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Control A personal trust is the most precise tool available for defining your legacy. For example, a personal trust enables you to establish tax-advantaged charitable plans that can both benefit your family and support your selected charities. Savings Federal estate taxes may claim a significant portion of your estate. Personal trust strategies can significantly reduce estate taxes, allowing more of your wealth to be transferred to your beneficiaries. With careful tax planning, a personal trust can increase the longevity of your trust and its assets. Planning Trusts can specify varying benefits based on generations—you can elect to fund your grandchildren's education or protect against concerns you might have about your heirs' ability to properly manage an inheritance. Privacy Probate makes your wealth public record. A personal trust can be a tool to avoid public disclosure, maximize confidentiality, and minimize the expense and potential delays that can come from probate. Protection Certain trusts may help protect you and your family members in the event of litigation, business reversals or financial difficulties. Trusts may also provide protection in the event of medical incapacity, divorce or other personal challenges. Select the right structure for your trust. Here's how. Establishing your trust requires a number of structural decisions. Identifying the right trustee is a key first step. The effective administration of a trust requires objectivity and diligence. Although you may decide to designate a family member or close friend as trustee, remember that reliance on personal relationships can both undermine the effectiveness of your planning and damage relationships among your beneficiaries. Trustee responsibilities and best practices Custody assets • Title accounts in trust's name • Use a bank or trust company to provide custody of assets Investments • Prudently invest and review periodically • Consider income, principal growth and risk • Consider using an investment advisor • Be bound to fiduciary duty—treat all beneficiaries fairly Bookkeeping and taxes • Keep accurate records and retain financial statements • Maintain distinction of income and principal • Prepare, file and keep copies of income tax returns • Provide reports and tax information to beneficiaries (Form K-1) Make distributions (income and/or principal) • Follow the trust instrument • Exercise discretion and due diligence when evaluating beneficiaries' needs • Balance the needs of multiple beneficiaries Pay expenses 3 Trusts can accomplishmany goals for your family: Avoiding probate Keeping your wealth within your family Reduction of tax liabilities Protecting assets from creditors and bad marriages Gifting in support of groups, individuals and institutions Maintaining control over the assets you gift

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