EFTA01088415.pdf

Estate Planning Overview Presented 饧： Leon D．and Debra R.Black Overview of Estate Plan as of April 16，2014 Apollo Global Management $30/share June 9,2014 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 EFTA01088415 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Statement of Disclosure Investment product such as sinks. heeds and mutual funds: Are Not FDIC Insured May Lose Value Are Not Sank Guaranteed IMPORTANT: TMMeigamma* is for disarms'. 'MOMMIL It doe. not regain !mat tax. imentmera or imamateadvice andMinnbe relied upon for im;Mmentation andfor preterite town penalties. the provisiom of your map planning Mamma will sawn the disporition ofmacrame tattays conceit with year indaprthlen monks pad tax Marotta Mal and is Mate IMPORTANT: it..,,. projectiom are eliMMe, only and are bawd on eonitandmhangre amormions Your gaol mulls may he Mutt or worse. LCCIttan, finAn'CiliPmiftlionstonmA he made Mb any rating. and arc met guaranteed alwaysconsult with your independent attorney and tat advisor Mr legaland lax atria. IRS Circular me Measure: humane to IRS Itgotrtions. Worm pm that rad tax abbe cements:1M tha ammunlagion lindoding any attachments) b nor inueded or mitten to Mused.and cram he Lind h,. any pram al may for the miasmal Of molding tat MAIM peltlilitS Mania:1M any gotmunagel us authority <a gems Of 01) !amain& magairgof 10.,3011111114a41.0 WANT party my uunamion 011hatit derimed herein. We Maw you toconsult Mb an independent tat Minnonmar poniadar 04% CifIIIIIISUOM0. Imvtnml product and senior% may be ensidrhle 'heath a alationstop mangsd by US. Trust. Bank of America Pram Wealth Manammag or througha relationship Menill Lynch. time. Rover & Smith lawapwaust Certain U.S. Trutt amodateure eaditnof represamalies with Sherrill Lsuch. Pim.. Fenner Dr Smith Inimpaged and my assist pea with imminent peodurts and seniors plaided throve, Merrill Lmeh. Pierre_ Fenner Sr Smith Inowporged dote sub:LI:hada of Bank of ATIMII9Coiponitiew IlimV\VI.C.S.Tnut dm tax mange 'marmots held at Wain lamb. Pines. Fuse Di Smith Inceopeaml and sou mutt direct pm representative to lag salon oniM Mire gimes Individual ilItIfilakagyoriMat nal Mask ia you' ownd ported.> ham invested ina MlitlOtt wha may differ from this report InMinim thew materiels may Mous WI1011ielmtna al an Matthaei. owls GAMSel polite to. which nodal US Tam ma Merrill Limb. Pima rams la Smith Iniorpoiated gem as an advisor. Merrill Lynch. Pierce. Seenerit Smith Incorporatedire registered brokerecoler. member El-SRAand XIPC. and a Motif:owned robridiary of Punk ofAmerica Corporation. Merrill Lynch. Pima. !Mawr& Smith Incorporated dogmas mamma tat or Mal advisor. Several products such as mutual funds iariable annuities and other alternative inteamenti that maybe marks:ad ammingelment alternatim fa you are only toe sold "hew Procaled MaCromPanied by a meant prospeam and/or affair., merrewanda. The prapraus aratfor *fining memccanda prink mem cornpkite information on the prods& including diaries mews and special imminent and should he read carefully before inverting. The fallowing report la for fiduciary me only. The essoam piesenting this report roma is ming within his Of be, fidurlarycepidty with U.S. Twist. not withal boar her licamed meaty. If say. with Mail Lynch Parch F1114.1 Smith Incorpsetacd. The Infornualon and data In the following report wereobtained (IMOsomas &need reliable. Their gamey and rompletrams arc not guarantee& and the glamor thefameis not deemed an din Of Sakhali011 101 thepunkas. or role of sozneitim. This report attempts to measure • panlogri mammal itammenta by ravaging the peeforman of allweurllks IntheWm The index may bee mead tool. istat is m many reptmentathe of past performanceof I particular fund ca murky. and is ax repiescaualvtof any MumFedora...meeting furthealer GRWSitIVIIL Acigumplicas.tonnaning in: Minna tax rim Alt illastrothre papaws only and not nuoulal to meat economic. parlorniama Any mat Of patfoltheasniam andloi mums shown <a used io this repon matt traerthal hi mina ow gamma Marble Milh at an inimical pendant bantam may nee 111WIS dirtily loan India. 11th reports n preliminary analytic and not IlKILTS011iy the RKIICJi fulfilment of mommeniations Cm materiel is for ihistrdim and alwetrand purposes and sit been prepared add" to mid you in the mime of pun imminent alternmwer Sou should <emelt appropnatelepl =Atones alums and thenmoat your representative n ahe appropide near steps Shia report dam not constitute legal. geountingarespermitnentadviee. If you theme to follow an insettment *vacant Meth intheMiming atomic) rcpwitioning of yaw ponfolio may mullin tax consequebe es Spathe contents of iha tementstian geoad not beaded 'wassailing oonsulting athlrOprote kgI are/ or tax advisors MI lax calculations herein are merely estimatteand strodel not be relied upon for Mailed tax planning purees MI income taxes art based on NM tat rats add not take all tbedetailsofa stater income tat laws into mount Thin anabstia Is bawd on the calendar year. All 453S and liabilities are lued ai the end afmth mar. Deaths are alio *seamed to mum at the end ofeactryter. For the finst mor ofthe anemia**. annual TCIU1115 are prorated on a daily halts US Trost. Bank ofMarta Prime Wealth Management operates thrones Bead of America and other subsidiaries of Bank ofMania eathoration NM°fanatic, . • Member FDIC. C. son Bank aliments Porporgion. All rights Mewed Page 2 of 26 EFTA01088416 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 assuming a mean value of AGM stock on April 16, 2014 of $30 per share. • 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. • For the $500,000 per year lifetime annuity calculations, Judy Black was born on September 27, 1948 (with a life expectancy of 20 years), and Jon Ressler is assumed to be age 61 (with a life expectancy of 19 years). • 100% charitable deduction is assumed for fractional interests in art pledged to museums. Page 3 of 26 EFTA01088417 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Inventory of Fannty Assets as of April DI 2014 Leon Debts To Lii Liquid Assets - Investment Accounts U.S. Trust Cash Account $ 25.587.000 S 5.562.000 $ 31.149.000 JPM Gasnhlarketable Securilies 8.558.000 6.927.000 15.463.000 Investments Ari.held through Entities 1,500,000.000 1.500.000.000 Other M. Rave Books & Bronzes 402295.000 402.295.000 • Includible Portion of GRATs 1.700253.000 1.700.253.000 Black Family Partners LP (8001790". DISCOUNT' 30% 178.702.000 178.702.000 AP Allernative Assets 21.655.000 21.655.000 Apollo Related Investments 5247.000 5.247.000 Investment PannenNps - Various 1.545.000 1.545.000 Avionella LLC: (LOB 50.1%. ORB 49.9%) - AT COST 11.135.000 11.090.000 22.225.000 BJAV Marine Ltd. (Situate) 22.121.000 22.121.000 Reel Estate - Personal Jointly Owned Residences 38.200.000 38200.000 76.400.000 Narrow's Road Parcel 10.000.000 10.000.000 750 Meadow Lane 16,600,000 16.600.000 Tangible Personal Property Household Property 11.562.000 11,562900 23.124.000 Jewelry 46A68.CCO 46.468.000 ALdomcbiles 419.000 419.030 Total Personal Ameb $ 3.943.877.000 S 129,809,000 S 4,073,686,000 Personal Liabilities Loan payable.Bank of America (An) (470.000.000) (470.003.030) Loan payable.Bank of America (Avionelta Hldgs) (11.135.000) (11.090.000) (22.225.000) Loan payable-Bank of America (BJAV Marine) (17.897.000) (17.697.000) Note payable to APOI Trust"' (1.694.738.000) (1.694.738.000) Note payable Black Family Partners LP 142 000 C001 (42 000 0001 Total Personal Liabilities $ (2.235.770.000) S (11,090.000) S (2.246,860.000) Total Net Estate Assets S 1.708.107.000 S 118.719,000 I s 1,826,826,0001 Non-Includible Trust Assets AP01 Agreement $ 1.976.541.000 APO2 Declaration 639.926.000 Black 2011 Family Trusts (LOB 2011 LLC) 269.528.030 1999 Llle Insurance Trust 02 (second-to-die death benefit) 100.0[0.030 1992 Life Insurance Trust (second-to-dle death benefit) 20.0[0.030 Mallory Trust 4.124.000 Black 1997 GST Exempt Trust 3.007.030 Total Trust Assets Total Family Assets • GHAT AnnoLy Receivables. AGM mean value sao.00rsnare. Note provides for a maturity date of Augusl 14. 2022 and accrued annual interest of 1.63% per annum on the unpaid prindpai balance (annual payment of interest is at LDS's discretion). Page 4 of 26 EFTA01088418 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Estate Row Chart Upon Leon's Death EX0eUlOtS; Debra Bock. Barry Cohen aM Richard Renter Leon Black Non Probate Properly Gross Estate Outright to Debra Probate Property S 2205.424.000 12 of Joint Residences n.200.000 Non Probate Properly 38.200.000 Includible Portion of GRATs 1 70 253 000 Total 38.200.000 Gross Estate 3.943.877.000 Last Will and Testament Charitable Pledges Probate Estate S 19081377.002 Dartmouth Pledge $ 19.129.000 Administration Expenses (8000.003) Art Pledged to Museums 10.731.000 Charitable Pledges (29.880.000) Total 29 860000 Liabilities Due Upon Leon's Death (541.032.000) Residuary Assets 3.329.785.000 Note payable - to APOI Trust (1.694.738.000) Net Residue to Revocable Trust S 1.635.047.000 1 Tangibles Outright Bequest to Debra Truants: Debra Black. Barry Cohen Tangible Property $ 11.981.000 aM Rchaid Ranier L. B. Revoca e Trust Agreement Total 11.981 000 Residuary Assets: 1329.785.000 Cash Bequest Tangibles to Debra (11.981.000) BequestAnnuily (Melanie 8 Judy) (11.020.003) Bequest to Melanie Spinella 3.000.000 NY Estate Tax (2.852.222) Federal Estate Tax (7.322.667) Balance of Revocable Trust Residue S 3.296.609.111 Total Cash Legacies 3.000.000 Note payable - to APOI Trust 694 738 001 Net to Marital Trust S 1.60 871 1 1 Lifetime Annuity for Jud Black Annuity' $ 8.020. C00 Marital Trusts GST Exempt Marital Trust $ 1.840.003 Total Annuity 8.020.000 Non-Exempt Marital Trust: Art 1.421.564.000 750 Meadow Lane 16.600.003 induddrie Portion of GRATs 1.700.253.000 Balance of Revocable Trust Residue 156.352.111 Total Marital Trust Assets 3.296.609.111 Note payable - to APOI Trust (1.694.738.000) Net Marital Trust Assets $ 1.601 871 11 ' Based on April 2014 Secton 7520 rale 01 22% aM a 20 year life expectancy. Page 5 of 26 EFTA01088419 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Estate Floe/Chart Upon Debra's Death Trustees of Marital Trusts upon DebraSdealb: Barry Cohen and Richard Router 1997 C1ST Exempt Trust Trust Assets $ 3.007.000 Lifetime Annuity Debra Black Marital Trusts GST Exempt Marital Trust $840.000 for Jon Ressler (Under L. B. Revocable Trust) Debra's ()ST Amount 1.166.404 Net Value of Marital Trusts' 1.601.871.111 Total 1997 OST Exempt Trust $ 6.013.404 Annuity 7 6970)0 annuity tor Jon Ressler' (7.697.200) 7 697,0)0 OST Exempt Marital Trust to 97 Exempt Tr. (1 840 COO) Charitable Pledges Dsbm's OST Amount to 97 Exempt Tr. 11.166.404) Chartable Pledges (An) to Museums (24.533.600) An Pledged to Museums 24.533.600 750 Meadow Lane to Heritage Trust (16.600.600) NY Estate Tax 1248.133.i061 Federal Estate Tax 1522 207 924i $ 24.533 SOO Marital Trust Residue 779.693.077 Art Selected for Heritage Trust 1751 246.0771 Residue Passes to Foundation .447.000 Debra Black Gross Estate Probate Property' $ i 68 903 003 Dross Probate Estate $ 168.903 000 Last Will and Testament Gross Probate Estate 68.900 000 AdmiretttttIon Expenses (2%) 13.378 01)01 Leon Black F Hilly Foundation Heritage Trust Residuary Estate 65.522 000 Marital Trust Residue 28.447.060 $ 16.700.000 4- Passes to Revocable Trust Debra's Revocable Trust Residue 1.000.000 1- Arizona Residence 2.003.000 Total Added Upon Dobria's Death: 8 447 OCO 16.600.000 Art to Legacy Trusts 751246.077 Total Added Upon Debra Death: 787.546.077 Revocable rust Agreement of Debra Black Residuary Estate t. 165.522.000 — Residences to Heritage Trust (19.700000) Tangibles & Jewelry to Children (66.222.345) NY Estate Tax (25.639.696) Federal Estate Tax 153.959 9591 Revocable Trust Residue Passes 10 Foundation Tangibles °Lark ht to Children in Equal Shares Tangible Property 66.222345 'See nvontory of Debra's Taxable Estate (page 8). -Based on pont 2014 Sectich 7520 retie Of 2.2% end a 19 year lire evestancy. Page 6 of 26 EFTA01088420 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Estimated Estate Tax Calculations Leon's Gross Estate 3.943.877,000 Debra's Gross Estate $ 3,465,509,111 Less Deductions: Less Deductions: Liabilities (2.235.770.000) Liabilities (1.694,738,000) Administration Expenses (5,000,000) Administration Expenses (3,378,000) Charitable Deduction (29,860,000) Charitable Deduction (52.980.600) Marital Deduction (1,652,088,111) Marital Deduction Estimated New York Estate Tax (2,852,222) Estimated New York Estate Tax (273,772,802) Plus: Adjusted Taxable Gilts 5,340,000 Plus: Adjusted Taxable Gifts 5,120,000 Taxable Estate $ 23,646,667 Taxable Estate $ 1.445.759.709 Tentative Federal Estate Tax 9,404,487 Tentative Federal Estate Tax 578,249,684 Less Credits/Payments: Less Credits/Payments: Unified Credit (2.081.800) Unified Credit (2.081.800) Gilt Taxes Paid Gill Taxes Paid Estimated Federal Estate Tax $ 7.322.667 Estimated Federal Estate Tax S 576.167,884 Estimated New York Estate Tax 2.852.222 Estimated New York Estate Tax $ 273.772,802 Total Estate Tax Due Upon Leon's Death 10.174,889 Total Estate Tax Due Upon Debra's Death $ 849.940.686 Combined Federal Estate Tax 583.490.550 Combined NY Estate Tax 276.625.024 Total Combined Federal & NY Estate Taxi $ 860.115.574 Page 7 ol 26 EFTA01088421 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 $ 1,421,564,000 750 Meadow Lane 16,600,000 Includible Portion of GRATs 1,700,253,000 Black Family Partners LP (8.0%) - DISCOUNT 30% 127,905,111 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) Si. Total Marital Trust Assets: S 1,601,871,111 .1 -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%) Total of Debra's Probate Assets: $ 168,900,000 Page 8 of 26 EFTA01088422 Leon D. and Debra R. Black Overview of Estate Plan Cash Mavis on Iron's Death Cash Needed at Lewis Death for Bequests, Debts. Expenses 8 Taxes GS I BeQue:t $ 1.840.000 ALtilnistration I .per 5.000.000 NY Estate Tax 2.852.222 Fed Estate Tax 7.322187 Osamulh Pledge 19.129.000 Bequest lo Mean 3.000.000 Artistry lot Judy 8.020.000 Loan payable-Bank of PANIC" (An) 470.000.000 Loan payable-Bank of PANIC" (SJAV Matine) 17.897.000 Loan payable-Bank ol PANIC" (Avictiella Midge) 11.135.000 Male payable Blank Family Pattners LP 42.000 000 Total Cash Needed S se8.195,889 I Allocation of Available Cash U.S. Trust Cash A.: L.t) All $ 25.587.000 GST Beamed 1.840600 AcknOistralion Expenses 5.000.800 NY Estate Tax 2.852.222 Fed Estate Tax 7.322.667 Annuty lot Judy 8.020.000 Balance 552.111 JPIA Cashillatketable Securities $ 8,554000 Bedues1 to Malaria 3.000.000 Batance 5.556.000 Total Reaudring Avalatie Cash $ 8.108.111 Allocation of Cash to be Raised I.902.295.000 Sokl lo Pay. Bank of Ametoit loan (Ail) (470.000.0001 470.000.000 1.432.295.000 BJAV MaarasYtdhl 5 22.121.000 22.121.000 Sold lo pay: Bank of Ametoit loan 117.897.0001 5 4.224.000 Amonetta-Airplane (Leon's 50.1%) 4 11.135.000 11.135.000 Sokl lo pay: Bark of Arnetica loan I11 135 000) $ Black Famej Pain's. LP Wilmette (8%) 178.702.000 Redeemed IC pay: Nate lo Black Family Pallets. LP. (x2.000.000) 42.000.000 Sold lo pay: Dailmadh Pledge (8 708 889) 8.796.889 127.905.111 Datbnoulti Pledge US Trust Cash Account balance S 552.111 JPM Account balance 5.558.000 Yacht sale proceeds-balance 4224.000 BFP sale proceeds 8.798.889 19.129.000 Total Cash Raised 554,062,889 Total Cash Available and Raised $ 688,195,8891 Page 9 0128 EFTA01088423 Leon D. and Debra R. Black Oveniew 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 3.378.000 NY Estate Tax 25.639.696 Fed Estate Tax 53.959.959 Total Cash Needed Is 82,977,655 Allocation of Available Cash US Trust Cash Account 5,562.000 JPM Cash/Marketable Securities 6,927.000 Avionetta Sale Proceeds Total Available Cash $ 12,489.000 Administration Expenses (3.378.000) Total Remaining Available Cash 9,111,000 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 (3.788.655) 3,788.655 Balance of Jewelry: $ 42.679.345 Federal Estate Tax Residence sale proceeds $ 53.959.959 53.959.959 New York Estate Tax Residence sale proceeds $ 12.740,041 Jewelry sale proceeds 3.788,655 Remaining available cash 9.111.000 $ 25.639,696 12.740.041 Total Cash Raised $ 70,488,655 Total Cash Available and Raised $ 82,977,655 Page 10 of 26 EFTA01088424 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 248.133.106 Fed Estate Tax 522,207.924 Total Cash Needed IS 2,473,942,434 1 Allocation of Cash to be Raised Black Family Partners LP Interests to be Distributed BFP Interest in Marital Trust S 1.828.158.111 Distributed BFP (Includible Portion of GRATs) (1,694.738.000) Sold To pay Jon's Annuity (7.697.000) Sold To pay Debra's GST bequest (1.166.404) Sold To pay taxes (124.556.707) Balance of BFP S Note Payable APO1 Trust BFP Interests Distributed 5 1,694.738.000 1,694.738.000 Art Sold and Distributed Art in Marital Trust 5 1,421,564.000 Distributed To Museums (24.533.600) Sold To pay tax (645.784.323) Balance of Art 5 751.246.077 Annuity for Jon BFP sale proceeds S 7.697.000 7.697.000 Bequest of GST Amount BFP sale proceeds S 1.166.404 1,166,404 New York Estate Tax Art sale proceeds $ 248.133.106 248.133.106 Federal Estate Tax BFP sale proceeds 5 124.556.707 Art sale proceeds 397.651.217 5 522.207.924 522.207.924 Total Cash Raised S 2,473,942,434 Page 11 of 26 EFTA01088425 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Heritage Trust How Chart- Following Debra's Death Tnatees: Barry Donag. Richard Ressler. John Hannan. Berramn Owe. Joshua Blast Alexander Main and 'reform Black Heritage Must Trust Assels Nei ol Liablifies) Added Upon Oetra's Death: 750 Meadow Lane 16.600.000 Debra's Residences 19,700.000 Art Stied kw Legacy TnnIS 751,246,077 Taal S 787.646,077 Single "Per Trust A single Heritage Trust is amigo for Debra and Lear's descendants and foto separate Legacy Trusts are created (one for each ol Leon's children). The Trustees may dstribute income and principal go Debra and Leon's descendants. subject to the oisuiturtn viddines wined in be Trust Agreernewl. Alter Leon's death. an andcollet-tries held in the Merilage Trust designaled for a particular child will be disfibured to such chikfs Legacy INN. After Defies death. simitertydesignaled items in be Marital Trust wll be selected by the Trustees lo be held in a chiefs Legacy Trust. Alter Leon's death the Trustees shall daggers* me rearming amounts to eachchild's Legacy Trust. 1 $10 milker when the child miens age 30 (request d is used to acquire a principal residence). 2 650 mincer when the child mains age 35. 3 $100 mean when the Mild altains age 40. If a child dies under an, 40.1lke tbtli amourts wit be divided blo shares for the adds descendards and each share wll be held in a generale Legacy Trust for each such descendard. Trustees Barry Doha,. Richard Resent and John Hannan Separate Legacy Trials During the beneficiary's Memo: 1 The Trustees may pay Ihe income and pawner to the beneficiary subsea to disubarengudeeres (the descendani's financial acumen, marital dscord creditor claims. pendng Regalia% or substance abuse). 2 Trustees are aultwized lo invest in a business verdureproposedby the beneficiary. so law as its a career commitment. 3 Alter age 35. the beneficiary is a co-trustee of hither Legacy Trusl. Al the tenenciarys death: A chid may by Will aprioird she remering Dun properly among Leon's descendants and ups SI 0 minor, in tavor of a spouse. Any properly not appariled will be divided in equal shares for the beneficiary's chicken. Legacy Trust nib Benjamin a Brack Legacy Trust bib Joshua M. Black Legacy Trust Ebb Alexander S. Stack Legacy Trust tiro Vic-Iona R. Back Artwork $ 187.811.519 Cash Distribution Page 12 of 26 EFTA01088426 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 i 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