Split-Interest Purchase: Comparison of

Split-Interest Purchase: Comparison of Single Life Estate and Successive Life Estates Siu le Life Estate Successive Life Estates Share of Purchase Price Life Interest: 32.867% Trust: 67.133% Life Interests: 42.290% (allocation between LDB and DRB to be actuarially determined) Trust: 57.710% Advantages • Residence is encumbered by life estate for shorter period • Additional planning flexibility after LDB's death e.g., Trustees may (but are not required to) charge DRB rent, thereby reducing her estate • Reduces share of purchase price borne by trust • DRB's right to continue to use residences upon LDB's death is assured Other Considerations • DRB's right to continue to use residence subject to Trustee determination • Determining share of purchase price borne by each successive life estate may require retaining an actuary • DRB must pay for her interest using independent funds Dock USI:9464301 v 1 EFTA00584335