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 fin aid 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 melon Behr 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 areelf or 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 111V104.11111 din 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 Cordon Ike ndlowint Moods) oTaitionini NYC« 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 of each seer. BIMM are also assumed to arm at the end deals year. For die finites of the 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 Year Exclusion & GST Exemption Amounts Federal Estate Tax Highest Federal Estate Highest New York Estate Credit Tax Rate Tax Rate 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 Gross Estate Non Probate Property 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 Trustees' Debra Red. Barry Cohen and Rchard Atelier L. B. Revocable Trust Agreement Tangibles Outright Bequest to Debra Tangible Property Total 11.961.000 Residuary Assets: Art Entitles 8 Collectibles to Marital Trust $ 3221.546.000 Cash Bequest 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 Lifetime Annuity for Jon Ressler Debra Black Marital Trusts (Under L. B. Revocable Trust) Net Value of Marital Trusts' 1.495151952 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) 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 1997 GST Exempt Trust Debra Black Gross Estate Leon Black F mlly Foundation Menial Trust Residue Debra'• Revocable Trust Residue Total Added Upon Debra's Death: 26.447.000 8447 003 'See nvontory of Debra's Taxable Estate. Heritage Trust 1 Parcel Meadow Lane 16.700.000 750 Park Ave 2.000.000 ArtiOne Residence 1.003.000 750 Meadow Lane 16.603.000 Art Entities 8 Collectibles to Legacy Trusts 696173.315 Total Added Upon Debra's Death: 732.773.315 4- 4- Trust Astets S 3.007.000 OST Exempt Marital Trust 1340.000 Debra's GST Amount 1.166.404 Total 1997 GST Exempt Trutt 6.013.404 Charitable Pledges Probate Property Gross Probate Estate 634 003 S 1 71 634 060 Last Will and Testament Gross Probate Estate Administration Expenses (2%) Residuary Estate Passes to Revocable Trust S 121.634 003 13.433 060) 168.201.000 Revocable rust Agreement of Debra Black Residuary Estate Residences to Heritage Trust Tangibles a Jewelry to Children NY Estate Tax Federal Estate Tax Revocable Trust Residue Passes to Foundation 168201.000 (19.700.000) (67.771.867) 126.001.044) '54 728 089) angibles Outr • tit to Children in Equal Shares Tangible Property $ 67 771 867 Page 6 of 26 EFTA00602617 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Estimated Estate Tax Calculations S 3.835.638,000 $ 3.361.523,952 Leon's Gross Estate Debra's Gross Estate 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 Total Estate Tax Due Upon Debra's Death Es 9.421,048 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 Bequest to Melanie Balance Tots Remaining Avelatie Cash $ 7.627.952 8.556.000 3.000.030 5.556.07,0 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 Total Cash Available and Raised $ 552.533,048 $ 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 NY Estate Tax Fed Estate Tax 3.433.000 26.001.044 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 Annuity For Jon Bequeste of Debra's GST Amount NY Estate Tax Fed Estate Tax 1,694.738.000 8,484.000 1,166.404 231,125.332 486,482.301 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 I S 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' Trustees Barry Cohan. Richard Recolor and John Hannan Legacy True, t'on Seryamn E Black Artwoer. 174.118.329 Cash Chstr.buticns $ Heritage Trust Trust Assets lklel of Liablifies) Added Upon Oases Death: 750 Meadow Lane Oetran Residences Art Selected for Legacy Innis Taal 18.800.000 19.700.000 898.473.315 732,773,315 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 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 Trust (b% Joshua M. Black Legacy Trust tbro Alexander S. Block Armork 174.118.329 Ch Chtgribvlion Legacy Tnnl blob Victoria R. Back Artwork 174.118.329 Cash Dielrbutian Page 12 of 26 EFTA00602623 Leon D. and Debra R. Black Overview of Estate Plan AP01 Agreement Plow Chan - Following Debra's Death Trustees: Barry Cohen. Rchard Ressler and John Trustees: Barry Cohen. Renard Ressler and John Kannan After atm 35, each Beneliciary is a coTrustee of rather Separate THAI 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 Separate Trusts During the Beneficiary's lifetime, the Trustee may pay the income and principal to the Beneficiary after considering the Beneficiary's circumstances (financial acumen, marital discord. creditor claims, pending litigation, substance abuse, etc.). Each Separate Trust terminates on the Beneficiary's death and is distributed to the Beneficiary's descendants as the Beneficiary appoints by Will. Unappointed properly will be divided for the Beneficiary's descendants and held in Separate Trusts subject to the same trust terms and Agreement. I I Separate Trust fill% Benjamin E. Black S 350.082.520 Separate Trust liht Joshua M. Black 350.082.520 Separate Trust Marc Alexander S. Black 350.082.520 Separate Trust libro Victoria R. Black S 350.082.520 Page 13 of 26 EFTA00602624 Leon D. and Debra R. Black Overview of Estate Platt APO2 Declaration Flow Chart - Following Debra's Death Trustees: Barry Cohen. Rchard Ressler and J0M Raman Trustees. Barry Cohen. Renard Ressler and John HOKUM Alter at* 35. each Benelidaw Is a co-Trustee a hsJher Separate THAI Separate Trust Ito Benjamin E. Back $ 155.644.250 • Declaration Trust Assets (Net ol $ 622.577.000 Added Upon Debra's Death: Total 622,577,000 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 &stribute income and principal to Debra and Leon's descendants. subject to the trestribution guidelines outlined the Trust Agreement. Instead of maki-og distributions to a descendant, the Trustees may distribute to hislher Separate Trust. Discretionary Trust termeiates 21 years after the death of the survivor ol Leon's children and Debra. The remainlig trust property will be distributed to Leon's descendants or if none. to Leon's estate. Separate Trusts During the Beneficiary's lifetime, the Trustee may pay the income and principal to the Beneficiary after considering the Beneficiary's circumstances (financial acumen, marital discord. creditor claims. pending litigation, substance abuse. etc.). Each Separate Trust terminates on the Beneficiary's death and is distributed to the Beneficiary's descendants as the Beneficiary appoints by Will. Unappointed property will be divided for the Beneficiary's descendants and held in Separate Trusts subject to the same trust terms and Agreement. Separate Trust frb.o Joshua M. Black 155.644250 Separate Trust ft% Alexander S. Black 155.644.250 Separate Trust Itti Victoria R. Black 155644.250 Page 14 of 26 EFTA00602625 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Black 2011 Family Trust Flow Chart - Following Debra's Death Trustees: Barry Cohen and John Hannan Administrative Trustee: U.S. Trust Company of Delaware 2011 Trust f/ht Benjamin E. Black $ 69.904.750 Black 2011 Family Trust LDB 2011 LLC $ 279.619.030 Property is held in four separate Trusts: one for each child: 1 Prior to age 25. Trustees have discretion to pay the child income. 2 After age 25. child receives all trust income quarterly. 3 Trustees have broad discretion to distribute principal to the child. 4 Each child's trust terminates upon the child's death: - II Leon and Debra are deceased and child was over age 35. child may appoint he principal of hisher trust to Leon's issue. - Unappointed assets will pass to child's issue. subject to lifetime trusts. 2011 Trust Hat Joshua M. Black $ 69.904.750 2011 Trust MAO Alexander S. Black $ 69.904.750 2011 Trust fibto Victoria R. Black $ 69.934.750 Page 15 of 26 EFTA00602626 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Leon D. Black 1999 Life Insurance Trust #2 Flow Chart - Following Debra's Death Trustees: Barry Cohen. John Hannan and Richard Ressler 1999 Trusts l,b o Benjamin E. Black $ 25.001003 1999 Life Insurance Trust 92 Combined Death Benefit: $ 100.000.000 Upon the death of the survivor of Leon and Debra. Trust principal is divided into separate trusts: one for each of Leon's children. 1 Prior to age 21. Trustee has discretion to pay the child income. 2 After age 21. child receives all trust income quarterly. 3 The Trustee has broad discretion to pay principal to the child. 4 Each child's trust terminates 21 years after the death of the survivor of: - Leon. Debra and their issue living on 9/13/99. 5 Child has a testamentary power to appoint the trust to his/her issue. - Asset not appointed will pass to the child's issue. 1999 Trusts l,b/o Joshua M. Black 1999 Trusts Mb Alexander S. Black $ 25.000.000 1999 Trusts Mato Victoria R. Black $ 25.000.000 Page 16 of 26 EFTA00602627 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Debra and Leon D. Black Life Insurance Trust Flow Chart - Following Debra's Death Trustee: Barry Cohen 1992 Trust Maio Benjamin E. Black $ 5.000.000 1992 Life Insurance Trust Death Benefit: 20.000.063 1. Upon the death of the survivor of Debra and Leon. Trust is divide into separate trusts: one for each of Leon's children. 1 Prior to age 25. Trustees has discretion to pay the child income. 2 Alter age 25. the child receives all trust income quarterly. 3 Trustee has broad discretion to pay principal to the child. 4 Trustee is authorized (il deemed advisable) to distrizute principal: - 1/4th at age 30; - another 1/3rd at age 35: - another 1/2 at age 40: and - the balance of the child's trust principal at age 45. 5 II the chill dies prior to age 45. assets will pass to the child's issue. subject to trust until age 45. .1 1992 Trust l/b/o Joshua M. Black 5.000.000 1992 Trust 1:1a,o Alexander S. Slack 5.090.000 1992 Trust Maio Victoria R. Black $ 5.000.000 Page 17 of 26 EFTA00602628 Leon D. and Debra R. Black Overview of Estate Plan Black Family 1997 CST•Exempt Trust Flow Chart - Following Debra's Death Trustees: Barry Cohen. John Hannan and Richard Ressler Separate TrusI Irb o Benjamin E. Black 1.503.351 Black Family 1997 CST-Exempt Trust Trust Assets (Net of Liabalies) 3.007.000 Added won Debra's death GST Marital Trust 1.640.000 Debra's GST Bequest 1.166.404 Total 6,013.404 Upon the death of the survivor of Leon and Debra. trust principal is divided :Ito separate trusts: one for each of Leon's children. 1 The Independent Trustees have discretion to pay income and principal to the child. 2 After age 25. ctild can urilhdraw up to 3% of the priicipal of the ctilds trust and can appoint the principal at death to anyone (except his/her creditors or estate). 3 After age 35. Trustees are requested to pay 10% of the principal of the child's trust to the child. 4 The child's trust terminates at the child's death. Any properly not appointed will pass to the child's issue(subject to a continuing trust). Separate Trust Itto Joshua U. Black 1.503.351 Separate Trust 1143 Alexander S. Black 1.503.351 Separate Trust flab Victoria R. Black S 1.503.351 Page 18 of 26 EFTA00602629 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Mallory Trust Flow Chart - Following Debra's Death Trustee: Richard Ressler Trustees: After age 35. a child can be co-Trustee of hislher separate Trust. Trust f/b/o Benjamin Eli Black 1.031 000 Mallory Trust Assets $ .1.124.000 1 Upon the death of the survivor of Leon and Debra. any properly not appointed by Leon at his death will be divided into per shrplal shares for Debra's descendants. 1. Each share for a descendant of Debra will be held in a separate Trust for the lifetime of the beneficiary: - The Independent Trustee must distribute income and principal needed for the beneficiary's health, education. support and maintenance. - The Independent Trustees also has broad discretion to distrbute income and principal to the beneficiary for any purpose. - Alter age 35. the beneficiary may appoint income and principal among Debra descendants. 2. Al the beneficiarys death: The beneficiary's Trust will terminate and will be distributed as the beneficiary appoints. Any property not appointed will be distributed to his/her descendants. subject to the same trust terms. 4, Trust 1,I:Jo Joshua Max Black 1.031.000 Trust libeo Alexander S. Black 1.031.000 Trust fit* Victoria R. Black 1.031.000 Page 19 of 26 EFTA00602630 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Dietribunons to anldren and Cbaritable Inalitutions Upon Leon's/Debra's Death Paeuly 4041M'ee• 440cm [oats goon &sat Leanne %m.'9 Pronhaens Dean On» Bentsmin £6 Black APO, Aormneng Tom POI tile 350.069.520 APO 2 oxiaraeon Trust km UM 156.644.250 1992 tntneranco Ina That tel ago 45 5000.000 999 Immense Dust 22 Trued lei tile 25.000.000 Her9190 4M9 leoacy Trust Trued lei tile 183.193.329 1997 OST Excerpt Trutt Inst Image 751.601 751.750 Black 2011 Faindi Trust Inst kw Uto 63904.750 mummy Trued Truel lei tile 1.031.000 Taricit4.40v1rOM from Debra's EMU* Out" 18.9143.0)0 Josh» SW Sink APOI Afle~seil Trum lei Life 350.092.520 AP02 Decieretion Trued tor tile 155.844250 1992 Insurance Trust Testurel age 45 5.000.000 1999 Insurance Trust 22 Trust kw Lilo • 25.000.CCO Herbs, ardLeOsey Tai Tai kw tile 183.193.329 1997 OST &lea Thai %el kw UM 751.601 751.750 Mack 2011 FAN), Trust Ins kw the 69.904.750 Mancry Trust Trust loft" 1.041.09 Teruel°, OW, gel from DOIXAS Wale Calsktil 18943= • Alexander S. Bloc* APO' Newrem Ins kw the AP02 Dechaehon Twin le, tile 155.844.250 1982 Peon«. Twat Thai teal age 45 - 5.000.000 1999 Insurance Innt 12 Ins kw the 25.000.000 ~Wm ard Legacy Trust Ins loft" 123.193.329 497 OST Etta« Truet Tom 101 tile 751.601 751.750 Buck 2011 Femfil/ Trust 'hum lei tile 69.901.750 Moiety Trust Trust long* 1.031.CCO Tamedbias OutneN from Dotas Estate ~gel 16913.000 Herod& A =MA • *POI Arstemom Trust tort" AP02 Ooclarabon Trust tort" 1992 Innance flust Truet sel age 45 1999 Imams« Nut 22 Trutd lei tile Honig. am Looney Trust Ins tort" 1997 G51 Emmet Trutt Trust lor the Clock 2011 Fesnik. Dust Tom lei tile misery Trued Tom lei tile Talgbles Outright from Detas. Este» Ø44a 156.644.250 5.000.000 25.000.000 123,193,329 751.601 751.750 69.904.750 1.031.000 14913.000 AA Pnagoci to M.doumr. Dartmouth Pto0a* lomm ettlø‘FernlyFemimmee S 10.731.000 $ 24.533.600 S 19.129.000 $ 28.447£00 Eit"Ited Tares and Expense Fedora, Estate fax New Ton 28~ Tax acimresiretOm Expense Capra, Gans Tax LaMillos 5 6012.000 $ 541.210290 2.809.0.8 257.126" 5.000.000 3,433£00 576210.920 541432.000 1.691.734000 £POI Trust reduced by MK ~lateens lax pad on Lacers death 4011110Spocl lo IN> 51.638.667.370 Maffei» loonassumed le have e sue bows. S 808 302,200 Is 808 302,200 808302.200 I Is 808,302.200 15 ta,ssomn I IS 3.622.I71.7a4J $ 6.944221.133 Page 20 of 26 EFTA00602631 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Black Family Partners • Financial Inventory Detail as of April 16, 2014 Cash U.S. Trust Cash Account S 8.789.000 JP Morgan Cash Account 1.525.000 Marketable Securities Lone Cascade LP 35.075.000 Mlenniurn Group USA LP 23.567.000 Canyon Value Realization Fund LP 18.604.000 Anchorage Capital Partners LP 17.394.000 FCI Co-Invest II (A) LP 12.041.000 AINV shs dist Jr AIC 5.016.181 King Street Capital LP 49.000 Environmental Solutions Worldwide 4.000 Illiquid Assets Investment Partnerships: Knowledge Universe LP 33.771.000 Sustainable Woodlands LP 19.090.000 HAO Capital Fund LP 3.141.000 Wolfensohn Capital Partners LP 2.067.000 iCrete LLC 1.501.000 Tenfore Hadings Fund I LP 494.000 Rally Labs 188.000 44% Interest BRH Hfclgs 2.588.479.000 Acta Co-Invest VI (A) LLC 38.075.000 Acta Value Co-Invest LLC 8.052.000 Acta Co-Invest V LLC 3.551.000 SOMA Co-Invest LLC 3.063.000 Apolo Co-Invest III LLC 2.151.000 AP Alternative Assets LP 933.000 Apoba Co-Invest IV LLC 539.000 T-Ink. Inc. 100.000 Convertible Promissory Note- ESWW 2.941.000 Credit Una - Phaidon Global 8.600.000 TRA Dividend - July 2007 Transaction 83.946.000 Note due from LDB 42.000,000 Note due from Narrows Hldgs 25.000.003 Note due from PLB LLC 3.200.000 Total Assets (Undiscounted) 2,992,946,181 (897.883254) Total Assets (Discounted) a $ 2,095,062.327 Page 21 of 26 EFTA00602632 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Includible Portion of APO GRATs as of April 16, 2014: Includible Value of APO GRATs APO1 GRAT $ 789,069,292 APO1 GRAT No. 2 691,093,551 APO1 GRAT No. 3 120,168,025 Total $ 1,600,330,868 Rounded Value: I $ 1,600,331,000 Page 22 of 26 EFTA00602633 Leon D. and Debra R. Black Overview of Estate Plan Personal Real Estate--Financial Inventory As of April 16, 2014 Debra Total Leon Jointly Owned Residences 760 Park Avenue, NY. NY 750 Park Avenue, NY, NY 5226 E. Desert Vista Rd. AZ 766 Meadow Lane and 3rd Parcel, Southampton, NY 190 and 200 Narrows Road, Bedford, NY Total Jointly Owned $10,000,000 500,000 1,000,000 16,700,000 10,000,000 $10.000.000 500,000 1,000,000 16,700,000 10,000,000 $20.000.000 1,000,000 2,000,000 33,400,000 20,000,000 38200,000 38,200,000 76,400,000 Individually Owned Residences 3rd Parcel Narrows Road. Bedford. NY' 750 Meadow Lane, Southampton, NY" Total Individually Owned 16,600.000 10,000,000 10,000,000 16.600.000 16,600,000 10,000,000 26,600,000 Total Personal Real Estate $54.800.000 $48.200.000 $103.000.000 Total Liabilities Net Value L$54,800,000 $ 48.200,000 $ 103,000,000 'Allocates $30 million value equally among the three Narrows Road parcels. "Allocates $50 million value equally among the three Meadow Lane parcels Page 23 of 26 EFTA00602634 Leon D. and Debra R. Black Overview of Estate Plan APO1 Agreement - Financial Inventory As of April 16, 2014 Assets Cash and Marketable Securities 12,298,000 Apollo Credit Opportunities 40,838,000 Note Receivable From Leon D. Black 1,694,738,000 Note Receivable From APO2 Declaration 86,436,000 Art 142,231,000 Total Assets $ 1,976,541,000 Includes assets held through LBF Holdings LLC Page 24 of 26 EFTA00602635 Leon D. and Debra R. Black Overview of Estate Plan APO2 Declaration - Financial Inventory As of April 16, 2014 Illiquid Assets Cash & Marketable Securities Black Family Partners LP (12.55%)* - DISCOUNT 30% Investment Partnerships - Various Apollo Related Investments Other Assets 16,851,000 262,926,000 5,088,000 889,000 298,000 Art 348.899,000 Phaidon Investment - AT COST 54,000,000 SH Meadow Lane LLC 8,312,000 101 Warren Street LLC 3,500,000 OFH LLC - NET VALUE 8.250.000 Total Assets $ 709 013 000 Net Assets *Rounded Note Payable to APO1 Agreement (86,436,000) $ 622,577,000 Page 25 of 26 EFTA00602636 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 LDB 2011 LLC - Financial Inventory Detail Assets Cash and Marketable Securities $ 24.779.000 Illiquid Assets Black Family Partners LP (7.2%)" - DISCOUNT 30% 150.185.000 Apollo Related Investments 19.827.000 Investment Partnerships 2.394.000 Art 72.750.000 Phaidon Global - AT COST 10.000.000 Total Assets $ 279,935,000 Liabilities Liabilities (316.164) Total Liabilities $ (316,164) Net Value of Trust $ 279,618,836 $ 279,619,000 Rounded Value: 'Rounded Page 26 of 26 EFTA00602637