of April 17, 2015 for:

John Doe

Age: 60 Male Born: Nov. 18, 1954

Jane Doe

Age: 59 Female Born: Apr. 26, 1955

John and Jane are married.This analysis assumes that John dies in 26 years and Jane dies 1 year later.

No State Inheritance Tax assumed.

Adam Doe Dec. 11, 1978 Male Child Not a DependentElizabeth Doe Jul. 14, 1982 Female Child Not a Dependent

Children and DependentsName Date of Birth Gender Relationship Dependent of

Employer John $305,000 Annual 2.000%

Salaries

Employer EmployeeCurrent

Salary FrequencyInflation

Rate

Checking Account John, Jane $73,000 Jan. 01, 2015 0.100% This asset is theCash Account

Savings Account John, Jane $126,000 Jan. 01, 2015 1.000%Money MarketAccount

John, Jane $312,000 Jan. 01, 2015 1.000%

Checking, Savings, CDsAccountName Owner

CurrentBalance Balance As Of

InterestRate

Investment Account John $677,000 Jan. 01, 2015 $0 1.000%1 1.000%1 4.000%Investment Account John $5,653,000 Jan. 01, 2015 $0 1.000%1 1.000%1 4.000%Investment Account Jane $489,000 Jan. 01, 2015 $0 1.000%1 1.000%1 4.000%

Mutual FundsRates

Name/Symbol Owner

AccountBalance Balance As Of Basis

Qual.Div.

Cap.Gains App.

IRA John $800,000 Jan. 01, 2015 6.000% DeductibleIRA Jane $131,000 Jan. 01, 2015 6.000% DeductibleRoth IRA John $132,000 Jan. 01, 2015 6.000% RothRoth IRA Jane $87,000 Jan. 01, 2015 6.000% Roth

IRAs

Name OwnerCurrentBalance Balance As Of

GrowthRate Type

Personal Residence

OwnerCurrent

Value Balance As OfCost

BasisAppreciation

RateJohn, Jane $900,000 Jan. 01, 2015 $0 2.600%

Florida Home

OwnerCurrent


BasisAppreciation


Residences

AssumptionsCurrent Plan

1 Dividends are assumed to be reinvested in similar investments.

33 of 38 February 19, 2017

Household Contents John, Jane $150,000 Jan. 01, 2015 $0 0.000%Motor Vehicle John, Jane $32,000 Jan. 01, 2015 $0 0.000%Motor Vehicle John, Jane $45,000 Jan. 01, 2015 $0 0.000%

Personal Property

Name OwnerCurrent

ValueValue As Of

BasisGrowth

Rate

Term LifeInsurance Policy

John John ElizabethDoe

$1,500,000 $3,200 Annual $0


Jane Jane John $500,000 $889 Annual $0

Life Insurance-Individual

Name Insured Owner BeneficiaryFace

Amount Premium FrequencyCashValue

General Living Expenses $200,000 Annual No 75% 100% 100%

Essential Living Expenses

Description Amount FrequencyTax

Deductible1

PercentContinuing

after FirstDeath

PercentContinuing

after FirstDisability

PercentContinuing

after FirstRetirement

Assumptions (Continued)Current Plan

1 Deductions for charitable contributions and medical/prescriptions are subject to limitations.

34 of 38 February 19, 2017

Assumptions as of April 17, 2015 for:

John Doe

Age: 60 Male Born: Nov. 18, 1954

Jane Doe

Age: 59 Female Born: Apr. 26, 1955

John and Jane are married.This analysis assumes that John dies in 26 years and Jane dies 1 year later.

No State Inheritance Tax assumed.

Adam Doe Dec. 11, 1978 Male Child Not a DependentElizabeth Doe Jul. 14, 1982 Female Child Not a Dependent

Children and DependentsName Date of Birth Gender Relationship Dependent of

Employer John $305,000 Annual 2.000%

Salaries

Employer EmployeeCurrent

Salary FrequencyInflation

Rate

Checking Account John, Jane $73,000 Jan. 01, 2015 0.100% This asset is theCash Account

Savings Account John, Jane $126,000 Jan. 01, 2015 1.000%Money MarketAccount

John, Jane $312,000 Jan. 01, 2015 1.000%

Checking, Savings, CDsAccountName Owner

CurrentBalance Balance As Of

InterestRate

Investment Account John $677,000 Jan. 01, 2015 $0 1.000%1 1.000%1 4.000%Investment Account John $5,653,000 Jan. 01, 2015 $0 1.000%1 1.000%1 4.000%Investment Account Jane $489,000 Jan. 01, 2015 $0 1.000%1 1.000%1 4.000%

Mutual FundsRates

Name/Symbol Owner

AccountBalance Balance As Of Basis

Qual.Div.

Cap.Gains App.

IRA John $800,000 Jan. 01, 2015 6.000% DeductibleIRA Jane $131,000 Jan. 01, 2015 6.000% DeductibleRoth IRA John $132,000 Jan. 01, 2015 6.000% RothRoth IRA Jane $87,000 Jan. 01, 2015 6.000% Roth

IRAs

Name OwnerCurrentBalance Balance As Of

GrowthRate Type

Personal Residence

OwnerCurrent


BasisAppreciation


Florida Home

OwnerCurrent


BasisAppreciation


Residences

AssumptionsProposed Plan

1 Dividends are assumed to be reinvested in similar investments.

35 of 38 February 19, 2017

Household Contents John, Jane $150,000 Jan. 01, 2015 $0 0.000%Motor Vehicle John, Jane $32,000 Jan. 01, 2015 $0 0.000%Motor Vehicle John, Jane $45,000 Jan. 01, 2015 $0 0.000%

Personal Property

Name OwnerCurrent

ValueValue As Of

BasisGrowth

Rate


John John ElizabethDoe

$1,500,000 $3,200 Annual $0


Jane Jane John $500,000 $889 Annual $0

New SurvivorshipLife InsurancePolicy

Survivor ILIT ILIT $3,053,566 $28,000 Annual $0

Life Insurance-Individual

Name Insured Owner BeneficiaryFace

Amount Premium FrequencyCashValue

Annual Exclusion Gifts to AdamDonor: JohnEligible for Annual Exclusion?Number of Exclusions:Maximize Excl. Gifts Annually?

Yes1.00Yes

Growth Rate after Transfer: 5.000%Frequency of Gifts: Annual

Annual Exclusion Gifts to ElizabethDonor: JohnEligible for Annual Exclusion?Number of Exclusions:Maximize Excl. Gifts Annually?

Yes1.00Yes

Growth Rate after Transfer: 5.000%Frequency of Gifts: Annual

Gifts

General Living Expenses $200,000 Annual No 75% 100% 100%

Essential Living Expenses

Description Amount FrequencyTax

Deductible1

PercentContinuing

after FirstDeath

PercentContinuing

after FirstDisability

PercentContinuing

after FirstRetirement

Assumptions (Continued)Proposed Plan

1 Deductions for charitable contributions and medical/prescriptions are subject to limitations.

36 of 38 February 19, 2017

Calculations assume that John dies in 26 years and Jane dies 1 year later.John is age 60 and Jane is age 59.

John is eligible for Social Security benefits. John's Social Security benefits are estimated based on aratio of salary to maximum benefits. John plans to take Social Security retirement benefits starting atage 70.

Jane is eligible for Social Security benefits. Jane's Social Security benefits are estimated based on aratio of salary to maximum benefits. Jane plans to take Social Security retirement benefits starting atage 65.

John is a U.S. Citizen and Jane is a U.S. Citizen.

Tax RatesThe tax rates assumed for the proposed strategy are also used for the current situation so that thecomparisons illustrate the effects of taxes on the estimated taxable income and the differences in theestate taxes. The objective of this presentation is to consider how the proposed strategy may affect theexpenses and estate taxes at death.

Income Tax RatesFederal Income Tax Rate: 28%State Income Tax Rate: 6%

Other RatesCapital Gains Tax Rate: 20%Income Tax Rate for Income in Respect of a Decedent: 35%General Inflation Rate: 2.6%Inflation Rate for Federal Indexed Values: 1.8%(used for gift exclusions, Social Security and Applicable Exclusion Amount)An IRC Sec. 7520 rate of 1.8% is used to calculate the remainder interests for trusts, annuities andincome in respect of decedent.Income designated as Capital Gains Income is assumed to qualify for long-term capital gains treatment.Calculations of short-term capital gains, adjusted net capital gain or qualified 5-year gain is beyond thescope of this analysis.

Prior Taxable GiftsJohn:Prior Taxable Gifts: $0Gift Taxes Paid: $0

Jane:Prior Taxable Gifts: $0Gift Taxes Paid: $0

Additional DetailsYour Proposed Plan

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Growth Rates for Transfers to Others: 5.000%Growth Rates for Transfers to Charities: 5.000%Rates for Life Insurance Proceeds in Trust: 5.000%

Growth Rates for Gifts, Bequests and Life Insurance Proceeds (Current Plan)

Growth Rates for Transfers to Others: 5.000%Growth Rates for Transfers to Charities: 5.000%Rates for Life Insurance Proceeds in Trust: 5.000%

Growth Rates for Gifts, Bequests and Life Insurance Proceeds (Proposed Plan)

Final Expenses: $20,000Probate Fees (% Gross Estate): 3%

John:Final Expenses: $20,000Probate Fees (% Gross Estate): 3%

Jane:Probate and Expenses (Current Plan)

Final Expenses: $20,000Probate Fees (% Gross Estate): 3%

John:Final Expenses: $20,000Probate Fees (% Gross Estate): 3%

Jane:Probate and Expenses (Proposed Plan)

Tax Act of 2012The American Taxpayer Relief Act of 2012 was signed into law on January 2, 2013 as P.L. 112-240,also known as Tax Act of 2012 in this presentation. Tax Act of 2012 applies to deaths and gifts made in2013 and later.

Tax Act of 2012 provides for 'portability' of a deceased spouse's unused Applicable Exclusion Amount.Unused exclusion amounts may be passed to the surviving spouse (election must be made on timelyfiled estate tax return of the deceased spouse.) Calculations for deaths or gifts reflect the rates,exemptions, and other provisions (portability) within the Tax Act of 2012.

Additional Details (Continued)Your Proposed Plan

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