Estate Planning Overview

Estate Planning Overview Presented to: Leon D. and Debra R. Black Overview of Estate Plan September 4, 2013 Nancy A. Kistner, CFP® Managing Director s Advisor Stevon L. Forrester, CFP® Vice President Associate Wealth Strategies Advisor U.S. Trust, Bank of America Private Wealth Management 114 West 47th Street New York, New York 10036 EFTA01088456 Leon D. and Debra R. Black Overview of Estate Plan Statement of Disclosure Investment product* nab ø rtoeb. bonds and mutual fund& Are Not FDIC Insured May Lose Value Are Not Bank Guaranteed PORTANT: This brief summary is for dismission purpien only. It dom pen comainlepl, lax. inwatmen or insurance advise and cannot bereliedupon for implementation andior prondion from penitim. The pendant of your estate plartang documents wfil govern the dbposquinayour aide. Alain'sconsul' nth your Independent attorney and lax ashy.): for legal and tax aditie. IMPORTANT: These proyntoos ate estimates only and axe lured onconstantly chseignig miumplioni. Your rand results may he halo or man. longterm financial P"">" can" he ande nth any attain...and4a never guaranteed Alnys Conseil with your independent anon: and lin advisor for kyl and In advice. I RS Circular asp Disclosure: ruining to IRS Roplationg we Inbrom you that any rah advice contained in Ilan commuranar including any atrachmentaric not intended or swain to he used. and canna he used by en person or entity for the purpose dirt avoiding lax related penalties imposed* any prternmental In ~hock' or agency. or 60promoting. marketingor recommendort lo dasher parry any transactionor maller &eland herein. We advise yore to smult with Jr, inchtxndent tax advisor on ywr podede tat nresoahneet- Invartment products and services may bemodern throw& a ichilionsho manned lei U.S.Tha. Burk or Amerka Private Weabh Mangano'. or through a relationship nth Mardi Lynch Pktte. Fenner aa Smith 1ra~ 1,n1 Certain U.B. Inn amnions Me wakened icpresenletlas wan Merrill Lynch. Pierce. homer & Saar incorporated and may assist you nth innamen modals era mans provided through Metal Lynch. Piercerennet Smith Inemportend and rah« subsidiaries of Bank of Amara Cortionlion However, US. Trust domino, manage invesimmis held al Merril OWLPierce, Fenners Smith Ineorponited and »MI mundbal your icpresenlatIve to ran anon on the Miradart Individual ireinenies you dratwill trade ln your overall portfolio being eland tea manner which may Mar from this report. In addition. tine materials may dismiss swain demean egan individuate overall fmmuvvl profile bor whin neither VS/frost meMerril Lynch. Pierce, Fenner & Smith lama-slid van as anadvisor. Merrell Lynch, Pierce, Fenner Sr Smith Incorporated ia a registeredbroker-dealer. member FILARA and SIPC.and a wholly sward aobridary ol Bank «America Corporation. Merrill Lynch, Pierce. Fenner &Smith Inc.:emend &es na arena< alas et Ind udrør. Several pentads such as mutual funds. variable annuities, and «her aliernuive investments that may be merdioned as an instalment alternative fa you are only to be sin awn preceded acompanied by-acumen prosportus grata (Mang incenorand• The poineetus and/ors:Meting memoranda provide more ampler, ingirmallon on the product. IndudIngshargn. canvas and wend ininamen ring and should be read carefully before Ossining The following report is for fiduciary me only. The associate presenting thu report to you nadir.* MOM his or her fiduciary capacity with US. Trust. not mini hil or her teemedcapacity. if any. with Merrill Lynch, Inca. Fenner &Smith Incorporated. The informator and data in the &Boninreport were obiained from sonnet darned nibble Their accuracy and nmplenness are not guaranteed. and the skint «Se same rs not ~idea offer er £0111tUR~ for the puritan or sae of seaman. This report attempts to measure a partnilas uldherse of invennints by averaging the perfornimee of all sauna% m the Index Thelake rimy be a usefulMa but Ism no way representative o(pest Performance of a parlitubr fond or saucily. and is not represadathe of any forum Prtdrennixe Jany pmtimhrinsesrment BwomPtionsidnceininX infinien Or tax Mtn nn' anfinntiW purposes only and are not intended to ',went COPTOMiC yerformense. asset or portfolio smarts ard/ur ruurne shown or used in this report "I" intended to pladret rtir guarantee the actual Midis Man invecimeni product. Investor% may in Inner dually man index. This report is • preliminary analyske and nor tramway the tactical fulfillment a isiommendations. ThIs minter Is for diuslrelne andeducational purposes and has banprepaid solely to atnit in the review ortient investment Artnniives you Mould some& approprtue kgal and/or lax advises" and thenconing your reprtientatia loran appropriate nest Mt'.. This report does not constitute IePI, intimating or esteri witness atIske lino choose lo folios an investment nano set forth in the (olioning report) ~aiming °frier wedelnmay reach in Ort consequences. Again the anents ol this pimunairon should nat beaded upon althea consancei appropriate Irgal and/or lax uhlsors. AU tax calculations herein are meray unmans and should nitre tried upon for cletakd tax planning paptsta All Income taws we hand on But sex rams and do cot take all diederailsan slates insane lay Inn into account. TAM analyaks Is hasedon the calendar nary All assets and hablins are snail al the end of each year. Maths are alsoassumed to maw at the cod oleo& ynir. For the ILO venr of the annyint only. annual alarm are primaltd on adsdybasis. U.S.'fruse. Bank ofAMerka Private Wed& Management operates through Bath of Anent% ffi »clothe 'obsidian/. of Hank of Anima Oorpotann. Bank of Anietice.W. Manlier FDIC. 1 ,2011 Bank of Mania Capetian. All rights resit-ed. Page 2 of 15 EFTA01088457 Leon D. and Debra R. Black Overview of Estate Plan Inventory of Family Assets as of August 16,2013 Liquid Assets - Investment Accounts U.S. Trust Cash Account JPM Cash/Marketable Securities Investments Works of Art-held through Art Entities Collectibles (bronzes, rare books) Black Family Partners LP (80% interest) Various Investment Partnerships AP Alternative Assets AP Investment Europe Avionetta LLC (Leon's 50.1%) BJAV Marine Ltd. (Star/ire-yacht) Other-AIF IV Management Inc (split dollar tights) Real Estate - Personal Real Estate Tangible Personal Property Household Personal Property Automobiles $ 1.819.554 6.549.618 $ 1.720.975.389 360.728.062 1.813.688.290 2,720.424 13.854.962 24.684 12.525.000 25.000.000 23.167.731 103.000.000 $ 39.076.759 419.428 Total Personal Assets $ 4.123.549.901 Personal Liabilities Loan payable-Bank of America (secured by works of Art) Loan payable-Bank of America (Avionefa Hldgs - 50.196) Loan payable (Heritage Trust) Note Payable to Black Family Partners (440.000.000) (11.635.725) (1.638.667.370) (219.000.000) 2.309.303.095 Total Personal Liabilities $ Total Estate Assets $ 1.814.246.806 Non-Ineludible Trust Assets 1992 Life Insurance Trust (death benefit) 1999 Life Insurance Trusts (death benefit) Heritage Trust Black 2011 Family Trusts (LDB 2011 LLC) tilallory Trust Total Trust Assets 20 000.00) 150.000.000 2.509.537.000 284.800.000 4 003 000 $ 2.968.337.000 Total Family Assets $ 4.782.583.806 I Page 3 of 15 EFTA01088458 Leon D. and Debra R. Black Overview of Estate Plan Assumptions Exemption Amounts: Prior Taxable Gifts Available Unified Credit Amount Prior GST Exemption Allocation Available GST Exemption Amount Leon Debra $ 5,120.000 $ 5,000.000 $ 130,000 $ 250.000 $ 3,500.000 $ 4,000.000 $ 1,750.000 $ 1,250.000 Year Federal Estate Tax Exclusion & GST Exemption Amounts Federal Estate Tax Highest Federal Estate Highest New York Estate Credit Tax Rate Tax Rate 2013 5.250.000 $ 2.045.800 40% 16% Notes and Assumptions: • Leon and Debra are presumed to die in 2013 with Leon immediately predeceasing Debra. • Debra has transferred title to all residences to Leon as sole owner. • The Overview illustrates the decanting of the Black 2006 Family Trust and the Black Family 1997 Trust to the Heritage Trust. • 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 1% of Debra's gross estate. • Leon selected $200 million of art from his estate for each child's Legacy Trust and $100 million from the Heritage Trust for each child's Legacy Trust. • Valuation discounts totaling 30% are applied to the value of Black Family Partner. L.P. (•BFP') interests. • On Leon's death. BFP interests will be used to pay off the Notes to the Heritage Trust and to BFP: the yacht and art will be sold to repay the art loans. Art will be sold on Debra's death to pay estate tax. • The plane owned by Avionetta will be sold and the proceeds used to repay the loan from Bank of America. • The Overview does not reflect the split-dollar transaction. • The provisions of the Leon D. Black Insurance Trust #2 are assumed to be identical to the Leon D. Black Insurance Trust #1 dated September 13. 1999. • Judy Black was bom 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 4 of 15 EFTA01088459 Leon D. and Debra R. Black Overview of Estate Plan Estate Flow Chart Upon Leon's Death Executors: Debra Black. Barry Cohen and Richard Ressler Leon Black Gross Estate Probate Property Gross Estate 4.123.549.901 $ 4.123.549.901 Last Will and Testament Gross Estate Administration Expenses Charitable Pledges Total Personal Liabilities Residuary Estate Passes to Revocable Trust $ 4.123.549.901 (5.000400) (11.000.000) (2 309 303.095) $ 1.795.246.806 Trustees: Debra Black. Barry Cohen and Richard Ressler 1 L. B. Revocable Trust Agreement Residuary Estate: Art Entitles & collectibles to Marital Trust Bequests to Debra Bequest.Annuity (Melanie & Judy) NY Estate Tax Federal Estate Tax Balance of Revocable Trust Residue Passes to Marital Trust 1.795.216.806 (1.631.832.095) (60.196.187) (10.253.8561 (2.533.764) (6.380.901) 83.750.000 Marital Trusts GST Exempt Marital Trust Non-Exempt Marital Trust: Ad Entities & collectibles Residences Balance of Revocable Trust Residue Total Marital Trusts 1.750.000 1.631.832.095 82.000.000 0 1.715.582.095 Charitable Pledges Fractional Interest In Ad (owned with museums) Total $ 14.000.000 14.000.000 Tangibles Outright Bequest to Debra Tangible Property 39.496.181 Manhattan Apartments Outri • ht to Debra Manhattan Apartments Total 21.000.033 21.000.030 Cash Bequest Bequest to Melanie Spinelia Total Cash Legacies 3 3.000.033 3.000.033 Lifetime Annuity for Judy Black I Annuity Total Annuity 7.253 856 7.253 856 Page 5 of 15 EFTA01088460 Leon D. and Debra R. Black Overview of Estate Plan Estate Flow Chart Upon Debra's Death Trustees of Mental Trusts upon Debra's Peen: Barry Cohen and Rnyard Ressler Lifetime Annuity for Jon Ressler Annuity $ 8.484302 S 8.484302 Debra Black Marital Trusts (Under L. B. Revocable Trust) Total Marital Trusts Annuity for Jon Ressler Bequest of Art to Heritage Trust GST Exempt Martial Trust Bequest of Debra's GST Exempt Amount NY Estate Tex Federal Estate Tax Mental Trust Residue Passes to the Foundation 1,715,582.095 (8.494202) $ (800.1200.000) (1.750.000) (1.250600) (258.478.727) (564.865,326) 70.7527/0 Leon Black Family Foundation Non.Exerript Marital Trust Residue (Including residences) Debra's Revocable Trust Residue Total Added Upon Debra's Death: b 91411.82 70.753.740 20 65.8 037 Hesitate Trust GST Exempt Marital Trust Residue Debre's GST Exempt ArtIOLMIt Bequest Bequest of Art to Legacy Trusts Total Added Upon Debra's Death: V50 OCO I 250 OCO 830020 OCO 891090 OCO Debra Black Gross Estate Tangible Property Marino= Apartment: Net Proceeds :ate of Av'onetta 09.9'0 Gross Estate 39.496.187 21.030,000 88&725 It 612111.912 Last Will and Testament Gross Estate Administration Expenses (2%) Residuary Estate Passes to Revocable Trust S 8131)1.912 (1227.638) 80,154274 Revocable Trust Agreement of Debra Black Residuary Estate Tangibles to Children Revocable Trust Residue Passes to Foundation 60.154274 (23.49&187) 20.858,087 Tangibles Outright to Children in Equal Shares Tangible Property S 39 496 187 Page 6 of 15 EFTA01088461 Leon D. and Debra R. Black Overview of Estate Plan Estimated Estate Tax Calculations Leon's Gross Estate $ 4,123,549,901 Debra's Gross Estate $ 1,776,964,007 Less Deductions: Liabilities (2,309,303,095) Liabilities Administration Expenses (5,000,000) Administration Expenses (1,227,638) Charitable Deduction (14,000,000) Charitable Deduction (94,411,827) Marital Deduction (1,776,078,282) Marital Deduction Estimated New York Estate Tax (2,533,764) Estimated New York Estate Tax (268.478,727) Plus: Adjusted Taxable Gifts 5,120,000 Plus Adjusted Taxable Gifts 5.000,000 Taxable Estate $ 21,754,760 Taxable Estate $ 1,417,845,815 Tentative Federal Estate Tax 8,426,704 Tentative Federal Estate Tax a 566,911,126 Less Credits/Payments: Less Credits/Payments: Unified Credit (2.045.800) Unified Credit (2.045.800) Gift Taxes Paid Gift Taxes Paid Estimated Federal Estate Tax S 6.380.904 Estimated Federal Estate Tax S 564,865,326 Estimated New York Estate Tax Estimated New York Estate Tax $ 2,533,764 S 268.478,727 Total Estate Tax Due Upon Leon's Death Total Estate Tax Due Upon Debra's Death 8,914,668 833,344,053 Combined Federal Estate S 571,246,230 Combined State Estate Tax 271,012,491 Total Combined Estate Tax Page 7 of 15 EFTA01088462 Leon D. and Debra R. Black Overview of Estate Plan Debra's Assets Upon Leon's Death Assets Transferred Conveyed to Debra Upon Leon's Death Life Insurance Proceeds Outright Trust Manhattan Apartments 21.000.000 Residences 82,000.000 Tangible Personal Property 39.496.187 Artwork 1,631,832.095 GST-Exempt Marital Trust 1,750.000 $ 60.496.187 $ 1.715.582.095 Total $ 1,776,078,282 Additional Bequests Upon Leon's Death Annuity feblo Judy Total $ 7.253.856 S 7.253,856 Debra Black Financial Inventory Upon Leon's Death Outright Trust Avionetta Sale Proceeds 885.725 Manhattan Apartments & Residences 21,000,000 82.000,000 Tangible Personal Property 39,496,187 Artwork 1.631.832,095 GST-Exempt Marital Trust 1.750,000 $ 61,381,912 $ 1,715,582.095 Total (1) $ 1,776,964,007 (1) Assets will be included in Debra's estate for Federal and New York estate tax purposes. Page 8 of 15 EFTA01088463 Leon D. and Debra R. Black Overview of Estate Plan Heritage Trust Flow Chart - Following Debra's Death Trustees:Barry Cohen. Richard Ressler.John Beriarrrn Black Joshua Elbe. Anemic/ Black Trustees: Barry Cohen. Richard Ressler and John Hannan rid Maris Rae Heritage Trust Trust Assets (Net of Liablities) Added Opal Deere's Death: GST Exempt mares Trust Residue Debra GST Exempt Bequest Bequest of Art ki Legacy Trusts Tolar 2.509.637.000 1.750.000 1.250.000 600.000.000 5 3.312337.000 '1 Single 'Pot" Trust A singe Heritage Trust n created for Debra and Leon's descendants and foe separate Legacy Trusts are created (one for each of Leon's chicken). The Trustees nay distriusee income and principal to Debra and Leon's descendants. senect to the &Marin gudelnes outlined in the Trust Aweerrient After Leon's death, art and Colletbles held in the Heritage Trust designated for a particular chid wit be distrassed to such chides Legacy Trust Mier Debra's death. sielarly designated items in the Marital Trust al be disaibuiel to a chid§ Legacy Trust. After Leon's death the Trustees shall 6stribute the lotowing lo each chits Legacy Trust: 1 510 miler when the the attains age 30 (request it is used ft, acquire a prairie residence). 2 $50 miThe when the child attains age 35. 3 $1 00 mu nn when the child attains age 00. 0 After Debra's death. selected works of ad will pass to eachchild's Legacy Trust. If a child dies under age 40. the above amounts will be dvkled into shares for the chiles descendants and each share wit be led in a separate egacy Trust for each such descendant. 1 Separate Lega Trusts Owing the beneficiary's Be: 1 The Trustee may pay the income and raincoat n Me beneficiary subject to distribution guidelnes (Ihe descendants financial Winton. martlaldscord. creditor claims. pending Ramon or substance abuse). 2 Trustees are authorized to invest in a tuskless venture proposed by the beneficiary. so long as 4 is a career commsment. 3 After age 35. Ihe beneficiary is a eo-auslee of hither Legacy Trust Al the beneficiary§ death: A chid may by Wit appoint the remaining Trust repay among Leon's descendants and tag 10 SI 0 ninon b favor of a spo se. My properly not appointed will be divided ki equal shares for the beret: aryl eNklren. Legacy Trusts Mt Benjamin EH Black Artwork Cash Denbuton $ 300.000.000 160.000.000 Legacy Trusts bob Joshua Max Mack Artwork Cash Distribution 300.000.000 160.000.030 Legacy Trusts Ibb Alexander S. Black A; Mork 300.000.000 Gash Disuitution $ 160.000.000 Legacy Trusts libb Mania R. Black Mwork 300.000.000 Cash Oistribulico $ 160.000.000 Page 9 of 15 EFTA01088464 Leon D. and Debra R. Black Overview of Estate Plan 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 1.1:jo Benjamin Eli Black $ 71.200.000 Black 2011 Family Trust LDB 2011 LLC $ 284.800.000 4, 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: • If Leon and Debra are deceased and child was over age 35. child may appoint the principal of hisiher trust to Leon's issue. - Unappointed assets will pass to child's issue, subject to lifetime trusts. 2011 Trust 11:jo J shua Max Black $ 71.200.000 2011 Trust Lb/13 Alexander S. Black $ 71 200.000 2011 Trust Ibt Victoria R. Black $ 71.200.000 Page 10 of 15 EFTA01088465 Leon D. and Debra R. Black Overview of Estate Plan Leon D. Black Insurance Trusts #1 & #2 Flow Chart - Following Debra's Death Trustees: Norman Brownstein. then John Hannan 1999 Life Insurance Trusts #1 & ti2 Combined Death Benefit: $ 150.000.000 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 an 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 Silagg. 5 Child has a testamentary power to appoint the trust to hisiber issue. - Asset not appointed will pass to the child's issue. 1999 Trusts &bib Benjamin Eli Black 1999 Trusts liblo Joshua Max Black 1999 Trusts Mb Alexander S. Black 1999 Trusts Nab Victoria R. Black $ 37.500.000 $ 37.500.000 S 37.500.000 $ 37.500.000 Page 11 of 15 EFTA01088466 Leon D. and Debra R. Black Overview of Estate Plan Debra and Leon D. Black Life Insurance Trust Flow Chart - Following Debra's Death Trustee: Barry Cohen 1992 Trust halo Benjamin Eli Black $ 5.000.000 1992 Life Insurance Trust Death Benefit: $20,000,000 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 quavery. 3 Trustee has broad discretion to pay principal to the child. 4 Trustee is authorized (if deemed advisable) to distribute principal: - 114th 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 If the child dies prior to age 45. assets will pass to the child's issue. subject to trust until age 45. 1992 Trust Chro Joshua Max Black $ 5.000.000 1992 Trust I, tato Alexander S. Black 5.000.000 1992 Trust l/b/o Victoria R. Black $ 5.000.000 Page 12 of 15 EFTA01088467 Leon D. and Debra R. Black Overview of Estate Plan Mallory Trust Flow Chart - Following Debra's Death Trustee: Richard Ressler Trustees: After age 35. a child can be co•Trustee of his/her separate Trust. Trust I/b/o Benjamin Eli Black $ 1.000.000 Mallory Trust Assets 4.000.000 Upon the death of the survivor of Leon and Debra. any property not appointed by Leon at his death will be divided into per stirpital 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 distribute income and principal to the beneficiary for any purpose. After age 35. the beneficiary may appoint income and principal among Debra's descendants. 2. At the beneficiary's death: The beneficiary's Trust will terminate and will be distributed as the beneficiary appoints. My property not appointed will be distributed to hisiher descendants, subject to the same trust terms. Trust WA Joshua Max Black S 1.000.000 Trust ffrio Alexander S. Black S 1.000.000 Trust ebb) Victoria R. Black S 1.000.000 Page 13 of 15 EFTA01088468 Leon D. and Debra R. Black 2013 Estate Planning Overview Distributions to Children and the Black Family Foundation Upon Ikon's /Debra's Death Family BeoMmln Ell Black 1992 Insurance Trust 1999 Insurance Trusts Heritage Trust Legacy Trust Black 2011 Family Trust Mallory Trust Tangibles Outright from Debra's Estate Joshua Max Black 1992 Insurance Trust Trust until age 45 $ 1999 Insurance Trusts Trust tot Life Heritage Trust Trust tar Life Legacy Trust Trust tar Life Black 2011 Family mist Trust to Life Mallory Trust Trust to Life Tangibles Outnght from Debra's Estate Outright Alexander S. Black 1992 Insurance Trust Trust until age 45 $ 1999 Insurance Trusts Trust tot Life Heritage Trust Trust to Life Legacy Trust Trust la lie Black 2011 Famity Trust Trust la Life Mallory Trust Trust la Life Tangibles Cutnght from Debra's Estate Outright VIclotis R. Black 1992 Insurance Trust 1999 Insurance Trusts Heritage Trust Legacy Trust Black 2011 Family Trust Mallory Trust Tangibles Outnght from Debra's Estate Disposlove Provisions Upon Leon's Death Trust until age 45 S Trost tot Life Trust to Life Trust for Life Trust for Life Trust for Life Outright Trust until age 45 $ Trust la Life Trust to Life Trust tot Life Trust to Life Trust la Life Outright Won Debra's Death °Mame Planning - 5,000.000 37.500.000 750.000 285.450.882 200.000.000 260,000.000 71.200.000 1.000.000 9.874.047 - 5.000.000 37.500.000 750.000 285.450.882 200.000.000 260,000.000 71.200.000 1.000.000 9.874.047 - 5.000.000 37.500.000 750.000 285.450.882 200.000.000 260.000.000 71.200.000 1.000.000 9.874.047 - 5.000.000 37.500.000 750.000 285.450.882 200.000.000 260,000.000 71.200.000 1.000.000 9.874.047 Leon Black Family Foundation Estimated Taxes and Expenses Federal Estate Tax New York Estate Tax Administration Expenses Capital Oasis Liablibes $ 6,380,904 2.533.764 5030.000 327.733.474 2.309203.095 S 564.865.326 268.478.727 1.227.638 ' Heritage Trust reduced by 20% capital gains tax pall on Leon's death we respect to the $1.638.667.310 Note from Leon assumed to have a zero basis. $ 870.774,928 $ 870,774,928 S 870 771.926 $ 870.774,928 $ 91.411.827 3.485.522.928 Page 14 of 15 EFTA01088469 Leon D. and Debra R. Black Overview of Estate Plan Black Family Partners - Financial Inventory Detail as of August 16, 2013 Cash U.S. Trust Cash Account $ 25,286,165 Marketable Securities Lone Cascade LP 30,466,918 King Street Capital 7,904,371 AINV shs dist fr AIC 4,673,985 Anchorage Capital Partners 15,194,845 Millennium Group 22,088,415 Canyon Value Realization 17,004,148 Illiquid Assets Investment Partnerships: 60,545,660 HAO Capital Fund LP $ 3,474,855 iCrete LLC 1,335,310 Knowledge Universe 33,770,566 Wolfensohn Cap Ptrs 2,760,198 Sustainable Woodlands 18,854,065 Rally Labs 200,000 Northgate Holdings Fund I LP 150,666 44% Interest BRH Hldgs 2,689,087,814 Apollo Colnvest III 2,190,983 Apollo Colnvest IV 638,851 Apollo Colnvest V 7,526,626 Apollo Colnvest VI 46,050,974 Apollo Value Colnvest 7,690,678 SOMA Colnvest 2,673,890 AP Alternative Assets 604.766 Convertible Promissory Note-Rgenix 100.000 Note due from Heritage Trust 52.000.000 Note due from Narrows Hldgs 25,000.000 Note due from PLB LLC 3.000.000 Note due from LDB 219.000.000 Total Assets (Undiscounted) $ 3,238,729,089 Page 15 of 15 EFTA01088470