Presenter Name Presenter Title January 22, 2016 ©2007 Lincoln National Corporation LFD Planting seeds for the future Balancing retirement income security and wealth transfer

©2007 Lincoln National Corporation LFD Through a lifetime of hard work, planning and investing, you have built assets to use and enjoy. And while you may be primarily focused on securing your retirement income, planning your estate needs to be an integral part of that goal. By balancing these two goals, you can create a strategy that can both help you maintain your lifestyle as long as you live and ensure the remainder of your estate transfers to the those you care about most...

©2007 Lincoln National Corporation LFD Agenda The right balance Tools for managing and distributing wealth Steps to building an estate plan Will there be an estate tax Some planning solutions

©2007 Lincoln National Corporation LFD It begins with the right balance Variable expenses usually include travel, leisure activities, gifts, etc. Fixed expenses include mortgage/rent, utilities, monthly healthcare and prescription costs, and other regular and recurring bills. Wealth transfer is assets designated for your heirs or charity. Healthcare assets cover any expenses beyond routine prescriptions and doctors’ bills, such as an emergency and long-term care. Emergency/ opportunity funds are immediate cash for emergencies you may face or financial opportunities you want to explore. Income Management

©2007 Lincoln National Corporation LFD Tools for managing and distributing wealth Will Durable Power of Attorney and Health Care Directive Trusts Life Insurance Your Team

©2007 Lincoln National Corporation LFD Steps to building an estate plan Establish your goals

©2007 Lincoln National Corporation LFD Steps to building an estate plan Do the groundwork Establish your goals

©2007 Lincoln National Corporation LFD Steps to building an estate plan Account for liquidity Do the groundwork Establish your goals

©2007 Lincoln National Corporation LFD Steps to building an estate plan Account for liquidity Do the groundwork Establish your goals Focus on taxes

©2007 Lincoln National Corporation LFD Steps to building an estate plan Account for liquidity Do the groundwork Establish your goals Focus on taxes Plan for extending your legacy

©2007 Lincoln National Corporation LFD Will there be an estate tax? Year Exclusion Amount Minimum tax rate on Maximum tax rate 2006$2,000,00046% 2007$2,000,00045% 2008$2,000,00045% 2009$3,500,00045% 2010N/A 2011$1,000,00041%55% Federal estate tax exclusions and rates There are no federal estate taxes in On January 1, 2011, the tax law is scheduled to revert to the $1 million exclusion, unless legislation is enacted.

©2007 Lincoln National Corporation LFD Some planning solutions Survivorship Standby Trust Family Trust Purchasing Life Insurance Spousal Lifetime Access Trust

©2007 Lincoln National Corporation LFD Survivorship Standby Trust Trust Beneficiaries (i.e., children) Irrevocable Life Insurance Trust Owner During Husband’s Life At First Death Transfer of Policy (by Contract or Gift) At Survivor’s Death:

©2007 Lincoln National Corporation LFD Survivorship Standby Trust Taxation How to implement

©2007 Lincoln National Corporation LFD Family Trust Purchasing Life Insurance Life Insurance Company During Life of Surviving Spouse Spouse Receives income from marital trust, personal holdings, pensions, Social Security, etc. B Trust Trustee reallocates income-producing property and purchases life insurance or annuity with trust assets Children as Trust Beneficiaries Consider reducing or stopping income At Death Distributions Premiums Death Benefits

©2007 Lincoln National Corporation LFD Family Trust Purchasing Life Insurance Considerations for surviving spouse Considerations for beneficiaries Tax considerations How to implement

©2007 Lincoln National Corporation LFD Spousal Lifetime Access Trust Trust Beneficiaries (i.e., children) Irrevocable Life Insurance Trust Grantor (e.g., husband) Remainder Gift of Premium Distributions from Trust 5 & 5 Ascertainable Standard Sprinkling Power Grantor’s Spouse (e.g., wife)

©2007 Lincoln National Corporation LFD Spousal Lifetime Access Trust Considerations Taxation How to implement

©2007 Lincoln National Corporation LFD Planting seeds for the future

©2007 Lincoln National Corporation LFD Important disclosures. Please read. Insurance company products are issued by Lincoln Financial Group ® affiliates. Products and features are subject to state availability. This material was prepared to support the promotion and marketing of insurance company products. Lincoln Financial Group ® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein. ©2007 Lincoln National Corporation Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations.