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Are Testamentary Trusts Dead?May 15, 2014

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Agenda

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• <iX[Yh .,-0 W\Ub[Yg

• =cbh]biYX ]bWcaY hUl VYbYZ]hg

• =cbh]biYX YghUhY d`Ubb]b[ VYbYZ]hg

• ?ZZYWh cb dfcVUhY d`Ubb]b[

• =cad`]UbWY ]ggiYg

• Mfigh jUf]Uh]cbg

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Agenda (Cont’d)

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• <iX[Yh .,-0 W\Ub[Yg

• =\Uf]hUV`Y fYaU]bXYf hfighg

• A]Zhg aUXY h\fci[\ ch\Yf hfighg

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What's the difference between death and taxes?

Parliament doesn't meet every year to make deathworse.

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Part A: Testamentary Trusts

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Budget 2014 Changes

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x Mcd aUf[]bU` hUl fUhY k]`` bck Udd`m hc [fUbXZUh\YfYX037-5 90946 hfighg &dfY DibY -4( -53-'( hfighg WfYUhYX Vm k]``UbX WYfhU]b YghUhYg

y Hc `cb[Yf bYYX hc \UjY fY[UfX hc vhU]bh]b[w hfUbgUWh]cbgZcf dfY t3- hfighg

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Budget 2014 Changes (Cont’d)

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x AfUXiUhYX fUhY YghUhY &K(1'L' y h\fYY dUfh hYgh

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Budget 2014 Changes (Cont’d)

x Cad`]WUh]cbg cZ h\]g W\Ub[Y6

y gdcigU` hfigh

y ch\Yf hUl d`UbbYX hfighg

x >fUZh]b[ hc YbgifY VYbYZ]h Zfca Zi`` /2 acbh\g

x P]`` bch hU_Y YZZYWh ibh]` .,-2 UbX `UhYf hUlUh]cb mYUfg

x Hc [fUbXZUh\Yf]b[ Zcf hYghUaYbhUfm hfighg UbX YghUhYgU`fYUXm YghUV`]g\YX

x JfUWh]WY dc]bh y vibk]bXw hYghUaYbhUfm hfigh d`Ubb]b[8

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Budget 2014 Changes (Cont’d)x MYghUaYbhUfm hfighg k]`` bck \UjY U WU`YbXUf mYUf YbX6

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Budget 2014 Changes (Cont’d)x P]`` VY giV^YWh hc U`hYfbUh]jY a]b]aia hUl fYei]fYaYbhg

x P]`` \UjY `]UV]`]hm Zcf JUfh QCC*. hUl

x Hc `cb[Yf UV`Y hc aU_Y ]bjYghaYbh hUl WfYX]hg UjU]`UV`Yhc VYbYZ]W]Uf]Yg

x Hc gdYW]Z]W UaYbXaYbh ]bW`iXYX hc dfYgYfjY [fUXiUhYXfUhY hUlUh]cb cZ hYghUaYbhUfm hfighg Zcf VYbYZ]h cZX]gUV`YX ]bX]j]XiU`g*

y M\Y ;Wh UbX KY[i`Uh]cbg k]`` VY Zifh\Yf acX]Z]YX hc]ad`YaYbh Ubm UaYbXaYbhg hc []jY YZZYWh hc h\]g dc`]WmcV^YWh]jY

x JfcdcgYX `Y[]g`Uh]jY W\Ub[Yg UfY YldYWhYX VYZcfY .,-2

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Continued Income Tax Benefits

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x MUl gUj]b[g cZ cjYf #-1(,,, dYf mYUf dYf hfigh &giV^YWh hcLYWh]cb -,0&.'' Wci`X \UjY VYYb cVhU]bYX

x CZ gdcigU` hfigh Wci`X VY Wcid`YX k]h\ fc``cjYf

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Continued Income Tax Benefits (Cont’d)

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Continued Income Tax Benefits (Cont’d)

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x ;WWYgg hc WUd]hU` Wci`X VY Ug h][\h cf Ug `ccgY Ug fYei]fYX

x CbWcaY gd`]hh]b[+gdf]b_`]b[ U`gc U fYU` VYbYZ]h &h\fci[\gYYX]b[ cf fYg]XiU` hfighg'

x ;g `]hh`Y Ug #/,,(,,, d`UWYX ]b U hYghUaYbhUfm hfigh Wci`X\UjY VYYb hUl YZZYWh]jY ]Z h\YfY kYfY bc hfighYY ZYYg hU_YbUbX h\Y cb`m YlhfU Wcgh kUg Z]`]b[ U hUl fYhifb

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Continued Income Tax Benefits (Cont’d)

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Continued Income Tax Benefits (Cont’d)

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Continued Income Tax Benefits (Cont’d)

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x MfighYY WUb Y`YWh hc \UjY ]bWcaY hUlYX ]b h\Y \UbXg cZh\Y VYbYZ]W]Ufm Uh h\Y VYbYZ]W]Ufmug aUf[]bU` fUhY

x =Ub UaY`]cfUhY hcd fUhY hUlUh]cb( Vih bch U`kUmgUddfcdf]UhY hc \UjY ]bWcaY hUlYX ]b \UbXg cZVYbYZ]W]Ufm &]*Y* ]b U BYbgcb hfigh gWYbUf]c k\YbVYbYZ]W]Ufm ]g fYWY]j]b[ dfcj]bW]U` gcW]U` VYbYZ]hg'

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Continued Income Tax Benefits (Cont’d)

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Continued Income Tax Benefits (Cont’d)

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x CZ U gYYX]b[ hfigh( VY WUfYZi` cZ g* 30*0 Uhhf]Vih]cb cb]bWcaY k\Yb WcbbYWh]b[ h\Y gYYX]b[ hfigh hc U df]jUhYWcfdcfUh]cb Zcf difdcgYg cZ Z`ck]b[ X]j]XYbX ]bWcaYh\fci[\ h\Y hfigh k\Yb h\Y hfigh ]bW`iXYg ]bX]j]XiU`gk\c kci`X VY vXYg][bUhYX dYfgcbgw difgiUbh hc gg*30*0&1' cZ h\Y ;Wh ]b fY`Uh]cb hc h\Y Wcbhfc``]b[g\UfY\c`XYf cZ h\Y WcadUbm ]Z h\Y WcadUbm ]g bch UvgaU`` Vig]bYgg WcfdcfUh]cbw

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Continued Income Tax Benefits (Cont’d)

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x CbjYghaYbh ]bWcaY WUb vgdf]b_`YXw hc VYbYZ]W]Uf]Yg ]b`ckYf hUl fUhY VfUW_Yhg h\Ub h\Y W\]`X &]*Y* W\]`XfYb(]bW`iX]b[ a]bcf W\]`XfYb'

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Continued Income Tax Benefits (Cont’d)

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x Ndcb W\]`Xug XYUh\( YghUhY ZibX hfigh hmd]WU``m YbXg UbXUggYhg X]j]XYX YeiU``m Uacb[ h\Uh W\]`Xug W\]`XfYb cfch\Yf VYbYZ]W]Uf]Yg

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Continued Income Tax Benefits (Cont’d)

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x CZ U`` ]bWcaY U``cWUhYX YUW\ mYUf cih cZ hfigh( h\Yb bc]bWcaY hc VY hUlYX ]b hfigh UbX( h\YfYZcfY( hUlUh]cb Uh\][\Yf fUhY ]b h\Y hfigh ]g ]ffY`YjUbh

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Continued Income Tax Benefits (Cont’d)x JfYj]cig`m( kci`X U`gc [U]b U gYdUfUhY fUhY Zcf h\Y hfigh

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x IbY cZ h\Y `Ugh VUgh]cbg cZ hfiY hUl d`Ubb]b[ UjU]`UV`Y cbU hYghUaYbhUfm VUg]g

x =Ub VY Wcid`YX k]h\ Ub ]bgifUbWY hfigh cf Ub KKLJ+KKC@hfigh hc WfYUhY Ub YghUhY ZibX hmdY ]bgifUbWY cf YghUhYZibX hmdY KKLJ+KKC@ hfigh &bchY6 WUb VY XcbY Zcf]bgifUbWY dc`]W]Yg cb h\Y Z]fgh XYUh\ Vm bUa]b[ h\Ygifj]j]b[ gdcigY UbX W\]`XfYb Ug VYbYZ]W]Uf]Yg cZ h\Yhfighg'

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Continued Income Tax Benefits (Cont’d)

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x ; dcgg]V]`]hm Zcf Wcbh]bi]b[ hfighg Zfc W\]`XfYb UbX h\Y]fW\]`XfYb UZhYf h\Y YbX cZ UbX U`hYf Y[c cf ^c]bh dUfhbYfhfigh

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Continued Income Tax Benefits (Cont’d)

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Continued Income Tax Benefits (Cont’d)

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x ;``ckg ]bWcaY hc VY hUlYX ]b h\Y \UbXg cZ h\YVYbYZ]W]Ufm ibXYf U[Y .- k\c dfYgiaUV`m ]g Uh `ckYfaUf[]bU` fUhYg &cf Uh `YUgh \Ug UWWYgg hc Zi`` [fUXiUhYXfUhYg' fUh\Yf h\Ub Uh h\Y \][\ fUhY ]b h\Y hfigh'

x CbWcaY aigh VY jYghYX ]bXYZYUg]V`m ]b h\Y VYbYZ]W]Ufm(UbX h\Yb VY dU]X cih bc `UhYf h\Ub k\Yb h\UhVYbYZ]W]Ufm fYUW\Yg U[Y 0,

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Continued Income Tax Benefits (Cont’d)

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x GcfY Wcaacb`m igYX ]b Ub ]bhYf j]jcg WcbhYlh h\UbhYghUaYbhUfm WcbhYlh &k\YfY Zfca U dfUWh]WU`dYfgdYWh]jY ]bWcaY a][\h UWhiU``m \UjY hc VY dU]X hc cfZcf h\Y VYbYZ]h cZ h\Y VYbYZ]W]Ufm k\]`Y ibXYf U[Y .- ]bh\Y hYghUaYbhUfm WcbhYlh ]Z h\Y hfigh ]g YghUV`]g\YX Vm UXYWYUgYX dUfYbh UbX h\YfY UfY YldYbgYg Zcf h\Y W\]`Xug`]j]b[( YhW* aU_]b[ h\Y ]bWcaY vdU]X cf dUmUV`YwUbmkUm'

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Continued Income Tax Benefits (Cont’d)

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x CbXYYX( h\]g Wci`X Udd`m hc U`` cZ h\Y ]bWcaY ]b h\Y hfigh]Z h\Uh kUg UXj]gUV`Y( `YUj]b[ bch\]b[ hUlYX ]b h\Y hfighUh h\Y \][\ fUhY

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Continued Income Tax Benefits (Cont’d)

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Continued Income Tax Benefits (Cont’d)

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x M\]g aUm VY dUfh]Wi`Uf`m VYbYZ]W]U` Zcf a]bcfg( Zcf giW\h\]b[g Ug hi]h]cb( gdcfhg UWh]j]h]Yg( YlhfU hfUjY` YldYbgYgUbX h\Y `]_Y

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Continued Income Tax Benefits (Cont’d)

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x =Ub VY XcbY Vm fY]aVifg]b[ dUfYbh Zcf \Uj]b[ YldYbXYXh\cgY Uacibhg cb VY\U`Z cZ h\Y W\]`X

x <ih( WUbbch VY Zcf h\Y a]bcf VYbYZ]W]Ufmug vcfX]bUfmZUa]`m \cigY\c`X YldYbgYgw y gYY %-/5*+- &*201; (5867 9"$*3*,*! S-554T M=D ---.

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Continued Income Tax Benefits (Cont’d)

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Continued Income Tax Benefits (Cont’d)

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x GUm VY VYbYZ]W]U` ]b `]a]hYX WUgYg giV^YWh hcWcbg]XYfUh]cb cZ Ubm hfighYY ZYYg dU]X

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x OUf]cig Udd`]WUh]cbg &bch Ub Yl\Uigh]jY `]gh'6

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Continued Estate Planning Benefits(Cont’d)

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Continued Estate Planning Benefits(Cont’d)

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Continued Estate Planning Benefits(Cont’d)

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Effect on probate planning

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x KYUgcbg ]bW`iXY dfcVUhY hUl Ujc]XUbWY( Yb\UbWYXWcbZ]XYbh]U`]hm( Ujc]XUbWY cZ WfYX]hcfg &]bW`iX]b[XYdYbXYbh fY`]YZ W`U]ag ]b gcaY dfcj]bWYg'(g]ad`]Z]WUh]cb cZ YghUhY UXa]b]ghfUh]cb( Yb\UbWYX]bWUdUW]hm dfchYWh]cb UbX ch\Yf ZUWhcfg

x JfYj]cig V]Ug kUg cZhYb hckUfXg dfcVUhY d`Ubb]b[ h\Uhgh]`` U``ckYX UWWYgg hc hYghUaYbhUfm hfighg &]b k\c`Y cf ]bdUfh y ]*Y* v\mVf]X d`Ubb]b[w'

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Effect on probate planning (Cont’d)

x Gcgh Wcaacb Zcfa kUg U VUfY hfigh

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x Fcgg cZ [fUXiUhYX fUhYg Zcf hfighg h\YagY`jYg aYUbg bchUg aiW\ bYYX Zcf VUfY hfighg

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Effect on probate planning (Cont’d)

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y ^c]bh ckbYfg\]d k]h\ f][\h cZ gifj]jcfg\]d

y VYbYZ]W]Ufm XYg][bUh]cbg &Zcf KKLJug( KKC@ug( M@L;ug UbX]bgifUbWY dc`]W]Yg'

y ai`h]d`Y+XciV`Y k]``g &]b gcaY dfcj]bWYg y bch HcjU LWch]U'

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Effect on probate planning (Cont’d)

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Effect on probate planning (Cont’d)

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Effect on probate planning (Cont’d)

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x =UfYZi` d`Ubb]b[ ]g bYYXYX k\Yb df]jUhY WcadUbmg\UfYg UfY \Y`X ]b Ub U`hYf Y[c cf ^c]bh dUfhbYf hfigh

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Effect on probate planning (Cont’d)

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Effect on probate planning (Cont’d)

x =cbg]XYf h]a]b[ cZ XYUh\ ]b U hfigh ghfiWhifY U`gc6

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R '6^9?^E85^ECFDEU^H9==^1=H1JD^25^1E^E85^8978^E1I^C1E5U^3C51E9?7^1^hUl X]ZZYfYbWY*

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Effect on probate planning (Cont’d)

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Effect on probate planning (Cont’d)

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• M\Y W\Ub[Yg hc WfYUhY acfY Z`Yl]V]`]hm ]b YghUhY XcbUh]cbgX]gWiggYX `UhYf hcXUm Xc bch \Y`d h\]g dfcV`Ya

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Compliance Issues

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• Cb h\Y hfUbg]h]cbU` mYUf &.,-1'( hfighg k]h\ cZZ WU`YbXUfmYUf YbXg k]`` \UjY ai`h]d`Y hUl fYhifbg UbX ai`h]d`Y hUldUmaYbhg

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Compliance Issues (cont’d)

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• =U`YbXUf mYUf YbX WUb aU_Y Wcad`]UbWY UbX ]bWcaYfYdcfh]b[ g]ad`Yf Vih h\YfY WUb VY ]ggiYg k]h\ h\Y 5, XUmXYUX`]bY Ug ch\Yf hfighg \UjY h\Y gUaY UbX gcaY hUlg`]dg aUm bch VY UjU]`UV`Y

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Trust Variations

x GUbm hYghUaYbhUfm hfighg kYfY gYh id k]h\ h\YYldYWhUh]cb h\Uh h\Ym kci`X fYWY]jY h\Y]f ckb [fUXiUhYXhUl fUhYg

x Fcgg cZ h\cgY fUhYg WUigYg W`]Ybhg hc fYh\]b_ Yl]gh]b[ hfighghfiWhifYg

x MfighYYg k]`` VY Ug_]b[ Vch\ vUfY h\Y hUl W\Ub[YgYbci[\ hc YlYfW]gY am X]gWfYh]cb hc Wc``UdgY h\Y hfigh(UbX k\Uh k]`` h\Y fYaU]bXYf VYbYZ]W]Uf]Yg gUm ]Z ]h ]gWc``UdgYX8w UbX vg\ci`X C U``cWUhY Uh `YUgh gcaY ]bWcaYhc fYXiWY hUlYg( UbX ]g h\Uh ]b h\Y VYbYZ]W]Ufm%g VYgh]bhYfYgh8w

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Trust Variations (Cont’d)

x CZ Wc``UdgY ]g XYg]fUV`Y( hfigh hYfag aUm U``ck ]h&]*Y* []jY h\Y X]gWfYh]cb hc dUm cih U`` WUd]hU` ]ZhfighYYg Wcbg]XYf h\Uh UXj]gUV`Y' y cZhYb h\Y WUgY]Z hfighg gYh id gc`Y`m hc cVhU]b h\Y [fUXiUhYXfUhYg

x M\Y fi`Y ]b '*83,-56 9" )*870-5 aUm U`gc Udd`m

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Trust Variations (Cont’d)

x '*83,-56 9" )*870-5 fi`Y fYei]fYg U`` cZ h\Y VYbYZ]W]Uf]Yg cZh\Y hfigh hc VY UXi`h( jYghYX UbX WcadYhYbh( k\YfYidcbh\Ym WUb Wc``YWh]jY`m WcadY` h\Y hfighYY hc Wc``UdgY h\Yhfigh UbX \UjY h\Y WUd]hU` dU]X cih

x JfcV`Ya ]g h\Uh cZhYb hfighg \UjY U Wcbh]b[Ybh fYg]XiU`VYbYZ]W]Ufm bUaYX UZhYf h\Y XYUh\ cZ h\Y `]ZY VYbYZ]W]Ufm(k\]W\( XYdYbX]b[ cb hfigh hYfag( WUb `]a]h h\YUdd`]WUV]`]hm cZ h\Y fi`Y

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Trust Variations (Cont’d)

x >]gW`U]aYf XcWhf]bY a][\h U`gc kcf_ ]b gcaY WUgYg hcU``ck Ub UWWY`YfUh]cb cZ h\Y Wcbh]b[Ybh fYg]XiU` ]bhYfYgh(k\]W\ aUm h\Yb bch VY \Y`X ]b U Wcbh]bi]b[ hfigh

x =cad`]WUhYX hYW\b]WU` UfYUg k\]W\ fYei]fY W`cgYWcbg]XYfUh]cb cZ hfigh hYfag UbX ZUWhg ]b YUW\ WUgY

x =cifh cfXYfYX jUf]Uh]cb cZ hfighg aUm VY Ub cdh]cb U`gc

x OUf]Uh]cb cZ hfigh `Y[]g`Uh]cb Yl]ghg ]b U`` Zcif ;h`Ubh]WJfcj]bWYg

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Trust Variations (Cont’d)

x HcjU LWch]Uug )*50*7043 4. (58676 #+7( KLHL -545( W* 042(Ug UaYbXYX Vm LHL .,--( W* 0. k\]W\ kUg dfcW`U]aYX ]bZcfWY cb Di`m ./( .,-/( bck dfcj]XYg Yb\UbWYXUaYbXaYbh dckYfg

x ;``ckg =cifh hc UddfcjY Ub vUffUb[YaYbhw( k\]W\]bW`iXYg U jUf]Uh]cb( fYgYhh`YaYbh cf fYjcWUh]cb cZ Uhfigh( cf U jUf]Uh]cb( XY`Yh]cb cf hYfa]bUh]cb cZ( cf UbUXX]h]cb hc( h\Y dckYfg cZ h\Y hfighYY

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Trust Variations (Cont’d)

x MYgh Zcf h\cgY k\c h\Y =cifh ]g Uddfcj]b[ k\c UfY]bWUdUV`Y cZ []j]b[ WcbgYbh ]g h\Uh ]h aigh \UjY bcvXYhf]aYbhw hc h\Y]f ]bhYfYghg y X]ZZYfYbh Zfca ZcfaYfdfcj]g]cb h\Uh ]h aigh VY Zcf h\Y]f vVYbYZ]hw

x IbY cZ h\Y Wcbg]XYfUh]cbg h\Y =cifh aigh \UjY fY[UfX hc]g h\Y ]bhYbh]cb cZ h\Y gYhh`cf cZ h\Y hfigh( ]Z ]h WUb VYX]gWYfbYX

x >cYg h\]g ]bW`iXY gYhh`cfug ]bhYbh]cbg Ug hc hUlWcbgYeiYbWYg8

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Trust Variations (Cont’d)

x =cifh aigh U`gc `cc_ Uh h\Y dcg]h]cb cZ Ubm ch\Yf dUfhmUddYUf]b[ VYZcfY h\Y =cifh y kci`X h\]g ]bW`iXY h\Y=UbUXU KYjYbiY ;[YbWm8 >c mci \UjY hc+g\ci`X mci[]jY bch]WY hc ]h `]_Y ibXYf fYWh]Z]WUh]cb Udd`]WUh]cbg8

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B. Charitable Giving

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Treatment of Estate Gifts – Current Rules

x A]Zhg Vm k]``

y >YYaYX aUXY Vm ]bX]j]XiU` ]b mYUf cZ XYUh\

y >cbUh]cb hUl WfYX]h ]b mYUf cZ XYUh\ UbX df]cf mYUf

y KKLJ+KKC@+M@L;+CbgifUbWY dfcWYYXg ) g]a]`Uf fi`Yg ]ZeiU`]Z]YX XcbYY ]g XYg][bUhYX VYbYZ]W]Ufm

y OU`iY cZ W\Uf]hUV`Y []Zh XYhYfa]bYX Uh XUhY cZ XYUh\fY[UfX`Ygg cZ k\Yb W\Uf]hm fYWY]jYg h\Y []Zh

y CbhYfjYb]b[ `]ZY ]bhYfYgh)[]Zh Vm k]`` cb`m ]Z bc f][\h hcYbWfcUW\ cb WUd]hU`

x A]Zhg Vm YghUhY

y CZ bch []Zh Vm k]``

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Budget 2014 Changes

x <iX[Yh dfcdcgYg Zcf h\Y .,-2 UbX giVgYeiYbh hUlUh]cb mYUfg Zcf U XYUh\ h\Uh cWWifgUZhYf .,-16

y >cbUh]cbg aUXY Vm U k]``( UbX h\cgY aUXY Vm XYg][bUh]cb ibXYf U KY[]ghYfYXKYh]fYaYbh LUj]b[g J`Ub( KY[]ghYfYX KYh]fYaYbh CbWcaY @ibX( MUl) @fYY LUj]b[g;WWcibh cf `]ZY ]bgifUbWY dc`]Wm( k]`` bc `cb[Yf VY XYYaYX hc VY aUXY Vm h\Y]bX]j]XiU` ]aaYX]UhY`m VYZcfY h\Y ]bX]j]XiU`ug XYUh\

# M\YgY XcbUh]cbg k]`` VY XYYaYX hc \UjY VYYb aUXY Vm h\Y ]bX]j]XiU`ugYghUhY Uh h\Y h]aY h\Y dfcdYfhm ]g hfUbgZYffYX hc U eiU`]Z]YX XcbYY( dfcj]XYXh\Y hfUbgZYf cWWifg k]h\]b /2 acbh\g UZhYf XYUh\

x Cb UXX]h]cb( h\Y hfighYY cZ h\Y ]bX]j]XiU`ug YghUhY k]`` \UjY h\Y Z`Yl]V]`]hm hc U``cWUhYh\Y UjU]`UV`Y XcbUh]cb Uacb[6

y h\Y hUlUh]cb mYUf cZ h\Y YghUhY ]b k\]W\ h\Y XcbUh]cb ]g aUXY

y Ub YUf`]Yf hUlUh]cb mYUf cZ h\Y YghUhY cf

y h\Y `Ugh hkc hUlUh]cb mYUfg cZ h\Y ]bX]j]XiU`

x M\Y WiffYbh UbbiU` WfYX]h `]a]hg k]`` Wcbh]biY hc Udd`m &]*Y* -,,$ cf 31$ cZ hUlUV`Y]bWcaY'

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Budget 2014 Changes

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x MUl fY`]YZ Zcf XcbUh]cbg cZ YWc`c[]WU``m gYbg]h]jY `UbX( cfYUgYaYbhg( WcjYbUbhg UbX gYfj]hiXYg cb h\Uh `UbX( ]gW`U]aUV`Y ]b6

y M\Y mYUf h\Y XcbUh]cb ]g aUXY( cf

y ;bm cZ h\Y Zc``ck]b[ Z]jY hUlUh]cb mYUfg cZ h\Y Xcbcf*

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x M\Y XcbUh]cb WUffm)ZcfkUfX dYf]cX ]g YlhYbXYX Zfca Z]jYmYUfg hc hYb Zcf giW\ XcbUh]cbg aUXY UZhYf @YVfiUfm -,(.,-0

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Budget 2014 Changes

&A@5E=A@D .9 %8CE=9=87 %F>EFC5> /CAB8CEJ=iffYbh Ki`Y

x >cbUh]cbg cZ WYfh]Z]YX Wi`hifU` dfcdYfhm UfY aYUgifYX Uh ZU]f aUf_YhjU`iY Ug XYhYfa]bYX Vm h\Y =UbUX]Ub =i`hifU` JfcdYfhm ?ldcfhKYj]Yk <cUfX Zcf h\Y difdcgY cZ XYhYfa]b]b[ h\Y jU`iY cZ h\YXcbUh]cb

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x M\Y ViX[Yh ]bhfcXiWYg U fi`Y `]a]h]b[ h\Y jU`iY cZ U WYfh]Z]YXWi`hifU` dfcdYfhm hc ]hg Wcgh Uacibh hc h\Y Xcbcf ]Z h\Y dfcdYfhm kUgUWei]fYX Ug dUfh cZ U hUl g\Y`hYf []Zh]b[ UffUb[YaYbh

x M\Y dfcdcgYX fYghf]Wh]cb Udd`]Yg hc XcbUh]cbg aUXY UZhYf @YVfiUfm-,( .,-0

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Charitable Remainder Trusts (CRTs)

x ; hmdY cZ hfigh k\]W\ \Ug U W\Uf]hUV`Y fYg]XiU`VYbYZ]W]Ufm&]Yg'

x =Ub VY YghUV`]g\YX Vm gYhh`cf Xif]b[ `]ZYh]aY &]bhYf j]jcg'cf cb XYUh\ &hYghUaYbhUfm'

x MUlUV`Y YjYbh hc hfUbgZYf UggYhg hc h\Y hfigh

x Mfigh hmd]WU``m VYbYZ]hg gYhh`cf UbX+cf ZUa]`mVYbYZ]W]Ufm&]Yg' Xif]b[ h\Y]f `]ZYh]aY&g' UbX W\Uf]hm&]Yg'h\YfYUZhYf

x Gigh VY ]ffYjcWUV`Y UbX \UjY bc cf `]a]hYX f][\h hcYbWfcUW\ cb WUd]hU` Xif]b[ h\Y hYfa cZ h\Y hfigh

LM?J ;h`Ubh]W JU[Y 20

Charitable Remainder Trusts (Cont’d)

x LYhh`cf+gYhh`cfug YghUhY h\Yb [Yhg U hUl fYWY]dh cb WfYUh]cbVUgYX cb h\Y ZU]f aUf_Yh jU`iY cZ h\Y UggYhg dih ]bhc h\Yhfigh( h\Y `]ZY YldYWhUbWm&]Yg' cZ h\Y ]bX]j]XiU`VYbYZ]W]Ufm&]Yg' UbX U X]gWcibh fUhY hc fYZ`YWh h\Y h]aYjU`iY cZ acbYm

x LYhh`cf+YghUhY WUb h\Yb igY h\Y fYgi`h]b[ hUl fYWY]dh hccZZgYh ]bWcaY hUl ch\Yfk]gY dUmUV`Y

x Cg h\]g gh]`` U jU`]X d`Ubb]b[ hcc` ibUZZYWhYX Vm <iX[Yh.,-08

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LM?J ;h`Ubh]W JU[Y 21

Charitable Remainder Trusts (Cont’d)

x =KMg UfY bch XYZ]bYX ]b h\Y CM; Vih jUf]cig =K; fi`]b[gWcbZ]fa h\Y hUl hfYUhaYbh bchYX UVcjY

x <ih bck h\Y fYg]XiU` []Zh ]b h\Y =KM aUm bch VY aUXYk]h\]b /2 acbh\g cZ XYUh\

x P]`` h\Y UWhiU` `Y[]g`Uh]cb YbUWh]b[ <iX[Yh .,-0Y`]a]bUhY =KMg8

LM?J ;h`Ubh]W JU[Y 22

Gifts Made Through Other Trusts

x <][ ]ggiY ]g h\Uh <iX[Yh .,-0 XcYg bch UXXfYgg h\YdfcV`Ya cZ XcbUh]cbg aUXY h\fci[\ Ub ]bhYf j]jcg cfhYghUaYbhUfm hfigh Uh h\Y YbX cZ U `]ZY ]bhYfYgh

x =cbWYfb ]g fYei]fYaYbh Zcf XcbUh]cb hc eiU`]Zm Ug Uv[]Zhw

x CZ X]ghf]Vih]cb ]g( ]b ZUWh( ]b gUh]gZUWh]cb cZ U WUd]hU`]bhYfYgh ]b h\Y hfigh( ]h ]g bch U v[]Zhw UbX( h\YfYZcfY( XcYgbch eiU`]Zm Zcf Ubm XcbUh]cb WfYX]h bchk]h\ghUbX]b[jU`iY ]g fYWY]jYX Vm U W\Uf]hUV`Y cf[Ub]nUh]cb cfeiU`]Z]YX XcbYY

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Gifts Made Through Other Trusts (Cont’d)

x Ib`m kUm hc Ujc]X h\Y dfcV`Ya UbX cVhU]b U WfYX]h Zcfh\Y hfigh ]g hc []jY h\Y hfighYYg X]gWfYh]cb hc aU_YXcbUh]cbg id hc h\Y Zi`` Uacibh cZ h\Y fYg]XiY cZ h\Yhfigh dfcdYfhm hc W\Uf]hUV`Y cf[Ub]nUh]cbg cf eiU`]Z]YXXcbYYg gY`YWhYX Vm h\Ya ]b h\Y]f X]gWfYh]cb

x ; bcb)V]bX]b[ `YhhYf cZ k]g\Yg WUb dfcj]XY [i]XUbWYZfca h\Y gYhh`cf Ug hc k\Uh W\Uf]h]Yg UbX ]b k\UhUacibhg( Vih h\Y XcbUh]cb aigh VY X]gWfYh]cbUfm Zcf UWfYX]h hc VY cVhU]bYX Vm h\Y hfigh ]hgY`Z

LM?J ;h`Ubh]W JU[Y 24

Gifts Made Through Other Trusts (Cont’d)

x ;dd`]WUV`Y hc U`hYf Y[c( ^c]bh dUfhbYf hfighg UbXhYghUaYbhUfm hfighg

x ; fYU` `UW_ cZ WYfhU]bhm cb VY\U`Z cZ hUldUmYfg ]b hYfag cZh\Y]f W\Uf]hUV`Y ]bhYbh]cb k]h\ bc WcffYgdcbX]b[ dc`]WmfYUgcb

x GUbm dfUWh]h]cbYfg ibUkUfY cZ h\Y bYYX hc XfUZh UfcibXh\]g UbX \ck hc Xc ]h

x KYgi`hg ]b XcbUh]cbg VY]b[ XYb]YX k\Yb WfYX]hg YldYWhYXhc cZZgYh hUl ch\Yfk]gY dUmUV`Y

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LM?J ;h`Ubh]W JU[Y 25

Gifts Made Through Other Trusts (Cont’d)

x Hch Ub ]ggiY k]h\ U W\Uf]hUV`Y fYaU]bXYf hfigh k\YfY hUlWfYX]h ]g cVhU]bYX VUgYX cb h\Y dfYgYbh jU`iY cZ h\YZihifY XcbUh]cb fUh\Yf h\Ub Uh h\Y h]aY cZ h\Y hfUbgZYf cZdfcdYfhm hc h\Y W\Uf]hm ]b h\Y ZihifY

x ?jYb ]Z XfUZh UfcibX h\Y vWfYX]hw dfcV`Ya( gh]`` `YUjYg Uvh]a]b[w dfcV`Ya

x ;g U``iXYX hc YUf`]Yf( ]Z h\Y XcbUh]cb WUbbch UWhiU``m VYaUXY ]b h\Y gUaY hUl mYUf Ug h\Y X]gdcg]h]cb cZ dfcdYfhm(aUm VY U a]gaUhW\ cZ hUl UbX WfYX]h

LM?J ;h`Ubh]W JU[Y 3,

Gifts Made Through Other Trusts (Cont’d)

x ; Wcbg]XYfUh]cb k\YfY U dYfgcb X]Yg `UhY ]b h\Y mYUf UbX[]Zh hc W\Uf]h]Yg WUbbch UWhiU``m cWWif ]b h\Y gUaY hUlmYUf []jYb >YWYaVYf /- mYUf YbX Zcf h\Y hfigh

x =<; HUh]cbU` P]``g( ?ghUhYg( UbX Mfighg gYWh]cb \UgaUXY giVa]gg]cbg cb Vch\ dc]bhg hc >YdUfhaYbh cZ@]bUbWY( Vih bc fY`]YZ \Ug VYYb Zcfh\Wca]b[ mYh

x >]gWigg]cbg UfY cb[c]b[

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LM?J ;h`Ubh]W JU[Y 3-

LM?J ;h`Ubh]W JU[Y 3.

Conclusion

x ?ghUhY d`Ubb]b[ ]g U Wighca]nYX dfcWYgg y YUW\ d`Ub ]gib]eiY

x OUf]cig hcc`g UfY UjU]`UV`Y hc aUl]a]nY h\Y VYbYZ]hg UbXa]b]a]nY h\Y f]g_g

x =\Ub[Yg ]b hUlUh]cb cZ hYghUaYbhUfm hfighg k]`` W\Ub[Yd`Ubb]b[ Zcf aUbm W`]Ybhg

x P\]`Y h\YfY UfY gh]`` cddcfhib]h]Yg Zcf ig]b[ hYghUaYbhUfmhfighg( aUm VY acfY `]a]hYX ]b h\Y ZihifY

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LM?J ;h`Ubh]W JU[Y 3/

Conclusion (Cont’d)

x F]_Y`m acfY igY cZ ]bhYf j]jcg hfighg( Vih h\Uh Vf]b[g ]hgckb W\U``Yb[Yg

x AcU` ]g hc WfYUhY U Wighca]nYX d`Ub h\Uhug VYgh Zcf YUW\W`]Ybhug dYfgcbU` W]fWiaghUbWYg

x <NM( hc dUfUd\fUgY GUf_ MkU]b( fYdcfhg cZ h\Y XYUh\ cZhYghUaYbhUfm hfighg \UjY VYYb [fYUh`m YlU[[YfUhYX!

LM?J ;h`Ubh]W JU[Y 30

0F8DE=A@D

###

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Contact Information

1=6<5C7 -=878C?5J8C! 3'/JUfhbYf

LhYkUfh GWEY`jYmJifXmug P\UfZ( MckYf C

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&H5J@8 ,56*5J! %$! 3'/

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