EFTA01447444

LONGEVITY • INFRASTRUCTURE • KNOWLEDGE • INDEPENDENCE Optimizing Planned Gifts to a Private Foundation or Public Charity Private Placement Variable Annuity STRUCTURE CLIENT OBJECTIVES CLIENT PPVA INVESTMENT ACCOUNT IDF IDE ► Maximize the value to the charity ► Retain full control and ownership of earmarked assets ► Retain ability to change planned gift amount or terms at any time IDF IDF IDF INSURANCE-DEDICATED FUNDS GIFT TO CHARITY IDF PRIVATE PLACEMENT VARIABLE ANNUITY ("PPVA") INVESTMENT ACCOUNT IDF ► PPVA Investment Accounts accumulate on a tax-deferred basis. When money is withdrawn from a PPVA Investment account, deferred gains are subject to tax at ordinary income rates. ► If a private foundation or public charity is designated as the beneficiary of the PPVA Investment Account, deferred gains become fully exempt from income and estate taxes at the death of the annuitant. ► The cost of the tax-deferral is an annual annuity fee of 50 basis points?, charged monthly on the Net Asset Value. ► There are no K-ls. ► Bottom line: assets that would otherwise be transferred to the federal government in the form of income taxes will benefit the charity and its recipients. FUTURE VALUE OF A $25 MILLION INVESTMENT EARMARKED FOR CHARITY USING A TAXABLE INVESTMENT ACCOUNT VERSUS A PPVA INVESTMENT ACCOUNT ASSUMPTIONS ► 8.00% Net Return ► 75% STCG / Ordinary Income ► 25% LTCG $7SQM 5700M 5150M 5100m 550M SOM III Taxable IFIVeStrreelt AC(.00,11 (rIer 3e3 f.hantyi ■PPVA InveStirC,11ACrolurlt NeT 10 tharityl $51.4M 536.4M Year 10 $73.8M 549.9M $52.9M $105.8M 563.8M ■ 515t.sm 576.9M $217.7M *roar 15 ?Nat Yehrii Veal' 3t: 1. Pnsuse PlActenti VanabeeAresIcy rtMle i mutt an Pale M Ssoatasettatt,rtSt3at YarutaelaatoaccS nt3 with MOO tatht Se ranfit tempary. 2. weanowl arrue lee el SO NM pca-ss 33seo or SIS =list SWeadret Tne 'Mal fee ma wry%perarEcame tr•Snmen33,01,,303 Zre warsrcr cOmPari 3. Maires1 SP•Sif fare saw...entre, "f or 3.00k :eh'? eta fund m3earfsrt SMS sea S73 nMnmrtatmem in lamb* -t arn mox aar4A InntswnMmrt. 71% thealisal gar. ser tare n °aunty name nets. 21% al aulirod wort so tont se In Won coplul curs 'ate.. am .awithcia.1. an mint talon. ay. ESA Thin Is a iD3tanur ao errs a.ttcrivsk acmes' !roma 23'A lurvestinsrt Samna Mina, hA 4. Iamnetins hod muossmem kssaso rot133 wawa* in the Tas3bk wwstmen AQµel cumin 294 c Mitfroo, eta rc Sinitawic, coesai3•3 ;Gm las .0t a•CM2TIA mintnum Yrµrpows The 39VA lenment Wart enWel al feez and erg:poesy...a bosom eileconlyta. ceowewe lie ea it ISta 2%p1AGI beg S. Ta. Rite. Man,* 110003ral !Ai legiunorK 'Nike r...(330naly Warr. TO Rno OM 004•00 Capita:hi Met 1.• Rm. o!29 con Peogir;r4sy and CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL WINGED KEEL GROUP° DB-SDNY-0 102076 SDNY_GM_00248260 EFTA01447444