EFTA01204270.pdf

Estate Planning Overview Presented to: Leon D．and Debra R. Black Overview of Estate Plan as of April 16，2014 May 20, 2014 Nancy A. Kistner, CFPO Aaron Shamshoian, CFPO Managing Director Vice President Wealth Strategies Advisor Associate Wealth Strategies Advisor U.S. Trust, Bank of America Private Wealth Management 114 West 47th Street New York，New York 10036 EFTA01204270 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 EFTA01204271 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, which are valued using the mean value of AGM stock on April 16, 2014 ($27.92). • The value of each GRAT 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 (life expectancy of 20 years). • Jon Ressler is assumed to be age 61 (life expectancy of 19 years). • 100% charitable deduction is assumed for fractional interests in art pledged to museums. Page 3 of 26 EFTA01204272 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Inventory of Family Assets as of April 16, 2014 Leon Dow, Toro ernorio 'swim Liquid Assets • Investment Accounts U.S. Trust Cash &Cowl $ 25.587.000 $ 5.562030 $ 31.149.000 JP/A Cash'Markelable setwees 6.556.000 6.927.000 15.483.000 Investments Ail-herd through Enlikes 1.500.000.000 1.500.000.000 cadet's:tea (Ind./weal& waled wt. rare Cocks. bones) 402.296.000 402.295.000 • Incbdble Porlion of GRATs 1.600.331.000 - 1.600.331.000 Black Featly Partners LP (8.0%)••- DISCOUNT 30% 167.841.000 - 167.641.000 AP Alternative Assets 21.656.000 - 21.655.000 Apollo Related Investments 5.247.000 - 5.247.000 inveslmere Partneislips - Various 1.545.000 - 1.545.000 AVonetta LLC. (LOB 50.1%. ORB 49.9%) - AT COST 13.879.000 13.824.000 27.700.000 BJAV Marine Lid. (Slat) 22.121.000 - 22.121.000 Real aline • Personal Jcirfily Owned Residences 38.200.000 38.200.000 76.400.000 Nerovis Road Pare., 10.000.000 10.000.000 750 Meadow Lane 16.600.000 - 16.600.000 Tangible Personal Property Household Properly 11.562.000 11.562.000 23.124.000 Jewelry 46.468.000 46.468.000 Aulonxbiles 419.000 - 419.000 Total Personal Assets $ 3235,638.000 132,543.000 $ 2988,181,000 Loan payable-Bank ct Ameba (AM/ t470.010.000) (470.000.000) Loan payable- Bank of America (Aviorelta Hldgs) (11.135.000) (11.090.000) (22.225.000) Loan payable-Bank ot Arnett', (WAV Maine) (17.897.000) (17.897.000) Mote payable' APOI Trust— (1.694.738.000) (1 694.738 000) taxe payable' Black Family Partners LP 042.080.0001 i42 001 0001 Total Personal Liabilities = $ (2235.770.000) (11,090.000) (2.246.860.000) Total Net Estate Assets $ 1.599.868.000 $ 121.453,030 1 1,721,321.000 APOI Agreement $ 1.976.541.000 APO2 Declaration 822.577.000 Black 2011 Family Trusts (LOB 2011 LLC) 279.619.000 1999 Lile Insurance Trust $2 (death benefit) 100.000,000 1992 Lile Insurance Trust (death benefit) 20.000.000 Mallory Trust 4.124,000 Black 1997 GST Exempt Trust 3 007 000 Total Trust Assets Total Family Assets ' GRAT Aracily Bebe-tables. •• AGM mean value $27.92(share. ••• Note prcresles lot a maturity dated Augusl 14. 2022 and accrued !Merest o11.63% on the unpaid principal batance Page 4 of 26 EFTA01204273 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Estate Flow Chart Upon Leon's Death Executers: Debra Black. Barry Cohen and Richard Revak); Non Probate Property Outright to Debra Probate Property $ 2.197.107.000 112 of Joint Rasklences 38.200.003 Non Probate Property 38.200.000 Includible Portion of GRATs 1.600.331.000 Total 5 38.200.000 Gross Estate s 3.835.838.000 Last Will and Testament Charitable Pledges Probate Estate S 3.797.438.000 Dartmouth Pledge 5 19.129.000 Administration Expenses (5.000000 Art Pledged to Muxeums 10,731,000 Charitable Pledges (29,880.000 Total 299180.000 Liabilities Due Upon Leon's Death 1591.032.000 Residuary Assets S 3/21.548.000 Note payable • to AP01 Trust 1 694 738000 Net Residue to Revocable Trust S 1.526.808.000 Tangibles OutrIght Bequest to Debra Trustees: Debra Black. Barry Cohen Tangible Property 11.981.003 and Rchard Ressler L. B. Revocable Trust Agreement Total 5 11,981.000 Residuary Assets: 3.221.546.000 Cash Bequest Tangibles to Debra 111.981.0001 Bequestannuity (Melanie 8 Judy) 111,020.000) Bequest to Melanie Spindle 5 3.000.000 NY Estate Tax (29152222) Federal Estate Tax (7.322.887) Balance of Revocable Trust Residue 3.188.370.111 Total Cash cies 5 3 000 000 Note payable to AP01 Trust (1.894.738,000 Net to lAarital Trust 1.493.832.111 Lifetime Annuity for Judv Slack Annuity $ 8.020.000 Marital Trust GST Exempt Marital Trust 5 1.840.000 Total Annuity 8.020.000 Non-Exempt Marital Trust: Art Eniiiies 8 Collectibles 1.421.584.000 750 Meadow Lane 18.800.000 kidudible Portion of GRATs 1.800.331.000 Balance of Revocable Trust Residue 1 035 111 Total Marital Trust Assets 5 3.188.370.111 Note payable to APO1 Trust 1.894.738000 Net Marital Trust Assets $ 1.493.832.111 Page 5 of 26 EFTA01204274 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 Trusts Men Debra'sdear. Barry Cohen and Richard ResPer 1997 GST Exempt Trust Trust Assets 5 3.007.000 Lifetime Annuity Debra Black Marital Trusts 05T Exempt Marital Trust 1.840.000 for Jon Ressler (Under L. B. Revocable Trust) Debra's (1ST Minuet, 1.166.404 Net Value of Marital Trusts' 1.493.632.111 Total 1997 OST Exempt Trust 6.013.404 Annuity 7 697.000 Amulty tor Jon Ressler (7.697.000) 7 697,0)0 OST Exempt Marital Trust to 97 Exempt Tr. (1 840 COO) Charitable Pledges Debra's OST Amount to 97 Exempt Tr. (1.166.404) Charitable Pledges (Art) to Museums (24533.600) An Pledged to Museums 24533.600 750 Meadow Lane to Heritage Trust (15.600.800) NY Estate Tax 1230.882,9917 Federal Estate Tax 1485 973 269i 24 533 600 Martial Trust Residue 724.938.847 Ad Selected for Heritage Trust 1696 491.847) Residue Passes to Foundation 6 28.447.000 Debra Black Gross Estate Probate Prepense 5 171 634 000 Oleg& Probate Estate 5 171 634 000 Last Will and Testament Oleg& Probate Estate 171 634 030 Administration Expenses (2%) , 3 433 COS Leon Black Family Foundation Winne Twist Residuary Estate S !SS 2C4 0C41 Marital Trust Residue S 28.447.080 1 Patera Meadow Lane 9 16.700000 4- Passes to Revocable Trust Debra% Revocable Trust Residue 750 Park Ave 2.000.000 4— Artiona Residence 1.000.000 Total Added Upon Debra's Death: S 28447000 750 Meadow Lane 16.600.000 Art Entities 8 Collectibles to Legacy Truffle 696 491 847 Total Added Upon Debra% Death: 8 732.791 847 Revocable Trust Agreement of Debra Black Residuary Estate 158201 000 Residences to Heritage Trust 1119.703 080) Tangibles 8 Jewelry to Children 157.774 335) NY Estate Tax 126.000 211) Federal Estate Tex '54 726 .455) Revocable Trust Residue Passes to Foundation Tangibles Outright to Children in Equal Shares Tangible Progeny $ 67.774.335 'See nventory or Debra's Taxable Estate. Page 6 of 26 EFTA01204275 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Estimated Estate Tax Calculations Leon's Gross Estate $ 3,835,638.000 Debra's Gross Estate $ 3,360,004,111 Less Deductions: Less Deductions: 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 (1.543,849,111) Marital Deduction Estimated New York Estate Tax (2,852,222) Estimated New York Estate Tax (256,883,202) Plus: Adjusted Taxable Gilts 5,340.000 Plus: Adjusted Taxable Gifts 5,120,000 Taxable Estate $ 23,646.667 Taxable Estate $ 1.357,089,309 Tentative Federal Estate Tax 9,404,467 Tentative Federal Estate Tax 542,781,524 Less Credits!Payments: Less Credits/Payments: Unified Credit (2.081.800) Unified Credit (2.081.800) Gill Taxes Paid Gill Taxes Paid Estimated Federal Estate Tax $ 7.322,667 Estimated Federal Estate Tax S 540.699.724 Estimated New York Estate Tax S 2.852,222 Estimated New York Estate Tax S 256.883.202 Total Estate Tax Due Upon Leon's Death 10.174,889 Total Estate Tax Due Upon Debra's Death $ 797.582.926 Combined Federal Estate Tax $ 548.022.390 Combined NY Estate Tax 259.735.424 Total Combined Federal & NY Estate Tax 807.757.814 Page 7 at 26 EFTA01204276 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% 119,588,111 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 Note payable - to APO1 Trust (1.694.738.000) Total Marital Trust Assets: S 1,493,632,111 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: S 171,634,000 Page 8 of 26 EFTA01204277 Leon D. and Debra R. Black Overview of Estate Plan Cash Needs on Leon's Death Cash Needed at Leon's Death for Bequests, Debts. Expenses 8 Taxes GS EittQutt,t $ 1.840.000 Adm emus! on Experxe:, 5.000000 NY Estate Tax 2.852.222 Fed Eslate Tax 7.322687 Darlmoulh Pledge 19.129.000 Bequest to means 3.000.000 Arnuty lot Judy 8.020.000 Loan payableGank of America (Ar) 470.000.000 Loan payableGank of America (BJAV Marine) 17.897.000 Loan payable-Bank of America (AViCeletla Mdgs) 11.135.000 Note payable. Black Family PaltfletS LP 42.000.000 Total Cash Needed $ 588.195,889 1 Allocation of Available Cash U.S. Trust Cash Account $ 26.587.000 LIST Begues1 1.840.000 Achmistralron Expenses 5.000.000 NY Estate Tax 2.852.222 Fed Eslate Tax 7.322687 Anntsty for Judy 8 020000 Balance $ 552111 JPM Cash/Marketable Securities $ 8.556.000 eequesi to hieiane 3003[00 Balance $ 5.556.COD Total Renudring Anise Cash $ 6.108.111 Allocation of Cash to be Raised AA and Cored/des 1.902.295.000 Son lo Pay. Bank of Amens ban eel) M70.000.0001 470 000 000 1.432.295.000 BJAV Marine VenN $ 22.121.000 22.121.000 Sold lo pay: Bank of America ban /17 Err gggi 4.224.000 Anonetteltirplane (Leon's 50.1%) 13.879.000 13.879 000 Sold lo pay: Bark of Ameka loan (11 Aggg) 2.744.000 Black FILITIllyPanners. LP Irdemsts (8%) $ 187.641.000 Sold lo pay: Note lo Black Family Partners. LP. (42.000.000) 42.000.000 Sold lo pay: DruIrriculh Pledge again 6.052.889 $ 119.688.111 Dartmouth Pledge US Trust Cash Accounl balance $ 552.111 JPM ACCOLIIII balance 5.558.000 VacN sale proceects-balance 4.224.000 Airpkine sale proceects-baiance 2.744.000 BFP sale proceeds 6.0.5211£2 $ 19.129.000 Total Cash Raised $ 554,062,889 Total Cash Available and Raised $ 588.195,889] Page 9 ol 26 EFTA01204278 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 & Taxes Administration Expenses 3.433.000 NY Estate Tax 26.000.211 Fed Estate Tax 54.726.455 Total Cash Needed I$ 84,159,665 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 (2.236.665) 2.236.665 Balance of Jewelry: $ 44.231.335 Federal Estate Tax Residence sale proceeds $ 54.726.455 54,726.455 New York Estate Tax Residence sale proceeds $ 11.973.545 Jewelry sale proceeds 2.236.665 Remaining available cash 11.790.000 $ 26.000.211 11,973.545 Total Cash Raised 68,936,665 Total Cash Available and Raised $ 84,159,665 Page 10 of 26 EFTA01204279 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 & Taxes Note Payable- APOI Trust $ 1,694.738.000 Annuity For Jon 7.697.000 Bequest of Debra's GST Amount 1.166.404 NY Estate Tax 230.882.991 Fed Estate Tax 485.973.269 Total Cash Needed JS 2,420,457,664 1 Allocation of Cash to be Raised Black Family Partners LP Interests to be Distributed BFP Interest in Marital Trust $ 1.719.919.111 Distributed BFP (Includible Portion of GRATs) (1.600.331.000) Distributed BFP (balance of 8% from LDB) (94.407.000) Sold To pay Jon's Annuity (7.697.000) Sold To pay Debra's GST bequest (1.166.404) Sold To pay taxes (16.317.707) Balance of BFP S Note Payable APO1 Trust BFP Interests Distributed S 1.694.738.000 1,694.738.000 Art and Collectibles Sold and Distributed Art and Collectibles in Marital Trust 5 1.421.564.000 Distributed To Museums (24.533.600) Sold To pay tax (700.538.553) Balance of Art and Collectibles $ 696.491.847 Annuity for Jon BFP sale proceeds S 7.697.000 7.697.000 Bequest of GST Amount BFP sale proceeds 5 1.166.404 1.166.404 New York Estate Tax Art sale proceeds S 230.882.991 230.882.991 Federal Estate Tax BFP sale proceeds 5 16.317.707 Art sale proceeds 469.655.562 S 485.973.269 485.973.269 Total Cash Raised S 2,420,457,664 Page 11 of 26 EFTA01204280 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Heritage Trust now Chart- Following Debra's Death Trusted: Barry Cohen. Richard Ressler, Jas Hannan. Serum Blau Joshua Black Alexanda Elbaand Vsiona Black Heritage Trust Trust Assels (Net of Liablilies) $ Added Upon Odirds Death: 750 Meadow Lane 18.600.000 Odires Residences 19.700.000 Art Selected lot Legacy TniSIS 698 491 7 Weal 732 791 7 Single "Par Trust A single Heritage Trust is sealed for Debra and Lecn's descendents and fur separate Legacy Trusts are Created (one to, each of Leon's children). The Trustees may dstribute income and pnncipal to Debra and Leon's descendants. suiReCI to the distribution guidelines stunned in tie Trust Agreement. Alter Leon's death, art and tolleclbles held in the Hedge. Trust designated for a particular child will be disirbuied to such chikrs Legacy Trust. Mier Debra death. smiNstydesignaled items in the Marital Trust we be selected by the Trustees to be held in a tillers Legacy Trust. Aller Leon's death the Trustees shall distil:2de me learning amounts to eachchats Legacy Trust. 1 310 mince) when the child warns age 30 (request il is used to acquire a principal residence). 2 350 mince) when the child mans age 35. 3 3100 ration when the chld altains age 40. 0 ached dies under age 40. the &WO amounts wit be dvided kilo shares for thechild: descendants and each share we be held in a separate Legacy Trust 101 each such descendwil. Trasees ((any Cohen. Richard Racier and donn Hannan Separate Legacy Trusts During the beneficiary's 'tome: 1 The Trustees may pay the income and principal to the bententry sulked to disubdongudelines (the descendants financial acumen. marital dscord eredtor clams. pendng Miceli," or SubStanCe abuse). 2 Trustees are aullwited to invesl in a business ventureproposedby the beneficiary. so long as it is a career commerrent. 3 Aller age 35. the beneficiary is a calrustee of hisher Legacy Trusl. At the beneficiary's death: A chid may by Will apnokil tie remairing Trusl properly among Leon's descendants and up to 310 mi0on in favor of a spouse. Any properly not appointed will be chided in equal shares for the beneficiary's chtdren. Legacy Trter Mee Sensamn E Back It Legacy Trust ttiroJOShua M. Black Legacy Trust Ibro Alexander S. Stack Legacy TrUS1 Ciao Victoria R. Back AttAVO. 174.122.962 Artwork S 174.122 962 Artwork S 174.122.962 C:141) CI:166664n Cash Distbutian Cash Distrbuban Page 12 of 26 EFTA01204281 Leon D. and Debra R. Black Overview of Estate Plan APO( Agreement Flow Chan - Following Debra's Death Trustees: Barry Cohen. Thchard Ressler and John Haman APO1 Agreement Trust Assets 28 803.000 Repayment of Note Payable 1.694.738.000 Less 34% Capital Gains Tax (576.210.920) (Combined Federal. NY 8 NO Surtax)