This option is typically best when you want your children, or grandchildren, to receive their share as soon as possible. Because state law requires that a Probate Court supervised Conservatorship be created whenever a distribution from an Estate or Trust is to be made to a minor (meaning someone under the age of 18), to avoid the costs associated with such a Conservatorship, our documents include provisions to keep the share for any beneficiary who is under the age of 18 in trust until such beneficiary attains age 18. For the Trust Plan - Married or the Will Plan - Married, the surviving spouse is the sole beneficiary and these provisions would apply upon the death of both spouses. This option means the following:

1. If all your children are living, then the net assets of the Trust or Estate (after the payment of your valid debts and administration expenses) will be divided equally between them and held as separate trusts until they each attain age 18.

2. If any of your children are deceased and are survived by their own descendants, then such deceased child’s share will be further divided between such deceased child’s descendants; the “by right of representation” division is defined by state statute and depends on how many descendants are then living at each generational level (children, grandchildren, great-grandchildren, etc.).

3. If any of your children are deceased and are NOT survived by their own descendants, then such deceased child’s share lapses – meaning no share will be created for such deceased child upon your death.

4. All such shares would be held as separate trusts, with discretionary distributions of both income and principal until the beneficiary attains age 18. This means that your designated Trustee would manage and invest such beneficiary’s share until they reach age 18 and would have the discretion to make distributions to the beneficiary for the beneficiary’s health, education, maintenance, and support.

5. If you are not married and are not survived by any descendants, then your assets would be distributed to your heirs-at-law. If you are married and you and your spouse are not survived by any descendants, then 50% of your assets would be distributed to each spouse’s heirs-at-law. “Heirs-at-law” means the individuals who would be entitled to inherit from you under Michigan law if you died without a Last Will and Testament. Generally, this would be your extended family (parents, if living, siblings if your parents are deceased, etc.).

You have 3 children, A (31 years old), B (26 years old), and C (17 years old). A has two minor children, A1 and A2. B has one minor child, B1. C does not have any children.

Scenario 1: At your death, A, B, and C are all still living. Distributions will be made as follows:

• 1/3 of your assets distributed to A outright and free of trust;

• 1/3 of your assets distributed to B outright and free of trust; and

• 1/3 of your assets held in trust by your designated Trustee for the benefit of C with the ability to make discretionary distributions to such beneficiary as needed for their health, education, maintenance, and support, until outright distribution when they turn 18.

Scenario 2: At your death, only B and C are still living. Distributions will be made as follows:

• 1/6 of your assets held in trust by your designated Trustee for the benefit of A1 with the ability to make discretionary distributions to such beneficiary as needed for their health, education, maintenance, and support, until outright distribution when they turn 18;

• 1/6 of your assets held in trust by your designated Trustee for the benefit of A2 with the ability to make discretionary distributions to such beneficiary as needed for their health, education, maintenance, and support, until outright distribution when they turn 18;

• 1/3 of your assets distributed to B outright and free of trust; and

• 1/3 of your assets held in trust by your designated Trustee for the benefit of C with the ability to make discretionary distributions to such beneficiary as needed for their health, education, maintenance, and support, until outright distribution when they turn 18.

Scenario 3: At your death, only A and B are still living. Distributions will be made as follows:

• 1/2 of your assets distributed to A outright and free of trust; and

• 1/2 of your assets distributed to B outright and free of trust.

• No assets are allocated to C, because C did not have living descendants.