EFTA00602612.pdf

Estate Planning Overview Presented to: Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 May 16, 2014 Nancy A. Kistler, CFP® Aaron Shamshoian, CFP® Managing Director Vice President Wealth Strateffies Advisor Associate W th Strategies Advisor U.S. Trust, Bank of America Private Wealth Management 114 West 47th Street New York, New York 10036 EFTA00602612 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Statement of Disclosure Imestment produrta samti al Oaks. hoods and muted hoods: Are Not FDIC Insured May Lose Value Are Not Bank Guaranteed IMPORTANT: This brier summary is for dieerissaan ~son . It does not contain BRO. tax. inventmerd. or ionmanceadvau and rennet be relied upon for implemenudion ard/or protean.: nØ ;enablers the provisiom of your come planninc decirmeas will totem die disposition«yaw estate Always commit with yaw rodeo's:den anomes and tat advisor for Iltak and tat «hire IMPORTANT: these porateteores are estimmes only and rebaud on constantlythawaing arearraptions Your adwal results may lie hosteror worse. Icrupwrm finaid projections rannm be madeNib any ~minis. and are awe waranteed Moos woodlandsyour independent attorney and tax advisor for lea and Mt NO«. IRS Circular Rio Disclosure: Pursomt to IRS Pcsulacions.rx hdoim too dial am tax abbe remained to thee osannunicscron I:Deluding any anaehminets) ts tun intaded or oakumco he used. and canned he usN loony perma 01 enhey for ~awe ol tit molding tan 'daunt pantiles Imposed by any innacad ma reuthally m agerny. 01(11) ptomain& remelairpor10.,311111W~to•axolo party any wonssaran or ~Mc drowsed herein. We admire you to consult with an independent tax whiten on year particular tat eireunasurcts Immanent products and senleen may be viable thrown a irlatroustopmanowd by US. Team. Bonk of Åfillefilf4 Pdvau Wraith Mon :amain or through a rdolonship with hirdl Lynch. Pierce. St1111C1 & Smith lowarpmard. Certain US. Trust amodates my:anal represnamelses with Merrill Lomb. rime. Fenner ar Smith Inarpoiord and way assist you with Moulmein madras and mentors piostdall1110‘1)1Mellill OnetsPinee. Fenner Sr Smith Ineapoiabrd rod other substdiarla of Bankel AronloaCoipannica. llowneer.U.S.Towedoes w wawa insestmenb held at Stoll Leech. Plow. Fear Sr Smith Inempowird and you mein dit mpiesentailve tomb melonBehr shireMan. IndivItima il•~1110t. yea &ma will molt Si your owned twitted»lotio Insetted Ina mown tetrads may differ loon this repots In redditias 'hoe maredals may disrors .1111011ieltatna al an Mede:loafs named fenaneW profile fa which readier US Trust ow Merrill toast. Piro& Fenner lk Smith Inowporated sows as an whim'. Merrill Lynch. Pierce. Fenner est Smith Incorporated if .1 roistered tooter-dealer. member FTNRA end SIM. and a wholb owned erteimbary of Bank Of~Oa ~cation- ›ItItil Lynch. 11~ Neuter rie Smith Incorporated Sienna sera as a tat otter?! advisor Several products such as mutual funds maid:leannuities, :Al other sheerimive inewsimenta Out rory be mentioned aeon Moorman ellernoldre Retort amonlYtnhe sold whenp.ecØ W WanaParnied by a amen pasputs and/or offering memoranda. ~no areelfor dining memoranda il onde more compkte information on the product. inelndinf charces.ewema and special inwornent risks. and should be read carefully hofter Worsting. The following report Is for fiduciary lane only. The Mandate presemIng this upon Mum Is acting within his or ha ficluelaryemaulty with US. Two. net within kb of Mr hembredemulty. II any. with Mell Lynch. Man. Omar &Smith In.-arts:mood. The Information and data In the hawing report wire obtained nom roams donned reliable. Their aommec and complamwm are ret oranantad. and the ghtsigol the game Is net 111V104.11111din or ~nation Inc thr punkae of sale ol smudge. Thls report attempts to measure • partloilir seakermal tersesimenta he menglio the pertain:we ol all sonorities Inthelades The lades may Ise a maul tool. bid Is Si to son normentathe ol past pad:imams of a peatioilor fund or sorority. anti is nix represeauntaalisay Mute perfomuneealany pinata insestawnt Assumptions. mew:coins Medina or tax onesare Mastoid.e pur paws only and an.nol Inodel to peedict economic planen Any ismel 01 put:folk. amino antiol murm shown or used in this repon ate not maded co prober nnt planmm the mind results of an Immtnaent produa. Inorsion Mg, nut 111n« dancily Man indm. Tris report is n preliminary analysis and net neuerwerily the usual fulfilment of recommerdatiores. lltis material k for Ihistrmia and obtational purposes and has been prepared soldry tomato you in the rariew of tow Maureen' alien:mien Sou shouldconsult apnea:dambpi andeor tax adsisom and thew OWE, your repo:addict to lake appropriate next Mop. TAW report does not constitute Bpi. anairemostor revert wimestadwiee. If tou <hoar* to follow an insettment dralletTaet CordonIke ndlowint Moods) oTaitioniniNYC«Portfolio may result in 13.X ceenwouerces Apanche content:Lot this pinwentatem Noald not beaded upon without eonsultiniaPPrOPrOte toal mad/or taxed:Ann All eve«Iodations herein are merely atimatterand skotid cube relied upon for detailed taxplanning purpaes. All income taxes are based on fiat to rates and do not take ail thee/dads of a stateh manse lax laws into attount This analysis is Wined on the calendar year. Allan«, and liabilities are mired al the end ofeach seer. BIMM are also assumed to arm at the end deals year. For die finites ofthe analysis Onb: annual warns an prormed on a daily basis. VS Torn. Bank of ÅllInied Priente Wealth Xlanaperesent operates throuda Bade of ATIWtial, NA andother subsidiaries of Hank of Amelia Oorporation. Bank of Americo. NA. Member FDIC. $1111 Bank «Amerce CaToration.ddl Pests mend Page 2 of 26 EFTA00602613 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Assumptions Exemption Amounts: Leon Debra Prior Taxable Gifts 5.340,000 $ 5,120,000 Available Unified Credit Amount 220,000 Prior GST Exemption Allocation 3.500,000 4,173,596 Available GST Exemption Amount 1.840,000 1,166,404 Federal Estate Tax Federal Estate Tax Highest Federal Estate Highest New York Estate Year Exclusion & GST Credit Tax Rate Tax Rate Exemption Amounts 2014 5.340,000 $ 2,081,800 40% 16% Notes and Assumptions: • Leon and Debra are presumed to die in 2014 with Leon immediately predeceasing Debra. • Debra's Will and Revocable Trust provisions are presumed to mirror those in Leon's documents. • Administration expenses are assumed to be $5 million in Leon's estate and are assumed to be 2% of Debra's probate estate. • Valuation discounts totaling 30% are applied to the value of Black Family Partners. L.P. interests. • The value of the GRATs is -frozen" on Leon's presumed date of death. Because the GRATs had not terminated, the annuity amounts still payable from the GRATs and any principal value above this amount will be included in Leon's estate (the "Includible Portion"). Because the annuity payments to be received by his estate ("GRAT Annuity Receivables") exceed the date of death value of the GRATs, the Includible Portion will pass entirely to the Marital Trust in satisfaction of the GRAT Annuity Receivables. • Judy Black was born on September 27, 1948. • Jon Ressler is assumed to be age 60. • 100% charitable deduction is assumed for fractional interests in art pledged to museums. Page 3 of 26 EFTA00602614 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Inventory of Family Assets AS of April 18, 2014 Liquid Assets - investment Accounts U.S. Trust Cash Account S 25.587.000 $ 5.562.00D S 31.149.000 JPIA Cash'arketable Securities 8,556.000 6,927,000 15.483.000 Investments Art-herd through Entitles 1.503.000.000 • 1.500000.000 Colectbles (MON.:Wally owned an. me books. bronzes) 402.295.000 402.295.000 helmet.* Ponied', of GRATs 1.603.331.000 • 1.600.331.000 Black Family Partners LP (8.0%) - DISCOUNT 30% 167.641.000 • 167,641.000 AP Alemailve Assets 21.655.000 • 21,655.000 Apollo Related Investments 5.247.000 5247.000 Investment Partnerships- Venous 1.545.000 • 1.545.000 AvIonetta LLC: (LOB 50.1%. ORB 49.9%) - AT COST 13.879.000 13,824,000 27.703.000 BJAV Marine Ltd. (Sislire) 22.121.000 22,121.000 Real Estate - Personal Jointly Owned Residences 38,200.000 38.20000D 76.400.000 NarrOviS R080 Parcel 10.000,000 10.000.000 750 Meadow Lane 16.600.000 16.600.000 Tangible Personal Property Household Propeny 11.562.000 11.562.000 23.124.000 Jewelry 46.468.00D 46.468.000 Automobiles 419.000 419.000 TOW Personal S 3,835,638,000 $ 132,543,000 $ 3,968,181,000 Personal Liabilities Loan payable-Bank of America (Arg (470.000.000) (470,000.000) Loan payable-Bank of America (Avionetta /Wigs) (II .135.000) (11.090.000) (22.225.000) Loan payable-Bank of America (BJAV Maine (17.897.000) (17.897.000) Loan payable to APOI Trust (1.594.738.000) (1.694.738.000) Loan payable • Black Fame)/ Partners LP 02.000.0001 ;42.003.000i Total Personal Liabilities $ (2235.770000) $ (11.090000) $ (2246.860,000) Total Net Estate Assets $ 1,599,868,000 $ 121453,000 1$ 1.721.321.000 I Non-Includible Trust Assets AP01 Agreement S 1.976.541.000 AP02 Declaration 622.577.000 Black 2011 Family Trusts (LOB 2011 LLC) 279.619.000 1999 LIM Insurance Trust 02 (death benefit) 100.000.000 1992 Lite Insurance Trust (death beneM) 20.000.000 Mallory Trust 4.124.000 Black 1997 GST Exempt Trust 3.0D7,000 Total Trust Assets $ 3,005,868.000 Total FarnEly Assets $ 4,727,189.000 ' GMT Annan), Receembles Page 4 of 26 EFTA00602615 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Estate Flow Chart Upon Leon's Death Executory Debra Reek. Barry Cohen and Rchard Ressler Leon Black Non Probate Property Gross Estate Outright to Debra Probate Property 2.197.107.000 12 of Joint Residences 38.200 OCO Non Probate Property 38.200 000 Ineludible Portion 01 ORATs 1 600 331 000 Total 38200.000 Gross Estate 3.835.638 000 Last Will and Testament Charitable Pledges Probate Estate 5 3.797.438 000 Dartmouth Pledge 19.129 000 Administration Expenses (5.000030 Art Pledged to Museums 10.731 000 Charitable Pledges '29.860 030 Total 29.860 000 Liabilities Due Upon Leon's Death (541 032030 Residuary Asset; 3.221.546 030 Loan payable - to AP01 Trust (1 694.738 030 Net Residue to Revocable Trust 1.526.808030 Tangibles Outright Bequest to Debra Trustees' Debra Red. Barry Cohen Tangible Property 11.961.000 and Rchard Atelier L. B. Revocable Trust Agreement Total Residuary Assets: $ 3221.546.000 Cash Bequest Art Entitles 8 Collectibles to Marital Trust Tangibles to Debra 111.961.0001 Bequest to Melanie Spinella 3 003 000 Bequestannuily (Melanie 8 Judy) 110.254.0001 NY Estate Tax (2.609.0481 Federal Estate Tax 6812000 Total Cash Legaces 000 000 Balance of Revocable Trust Residue 3.189.889 952 Loan payable - to APO', Trust 1.694.7380301 Lifetime Annuity Net to Mental Trust 5 1.495151 952 for -lad Black Annuity 7.254.000 Marital Trusts Total Annuity 7 254 030 GST Exempt Marital Trust 5 1 840 030 Non-Exempt Marital Trust: Art Entitles 8 Collectibles 1.422.564.000 750 Meadow Lane 16500.000 Includible Portion of ORATs 1.600331.000 Balance of Revocable Trust Residue 149.554 952 Total Marital Trust Meets 3.189.889 952 Loan payable - to APOI Trust (1.694 738 000 Net Marital Trust Assets 1.495.151 952 Page 5 of 26 EFTA00602616 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Estate Flow Chart Upon Debra's Death Trustees of Marital Irma upon Debra's death: Barry Cohen and Richard Ressler 1997 GST Exempt Trust Trust Astets S 3.007.000 Lifetime Annuity Debra Black Marital Trusts OST Exempt Marital Trust 1340.000 for Jon Ressler (Under L. B. Revocable Trust) Debra's GST Amount 1.166.404 Net Value of Marital Trusts' 1.495151952 Total 1997 GST Exempt Trutt 6.013.404 Annuity 8 424 030 Amulty for Jon Ressler 18.414.000) 8486.0)0 OST Exempt Marital Trust to 97 Exempt Tr. (1 600 000) Charitable Pledges Debra's OST Amount to 97 Exempt Tr. (1166104) crams's. Pledges (Art) to Museums (24533.600) 750 meadow Lane to Heritage Trust (16.600.000) NY Estate Tax '231125.332) Federal Estate Tax 1424 482 30I Marital Trust Residue 724.920.315 Art Selected for Heritage Trust 1696 473 3151 Residue Passes to Foundation 28.417.000 Debra Black Gross Estate Probate Property 634 003 Gross Probate Estate S 1 71 634 060 Last Will and Testament Gross Probate Estate S 121.634 003 Administration Expenses (2%) 13.433 060) Leon Black F mlly Foundation Heritage Trust Residuary Estate 168.201.000 Menial Trust Residue 26.447.000 1 Parcel Meadow Lane 16.700.000 4- Passes to Revocable Trust Debra'• Revocable Trust Residue 750 Park Ave 2.000.000 4- ArtiOne Residence 1.003.000 Total Added Upon Debra's Death: 8447 003 750 Meadow Lane 16.603.000 Art Entities 8 Collectibles to Legacy Trusts 696173.315 Total Added Upon Debra's Death: 732.773.315 Revocable rust Agreement of Debra Black Residuary Estate 168201.000 Residences to Heritage Trust (19.700.000) Tangibles a Jewelry to Children (67.771.867) NY Estate Tax 126.001.044) Federal Estate Tax '54 728 089) Revocable Trust Residue Passes to Foundation angibles Outr • tit to Children in Equal Shares Tangible Property $ 67 771 867 'See nvontory of Debra's Taxable Estate. Page 6 of 26 EFTA00602617 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Estimated Estate Tax Calculations Leon's Gross Estate S 3.835.638,000 Debra's Gross Estate $ 3.361.523,952 Less Deductions: Less Deductions: a Liabilities (2.235.770.000) Liabilities (1.694.738.000) Administration Expenses (5,000,000) Administration Expenses (3,433,000) Charitable Deduction (29,860,000) Charitable Deduction (52,980,600) Marital Deduction (1,545,368,952) Marital Deduction Estimated New York Estate Tax (2,609,048) Estimated New York Estate Tax (257,126,376) Plus: Adjusted Taxable Gilts 5,340.000 Plus. Adjusted Taxable Gilts 5,120,000 Taxable Estate $ 22,370.000 Taxable Estate $ 1.358.365.976 Tentative Federal Estate Tax 8,893,800 Tentative Federal Estate Tax 543,292,190 Less Cre&ts/Payments: Less Credits/Payments: Unified Credit (2.081.800) Unified Credit (2.081.800) Gill Taxes Paid Gill Taxes Paid Estimated Federal Estate Tax $ 6.812.000 Estimated Federal Estate Tax 541.210,390 Estimated New To* Estate Tax 2.609.048 Estimated New York Estate Tax $ 257.126,376 Total Estate Tax Due Upon Leon's Death Es 9.421,048 Total Estate Tax Due Upon Debra's Death Combined Federal Estate Tax $ 548.022,390 Combined NY Estate Tax 259.735.424 Total Combined Federal & NY Estate Ta) 5 807.757,814 Page 7 of 26 EFTA00602618 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Inventory of Debra's Taxable Estate Following Leon's Death Marital Trust Assets: Art Entities & Collectibles 1,421,564,000 750 Meadow Lane 16,600,000 Includible Portion of GRATs 1,600,331,000 Black Family Partners LP (8.0%) - DISCOUNT 30% 121,107,952 AP Alternative Assets 21,655,000 Apollo Related Investments 5,247,000 Investment Partnerships - Various 1,545,000 Liquid assets in GST Ex Marital Trust 1.840.000 Loan payable - to APO1 Trust (1.694.738.000) Total Marital Trust Assets: 1,495,151,952 Debra's Probate Assets: U.S. Trust Cash Account $ 5,562,000 JPM Cash/Marketable Securities 6,927,000 Residences (Formerly Joint) 76,400,000 Narrows Road Parcel 10,000,000 Household Property 23,124,000 Jewelry 46,468,000 Automobiles 419,000 Net Proceeds of sale of Avionetta (49.9%) 2.734.000 Total of Debra's Probate Assets: 171,634,000 Page 8 of 26 EFTA00602619 Leon D. and Debra R. Black Overview of Estate Plan Cash Needs on Leon's Death Cash Needed al Leon's Death for Expenses Taxes & Bequests GSI tkyLK-_;.! 1.840.030 Admirmuasco Expenses 5.000.030 NY Estate Tax 2.609.048 Fed Estate Tax 6.812.030 Danmouth Pledge 19.129.030 Bequest lo Melanie 3.000.030 Amully lot Judy 7254.030 Loan payable-Bank 01 America (An) 470.000.030 Loan payabb-Bank ol America (WAY Marne 17.897.030 Loan payable-Bark ol America (Avionetla Hidgs) 11.135.030 Loan payable Black Faintly Partners LP 42.000.030 Total Cash Needed at Leon's Death fog Expenses Taxes & Bequests I $ 586,676,048 I Allocation of Available Cash U.S. Trust Cash Accosti 25.587,000 GST Bequest 1.840.030 Adrnmstration Expenses 5.000.000 NY Estate Tax 2.609,048 Fed Esiale Tax 8.812.030 Annsity 101 Judy 7254 030 Balance 2071352 JPM CashlMaAJPMCastuMarkelable Secullies 8.556.000 Bequest to Melanie 3.000.030 Balance 5.556.07,0 Tots Remaining Avelatie Cash $ 7.627.952 Allocation of Cash to be Raised An and coteettees t .902.295.000 SoS1 to Pay. Bank of America loan (An) 470.000.000 470.000.030 1.432.295.000 BJAV klatineYwN 22.121.000 22.121.030 Sold lo pay: Bank 44 America loan .17 6q7 4224.000 Avenel's-Airplane (Leon's 50.1%) 13,879.000 13379.030 Sold lo pay: Bank ol America loan -11.135.dOD 2.744.000 Black Fan* Panels. LP Interests (8%) 187.641.000 Sold 10 pay: Loan la Black Family Partners. LP. 42.000.000 42.000.030 Sold 10 pay: Dartmouth Pledge 14.531.0481 4.533.048 121.107.952 Badmouth Pledge US Trust Cash Accouni balance 2.071.952 JPM Account balance 5.556.000 Yacht sale promeds-batance 4224.000 Mots* sale proeess-battinee 2.744.000 BFP Sale proceeds iNa.248 19.129.000 Total Cash Raised $ 552.533,048 Total Cash Available and Raised $ 586.676.048 Page 9 ol 26 EFTA00602620 Leon D. and Debra R. Black Overview of Estate Plan Cash Needs on Debra's Death - Debra's Estate Cash Needed in Debra's Estate for Bequests, Debts, Expenses and Taxes Administration Expenses 3.433.000 NY Estate Tax 26.001.044 Fed Estate Tax 54.728.089 Total Cash Needed 84,162,1331 Allocation of Available Cash US Trust Cash Account 5,562.000 JPM Cash/Marketable Securities 6,927.000 Avionetta Sale Proceeds 2.734.000 Total Available Cash 15,223.000 Administration Expenses -3.433.000 Total Remaining Available Cash 11,790,000 Allocation of Cash to be Raised Residences Sold to Pay Estate Tax 760 Park Avenue 20.000,000 All Narrows Rd. Parcels 30.000.000 1 Parcel Meadow Lane 16.700.000 Total Residence Proceeds 66.700,000 Jewelry Sold to Pay Estate Tax Total Jewelry in Estate 46.468,000 Sold to pay NY Estate Tax -2.239.133 2.239.133 Balance of Jewelry 44.228.867 Federal Estate Tax Residence Sale Proceeds 54.728.089 54.728.089 New York Esate Tax Residence Sale proceeds 11.971.911 Jewelry Sale Proceeds 2.239.133 Remaining Available Cash 11.790.000 26.001.044 11.971.911 Total Cash Raised 68,939,133 Total Cash Available and Raised 84,162,133 Page 10 of 26 EFTA00602621 Leon D. and Debra R. Black Overview of Estate Plan Cash Needs on Debra's Death - Marital Trust Cash Needed In Marital Trust on Debra's Death for Bequest, Debts, Expenses and Taxes Loan Payable- APO1 Trust 1,694.738.000 Annuity For Jon 8,484.000 Bequeste of Debra's GST Amount 1,166.404 NY Estate Tax 231,125.332 Fed Estate Tax 486,482.301 Total Cash Needed I 2,421,996,037 Allocation of Cash to be Raised Black Family Partners LP Interests to be Distributed BFP Interest in Marital Trust 1,721,438.952 Distributed BFP (Includible Portion of GRATs) -1.600,331,000 Distributed BFP (8% from LDB) -94,407.000 Sold To pay Jon's Annuity -8,484.000 Sold To pay Debra's GST bequest -1,166.404 Sold To pay Taxes -17,050.548 Balance of BFP 0 Loan Payable APO1 Trust BFP Interests Distributed 1.694,738.000 1.694,738.000 Art and Collectibles Sold and Distributed Art and Collectibles in Marital Trust 1.421,564.000 Distributed To Museums -24,533.600 Sold To pay tax -700.557.085 Balance of Art and Collectibles 696,473.315 Annuity for Jon BFP sale proceeds 8,484.000 8,484.000 Bequest of GST Amount BFP sale proceeds 1,166.404 1,166.404 New York Esate Tax Art sale proceeds 231,125.332 231,125.332 Federal Estate Tax BFP sale proceeds 17,050.548 Art sale proceeds 469,431.753 486,482.301 486,482.301 Total Cash Raised IS 2,421,996,037 Page 11 of 26 EFTA00602622 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Heritage Trust How Chart - Following Debra's Death Tnatcas: Barry Cohen. Richard Ressler. John Hannan. Bcryarnn Blxi. Joilua Black. Alexandar Black and Verona Mad' Heritage Trust Trust Assets lklel of Liablifies) Added Upon Oases Death: 750 Meadow Lane 18.800.000 Oetran Residences 19.700.000 Art Selected for Legacy Innis 898.473.315 Taal 732,773,315 Single "Poe Trust A single Heritage Trust is created for Debra and Leans descerdanls and loft separate Legacy Trusts are Created (one for each of Leon's children). The Trustees may 'Sarnia., income and principal to Debra and Leon's descendants. strata to the sienna:on guidelines maned in tie Trust Agreement. After Leon's death. art andtoilet-Wes held in the Heritage Trust designaled for a particular child will be darned to such chiiSs Legacy Tnnl. Alter Debra's death. simitury designaled items in the Marital Trust war be selected by the Trustees lo be held in achiefs Legacy Trust. Aller Leon's death the Trustees shed daubse me lollcming amounts to each child's Legacy Tarsi 1 510 mina, when the child stains age 30 (realest it is used to ameba a principal residence). 2 550 mina, when the child stains age 35. 3 5100 melon when the chld altains age 40. II a thin dies under age 40. the above encores wit be dvided inlo shares for the child: descendanls arid each share iv,' be held in a separate Legacy Trust lel each such descendant Trustees Barry Cohan. Richard Recolor and John Hannan Separate Legacy Trusts During the beneficiary's lite: 1 The Trustee may pay the income and princgal to the beneficiary subject to dakbuion gudelines (the descendant's financial acumen. marital &cord. trona; clams. pendrig lifigaliat or SibStanee abuse). 2 Trustees are 3,40i:wired to invesl in a artiness venture proposed by the beneficiary. so leng as it is a cuter commitment. 3 Aller age 35. the beneficiary is a co-trustee or hisher Legacy Trust. Al me bentdiciarys death: A chid may by Will appeiril tie remairing Trust properly among Leon's descendants and up to 510 maim in favor of a e. An eel will be civil:led in shares for the benelici s chldren. Legacy True, t'on Seryamn E Black Legacy Trust (b% Joshua M. Black Legacy Trust tbro Alexander S. Block Legacy Tnnl blob Victoria R. Back Artwoer. 174.118.329 Armork 174.118.329 Artwork 174.118.329 Cash Chstr.buticns $ Ch Chtgribvlion Cash Dielrbutian Page 12 of 26 EFTA00602623 Leon D. and Debra R. Black Overview of Estate Plan AP01Agreement Plow Chan - Following Debra's Death Trustees: Barry Cohen. Rchard Ressler and John Haerlati APO1 Agreement Trust Assets $ 281.803.000 Repayment of Note Payable 1.694.738.000 Less 34% Capital Gains Tax (576,210.920) (Combined Federal. NY 8 NO Surtax) Total $ 1,400,330.080 1 Single Discretionary Trust A single Discretionary Trust is created for Debra and Leon's descendants until the Trustees decide to create and fund Separate Trusts for descendants (each called a 'Beneficiary' of higher Trust). The Trustees may distribute income and principal to Debra and Leon's descendants, subject to the distribution guidelines outlined lithe Trust Agreement. Instead of maki-ig distributions to a descendant. the Trustees may distribute to hisiher Separate Trust. Discretionary Trust termilates 21 years after the death of the survivor of Leon's children and Debra. The remairiv trust property will be distributed to Leon's descendants or if none, to Leon's estate. V Trustees: Barry Cohen. Renard Ressler and John Kannan Separate Trusts After atm 35, e