This option is typically best when you do not have any descendants or you want to include people who are not your descendants as beneficiaries of your Trust (or your Will, if you do not have a Trust), and want to distribute the assets outright only when they turn 21. 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 a beneficiary you name survives you, then such beneficiary will receive a share of your Trust based on the percentage you select for such beneficiary at age 21.

2. If a beneficiary you name predeceases you, then such deceased beneficiary’s share lapses – meaning no share will be created for such deceased beneficiary upon your death. The percentage share intended for such deceased beneficiary would instead be divided proportionally between the shares of the other beneficiaries who do survive you based on the percentage shares you selected for each of them.

3. All such shares would be distributed to the beneficiary outright if they are already 21 years old, or it will be held in trust with discretionary distributions until the beneficiary is 21 years old. This means that your designated Trustee would manage and invest such beneficiary’s share until they reach age 21 and would have the discretion to make distributions to the beneficiary for the beneficiary’s health, education, maintenance, and support.

4. If you are not married and are not survived by any beneficiaries, 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 beneficiaries, 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 4 beneficiaries, A (35 years old), B (26 years old), C (19 years old), and D (12 years old). You want A to receive 50% of your assets, B to receive 25% of your assets, C to receive 20% of your assets, and D to receive 5% of your assets.

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

• 50% of your assets distributed to A outright and free of trust;

• 25% of your assets distributed to B outright and free of trust;

• 20% 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 21; and

• 5% of your assets held in trust by your designated Trustee for the benefit of D 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 21.

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

• 62.5% of your assets are distributed to A outright and free of trust;

• 31.25% of your assets are distributed to B outright and free of trust; and

• 6.25% of your assets held in trust by your designated Trustee for the benefit of D 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 21.

• Note that the percentage allocated to a deceased beneficiary is re-allocated proportionally to the living beneficiaries.