EFTA00617015.pdf

Estate Planning Overview Presented to: Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Apollo Global Management $25/share June 9, 2014 Nancy A. Kistner, CFP® Aaron Shamshoian, CFP® Managing Director Vice President Wealth Strategies Advisor Associate Wealth Strategies Advisor (212) 852-3548 (212) 852-2315 U.S. Trust, Bank of America Private Wealth Management 114 West 47th Street New York, New York 10036 EFTA00617015 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 EFTA00617016 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 1240,000 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. interests, which are valued assuming a mean value of AGM stock on April 16, 2014 of $25 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 EFTA00617017 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 Debra Tolal ettiona nets Liquid Assets • Investment Accounts U.S. Trust Cash ACCOall $ 25.587.000 $ 5.562.000 S 31.149.000 JPIA Casalliatkelable sectrees 8.558.000 6.927.000 15.483.000 Investments AI-hetd through &blies 1.500.000.000 1.500.000.000 Othei Att. Rare Books & Bronzes 402.296.000 402.295.000 • Inc/Able Portion of GRATs 1.465.672.000 - 1.465.672.000 Black Featly Partners LP (6.0017%)" - DISCOUNT 30% 152.733.000 - 152.733.000 AP Alternative Assets 21.656.000 - 21.655.000 Apollo Related investments 5.247.000 5.247.000 Invesiment Partnetsbips - Various 1.545.000 1.545.000 AVi011etta LUC: (LOB 50.1%. ORB 49.9%) 11.135.000 11.090.030 22.225.000 BJAV Marine Md. (Scar ke) 22.121.000 22.121.000 Real Estate- Personal Jointly Owned Residences 38.200.000 38.200.000 76.400.000 NatterWs Road Parcel 10.000.000 10.000.000 750 Meadow Lane 16.630.000 - 16.600.000 Tangible Personal Property Household P,operly 11.562.000 11.562,000 23.124.000 Jewelry 46468.030 46.468.000 Automobiles 419.003 419.000 Total Personal Assets $ 3683,327.000 $ 129.809.000 $ 3,813,130.000 Loan payable-Bank of America (0.1) 1470.030.000) (470.000.000) Loan payable-Bank of America (Ainoretta Hegel (11.135.000) (11.030.030) (22.225.000) Loan payable-Bank of America (SJA V Menne) (17.897.000) (17.897.000) Noce payable - to APO' Twist'•' (1.694.738.000) • 0.694.738.000) Note payable • Black Family Partners LP (42.000.000) • 142 003.0001 Total Personal Liabilities $ (2.235.770.000) $ (11.090,000) S (2,246.860.000) Total Net Estate Assets $ 1,447,557.000 $ 118719,0001 s 1,566,276.000 APO' Agreement S 1.976.541.000 APO2 Declaration 599.197.000 Black 2011 Family Trusts (LDS 2011 LLC) 286.263.000 1999 Life Insurance Trust 12 (second-to-die death benefit) 100.000.000 1992 Life Insurance Trust (second-to-die death benefit) 20.000.000 Mallory Trust 4.124.000 Black 1997 GST Exempt Trust 3.007 000 Total Trust Assets S 2,969,132.000 Total Family Assets S 0.535.408.000 ' GRAT Arad). Receivables. " AGM mean value $26 share. '" Note provxles kx a nattily dated August 14. 2022 and accrued annual interest S 1.63% per annum C/1 the urpad primped balance. Page 4 of 26 EFTA00617018 Leon D. and Debra R. Black Overview of Estate Plan as of Apti116, 2014 Estate Plow Chart Upon Leon's Death Executers: Debra Black. Deny Cohen and FiChard Resets( Leon Black Gross Estate Probate Properly 2.179.455.000 I 2 of Joint Residences 38200.030 Nan PrOOM• Property 38.200.000 Includible Portion of GRATs 1.485.672.300 Total $ 3820.000 Gross Estate $ 3.663.127.030 Last Will and Testament Charitable Pledges Probate S 3.645.127.000 Dartmouth Pledge *9.129.030 Administration Expenses (5.000.000) Ail Pledged to Museums 10.731.030 Charitable Pledges in.aeo.coo Total 29.660.000 Liabilities Due Upon Ltion's Death (541.032,000) Residuary Assets $ 3.092.235.030 Nate payable to APO, Trust (1.694.736.030) Nel Residue to Revocable Trust $ 1.374.497.000 Tangibles Outright Bequest to Debra Trustees: Debra Black Berri Cohen Tangible Properly $ 11.981.000 end WNW Ross L. B. Revocable Trust Agreement Total 11.981.030 Residuary Assets: 3.069.235.000 Cash Bequest Tangibles to Debra (11.981.030 sequestiannuoy (Melanie IS Judy) (11220J:00) Bequest to Melanie Spinelli* 3.003030 NV Estate Tax (2.652.222) Federal Estate Tax (7122.6671 Balance of Revocable Trust Residue $ 3.038269.111 Total Cash Legacies 301:0030 Note payable • to AP01 Trust (1.6fM.738.000) Net to Marital Trust S 1 1121 111 Lifetime Annuity for Judy Black Moult). 8.020.000 Marital Trusts GST Exempt Marital Trust $ Total Annuity 8.020.000 Nan-Exempt Marital Trust: Art 1A21.584.1:00 750 Meadow Lane 16.600.000 Includible Portion of GRATs 1.465.672.000 Balance of Revocable Trust Residue 130 383 111 Total Marital Trust Assets 3438.059.111 Nate payable- to AP01 Trust 1.694.73100 Net Marital Trust Assets 1.341.321.111 'Bred on Apnl 2014 Sedan 7520 rate of 2.2k, and a 20year rile expectancy. Page 5 of 26 EFTA00617019 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Estate Flow Chart Upon Debra's Death Trustees of Menial Trusts igen Debra's Barry Cohen and Richard Ressler 1997 DST Exempt Trust Trust Assets $ 3.007.000 Lifetime Annuity Debra Black Marital Trusts OST Exempt Marital Trust 1610.000 for Jon Ressler (Under L. B. Revocable Trust) Debra's OST Amount 1.166.104 Net Value of Marital Trusts' 1341521.111 Total 1997 OST Exempt Trust 6.013.104 Annuity 7 697.030 Annuity for Jon Ressler' (7.697.000) 7 697.0)0 OST Exempt Marital Trust to 97 Exempt Tr. (1 840 000) Charitable Pledges Debra's OST Amount to 97 Exempt Tr. (5166401) Chants/No Pledges (Art) to Museums (2%533.600) >1 An Pledged to Museums 24533.600 750 Meadow Lane to Heritage Trust (16.60000) NY Estate Tax '206'591.0131 Federal Estate Tax M34 949 357o $ 24.533 6C0 Markel Trust Residue 5 647.945727 An Selected for Heritage Trust 1619.496.727r Residue Passes to Foundation 28.447.000 Debra Black Gross Estate Probate Property' $ 168 903 033 Gross Probate Estate S 168.903 OCO Last Will and Testament Gross Probate Estate t 66.900000 Administration Expenses (2%) 13378 0001 Leon Black F frilly Foundation Hedtage Inset Residuary Estate $ 165 522 OW Marital Trust Residue 28447.000 1 Parcel Meadow Lane $ 16.701000 Passes to Revocable Trust Debra's Revocable Trust Residue 750 Park Ave 1.003.000 <— Arizona Residence 2.001000 Total Added Upon Debra's Death: 8447000 750 Meadow Lane 16.600.000 Art to Legacy Trusts 619.496.727 Total Added Upon Debra's Death: 6 655.796.727 Revocable rust Agreement of Debra Black Residuary Estate $ 165.522 ODD — Residences to Heritage Trust 119.703.0GO/ Tangibles 8 Jewelry to Children M6.654 491) NY Estate Tax 125.493789) Federal Estate Tax M36737t 71 Revocable Trust Residue Passes to Foundation Tangibles Outright to Children in Equal Shares Tangible Property 5 66 654 494 I 'See nventOry of Dada Taxable Estate (page 8). -Based on Apo, 2011Secticn 7520 rate 012.2% and a 19 year life eMedanCy. Page 6 of 26 EFTA00617020 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Estimated Estate Tax Calculations Leon's Gross Estate S 3.683.327,000 Debra's Gross Estate $ 3,204,959,111 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 (1,391,538,111) Marital Deduction Estimated New York Estate Tax (2,852,222) Estimated New York Estate Tax (232,084,802) Plus: Adjusted Taxable Gilts 5,340,000 Plus: Adjusted Taxable Gilts 5,120,000 Taxable Estate $ 23,646,667 Taxable Estate $ 1,226,897,709 Tentative Federal Estate Tax 9,404,487 Tentative Federal Estate Tax 490,704,884 Less Credits/Payments: Less Credits/Payments: I Unified Credit (2.081.800) Unified Credit (2.081.800) Gill Taxes Paid Gal Taxes Paid Estimated Federal Estate Tax $ 7.322,667 Estimated Federal Estate Tax $ 488.623,084 Estimated New York Estate Tax 2.852,222 Estimated New York Estate Tax S 232.084.802 Total Estate Tax Due Upon Leon's Death 10.174,889 Total Estate Tax Due Upon Debra's Death S 720,707,886 Combined Federal Estate Tax S 495.945,750 j Combined NY Estate Tax 234.937,024 Total Combined Federal & NY Estate Tait 730.882.774 Page 7 ol 26 EFTA00617021 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 1,465,672,000 Black Family Partners LP (8.0%) - DISCOUNT 30% 101,936,111 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: $ 1,341,321,111 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%) Total of Debra's Probate Assets: $ 168,900,000 Page 8 of 26 EFTA00617022 Leon D. and Debra R. Black Overview of Estate Plan Cash Nirds en Leon's Death Cash Needed at Leon's Death for Bequests, Debts. Expenses a Taxes GS I Beque:t $ 1.840.000 Alm eisuation Eaper,sea 5.000.000 NY Estate Tax 2.852.222 Fed Estate Tax 7.322.667 Darkest°lh Pledge 19.129.000 Be4uesl lo Melanie 3.000.000 Aaluly lot Judy 8.020.000 Loan payable-Bank ol Antic, (An) 470.000.000 Loan payable-Bank ol Antic, (BJAV Marine) 17.897.000 Loan payable-Bank ol America (Aviccella Wigs) 11.135.000 Nble payable Black Family Partners LP 42.000 000 Total Cash Needed S se8.195,889 I Allocation of Available Cash s Trust Cash Account $ 25.587.000 LIST Baguet] 1.840.000 AckaMistrahon Expenses 5.000.000 NY Estill! Tax 2.852.222 Fed Estate Tax 7.322.667 Annuty lot Judy 8.020000 Balance $ 552.111 JPIA Cashillatketable Securities 8456,000 &quasi lo Malaria 3.000.000 Batance 5.556.000 Total Renudring Avalatie Cash $ 8.108.111 Allocation of Cash to be Raised Art S I .902.295.000 Sotl lo Pay. Bank of Amerce Can (An) 1070.000.0001 470.000.000 $ 1.032.295.00D BJAV Manne-Yecht 6 22.121.000 22.121.000 Sold lo pay: Bank of Amerce Can il iftSIZSIDDI $ 4.224.000 knonetta-rUrplana (Leon's sal%) $ 11.135.000 11.135.000 Sotl lo pay: Bark of Ametica loan II 1 135 0001 Black FaailyPanners. LP Interests (8%) $ 152.733.000 Redeemed to pay: Note lo Black Family Panners. LP. (x2.000.000) 02.000000 Sold lo pay: Danmculh Pledge (8 798 8891 8.796.889 $ 101.938.111 Dartmouth Pledge VS Trust Cash ACCOall balance $ 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 EFTA00617023 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 3.378.000 NY Estate Tax 25.493.789 Fed Estate Tax 53.673.717 Total Cash Needed I$ 82,545,506 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 (3.356.506) 3,356.506 Balance of Jewelry: $ 43.111.494 Federal Estate Tax Residence sale proceeds $ 53.673.717 53,673.717 New York Estate Tax Residence sale proceeds $ 13.026.283 Jewelry sale proceeds 3.356.506 Remaining available cash 9.111.000 $ 25.493.789 13.026.283 Total Cash Raised $ 70,056,506 Total Cash Available and Raised $ 82,545,506 Page 10 of 26 EFTA00617024 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 206.591.013 Fed Estate Tax 434.949.367 Total Cash Needed I S 2,345,141,784 Allocation of Cash to be Raised Black Family Partners LP Interests to be Distributed BFP Interest in Marital Trust S 1.567.608.111 Distributed BFP (Includible Portion of GRATs) (1.465.672.000) Distributed BFP (balance of 8% from LDB) (101.936.111) Balance of BFP 5 Note Payable APO1 Trust BFP Interests Distributed $ 1,567.608.111 Art Sale Proceeds $ 127.129.889 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 Note Payable to APOI Trust (127.129.889) Sold To pay Jon's Annuity (7.697.000) Sold To pay Debra's GST bequest (1.166.404) Sold To pay tax (641.540.380) Balance of Art 5 619.496.727 Annuity for Jon Art sale proceeds 5 7.697.000 7.697.000 Bequest of GST Amount Art sale proceeds 5 1.166.404 1.166.404 New York Estate Tax Art sale proceeds 5 206.591.013 206.591.013 Federal Estate Tax Art sale proceeds 434.949.367 5 434.949.367 434.949.367 Total Cash Raised S 2,345,141,784 Page 11 of 26 EFTA00617025 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Heritage Trust new Chart- Mowing Debra% Death Musters: Barry Cohan. Richard Ressler. John Hannan. Benarnn Mack. uostua Beck Alexanda Maw and iictorta Black Heritage Trust Trust Assels littel of Lobililiesl $ Added Upon Debra's Death: 750 Merida./ Law 16.600.000 °dads Residences 19700.000 Art Sabered ter Legacy TMSIS 619,496.727 Total 655.796,727 Single "Pot Trust A single Heritage Trust is created Ion Debra and Lewes descerdanls and tow separate Legacy Trusts are created (one for each of Leon's children). The Trustees may dstnbute income and principal to Debra and Leon's descendants. subjecl to the aistributen guidelines twined in the Trust Agreemml. Alter Leon's death. an and tenet-lees held in Ihe Menage Trust designaled kw a pancular child will be disfibuied to such Childs Legacy TrUSI. Mier Dada's dealh. similarydesignaled darns in the Marital Trust wil be selected by the Trustees lo be held in a dads Legacy Trust. After Leon's death the Trustees shall Striate Me bellowing amounts lo each chills Legacy Trusl: 1 $10 mewl when the child wens age 30 (request il is used to acquire a principal residence). 2 $50 initial when the child wens age 35. 3 $100 mean Wiwi Me chld altains age 40. g a child dies under age 40. the above amens veil be dviced silo shares bur the child: descendanls and each share MI be held in a separate Legacy Trust ler each such descended. Tunes: Barry Cohn Richard Ressler and John Hannan Separate Legacy Trusts Owing the beneficiary's 'Nome: 1 The Trustees may pay Ile income and principal to the beneficiary suMecl to disubmangudelines (Ihe descendant's financial acumen. marital &coed. meteor clams. pendng litigation. or substance abuse). 2 Trustees are aullwized lo invest in a business verture proposed by the beneficiary. so long as it is a career COMMarnent. 3 Aker age 35. the beneficiary is a cotustee of hither Legacy Trusl. Al the benidicarys death: A chid may by Will appoint tie remairing Trust properly among Leon's descendants and up to SI 0 minor, in tavor of a spouse. Any properly not appcined will be chided in equal threes for the beneficiary's chtdren. Legacy Trust tee Bertame a Mack Legacy Trust libeJCithua M. Black Legacy Trust EbroAlexander S. Black Legacy TniSI the Vicloria R. Mack Artwork 154,874.182 Artwork S 151874.1 Artwork 154.874.182 Cash Distributions Cash Dierbuten $ Cash Oistdbulice $ Page 12 of 26 EFTA00617026 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 Single Discretionary Trust A singl