An Overview Guidefor IndividualsEstate PlanningA way to help keep the promises you made                                   ...
Contents                                          2 | A sound estate plan                                          3 | For...
We all make promises.We promise to keep our families safe and secure even after we’re gone. Wepromise to give our children...
A sound estate plan.Here are some of the more significant ways                      Liquidity to pay estate taxes.        ...
Forming an estate planning team.Estate planning is a team effort. It involves                      Life insurance coupled ...
Choosing the option that’s right for you.     Basic estate planning techniques*      Technique          Definition        ...
Advanced estate planning techniques utilizing trusts*      Technique          Definition                     Best Applicat...
Advanced estate planning techniques utilizing trusts*      Technique          Definition                 Best Application ...
Advanced estate planning techniques utilizing trusts* (continued)      Technique          Definition                Best A...
Other advanced estate planning techniques*         Technique         Definition                 Best Application         T...
Other advanced estate planning techniques* (continued)      Technique          Definition                  Best Applicatio...
The changing tax environment.The Tax Relief, Unemployment Insurance Reauthorization,            Effective Datesand Job Cre...
Tax rates and exemption equivalents      Calendar Year       Estate and GST Tax Deathtime Transfer Exemption              ...
Notes:12
MassMutual. We’ll help you get there.®                      There are many reasons to choose a life insurance company to h...
Estate Planning
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Estate Planning

  1. 1. An Overview Guidefor IndividualsEstate PlanningA way to help keep the promises you made Estate Planning Strategies
  2. 2. Contents 2 | A sound estate plan 3 | Forming an estate planning team 4 | Choosing the option that’s right for you 10 | The changing tax environmentThe Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (TaxRelief Act of 2010) extends the “sunset” provision contained in The Economic Growth and TaxRelief Reconciliation Act of 2001 (EGTRRA), which was to repeal the EGTRRA tax law changeson December 31, 2010, to December 31, 2012. Unless there is future legislation, the tax lawsaffected by the provisions of the Tax Relief Act of 2010 will revert on January 1, 2013 to theirstatus prior to EGTRRA; this affects income tax rates and deductions, as well as gift, estateand generation-skipping transfer tax rates and exemptions.This information represents our understanding of the federal gift and estate tax laws ascurrently interpreted. The information provided is not written or intended as specific tax orlegal advice and may not be relied on for purposes of avoiding any Federal tax penalties.MassMutual, its employees and representatives are not authorized to give tax or legaladvice. Individuals are encouraged to seek advice from their own tax or legal counsel.Individuals involved in the estate planning process should work with an estate planningteam, including their own personal legal or tax counsel.
  3. 3. We all make promises.We promise to keep our families safe and secure even after we’re gone. Wepromise to give our children all the benefits of our own success. We promiseourselves that their future will be free from financial worries.In essence, estate planning can be the single best way to make certain the promisesyou make are promises you keep.We all have goals we want to meet during our lifetime.The education of our children, a comfortable and financially secure retirement, andperhaps a new home or a second home.The first step of estate planning is to help you plan for – and realize – theselifetime goals. It addresses your legal and financial concerns, taking into accountyour goals and tax considerations. It also takes advantage of existing laws andfunding vehicles to save you on taxes and help manage your property in an efficientand profitable way during your lifetime.
  4. 4. A sound estate plan.Here are some of the more significant ways Liquidity to pay estate taxes. If your estate consists primarily of real estate, a business,estate planning can help you make certain or other non-liquid assets, your heirs could end up cashyour family will get as much of your estate poor – and be forced to sell assets in order to pay taxes.as is legally possible. Estate planning can help by reducing your estate tax liability. A solution is an estate plan that includes life insurance toMinimize estate taxes. address your estate liquidity needs.The federal government levies a substantial tax againstthe value of your estate. In addition, many states impose Protects your family’s income.their own separate tax at death on their residents and on How will the members of your family support themselvesnon-residents who own property within the taxing state. after you’re gone? A sound estate plan, including life insur-Just as important, that tax is due and payable before any ance for your beneficiaries’ financial protection, can makeproperty can be transferred to your beneficiaries. With a certain they will be taken care of.well-conceived estate plan, much – or even all – of this taxcould be avoided. Provides professional asset management. An estate plan that includes the creation of a trust can beThe Tax Relief, Unemployment Insurance Reauthorization, established to arrange for the professional management ofand Job Creation Act of 2010 (Tax Relief Act of 2010) your assets on your family’s behalf.extends the “sunset” provision contained in The EconomicGrowth and Tax Relief Reconciliation Act of 2001 Controls distribution of your estate.(EGTRRA), which was to repeal the EGTRRA tax law Will your assets be distributed the way you want them to?changes on December 31, 2010, to December 31, 2012. Your estate plan will make sure your wishes are met.Unless there is future legislation, the tax laws affected bythe provisions of the Tax Relief Act of 2010 will revert onJanuary 1, 2013 to their status prior to EGTRRA; this affectsincome tax rates and deductions, as well as gift, estate andgeneration-skipping transfer tax rates and exemptions.2
  5. 5. Forming an estate planning team.Estate planning is a team effort. It involves Life insurance coupled with an irrevocable life insurance trust can be even more advantageous for you, particularlythe talents and efforts of a number of if the joint assets of you and your spouse are worth moreprofessionals – people you respect and trust. than two times the applicable exclusion amount. (It is important to remember that while the estate tax exemptionFinancial Services Representative. is $5 million (per person) in 2011/2012, the estate taxAs a result of the unique features and tax advantages of life exempted amount in 2013 will return to the Pre-EGTRRAinsurance, your financial services representative is a key amount of $1 million unless changed by Congress beforemember of your estate planning team. that time.) This is the usual cut-off point where your heirs can, through proper estate planning, receive your assetsAttorney. without paying estate taxes.Your attorney would be responsible for makingsure that your intentions are carried out in legally An irrevocable life insurance trust offers severalenforceable documents. unique advantages: • The proceeds of the life insurance policy can beAccountant. insulated from estate taxes.Your accountant may provide tax advice and would be most • Life insurance proceeds can pass income tax-free tofamiliar with the extent and value of your assets. your beneficiaries.Bank trust officer. • The premium may be gifted to the trust, and thereby reduce the remaining taxable estate.If you have chosen to use a corporate trustee, you will wantto include the trust officer in your planning discussions. Since life insurance is such a vital part of your estate planning needs, you should make sure you work with aLife insurance and an irrevocable life company that is an established leader in the field, such as Massachusetts Mutual Life Insurance Companyinsurance trust can give you extra advantages. (MassMutual). Furthermore, MassMutual’s representativesLife insurance plays a critical role in estate planning. It are supported by a team of attorneys specializing in estateprovides cash to pay estate settlement expenses and taxes – and business planning, located in the home office.and it provides the capital to meet the financial needs of yourfamily. While it gives you the security of a death benefit, lifeinsurance can also be used to help you accumulate savings tosupplement your retirement income. 3
  6. 6. Choosing the option that’s right for you. Basic estate planning techniques* Technique Definition Best Application Tax Pros/Cons Other Advantages Other Concerns Will A legal instrument A valid Will is a The individual can Ensures property is Property passing through which an cornerstone of any maximize use of the disposed per individu- through a Will is individual disposes of estate plan. unlimited marital al’s wishes; allows subject to his/her property deduction and the individual to stipulate probate fees. at death. applicable exclusion guardian for minor amount. children. Durable A legal instrument Like the Will, the If specifically Allows the principal to Must adhere to laws of Power of granting power to durable power is a authorized in the designate who will act particular jurisdiction. Attorney another party to act on basic of all estate instrument, the person on his/her behalf the individual’s behalf. plans, and particularly given power of without probate court important with elderly attorney can make intervention should and disabled clients. gifts and reduce the he/she become principal’s estate. incapacitated. Life Insurance A contract that Life insurance is an Death benefit passes Life insurance can Balancing premium provides cash at the integral part of estate to the beneficiary free provide: family income payments against death of the insured; planning at all stages of income taxes and if in the event of other financial the contract may also of the individual’s owned correctly, will premature death of the obligations affecting provide for cash life cycle. not be included in the individual and/or current cash flow. accumulation during decedents estate for spouse; cash value of the life of the insured. tax purposes. whole life insurance can help to provide for children’s education and/or supplemental retirement income; and liquidity to pay estate taxes. Qualified A refusal to accept gift Used where donee/ Property is treated as if Facilitates postmortem Disclaimer must be an Disclaimer or bequest by intended beneficiary of property it never passed to planning. unqualified refusal in recipient. prefers that someone original donee/ writing received by else receives the beneficiary. the donor within nine property. months; the benefi- ciary must not accept the property; property must pass to either the decedent’s spouse or someone other than the person disclaiming; person disclaiming cannot direct disposition.* The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010) extends the “sunset” provision contained in The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), which was to repeal the EGTRRA tax law changes on December 31, 2010, to December 31, 2012. Unless there is future legislation, the tax laws affected by the provisions of the Tax Relief Act of 2010 will revert on January 1, 2013 to their status prior to EGTRRA; this affects income tax rates and deductions, as well as gift, estate and generation-skipping transfer tax rates and exemptions.4
  7. 7. Advanced estate planning techniques utilizing trusts* Technique Definition Best Application Tax Pros/Cons Other Advantages Other Concerns Revocable A trust is a fiduciary Useful in conjunction No tax advantage to Efficient receptacle for No major Trust arrangement created by the with durable power of the grantor since the holding assets during concerns since (Living Trust) grantor where legal title to attorney and a pour grantor will be taxed lifetime so that assets trust can be property given by the over Will (providing on the income and the are funneled to marital changed or grantor is held and the that all other assets assets will be included deduction or bypass terminated. property managed by a “pour over” into the in the grantor’s taxable trusts at death; provides trustee for the benefit of a trust at death). estate at death. for management of beneficiary. A revocable property should grantor trust can be revoked, be incapacitated; probate amended, or terminated costs and publicity are and the property recovered avoided by using a trust by grantor. versus a Will alone. Irrevocable A trust which cannot be Estates with liquidity Substantially reduces Estate liquidity Grantor loses Life Insurance changed or terminated by problems. grantor’s estate enhanced; expenses control of property Trust the grantor; the trust through annual gifts and publicity of probate in trust. purchases life insurance thus reducing estate are avoided. using funds gifted to the taxes; death proceeds trust by the grantor; at the are received by benefi- grantor’s death the death ciaries income tax and benefits pass to the trust’s estate tax-free. beneficiaries. Marital Often referred to as A-B These are basic estate Minimizes estate Professional manage- Possible loss of Deduction & trusts, these trusts are planning tools useful in taxes by: allowing both ment of assets by the control of the Bypass Trusts established to minimize estates where the joint spouses to take trustee after the death assets by the estate taxes. The bypass assets of the spouses advantage of the of the first spouse. surviving spouse, trust takes maximum exceed the value of unified credit; and by if spouse is not advantage of the applica- their total fully utilizing the named sole ble exclusion amount and unified credit. unlimited marital trustee. the marital deduction trust deduction (thus maximizes use of the deferring taxes until marital deduction. the estate passes to the children/family). Charitable An irrevocable trust Useful where grantor The grantor is entitled Increased current Grantor must be Remainder providing current income wants to make a to a current income tax income; ability to make willing to Trusts (CRT) payments to the grantor charitable gift but also charitable deduction; gift to favored charity. relinquish control followed by payment of wants income; the trust can sell highly of the asset. the remainder to a charity. appropriate where appreciated property grantor wants without incurring increased income from capital gains; the appreciated property property gifted to the without selling and trust is removed from incurring capital gains; the taxable estate. applicable where estate tax avoidance and current income tax deduction are goals.* The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010) extends the “sunset” provision contained in The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), which was to repeal the EGTRRA tax law changes on December 31, 2010, to December 31, 2012. Unless there is future legislation, the tax laws affected by the provisions of the Tax Relief Act of 2010 will revert on January 1, 2013 to their status prior to EGTRRA; this affects income tax rates and deductions, as well as gift, estate and generation-skipping transfer tax rates and exemptions. 5
  8. 8. Advanced estate planning techniques utilizing trusts* Technique Definition Best Application Tax Pros/Cons Other Advantages Other Concerns Charitable An irrevocable trust Grantor wants to Can provide significant Provides current Grantor is taxed on the Lead Trust providing current benefit charity income tax deduction; income stream to trust’s income. (CLT) income payments to a currently while testamentary CLT can grantor’s favorite charity followed by keeping property in the provide significant charity; property payment of the family; grantor wants estate tax deduction remains in family. remainder interest to a current income tax for the charitable non-charitable deductions but is interest; enables beneficiary. willing to report trust grantor to transfer income later; grantor substantial wealth to facing substantial children or grandchil- estate taxes and wants dren at minimum gift/ to transfer property to estate tax cost. children at minimal gift/estate tax cost; grantor with rapidly appreciating property wants to remove future appreciation from estate at minimal gift tax cost. Grantor An irrevocable trust Used to freeze the Appreciation of assets Provides current The grantor sacrifices Retained into which the grantor estate (restrict taxable escapes estate taxes; income stream control over the Annuity Trust places income-produc- estate to its current assets can be to grantor. property; if grantor (GRAT) ing property but retains value) to reduce estate transferred to the next dies during the the right to a fixed taxes; often used to generation at a retained interest annuity for a specified transfer stocks or real substantial discount; period, the property term of years after estate on a favorable income from the trust is included in which the property gift tax basis. taxed to the grantor. his/her estate. passes to the children/family. Grantor An irrevocable trust Same as GRAT. Same as GRAT. Same as GRAT. Same as GRAT. Retained into which the grantor Unitrust places income-produc- (GRUT) ing property but retains the right to a fixed percentage of the property for a specified term of years after which the property passes to the children/family.* The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010) extends the “sunset” provision contained in The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), which was to repeal the EGTRRA tax law changes on December 31, 2010, to December 31, 2012. Unless there is future legislation, the tax laws affected by the provisions of the Tax Relief Act of 2010 will revert on January 1, 2013 to their status prior to EGTRRA; this affects income tax rates and deductions, as well as gift, estate and generation-skipping transfer tax rates and exemptions.6
  9. 9. Advanced estate planning techniques utilizing trusts* (continued) Technique Definition Best Application Tax Pros/Cons Other Advantages Other Concerns Qualified A trust that holds the Used where grantor Reduction of estate QPRTs are exempted Tax savings are only Personal grantor’s primary or wants to reduce estate taxes; gift tax is from the anti-estate realized if grantor lives Residence vacation home; the taxes while also reduced by the value of freeze rules. beyond the term Trust (QPRT) grantor retains the residing in home. the interest retained by of years that the right to reside in the the grantor to reside in residence is retained. home for a term of the house. years; thereafter, the house is transferred to the beneficiaries. Estate Freeze Methods designed to Used to transfer highly Reduces estate/gift Property owner retains Estate freeze law must Techniques restrict taxable estate appreciating property taxes. some control over be satisfied to gain tax to its current value (see to heirs. property but shifts advantages. FLP, GRAT, GRUT, SCIN appreciation in for examples). property to heirs. Power of A property right Appropriate in “wait The power of appoint- Provides flexibility to Donor has no control Appointment allowing the recipient and see” situations ment is not taxed in the shift property over ultimate to control who will where donor of estate of the holder of according to disposition of the receive the property. property wants the power, provided changing needs/ property by the decision to ultimately the power is drafted circumstances. holder of the power of transfer property to correctly. appointment. future date. 2503(c) Trusts Trusts utilized to gift Appropriate where Reduces estate taxes Gives grantor peace of Grantor loses property to a minor. grantor wants to of grantor; shifts mind knowing that personal control of control the use of the taxable income to assets will be properly assets and minor has trust property until the minor (subject to kiddie managed for the access at age 21. beneficiary reaches tax limitations). benefit of the minor adulthood. beneficiary.* The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010) extends the “sunset” provision contained in The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), which was to repeal the EGTRRA tax law changes on December 31, 2010, to December 31, 2012. Unless there is future legislation, the tax laws affected by the provisions of the Tax Relief Act of 2010 will revert on January 1, 2013 to their status prior to EGTRRA; this affects income tax rates and deductions, as well as gift, estate and generation-skipping transfer tax rates and exemptions. 7
  10. 10. Other advanced estate planning techniques* Technique Definition Best Application Tax Pros/Cons Other Advantages Other Concerns Living Will A legal document The living will is an None The living will allows The format of the living expressing an individu- important component the individual to will document must al’s wishes concerning of all estate plans. control his or comply with state law. life-support her destiny. procedures should the individual become terminally ill. Gifts A gratuitous transfer of Most appropriate for Donor can gift up to Removes appreciation Donor’s loss of control property during the transferring assets value of annual gift tax of asset from over property. donor’s lifetime. that will significantly exclusion to each taxable estate. appreciate. donee per year free of gift tax; reduces size of taxable estate.** Generation Transfers of property to Used when donor Subject to Generation Can provide creditor Donor’s loss of control Skipping a person(s) two or wants to pass property Skipping Transfer Tax protection for benefi- over property. Transfers more generations to grandchildren/ unless some permissi- ciaries for generations. below the donor. great-grandchildren. ble exemption/ exclusion applies. Family Limited An association of Used to pass property Reduction in estate Management and Unlimited liability of Partnerships family members to to family members at taxes since property control of family assets general partners if a and Family carry on a business for discounted values. appreciation remain vested in senior partnership is used; Limited profit; normally the transferred from senior family members. expense of establish- Liability parents are the general generation’s taxable ing an FLP or LLC. Companies partners who operate estate and discounts the organization and may reduce the value assume full liability; of gifts to family they convey limited member(s); reduction partnership interests to in income taxes if other family members. limited partner-donees With LLCs, members are in lower tax can manage the LLC bracket. without exposure to full liability. * The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010) extends the “sunset” provision contained in The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), which was to repeal the EGTRRA tax law changes on December 31, 2010, to December 31, 2012. Unless there is future legislation, the tax laws affected by the provisions of the Tax Relief Act of 2010 will revert on January 1, 2013 to their status prior to EGTRRA; this affects income tax rates and deductions, as well as gift, estate and generation-skipping transfer tax rates and exemptions.** For 2011/2012 the Tax Relief Act of 2010 has also increased the lifetime gifting amount from $1 million to $5 million. This per person increase has been made permanent for these two years only at the date of this publication.8
  11. 11. Other advanced estate planning techniques* (continued) Technique Definition Best Application Tax Pros/Cons Other Advantages Other Concerns Charitable Gift to favorite charity. Useful when donor Donor receives income Donor’s satisfaction in Charitable gift reduces Contributions wants to benefit tax deduction up to benefiting charity. estate passing to charity while also 50% of adjusted gross donor’s heirs. gaining income and income; gift reduces transfer tax taxable estate. advantages. Installment Sales methods Useful for freezing Any capital gains on a Provides flexibility to With installment sale, Sales & Self whereby the purchaser value of highly appreci- sale can be recognized the seller in either any installments due at Canceling pays for property over ating property; used gradually by seller; can spreading out recogni- death of seller are Installment a period of time. when purchaser reduce estate tax by tion of capital gain or included in the Notes (SCIN) cannot afford full shifting appreciation in immediately recogniz- seller’s estate. purchase price at time property to heirs; any ing; gives buyer of purchase. balance remaining on flexibility of spreading SCIN at death of seller out payments. is canceled and not subject to estate tax (but remaining gain is taxable income to estate). A SCIN requires an additional premium cost to be paid in order for the balance of note to be cancelled at the death of the seller.* The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010) extends the “sunset” provision contained in The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), which was to repeal the EGTRRA tax law changes on December 31, 2010, to December 31, 2012. Unless there is future legislation, the tax laws affected by the provisions of the Tax Relief Act of 2010 will revert on January 1, 2013 to their status prior to EGTRRA; this affects income tax rates and deductions, as well as gift, estate and generation-skipping transfer tax rates and exemptions. 9
  12. 12. The changing tax environment.The Tax Relief, Unemployment Insurance Reauthorization, Effective Datesand Job Creation Act of 2010 (Tax Relief Act of 2010) The effective date of the gift tax exemption increase isextends the “sunset” provision contained in The Economic January 1, 2011. The effective date of the estate tax andGrowth and Tax Relief Reconciliation Act of 2001 generation-skipping transfer tax exemptions and the new(EGTRRA), which was to repeal the EGTRRA tax law 35% tax rate is January 1, 2010, making these taxes retroac-changes on December 31, 2010, to December 31, 2012. tive to the first of 2010. However, the new law provides anUnless there is future legislation, the tax laws affected by option for executors of individuals dying during 2010 tothe provisions of the Tax Relief Act of 2010 will revert on either elect to use the $5,000,000 estate tax exemption andJanuary 1, 2013 to their status prior to EGTRRA; this affects step-up in basis provisions provided under the 2010 Tax Actincome tax rates and deductions, as well as gift, estate and or stay with the prior law of no estate tax and limited step-upgeneration-skipping transfer tax rates and exemptions. in basis for heirs. Which set of laws is more beneficial to an estate depends on the specific circumstances of that estate.Depending on the size of your estate and when you die,you may need to be more concerned than ever about A New Concept – “Portability” of anyestate planning. Unused Estate Tax ExemptionBecause there is no tax on assets inherited by a surviving Under the 2010 Tax Act, a surviving spouse may “elect” tospouse, the estate tax exemption amount only works for use any unused exemption of the first spouse to die. Thisassets that do not pass to a husband or wife. Therefore, many provision is only available in 2011 and 2012 and requires thatestate plans commonly transfer the maximum exemption an estate tax return be filed at the first spouse’s death.amount in a “bypass” trust that benefits the children or family. In the past, trusts – often referred to as by-pass trusts or credit shelter trusts - were used to utilize the estate tax exemption ofExemptions and Rates the first spouse of a married couple to die. Assets transferredThe new law “reunifies” the federal estate, gift and generation- to these trusts at the death of the first spouse “by-passed”skipping transfer tax laws and increases the tax exemptions to or were “sheltered” from estate taxation at the death of the$5,000,000 per person ($10,000,000 per married couple) for second spouse.2011 and 2012 (the 2012 exemption amounts are indexed forinflation in increments of $10,000). This means that lifetime While this new provision has the potential to help simplifygifting opportunities have increased from the previous estate tax planning for married couples, it should be noted$1,000,000 level. The tax rate on taxable estate, gift and that there are benefits to using a by-pass or credit sheltergeneration-skipping transfers in excess of the $5,000,000 trust that the portable exemption strategy does not offer,exempted amount in 2011 and 2012 is 35 percent. In 2013, the including creditor protection and keeping the appreciationestate, gift and generation-skipping transfer tax exemptions or increase in value of trust assets out of the second spouse’sare scheduled to drop back down to $1,000,000. taxable estate.10
  13. 13. Tax rates and exemption equivalents Calendar Year Estate and GST Tax Deathtime Transfer Exemption Highest Estate and Gift Tax Rates (GST Tax Rate) 2001 $675,000 for estate tax; 55%, plus 5% surtax on estates over $10 million $1,060,000 for GST tax 2002 $1 million for estate tax; 50% (and surtax repealed) $1,100,000 indexed from 2001 for GST tax 2003 $1 million for estate tax; 49% $1,120,000 indexed from 2001 for GST tax 2004 $1.5 million 48% 2005 $1.5 million 47% 2006 $2 million 46% 2007 $2 million 45% 2008 $2 million 45% 2009 $3.5 million 45% 2010* N/A (estate and GST tax repealed) Gift tax remains, equal to top individual income tax rate of 35% 2011/2012 $5 million 35%* Effective until Sept. 17, 2011, the new law provides an option for executors of individuals dying in 2010 to either elect to use the $5,000,000 estate tax exemption and step-up in basis provisions provided under the 2010 Tax Act or stay with the prior law of no estate tax and limited step-up in basis for heirs. 11
  14. 14. Notes:12
  15. 15. MassMutual. We’ll help you get there.® There are many reasons to choose a life insurance company to help meet your financial needs: protection for your family or business, products to provide supplemental income and the confidence of knowing you will be prepared for the future. At Massachusetts Mutual Life Insurance Company (MassMutual), we operate for the benefit of our participating policy owners. We stand strong in the fundamental belief that every secure future begins with good decisions. And when choosing a life insurance company, ownership, strength and stability matter. Learn more at www.massmutual.com/mutuality© 2011 Massachusetts Mutual Life Insurance Company, Springfield, MA. All rights reserved. www.massmutual.com. MassMutual Financial Groupis a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. CRN201301-143957AS6004 111

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