For Producer or Broker/Dealer Use Only. Not for Public Distribution. Spousal Lifetime Access Trusts Transferring Wealth and Retaining Spousal Access

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Agenda Consider MetLife for your next Spousal Lifetime Access Trust Case studies and action plan What is a Spousal Lifetime Access Trust and how does it work? Identify potential clients and their concerns This document is designed to provide introductory information on the subject matter. MetLife does not provide tax or legal advice. Clients should consult their attorney and/or tax advisor before making financial investment or planning decisions.

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Identify Potential Clients & Concerns

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Do you Know this Client? Married couple with solid relationship Significant retirement assets; potential for taxable estate Age 45 or older Shared wealth transfer goals Insurable

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Clients With Potential Transfer Tax Exposure Federal estate/gift tax on estates over $5 M per person (indexed for inflation after 2011) Residents of certain states with inheritance taxes or states which have decoupled Clients with highly appreciating assets Individuals expecting additional inheritances (resulting in a total estate over the basic exclusion amount)

For Producer or Broker/Dealer Use Only. Not for Public Distribution. The Concern I want to create a plan to efficiently transfer wealth to loved ones, but I don’t want my spouse to lose access to these assets should unanticipated future income needs arise. efficiently transfer wealth access to these assets

For Producer or Broker/Dealer Use Only. Not for Public Distribution. The Issue Traditional wealth transfer plans force clients to permanently relinquish access to the assets they transfer. Fear surrounding future income needs prevents action. permanently relinquish access Fear prevents action

For Producer or Broker/Dealer Use Only. Not for Public Distribution. The Spousal Lifetime Access Trust Strategy

For Producer or Broker/Dealer Use Only. Not for Public Distribution. What is a Spousal Lifetime Access Trust? A specially designed Irrevocable Life Insurance Trust (ILIT) which allows the trustee to access the policy’s cash value and death benefit for the non-donor spouse. 1 allows access for the non-donor spouse 1 Loans and withdrawals will decrease the cash value and death benefit. Tax-favored distributions assume that the life insurance policy is properly structured, is not a Modified Endowment ontract (MEC), and distributions are made up to the cost basis and policy loans thereafter. If the policy has not performed as expected and to avoid a policy lapse, distributions may need to be reduced, stopped and/or premium payments may need to be resumed. Should the policy lapse or be surrendered prior to the death of the insured, there may be tax consequences.

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Tax Free Death Benefits Gift Tax Free Death Benefits Income Death Benefit Premiums Non-Donor Beneficiaries Insured/ Donor Life Insurance SLAT SLAT: How it Works

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Gifting Issues to Consider with Spousal Lifetime Access Trusts Limit gifts to separately owned property Gifts of community property may cause inclusion in beneficiary spouse’s estate Qualified estate planning attorney is essential

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Insurance Issues to Consider with Spousal Lifetime Access Trusts Single life on donor spouse Survivorship policies

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Provide Client Personalized Illustration and Product Prospectus 5 1 Discuss Wealth Transfer Goals with Client 2 Inventory Current assets and their Ownership 3 Evaluate Potential to Make Gifts to the Trust and Life Insurance Needs 4 Determine Premium Amount 6 Initiate Underwriting and Application Process Discuss wealth transfer goals with client Inventory current assets and their ownership Evaluate potential to make gifts to the trust and life insurance needs Determine premium amount Provide client personalized illustration and product prospectus Client will meet w/their independent legal counsel to discuss trust terms and draft document 7 Client will meet w/their indep. legal counsel to discuss trust terms and draft document Initiate underwriting and application process Implementing the Strategy

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Case Studies & Action Plan

For Producer or Broker/Dealer Use Only. Not for Public Distribution. FOR BROKER/DEALER USE ONLY. NOT FOR USE WITH GENERAL PUBLIC Case Study Ages: both 55 2 Grandchildren: Ages 8 and 5 Steve’s Assets: $1 M inheritance Goal: Use inheritance to provide for Lauren, but preserve assets for Meghan if needed Meet Steve and Meghan Hypothetical example. For illustrative purposes only. 1 Child: Lauren (divorced)

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Proposed Strategy: Reposition the inheritance to a SLAT 2 Steve’s inheritance Death benefit at Steve’s death (age 85) Remaining inheritance within trust Amount left for beneficiaries (gross) Amount subject to estate tax Net to trust beneficiaries $ 1,000,000 $ 1,749,166 $ 4,116,477 $ 0 $ 4,116,477 $ 2,367,311 2 Example assumes Steve allocates $1M of his federal gift tax exclusion amount to the initial transfer. This will serve to reduce the amount of federal estate tax applicable exclusion amount available at his death. Assumes the policy’s subaccounts earn an average rate of return of 7% (6.26% after policy fees and expenses). This hypothetical example is illustrative only and should not be considered a representation of past or future investment results. Actual investment results may be more or less than those shown and will depend on a number of factors.

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Benefits to Your Clients May serve to reduce transfer taxes Tax deferred growth of policy cash value Provides for distributions to the non-donor spouse 3 should unforeseen needs arise Trust provisions and ownership may help shield assets from potential liabilities 4 Variable life insurance policies have professionally managed investment options and allow for income tax free rebalancing 3 Distributions from a SLAT should not be available to discharge any support obligation of the insured/grantor. SLATs should be drafted with care to avoid unintended tax consequences. It is important to confer with your independent tax and legal advisors regarding the use of this technique. 4 Creditor protection laws vary dependent upon governing federal and state law. The applicability of such laws also depend on the terms of the trust. One should be sure to confer with their independent tax and legal advisors prior to establishing a trust for this purpose.

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Benefits to You Strengthens client relationships May uncover additional assets May introduce you to the next generation Increases opportunities for life insurance sales

For Producer or Broker/Dealer Use Only. Not for Public Distribution. 5 Establish Spousal Lifetime Access Trust Identify Trustee Detail Desired Trust Provisions Fund Trust Using Annual Gift Tax Exclusions and GSTT Lifetime Credit 7 Initiate Underwriting and Application Process Determine Premium Amount and policy type Provide Client Personalized Illustration and Product Prospectus 6 Inventory Current Assets and their Ownership 4 Schedule Time for Client Meetings and Discuss Approach 3 Discuss Wealth Transfer Goals with Client and life insurance needs Schedule Time for Client Meetings 2 Identify and Qualify Clients 1 Action Plan Client’s attorney will draft the Spousal Lifetime Access Trust Identify trustee Detail desired trust provisions Initiate underwriting and application process Identify and qualify clients Schedule time for client meetings Discuss wealth transfer goals with client and life insurance needs Inventory current assets and their ownership Determine premium amount and policy type Provide client personalized illustration and appropriate prospectuses if necessary

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Estate Tax Disclosure This material and any estate, gift or generation skipping transfer (GST) tax (together referred to as “transfer tax”) calculations reflect the law established under the American Taxpayer Relief Act of 2012 (ATRA). Among other things, ATRA establishes a transfer tax exemption amount of $5,000,000 in 2011 (adjusted for inflation thereafter) per person, establishes a maximum transfer tax rate of 40% and provides for continuing portability of the estate tax exemption between spouses. Customers should understand that tax law is always subject to interpretation and change. MetLife and its affiliates do not provide tax advice and therefore customers should speak with their qualified legal and tax counsel regarding their current estate plan and what planning options are available and appropriate.

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Important Information Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. Clients should seek advice based on their particular circumstances from an independent tax advisor. MetLife, its agents and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. Clients should consult with and rely on their own independent legal and tax advisers regarding their particular set of facts and circumstances. Prospectuses for Equity Advantage Variable Universal Life, and for the investment portfolios offered thereunder, are available from MetLife. The policy prospectus contains information about the policy’s features, risks, charges and expenses. The investment objectives, risks and policies of the investment options, as well as other information about the investment options, are described in their respective prospectuses. Clients should thoroughly read each prospectus and consider the investment objectives, contract features, risks, charges and expenses of the investment company information carefully before investing. Product availability and features may vary by state. MetLife life insurance policies have limitations, exclusions, charges, termination provisions and terms for keeping them in force. There is no guarantee that any of the variable investment options in this product will meet its stated goals or objectives. The cash value is subject to market fluctuations so that, when withdrawn, it may be worth more or less than its original value. Guarantees are subject to the claims paying ability and financial strength of the issuing insurance company. Equity Advantage Variable Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E and in New York only, by Metropolitan Life Insurance Company on Policy Form 1E NY-1. Variable products are distributed by MetLife Investors Distribution Company (member FINRA). All are MetLife companies. BDVL23132 L [0415] © 2013 METLIFE, INC. PEANUTS © 2013 Peanuts Worldwide Insurance Products Are: Not A Deposit Not FDIC-Insured Not Insured By Any Federal Government Agency Not Guaranteed By Any Bank Or Credit Union May Go Down In Value And in New York by: Metropolitan Life Insurance Company First MetLife Investors Insurance Company 200 Park Avenue New York, NY Life insurance products are issued by: MetLife Investors USA Insurance Company 5 Park Plaza, Suite 1900 Irvine, CA 92614