Personal Trust Services

Transcription

1 Personal Trust Services Helping to manage your wealth for future generations Fidelity Personal Trust Company, FSB

2 When you re ready to speak with someone about your particular needs, you can call us at One of our trust professionals will be happy to assist you. This guide provides information about: Providing for your family today, helping preserve wealth for future generations 1 Determining whether a trust is right for you 2 Understanding trusts 5 Selecting a trustee 6 Relying on a trusted relationship 8 Supporting your trust needs 14 Taking the next step 16

3 Providing for your family today, helping preserve wealth for future generations You ve worked hard to accumulate the kind of wealth that provides a comfortable lifestyle today and the hope of a comfortable lifestyle tomorrow. But if you re like many individuals with substantial assets, you probably also want your wealth to be protected for future generations. That s why now is a good time to consider the benefits of establishing a trust. Or, if you currently have a trust, you may want to take this opportunity to review how it s being managed to make sure you re satisfied with your existing arrangement. When it comes to helping protect and manage your assets, a trust may be one of the best, most flexible tools available. And contrary to common perception, trusts aren t just for the very old or the very wealthy. In fact, considering a trust can be important for anyone with substantial assets or who may receive substantial death benefits. Plus, with professional management, establishing a trust is probably easier than you think as you ll discover in the following pages of this guide. This guide can help you with the many decisions involved in managing a personal trust. When you re ready to speak with someone about your particular needs, you can call our trust professionals at Or if you re already a Fidelity customer and have an established relationship with a Fidelity Representative, consider discussing whether Fidelity Personal Trust Company, FSB ( Fidelity Personal Trust Company or FPT ) is right for your situation. 1

4 Determining whether a trust is right for you You ve probably taken the time to assess your goals and made arrangements to help ensure that you can meet the financial needs of your family in the coming years. There comes a time, however, when it s also important to start thinking about how you want your assets managed and distributed when you re gone. These decisions are all part of the estate-planning process, which is typically important for anyone with an interest in preserving wealth and working to ensure the financial well-being of loved ones. Determining whether you should establish a personal trust is one of the decisions you ll need to make when creating your estate plan. A trust is a legal arrangement established to hold, manage, and distribute your assets and the income they generate according to your specific instructions. Trusts can be an excellent tool for accomplishing your financial goals because they enable you to make controlled gifts to family, friends, and charitable organizations. 2

5 Questions? Call: Visit: Fidelity.com/fpt If you can identify with any of the following statements, it may be time to establish a personal trust: I want to preserve my assets so that my loved ones or my favorite charity will receive the most of what I m able to leave behind. I wish to ensure that my heirs have timely access to my assets and avoid the potential costs and time delays associated with distributing wealth through probate. I would like to reduce my potential estate taxes while providing support for my surviving spouse. I have special circumstances that require specific instructions to care for a child with special needs or address a unique family situation. I would like assistance in implementing long-term financial- and estate-planning solutions through active and ongoing portfolio management. I would like to keep my personal affairs as private as possible. I would like to leave a legacy that includes charitable giving. I would like the comfort of knowing that if something were to happen to me, there is someone ready to act on my behalf to carry out my wishes. Whether your goal is providing lifestyle continuity for your family, contributing to your grandchildren s education, caring for your elderly parents, or helping to provide for the financial well-being of your surviving spouse, a trust can help provide both the control and the flexibility you need. 3

6 Key Benefits of Trusts Potentially reduce income and estate taxes Maintain confidentiality Help protect the inheritances of your children Help ensure that your assets are distributed the way you intended Avoid the cost, time, and publicity of probate Make gifts to charities Help provide security for your family after your death 4

7 Questions? Call: Visit: Fidelity.com/fpt Understanding trusts Generally speaking, trusts enable you to pass your assets to your heirs in a quick and efficient manner outside of probate. Probate is the legal process of distributing wealth after death, pursuant to a decedent s will or, if none, a state s intestacy laws. It is a public process and can be costly and time consuming. A Revocable Trust, which may be referred to as a living trust, is a flexible arrangement you can change or dissolve at any time. There are many benefits to this type of trust, including continuous management of assets, ability to easily change the trustee, and avoidance of probate. They are, however, included in your estate for estate tax purposes. An Irrevocable Trust can be used to address specialized estate-planning objectives and may help individuals with substantial assets reduce their estate tax liability. The primary benefit of this type of trust is that its structure may exclude assets and their future appreciation from your estate. However, once you ve established the terms of an irrevocable trust, you effectively give up control and ownership of the assets you place in it. Choosing a Trustee One of the most important decisions you ll face when establishing your trust is the selection of your trustee(s). The trustee is responsible for distributing income and principal to the beneficiaries of the trust, according to the terms specified by you in the trust agreement. Although some individuals name themselves, a family member, or a friend, others prefer to choose a trusted financial institution for this important role. By choosing a corporate trustee, you ensure that current and future generations will benefit from the continuity, confidentiality, and professionalism that a well-established organization can provide. Managing the Assets of Your Trust You should also consider selecting a professional investment manager to manage the assets of your trust. Professional investment managers can assist in implementing long-term financialand estate-planning strategies through active and ongoing portfolio management during your lifetime and after your death. Working with you and/or your trustee, they may also help with the time-consuming and worrisome responsibilities of recordkeeping, certain tax considerations, and investment management. 5

8 Selecting a trustee Why a corporate trustee may be your best choice When thinking about whether to name one or several individual trustees, a corporate trustee, or a combination of individuals and organizations, there are several factors you may wish to consider. Experience The trustee you choose has significant responsibility for the financial well-being of your current and future beneficiaries. The trustee must feel comfortable choosing and monitoring the investment manager, weighing and evaluating requests for distributions, and making potentially difficult decisions. In these cases, a trustee who is inexperienced or too close to the situation may not be the best solution. What s more, your trustee must be willing to accept significant recordkeeping responsibilities, including accounting for the receipt and disbursement of income and principal from the trust assets and preparing and filing any annual trust income tax returns (state and federal) that are required. Add to this the importance of keeping up with ever-changing and complex laws regarding trust administration, and it s easy to see that a friend or family member could be burdened by these responsibilities. A corporate trustee with experience and expertise in trusts and investing is an attractive alternative. A corporate trustee benefits you by being an outsider that can make objective, unbiased decisions. By choosing a corporate trustee, you help ensure stability and continuity for the full term of the trust. 6

9 Questions? Call: Visit: Fidelity.com/fpt Objectivity Even in the most loving families, relations can sometimes become difficult and emotionally charged. And while a carefully drafted trust document explains your intent and provides directions, it can be difficult for a trustee who is a parent, sibling, relative, or friend to act objectively. A corporate trustee, on the other hand, benefits from being an outsider that can make decisions free from bias and considerations of family dynamics. Confidentiality When it comes to the delicate and personal issue of how, when, and to whom you want your assets distributed, confidentiality is likely to be a top consideration. When you name a corporate trustee, you can feel assured that your privacy will be valued and your financial matters will be treated with the utmost respect. Continuity Because one of the principal reasons for establishing a trust is to provide for the future, it s important to remember that during the years, age or illness could prevent an individual from performing the duties of a trustee. In naming a trustee, you want to be sure that as your family s situation changes and time takes its toll, your trustee will continue to be responsive. By choosing a corporate trustee, you help ensure continuity for the full term of the trust. If you re not sure whether choosing a corporate trustee is right for you, your answers to the following questions can help you decide: Are you looking for an objective, independent party to ensure that your wishes are carried out confidentially and without emotional bias? Would you prefer to leave the ongoing paperwork, recordkeeping, and accounting to an experienced entity? Are you looking for professional portfolio management and an investment manager who will assume ongoing responsibility for investing trust assets? Is long-term continuity important for you to ensure seamlessness and responsiveness through several generations? If you answered yes to any of these questions, we invite you to learn how Fidelity Personal Trust Company can help you manage your wealth today, and help protect your wealth for future generations. 7

10 Relying on a trusted relationship The Fidelity Personal Trust Company relationship Because a trust is often designed to ensure continuity through several generations, it s important that in establishing it, you select a trust institution you can depend on for years to come one you can count on for responsiveness, professionalism, and professional asset management. For trust accounts of $200,000 or more, Fidelity Personal Trust Company can provide all this and more. At Fidelity Investments, providing you with practical assistance and a wide range of investment solutions is a responsibility we take seriously. We combine the security and continuity of a trust relationship with the benefits of Fidelity s investment management experience. Through Fidelity Personalized Portfolios for Trusts, we offer you a trusted and respected investment advisor for your trust assets. You will receive personal attention and active money management tailored to help your trust meet its long-term objectives. Whether you choose to appoint Fidelity Personal Trust Company as your sole trustee, co-trustee, or successor trustee (see below), you can count on the following: Exemplary service Comprehensive administrative services Required recordkeeping and reporting Professional investment management Fidelity Personal Trust Company can serve in various capacities, depending on your needs. Sole Trustee With this designation, Fidelity Personal Trust Company assumes all the investment, administrative, and fiduciary responsibilities of managing your trust according to the terms you ve defined in your trust document. Co-Trustee Fidelity Personal Trust Company acts as a co-trustee with the individual(s) you designate. As co-trustee, Fidelity Personal Trust assumes investment management and administrative responsibilities for the trust, but shares discretionary decision making with the co-trustee(s) according to the trust provisions. Successor Trustee Fidelity Personal Trust Company steps in once the individual you name as sole or co-trustee is no longer willing or able to serve. 8

11 Questions? Call: Visit: Fidelity.com/fpt Relax with our exemplary client service When you establish an account with Fidelity Personal Trust Company, you ll be assigned a Portfolio Specialist, who will provide you with personalized attention and assistance. If you ve named Fidelity Personal Trust Company as sole trustee or co-trustee, you will be assigned a dedicated Trust Officer. Our Portfolio Specialists and Trust Officers are among Fidelity s most senior, experienced service representatives, and are well versed in complex trust-related issues. As a result, you can feel confident that your Portfolio Specialist or Trust Officer has the qualifications to provide knowledgeable answers, as well as a commitment to professionalism, personal service, and attentiveness. Consider the difference a dedicated Portfolio Specialist or Trust Officer can make Right from the start, your Portfolio Specialist or Trust Officer will be familiar with your needs and expectations and the terms of your trust. With Fidelity Personal Trust Company, there s never a question of who s responsible, who to call, or how to get information. That s because there s a dedicated person who serves as the in-house Fidelity point person for you, your beneficiaries, and/or trustee(s). We are here for you. If you have an existing Fidelity Private Client Group or Fidelity Premium Services SM account, we ll work with your representative to ensure continuity. Your dedicated Portfolio Specialist or Trust Officer will take the time to understand your needs, as well as perform an extensive review of your trust documents. Once the trust is funded, your Portfolio Specialist or Trust Officer serves as the liaison between you and the Investment Management Team. In this role, your Portfolio Specialist or Trust Officer can get fast answers to important questions and explain investment decisions made on behalf of the trust. We keep you up to date: Naturally, you can only make informed decisions when you have complete and timely information. That s why we provide regular updates to you and/or your individual trustee(s): Monthly statements showing all account activity for the period Quarterly reviews, which provide a market overview for the three-month period, and information on investment decisions made on behalf of the trust A dedicated toll-free number for fast access to your Portfolio Specialist or Trust Officer, as well as account information and market commentary Extensive documentation, including estimated tax basis and gain (loss) information, to assist you An exclusive site on Fidelity.com specifically designed for Fidelity Personal Trust Company clients 9

12 And, of course, as the needs of your beneficiaries change over time and various milestones in the trust are reached your Portfolio Specialist or Trust Officer will work closely with the Investment Management Team to ensure that the trust s investment strategy continues to be appropriate and responsive to your directives. Leave the administrative burden and worry to us With Fidelity Personal Trust Company serving as sole or co-trustee, you can be assured that all the paperwork and recordkeeping associated with managing your trust will be handled in a timely manner. Fidelity Personal Trust Company can take care of the fiduciary trust administration by: Administering the trust in accordance with the trust instrument Administering the trust in an unbiased and professional manner, free from the pressures of family dynamics Maintaining all bookkeeping and recordkeeping Performing annual administrative account reviews Preparing and filing all required fiduciary tax returns (federal and state) for all irrevocable trusts Handling insurance premium payments and notices for irrevocable life insurance trusts In addition, we are responsible for required recordkeeping by: Accounting for principal and income on irrevocable trusts Reporting income, expenses, and capital gains and/or losses realized on investments Distributing income and/or principal to beneficiaries as required by the trust instrument Looking only for investment management for your trust? We can help. Frequently, individuals who choose themselves or another individual to help serve as trustee find that investment management is a time-consuming and worrisome burden. Consider naming Fidelity Personal Trust Company as investment manager to help relieve yourself of these concerns, while you still retain fiduciary responsibility. 10

13 Questions? Call: Visit: Fidelity.com/fpt Benefit from the experience of investment professionals Whether you choose Fidelity Personal Trust Company or someone else as your trustee, you ll want to know that trust assets will be invested by experienced professionals with a solid track record of helping investors meet their long-term goals. Let our team of investment professionals work for you. Fidelity Personalized Portfolios for Trusts is a service of Fidelity s Portfolio Advisory Services, our in-house discretionary money management service, with $103 billion in assets under management as of February These investment professionals are recognized for their disciplined, time-tested approach. Helping you create a strategy to meet long-term objectives When investing trust assets, the team works with you and your Portfolio Specialist or Trust Officer to establish specific goals for your account. In making this determination, we ll ask you or your current trustee to complete an Investor Profile Questionnaire. It asks for information about how much money will be needed and the level of investment risk you or the trustee(s) are comfortable with, and what specific directives, if any, are included in the trust document. Using this information, our investment team proposes a strategy specifically geared to meeting the long-term objectives of the trust. The team s detailed proposal includes information on how aggressively or conservatively they will invest trust assets the mix of stock, bond, and money market mutual funds, as well as exchange-traded funds that will make up the core of the trust s portfolio, and the rationale for their choices. A well-thought-out asset allocation strategy is utilized in an effort to maximize rewards while managing risk. This is central to our approach and a key reason to consider Fidelity Personalized Portfolios for Trusts. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in such a fund. Fidelity Personal Trust Company will: Seek to manage risk and return on your trust assets consistent with its terms Use tax-sensitive investment management techniques* that consider the potential federal income tax consequences of every trade it makes in your account Adhere to prudent fiduciary investment guidelines Ensure ongoing professional investment management for today and tomorrow * See page 15 for important information on tax-sensitive investment management from Fidelity Personalized Portfolios and Fidelity Personalized Portfolios for Trusts. Keep in mind that investing involves risk. The value of your investment will fl uctuate over time and you may gain or lose money. Strategic Advisers, Inc., assets under management as of February 29, Asset allocation does not ensure a profi t or protect against loss. 11

14 For more information on our advisory fee, including a detailed fee schedule, contact an Investment Consultant at , or visit Fidelity.com/goto/pasforms. Click under the Alphabetical List, then click the Portfolio Advisory Services Client Agreement link. 12

15 Questions? Call: Visit: Fidelity.com/fpt Tax-Sensitive investment management* Because the taxes on investment income earned by the trust can affect its returns and long-term viability, our analysis strategically weighs the potential federal income tax consequences of every buy, sell, and hold decision made on behalf of the trust. What s more, a number of techniques are employed that seek to enhance after-tax returns. These include: Utilizing opportunities to avoid and/or postpone realization of gains subject to taxes Striving to manage exposure to dividend and capital gains distributions Investing in tax-exempt municipal bond funds Annual advisory fee An annual net advisory fee will cover the Investment Management Team s ongoing management of your account assets (including any trading costs and commissions), the communications sent to you to keep you informed about your account, and the personal service you receive from your dedicated Portfolio Specialist or Trust Officer. You generally will not pay any sales loads or transaction fees on the mutual funds or exchange-traded funds purchased for your account. Please note, however, that for non-fidelity mutual funds purchased before the funding of the trust, redemption fees and short-term trading fees will still apply. Harvesting tax losses Our goal is to help ensure that your beneficiaries enjoy the benefits you have planned for them. We endeavor to strike a balance between realizing earnings that are currently taxable and long-term investment growth to create the potential for strong after-tax results for our clients. We ll provide a disciplined review of your trust account, tax lot by tax lot, every eight to twelve weeks. * See page 15 for important information on tax-sensitive investment management from Fidelity Personalized Portfolios and Fidelity Personalized Portfolios for Trusts. The fee does not cover certain charges. See the Program Fundamentals and fee schedule for complete details regarding fees, including mutual fund fees and other potential fees including sales loads and transaction fees, redemption fees, and miscellaneous fees. Your annual advisory fee is based on the average daily balance in your account(s), some of which may be aggregated together for purposes of the fee calculation. It is calculated as follows: First, a gross annual fee is calculated based on your average daily assets, which will range from 0.85% to 1.70%. This gross annual fee amount is then reduced by a minimum credit amount that refl ects the fees, if any, received by Strategic Advisers, Inc., or its affi liates from Fidelity and non-fidelity mutual funds for investment management or certain other services. 13

16 Supporting your trust needs There are many types of trusts from which to choose revocable, irrevocable, and testamentary. There is no such thing as a standard trust. Every trust should be tailor-made to fit the financial needs and goals of the grantor. Fidelity Personal Trust Company can provide investment and administrative services to help you meet your trust needs, regardless of the type of trust you choose and the level of support you desire. Let us help you and your attorney. Fidelity Personal Trust Company was created to help clients plan for the lifetime distribution of their wealth. 14

17 Questions? Call: Visit: Fidelity.com/fpt Types of services provided Fiduciary Services Trust administration, including income and principal payments Planning, coordination, and communication with beneficiaries Tax reporting Investment Services Tax-sensitive investment management of your trust assets.* Types of trusts supported Wealth Protection and Transfer Life Insurance Trusts Living Trusts (Revocable Trusts) Grantor Retained Trusts Charitable Giving Charitable Remainder Trusts Charitable Lead Trusts Annuity or Unitrusts Marital Trusts (Trust A) Family Transfer Qualified Terminable Interest Property (QTIP) Trusts Family Trusts (Trust B, Credit Shelter Trusts) Generation-Skipping Trusts If you re ready to take advantage of the benefits of Fidelity Personal Trust Company, it s easy to get started. Simply determine the role you wish FPT to serve for your trust, and follow the steps indicated. * Strategic Advisers, Inc. (SAI), applies tax-sensitive investment management techniques in Fidelity Personalized Portfolios and Fidelity Personalized Portfolios for Trusts (including tax-loss harvesting ) on a limited basis, at its discretion, primarily with respect to determining when assets in a client s account should be bought or sold. As a discretionary investment manager, SAI may elect to sell assets in an account at any time. A client may have a gain or loss when assets are sold. SAI does not currently invest in taxdeferred products, such as variable insurance products, or in tax-managed funds in Fidelity Personalized Portfolios and Fidelity Personalized Portfolios for Trusts, but may do so in the future if it deems such to be appropriate for a client. SAI does not actively manage for alternative minimum taxes; state or local taxes; foreign taxes on non-u.s. investments; or estate, gift, or generation-skipping transfer taxes. SAI relies on information provided by clients in an effort to provide tax-sensitive investment management and does not offer tax advice. SAI can make no guarantees as to the effectiveness of the tax-sensitive management techniques applied in serving to reduce or minimize a client s overall tax liabilities or as to the tax results that may be generated by a given transaction. Except where Fidelity Personal Trust Company, FSB, is serving as trustee, Fidelity Personalized Portfolios and Fidelity Personalized Portfolios for Trusts clients are responsible for all tax liabilities arising from transactions in their accounts, for the adequacy and accuracy of any positions taken on tax returns, for the actual fi ling of tax returns, and for the remittance of tax payments to taxing authorities. 15

18 Taking the next step If you wish to name FPT as current trustee for your trust, your next steps will depend on whether you plan to establish a new trust or whether you re amending an existing trust. For a new trust 1. Please forward the enclosed suggested trust provisions to your attorney so that language naming Fidelity Personal Trust Company as trustee can be incorporated into your trust document. 2. Send a draft of the entire trust document to FPT in an envelope with the enclosed postage label, or give it to your Fidelity Representative. FPT will conduct an administrative review of the document to ensure that your trust is one we can effectively administer. 3. After the trust review is complete, your FPT representative will work with you to complete the necessary account-opening paperwork that we will provide you. Also, please send an original executed trust document to FPT for safekeeping. For an existing trust 1. Please send a copy of the entire trust document to FPT in an envelope with the enclosed postage label, or give it to your Fidelity Representative. FPT will conduct an administrative review of the document to ensure that your trust is one we can effectively administer. 2. Depending on the terms of the trust, once the trust review is complete, we will work with you and your attorney so that FPT can step in as Trustee. We may be able to serve as trustee without amending the document, or an amendment may be necessary. 3. Once FPT is able to step in as trustee, your FPT representative will assist you with completing the necessary account-opening paperwork. Also, please send the original executed documents to FPT for safekeeping. If you re already a Fidelity customer and have an established relationship with a Fidelity Representative, consider discussing Fidelity Personal Trust Company to see if it s right for your situation. 16

19 Questions? Call: Visit: Fidelity.com/fpt You wish to name FPT only as an investment manager for your trustee 1. Complete an Investor Profile Questionnaire online (Fidelity.com/pas/ipq), over the phone, or with the help of a Fidelity Representative at an Investor Center. Also, please send FPT your current trust document in an envelope with the postage-paid label provided. 2. As soon as we receive your completed questionnaire, the investment management team will review your responses. Within two weeks, we will develop and provide a free investment proposal for how we will invest your trust assets, along with an account application for ongoing portfolio management. If you ve already designated a trustee (perhaps yourself or an advisor), this arrangement enables you to have Fidelity provide investment management and reporting for your trust assets on behalf of your trustee. If you wish to name FPT as a successor trustee 1. Complete the enclosed Trustee Amendment, beginning with the Trustee Checklist. 2. Send FPT a copy of your trust and all amendments to your trust, including the newly executed Trustee Amendment naming FPT as successor trustee, in an envelope with the postage-paid label provided. 3. FPT will then have the documents on file in the event we are ever asked to step in as trustee. Please note that if for any reason FPT is not able to serve as trustee, this Amendment becomes null and void and the pre-amendment terms of your trust are reinstated. Nothing contained in this Amendment prevents you from amending your trust in the future to change your choice of trustee. 17

20 Thank you again for choosing Fidelity Portfolio Advisory Service to help you meet your long-term goals. Questions? Simply give us a call. One of our trust professionals will be happy to provide the answers you need and assist you in deciding how we can best meet your needs. Call today: Go to 2 Log on to your managed account to access your exclusive client site on Fidelity.com. 3 Please call us at if you have any questions or if you have any changes to your personal situation. Thank you again for choosing Fidelity Portfolio Advisory Service to help you meet your long-term goals.

21 FIRST-CLASS MAIL PERMIT NO BOSTON MA POSTAGE WILL BE PAID BY ADDRESSEE How to Use Your Business Reply Label 1. Use a large plain blank envelope (9x12 or larger). 2. Peel label from bottom of this page. 3. Affix label squarely in center of envelope following diagram below. 4. The label will stick to the envelope. Please: Do not moisten or use tape to affix the label. Do not write on the envelope other than a return address in the upper left corner. Do not write on the label. NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES BUSINESS REPLY LABEL FIDELITY PERSONAL TRUST ATTN: TRUSTEE RECORDKEEPING 82 DEVONSHIRE STREET, MAIL ZONE T3S BOSTON MA NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES BUSINESS REPLY LABEL FIRST-CLASS MAIL PERMIT NO BOSTON MA POSTAGE WILL BE PAID BY ADDRESSEE FIDELITY PERSONAL TRUST COMPANY, FSB ATTN: TRUSTEE RECORDKEEPING 82 DEVONSHIRE STREET, MAIL ZONE T3S BOSTON MA PLEASE REMOVE LABEL AND AFFIX TO ENVELOPE

22 Dear Fidelity Personal Trust Company, FSB: I/We enclose a fully executed copy of the Trustee Amendment for your records. I/We would also like to provide you with the information listed below. 1. Choose one: I/We have already submitted my/our Trust instrument and all amendments to Fidelity Personal Trust Company, FSB. OR I/We also enclose my/our Trust instrument and all amendments. 2. For your records, my/our current name, address, and telephone number are as follows: Name: Address: Telephone Number: 3. I/We also have the following accounts with Fidelity Investments: Account numbers: Assuming you do not have any comments concerning the enclosed, I/we will expect to receive a letter acknowledging our submission within the next few weeks. Sincerely, Name

23 Fidelity Personal Trust Company, FSB Trustee Checklist Below are step-by-step instructions for completing the Trustee Amendment on pages 1 to 9. You are advised to have your attorney assist you with executing the Trustee Amendment. Please make a copy of the completed Trustee Amendment for your records. On the first page of the Trustee Amendment, please fill in the name and date of your original Trust agreement, as well as the name(s) of the Current Trustee(s) of your Trust, where appropriate. Under Section A of Part I, you must indicate whether you wish FPTC to serve as a Current Trustee or as a Future Successor Trustee by checking the appropriate box. Under Section B of Part I, you have the option of naming one or more individual Co-Trustee(s) to serve with FPTC and any then remaining Current Trustees. Under Part II are the Additional Administrative Provisions, which will apply while FPTC is serving as Trustee. In part, these administrative provisions allow an entity affiliated with FPTC to serve in a variety of capacities, such as investment manager, advisor, custodian, or transfer agent, and to receive compensation for such services. Under Part III is the Signature of Grantor section. Please date the Trustee Amendment, and have each Grantor (if there is more than one) sign in the presence of two disinterested witnesses, who also must sign the document. Certain states may require Trusts to be executed according to specific requirements. Consult your attorney regarding your own situation. Under Part IV is the Notarization Section. Residents of all states except Florida and California should complete Section A of Part IV. Florida residents should complete Section B and California residents should complete Section C. Please note that certain states may require the document to be notarized in state-specific ways. Consult your attorney regarding your own situation. If FPTC will be acting as Trustee immediately, please send us (i) your original Trust document, (ii) the signed original of this Trustee Amendment, as well as (iii) any other amendments to FPTC for safekeeping. If FPTC will be acting as a Trustee at some point in the future, please send us a copy of (i) your original Trust Agreement, (ii) this Trustee Amendment, and (iii) any additional amendments for our records. The Grantor is responsible for delivering a copy of the Trustee Amendment to the Current Trustee(s) of the Trust. The following Trustee Amendment is an instrument with significant implications for your Trust, and should be reviewed by your attorney. You are advised against executing this Trustee Amendment without consulting your attorney. Fidelity will not revise the Trustee Amendment. Any desired changes to the Trustee Amendment must be prepared by your attorney and should be forwarded to Fidelity for approval before execution. (Continued)

24 Fidelity Personal Trust Company, FSB Trustee Amendment There may be significant estate tax or estate planning issues arising from your use of this document, and the law prohibits Fidelity Personal Trust Company, FSB ( FPTC ), from providing tax or legal advice with respect to such use. This document should not be viewed as a substitute for proper estate planning, and you are advised against executing the instrument without consulting your attorney. This instrument may not be revised by you without the consent of FPTC, and any desired amendment must be prepared by your attorney and forwarded to FPTC for approval. This document is not intended to be, and should not be construed as, (i) a recommendation, (ii) legal or tax advice, or (iii) a legal opinion. Fidelity does not provide legal or tax advice. Laws of a particular state or laws that may be applicable to a particular situation may impact the applicability, accuracy, or completeness of this document. Federal and state laws and regulations are complex and are subject to change. Always consult an attorney or tax professional regarding your specific legal or tax situation. Fidelity makes no warranties with regard to the document provided or results obtained by its use. Fidelity disclaims any liability arising out of your use of, or any tax position taken in reliance on, this document or its contents. Execution Instructions You are required to sign this document in the presence of two disinterested witnesses and a notary public, who must also sign. A disinterested witness is an adult who has no interest under the Trust Agreement. For example, a spouse or child should generally not act as a witness. Notarization Instructions Certain states may require Trusts to be executed according to specific requirements. Residents of those states may be required to have the document witnessed and notarized in state-specific ways. Consult your attorney regarding your own situation. Improper execution may result in this Trustee Amendment being invalidated. Whereas, the undersigned, as Grantor(s) (hereinafter the Grantor ), established a revocable Trust by an instrument titled ; and Whereas, said instrument was executed on, and may have been amended from time to time (the Trust ); and Whereas, the name(s) of the currently serving Trustee(s) is/are ; and Whereas, the Grantor reserved the power in the Trust to alter, amend, and/or revoke its provisions; and Whereas, the Grantor wishes to (i) designate Fidelity Personal Trust Company, FSB ( FPTC ) as a Current or Successor Trustee, and (ii) add certain provisions governing the administration of the Trust; 1

25 Now therefore, the Grantor hereby amends the Trust as follows: I. APPOINTMENT OF TRUSTEE A. Please check one of the following: 1. Appointment of FPTC as Current Trustee The Grantor hereby designates Fidelity Personal Trust Company, FSB ( FPTC ), to serve as current Trustee in the following capacity (please check one box): OR Current Sole Trustee Current Co-Trustee with the currently serving Trustee(s) Current Co-Trustee with the following individual(s): 2. Appointment of Successor Trustee The Grantor hereby designates Fidelity Personal Trust Company, FSB ( FPTC ), to serve as Successor Trustee, and such designation shall supersede the appointment of any other Successor Trustee named in the Trust. The appointment of FPTC as Successor Trustee shall become effective upon (please check one box and fill in appropriate information): the death, resignation, incapacity, or removal of all of the currently serving Trustees the death, resignation, incapacity, or removal of the following named Trustee(s):, and FPTC shall serve as Co-Trustee with the then currently serving Trustee(s) B. Optional Appointment of Individual Co-Trustee(s) Please complete below if you wish to appoint one or more individual Co-Trustee(s) to serve with FPTC and any then remaining Current Trustee(s) after a particular event has occurred. The Grantor hereby designates to serve as Co-Trustee(s) with FPTC and any then currently serving Trustee(s). The Grantor hereby designates FPTC as a Co-Trustee to serve with the individual(s) named in Article, Section pursuant to the terms of said Section. The appointment of such Co-Trustee(s) shall become effective upon (please check one box and fill in the appropriate information): FPTC accepting its appointment as Trustee the death or incapacity of the Grantor (or both Grantors if there is more than one) the death or incapacity of (Continued) 2

26 II. ADDITIONAL ADMINISTRATIVE PROVISIONS The Grantor hereby adds the following provisions to the Trust: Special Provisions For Fidelity Personal Trust Company, Fsb Notwithstanding anything to the contrary elsewhere in this instrument and in addition to all other powers granted by law or provided in the Trust, during any period in which Fidelity Personal Trust Company, FSB, or any other Corporate Trustee (hereinafter collectively referred to as FPTC ), acts as a Trustee under this Trust, FPTC shall have the following powers and exercise the same in its sole and absolute discretion without court order or approval: A. Entities. FPTC may engage and pay any person, corporation, or other entity that may or may not be affiliated with FPTC ( Entity ) (i) to provide services to any Trust hereunder, including acting as investment manager or advisor, custodian, transfer agent, registrar, sponsor, underwriter, and/or distributor, and to pay for any such services from the Trust property, and (ii) to invest in shares of one or more open-ended investment companies (so-called mutual funds or money market funds), or exchange-traded funds for which an Entity may render such services and for which FPTC and/or the Entity may receive compensation, even if said Entity is affiliated with FPTC. B. Compensation. FPTC shall receive compensation for services rendered in accordance with its published fee schedule in effect at the time such compensation becomes payable, without reduction for any other compensation paid to FPTC, an affiliate of FPTC, or any person, Trustee, or entity, unless otherwise noted on its fee schedule; and any entity affiliated with FPTC may receive compensation without reduction for any other compensation paid to FPTC, another affiliate of FPTC, any person, Trustee, or entity. C. Investment Responsibility. FPTC shall have sole responsibility for the supervision and character of the investments held in any Trust of which it is acting as Trustee, and for all decisions as to the retention, disposition, distribution, investment, reinvestment, or other administration of such Trust assets. D. Resignation, Appointment, and Removal of Trustees. FPTC may resign at any time without court approval by written notice to another Trustee, if any, and, if none, to the then competent income beneficiaries. Unless otherwise provided in the Trust, in the event of a vacancy in the office of Trustee or Special Trustee, a Successor Trustee shall be appointed by the then competent income beneficiaries, if any, or, if none, by FPTC, and each person or entity so appointed shall become Trustee upon written acceptance of said office. Each additional or Successor Trustee shall have the same powers, authority, and discretion given to the Trustees originally named. No bond shall ever be required of FPTC or, if a bond is required by law, then no surety shall be required thereon. The Special Trustee, if any, may be removed by written instrument signed by the then competent income beneficiaries, if any, or, if none, by FPTC, and delivered or mailed to such Special Trustee. (Continued) 3

27 E. Delegation of Authority. A Trustee (including a Special Trustee) may delegate any part or all of such Trustee s powers to another Trustee, or any person, to the extent specified in an instrument signed by the delegating Trustee and delivered or mailed to the delegatee, provided, however, that this provision shall not authorize any Trustee or person to participate by delegation in the exercise of a power that the Trustee or person would otherwise be prohibited from holding. F. Incapacity. Unless otherwise provided in the Trust, if FPTC is notified in writing by a licensed physician who is not related to the Grantor that the Grantor is not capable of managing his or her affairs during such time as the trust is revocable, FPTC may pay to the Grantor for the Grantor s benefit or for the benefit of the Grantor s spouse and/or issue, if any, as much income or principal of the Trust (and in such proportions among such persons) as FPTC deems advisable for the health, education, maintenance or support of the Grantor, the Grantor s spouse and/or the Grantor s issue. Any net income not so paid shall be added from time to time to principal. A representation by a physician that he or she is not related to the Grantor shall be conclusive evidence of a lack of a relationship. FPTC shall be entitled to rely conclusively upon, and shall incur no liability to any person for any action or non-action taken in good faith in reliance upon, any instructions or directions of an authorized agent ( Agent ). Agent means the person or persons authorized by the Grantor in any written document, including but not limited to a Durable Power of Attorney. FPTC shall have no duty to question the authority of any such Agent. G. Liability. Neither FPTC nor any of its directors, officers, employees, or affiliates shall be liable to the Grantor, the Grantor s successors or assigns, or any other current or future beneficiary of this Trust for any good faith acts or omissions, including any liability or expense incurred as a result of a violation of any environmental law or regulation with respect to any real property owned by the Trust. FPTC shall have no duty or responsibility to inquire into the actions or accounts of any Predecessor Trustee, nor shall it have any liability for the actions or omissions of its predecessor. H. Tangible Personal Property. Unless FPTC has physical custody of any tangible personal property held in Trust, FPTC s sole responsibility with regard to tangible personal property shall be limited to holding bare legal title to such property. FPTC shall have no responsibility or liability whatsoever for the management, care, and/or protection of such property. I. Accounting. The Trustee shall provide periodic accounts to the then competent income beneficiaries and to the parent or guardian of any then incompetent income beneficiary (collectively referred to as income beneficiaries ). The Grantor expressly waives, to the extent permitted by law, the delivery of accounts to any beneficiary other than the income beneficiaries. Unless otherwise prohibited by law, each of the then income beneficiaries will be deemed to have acquiesced to any such account unless FPTC has received a written objection within 90 days after the mailing of such account (or the maximum number of days permitted by law). J. Special Asset Trust. Unless otherwise assented to by written instrument, FPTC will not accept any asset that does not meet its current standards for acceptance. Any property owned by the Trust but not accepted by FPTC shall be held and administered under the terms of the Trust by a Special Trustee, who may receive compensation for its services, in a Separate Trust referred to as the Special Asset Trust followed by the name of the Trust. The provisions relating to the appointment and removal of Trustees in the Trust shall govern the appointment and removal of the Special Trustee. FPTC and the Special Trustee may, in their sole discretion, (Continued) 4

28 pay, loan, or advance funds to the other, and neither shall have a duty to inquire into the use of any such transferred funds nor to oversee their application. The Special Trustee shall from time to time transfer acceptable assets of the Special Asset Trust to FPTC, which are not necessary for the proper administration of the Special Asset Trust, including rent, royalties, interest, dividends, and other income. K. Residential Real Property. During such time as the trust is revocable and the Grantor is living, FPTC s sole responsibility with regard to any residential real property held in Trust shall be to hold bare legal title to such property. Notwithstanding the foregoing, if (i) the Grantor requests by written instrument that FPTC shall assume responsibility with respect to such property, (ii) FPTC has actual notice or knowledge of the Grantor s incompetence, (iii) the Grantor has died, or (iv) the trust is irrevocable, FPTC shall assume responsibility by written instrument for the management, care, and protection of any such property, including the payment of all expenses to maintain or sell the property, such as mortgage payments, utilities, real estate taxes and assessments, insurance (casualty and liability), repairs, association fees, brokerage fees, lawyers fees, and all other similar costs, and take any action that FPTC deems necessary to prevent or respond to any violation or potential violation of any environmental law or regulation applicable to such property, including employing agents, consultants, and legal counsel to assist with such action. FPTC shall have no liability for any loss or depreciation in the value of any such real estate. Unless stated otherwise in this instrument, FPTC, in its absolute and uncontrolled discretion, may permit any one or more of the beneficiaries to possess, use, and enjoy any such residential real estate, the unequal treatment of one or more of the beneficiaries being hereby expressly authorized. Neither FPTC nor any of its directors, officers, employees, or affiliates shall be liable to the Grantor, the Grantor s successors or assigns, or any other current or future beneficiary of this Trust for any liability or expense incurred as a result of a violation of any environmental law or regulation with respect to any real property owned by the Trust. L. Governing Law and Situs. Unless otherwise provided in the Trust, the Trust shall be determined and construed in accordance with the laws of the Trust s place of execution if the Grantor is living, or, if the Grantor is deceased, in accordance with the laws of the Grantor s domicile at death. Unless otherwise prohibited by law, FPTC, acting from time to time and without court approval, may transfer the situs of any trust to any jurisdiction within the United States. M. De Minimus Termination. Notwithstanding anything to the contrary elsewhere in this instrument, FPTC may, in its sole discretion, terminate any Trust or Separate Trust estate if the principal of such Trust or Separate Trust estate is less than $75,000, and/or if FPTC deems the continued administration of such Trust to be inadvisable. N. Capital and Surplus. Notwithstanding any provision to the contrary in this instrument, if the Trust instrument requires a Current or Successor Corporate Trustee to meet a specific capital and surplus requirement, then that requirement shall be ten million dollars. (Continued) 5