P E R S O N A L W E A LT H Q U E S T I O N N A I R E
The Personal Wealth Analysis represents a comprehensive picture of your current wealth planning circumstances and provides suggestions for improvement. It begins with the Personal Wealth Questionnaire. Please complete the Questionnaire as fully as possible. Information is the lifeblood of the planning process. The quality and range of the suggestions will only be as good as the comprehensiveness of the picture; with more knowledge about you and your family, your objectives and resources, and your charitable commitments, we are better equipped to offer recommendations for fulfilling these objectives in as appropriate and tax efficient a manner as possible. There are no shortcuts to completing the Questionnaire. But you may choose to give summary or total amounts where indicated (e.g., the lines for Total Income and Total Expenses in the Cash Flow Information section). And you may elect only to number a few priorities in the various sections, which ask about objectives (e.g., the section on Estate and Charitable Planning Information). 2 Personal wealth questionnaire
To help us construct the most accurate representation, please submit copies of the following with this Questionnaire: Your previous year s tax return Your Will and Living Trust, if any Financial statements from brokerage firms and banks Benefit statements concerning your retirement plans If you have not already done so, please provide a biographical outline for you and your family, highlighting: Information about your family origins (parents and grandparents) Influential factors in growing up Education Activities Positions held (vocational and avocational) Current board memberships (for profit and nonprofit) Sources of wealth Once your Personal Wealth Questionnaire has been completed, your Private Wealth Advisor will arrange a meeting to review current circumstances and any proposals. Personal wealth questionnaire 3
PERSONAL INFORMATION CLIENT NAME DATE OF BIRTH U.S. CITIZEN? SOCIAL SECURITY NUMBER (MANDATORY) LEAD ACCOUNT NUMBER (TO BE COMPLETED BY FINANCIAL ADVISOR) ADDRESS PHONE FAX E-MAIL ADDRESS OCCUPATION AND TITLE BUSINESS ADDRESS LIFE STATUS SINGLE MARRIED DIVORCED / WIDOWED SIGNIFICANT OTHER CO-CLIENT NAME DATE OF BIRTH SOCIAL SECURITY NUMBER U.S. CITIZEN? ADDRESS (IF DIFFERENT FROM ABOVE) PHONE FAX E-MAIL ADDRESS OCCUPATION AND TITLE BUSINESS ADDRESS 4 Personal wealth questionnaire
FAMILY INFORMATION NAMES OF CHILDREN DATE OF BIRTH DEPENDENT? STATE OF RESIDENCE EMOTIONAL MATURITY* FINANCIAL MATURITY* NAMES OF GRANDCHIldren DATE OF BIRTH DEPENDENT? STATE OF RESIDENCE EMOTIONAL MATURITY* FINANCIAL MATURITY* * Please assess the emotional and financial maturity of family members (1-5; 1 = lowest, 5 = highest). Are all family members in good health? If No, please explain: Does any family member have a special need? If Yes, please explain: Are any family members or relatives (other than co-client and children) dependent on you for support now, or likely to need support in the future? If Yes, please explain: Do you have alimony or child support obligations? If Yes, please explain: Personal wealth questionnaire 5
FAMILY INFORMATION (CONTINUED) Do you have any special concerns due to current or prior marriage of a family member? If Yes, please explain: While married, have you ever lived In a community property state? If Yes, which state? Do your children know the history of your family in significant detail? Do you regularly engage in discussions about what s important to your family and about your family s values? Do you have a family mission statement? Have you held or do you hold regular family meetings or retreats? Are you or is any member of your family in an occupation or profession which is frequently the target of lawsuits? Do you have adolescent or older children who drive and are listed on your automobile policy? Do you have a swimming pool at your home (or any of your residences)? Do you have a home on the ocean (or in a recognized flood plain)? Do you own real estate (e.g., a second or vacation home) in another part of your state or in another state? Do you have an office in your home? Do you employ domestic workers in any capacity? 6 Personal wealth questionnaire
Are you planning any major renovation or expansion of your residence? Do you engage in any hobbies or activities that may cause harm to yourself or to someone else? Are you on the board of a public company? Are you on the board of a public charity? Have you hosted any charitable event in your home in recent months, or do you intend to host any such event? Do you have a family office? Do you have an investment partnership; or do you invest directly in your own private equity? ADVISORS MORGAN STANLEY FINANCIAL ADVISOR BRANCH # ACCOUNTANT PHONE ADDRESS ATTORNEY (TRUSTS & ESTATES) PHONE ADDRESS PRIVATE BANKER PHONE ADDRESS LIFE INSURANCE AGENT PHONE ADDRESS OTHER FINANCIAL ADVISOR PHONE FIRM Personal wealth questionnaire 7
PLANNING CONCERNS AND OBJECTIVES All planning should begin and end with your personal considerations and aims. To help us better understand yours, please number the following in order of their importance to you, with 1 signifying of greatest importance. If several are of equal concern, you may indicate that by giving the same number to those objectives. Likewise, if any are of little or no value to you, simply leave them blank. Maintaining a comfortable lifestyle through my / our retirement years Optimizing the use of loans to maximize net worth Minimizing Income Tax & Capital Gains Tax Diversifying large single stock and stock option positions, or other liquid assets Generating adequate capital to run and grow my own business Ensuring that family members with special needs are well cared for Positioning as many of my assets for my family as I can while minimizing Estate & Gift Tax Involving my children and grandchildren in philanthropic pursuits Supporting my interests in and commitments to charitable causes Beginning or adding to my art collection or dealing with other collectibles Planning for business succession Creating a legacy that will help to keep my children and grandchildren productive Protecting my family s assets from creditors and litigation Protecting the value of my assets using hedging techniques 8 Personal wealth questionnaire
ASSET SUMMARY Summary Balance Sheet Total Assets: Total Liabilities: Note: You may provide complete statements for all accounts in each of the following areas, in lieu of completing the section, but you must provide the information on ownership (C, S, J, CP). CASH & CASH EQUIVALENTS (Use The Worksheet On Page 13 To Enter Holdings In A Retirement Account.) INCLUDING CHECKING, SAVINGS, MONEY MARKET, CDS CLIENT (C) CO-CLIENT JOINT (J) COMMUNITY PROPERTY (CP) MORGAN STANLEY ASSETS* * Please indicate with a P those assets held at Morgan Stanley and any of its affiliates. STOCKS, BONDS, MUTUAL FUNDS (Use The Worksheet On Page 14 To Enter Holdings In A Retirement Account.) STOCKS NAME # SHARES COST BASIS DATE OF ACQUISITION CURRENT VALUE CLIENT (C) CO-CLIENT JOINT (J) COMMUNITY PROPERTY (CP) MORGAN STANLEY ASSETS* BONDS NAME FACE AMOUNT % COST BASIS DATE OF ACQUISITION CURRENT VALUE CLIENT (C) CO-CLIENT JOINT (J) COMMUNITY PROPERTY (CP) MORGAN STANLEY ASSETS* * Please indicate with a P those assets held at Morgan Stanley and any of its affiliates. Personal wealth questionnaire 9
ASSET SUMMARY (CONTINUED) MUTUAL FUNDS NAME FACE AMOUNT % COST BASIS DATE OF ACQUISITION CURRENT VALUE CLIENT (C) CO-CLIENT JOINT (J) COMMUNITY PROPERTY (CP) MORGAN STANLEY ASSETS* * Please indicate with a P those assets held at Morgan Stanley and any of its affiliates. STOCKS, BONDS, MUTUAL FUNDS OTHER PUBLICLY TRADED SECURITIES CLIENT (C) CO-CLIENT JOINT (J) COMMUNITY PROPERTY (CP) MORGAN STANLEY ASSETS* * Please indicate with a P those assets held at Morgan Stanley and any of its affiliates. Note: Is any stock subject to Section 83(b) election? Yes No STOCK OPTION HOLDINGS (SUBMIT STATEMENTS) DESCRIPTION OR NAME DATE OF GRANT TYPE OF GRANT. OF SHARES EXPIRATION DATE EXERCISE PRICE VESTING DETAILS INCENTIVE NQUALIFIED INCENTIVE NQUALIFIED INCENTIVE NQUALIFIED INCENTIVE NQUALIFIED INCENTIVE NQUALIFIED INCENTIVE NQUALIFIED Please detail any legal restrictions (e.g., Rule 144) that apply to your ability to market securities freely. 10 Personal wealth questionnaire
HOMES PRIMARY HOME MARKET VALUE DATE COST BASIS REMAINING MORTGAGE OWNER C J S CP REVOCABLE TRUST OTHER ORIGINAL TERM DATE FIXED % / ADJ RATE % MONTHLY P & I SECONDARY OR VACATION HOME MARKET VALUE DATE COST BASIS REMAINING MORTGAGE OWNER C J S CP REVOCABLE TRUST OTHER ORIGINAL TERM DATE FIXED % / ADJ RATE % MONTHLY P & I Do you plan to buy or sell any homes in the next 12 months? Yes No INVESTMENT REAL ESTATE DESCRIPTION OWNER* MARKET VALUE REMAINING MORTGAGE INTEREST RATE COST BASIS ANNUAL INCOME CASH EXPENSES WHAT ARE YOUR PLANS FOR THIS PROPERTY? C S C S C S C S C S J O J O J O J O J O OTHER INVESTMENTS AND ASSETS (SUBMIT STATEMENTS) Including Partnerships, LLCs, Precious Metals, Futures, Venture Capital, Notes Receivables, Hedge Funds, Privately Held Securities, Exchange Funds, Collectibles and Personal Property DESCRIPTION OWNER* YEAR PURCHASED COST BASIS ANY REMAINING INSTALLMENTS CURRENT VALUE IF KWN CURRENT CASH FLOW ANNUAL TAXABLE INCOME (LOSS) PROJECTION C S C S C S C S C S J O J O J O J O J O * O=Other, e.g., Family Limited Partnership or LLC Personal wealth questionnaire 11
ASSET SUMMARY (CONTINUED) CLOSELY HELD BUSINESS INTEREST OR PROFESSIONAL PRACTICE NAME OF BUSINESS INDUSTRY / PROFESSION YEAR ESTABLISHED STRUCTURE (C CORP., S CORP., LLC, PARTNERSHIP) DO YOU HAVE MORE THAN ONE CLASS OF SHARES OR UNITS? EXPLAIN LENGTH OF OWNERSHIP PERCENTAGE OF OWNERSHIP CLIENT % CO-CLIENT % NAMES AND RELATIONSHIPS OF OTHER OWNERS ANNUAL REVENUES PROFITABILITY? NUMBER OF EMPLOYEES COMPANY DEBT INDICATE AMOUNT PERSONALLY GUARANTEED DO YOU BORROW PERSONALLY TO SUPPORT THE BUSINESS? HAVE YOU PLEDGED ANY BUSINESS ASSETS TO BACK BUSINESS PURPOSE LOANS? VALUE OF COMPANY OWNED REAL ESTATE COST BASIS OF COMPANY OWNED REAL ESTATE ESTIMATED VALUE OF BUSINESS HAVE YOU HAD A VALUATION DONE? IF SO, WHEN? DO YOU HAVE A BUY-SELL AGREEMENT? IF SO, IS IT TRIGGERED BY DEATH DISABILITY BOTH IS THE AGREEMENT FUNDED? EXPLAIN: IS THERE A BUSINESS SUCCESSION PLAN? DO YOU HAVE KEY EMPLOYEES WHOSE LOSS WOULD BE DETRIMENTAL TO THE CONTINUED PROFITABILITY OF THE BUSINESS? IS THE AGREEMENT FUNDED? IF SO, WITH WHAT TYPE OF INVESTMENT? 12 Personal wealth questionnaire
Is your succession plan to: Sell business in years? Pass to family heirs? Go public? If so, to whom? Do you wish to treat all family members equally? If no, explain: Leveraged recapitalization? Other? Explain: Do you have a company-sponsored retirement plan? Please repeat for each business interest. (Attach extra pages, if necessary.) RETIREMENT PLANS What level of income (in today s dollars) do you anticipate needing at retirement? PRE-TAX AFTER-TAX $ After retirement, is your goal to spend down your capital or preserve your wealth for your children and heirs? TOTALLY DEPLETE PARTIALLY DEPLETE PRESERVE What is your planned retirement age? CLIENT: CO-CLIENT: PLAN DESCRIPTION PRESENT VESTED INTEREST INSURANCE PROCEEDS AT DEATH BENEFICIARY ANNUAL EMPLOYER CONTRIBUTION ANNUAL EMPLOYEE CONTRIBUTION HOW INVESTED PROJECT MONTHLY RETIREMENT INCOME IRA C $ $ $ $ $ C $ $ $ $ $ C $ $ $ $ $ S $ $ $ $ $ S $ $ $ $ $ S $ $ $ $ $ KEOGH C $ $ $ $ $ S $ $ $ $ $ PENSION C $ $ $ $ $ S $ $ $ $ $ PROFIT SHARING C $ $ $ $ $ S $ $ $ $ $ 401(K) C $ $ $ $ $ S $ $ $ $ $ EMPLOYEE STOCK PLANS TAX-SHELTERED ANNUITY 403(B) N-QUALIFIED DEFERRED COMPENSATION C $ $ $ $ $ S $ $ $ $ $ C $ $ $ $ $ S $ $ $ $ $ C $ $ $ $ $ S $ $ $ $ $ Personal wealth questionnaire 13
ASSET SUMMARY (CONTINUED) ANNUITIES FIXED POLICY 1 POLICY 2 OWNER(S) INSURED(S) BENEFICIARY(IES) DATE PURCHASED ORIGINAL PREMIUM SURRENDER VALUE FIXED POLICY 1 POLICY 2 OWNER(S) INSURED(S) BENEFICIARY(IES) DATE PURCHASED ORIGINAL PREMIUM SURRENDER VALUE LIFE INSURANCE LIFE INSURANCE POLICY 1 POLICY 2 POLICY 3 OWNER(S) INSURED(S) BENEFICIARY(IES) DEATH BENEFIT CASH VALUE ANNUAL PREMIUM TYPE OF INSURANCE DATE PURCHASED DATE OF LAST POLICY REVIEW ISSUING INSURANCE COMPANY DATE POLICY TRANSFERRED TO TRUST, IF APPLICABLE 14 Personal wealth questionnaire
INDIVIDUAL LONG TERM DISABILITY Complete the following if Client #1 or Client #2 is insured under an individual long term disability policy. POLICY 1 POLICY 2 ANNUAL EARNED INCOME ANNUAL PREMIUM AMOUNT MONTHLY BENEFIT AMOUNT POLICY ELIMINATION PERIOD POLICY BENEFIT PERIOD COST OF LIVING ADJUSTMENT RIDER ISSUING INSURANCE COMPANY LONG TERM CARE Complete the following if Client #1 or Client #2 is insured under a long term care insurance policy. POLICY 1 POLICY 2 NAME OF POLICY OWNER ANNUAL PREMIUM AMOUNT DAILY BENEFIT AMOUNT POLICY ELIMINATION PERIOD POLICY BENEFIT PERIOD INFLATION ADJUSTMENT RIDER ISSUING INSURANCE COMPANY Personal wealth questionnaire 15
ASSET SUMMARY (CONTINUED) GROUP LIFE INSURANCE Complete the following for each life insurance policy of which Client #1 or Client #2 is the insured. Please specify if the beneficiary is a trustee of an irrevocable life insurance trust. POLICY 1 POLICY 2 INSURED BENEFICIARY(IES) DEATH BENEFIT CASH VALUE ANNUAL PREMIUM TYPE OF INSURANCE ISSUING INSURANCE COMPANY GROUP DISABILITY INSURANCE Complete the following if Client #1 or Client #2 is covered by group long term disability insurance. POLICY 1 POLICY 2 MONTHLY PREMIUM AMOUNT MONTHLY BENEFIT AMOUNT POLICY ELIMINATION PERIOD POLICY BENEFIT PERIOD ISSUING INSURANCE COMPANY WHO PAYS THE PREMIUMS? (YOU OR YOUR COMPANY) OTHER INSURANCE HEALTH COVERAGE PROPERTY / CASUALTY PERSONAL EXCESS LIABILITY IF, HOW MUCH? 16 Personal wealth questionnaire
LIABILITIES MORTGAGE DEBT PROPERTY TITLE NAME TOTAL DEBT MATURITY LENDER TES PAYABLE AND OTHER N-MORTGAGE DEBT (include loans, margin debt, taxes currently due, taxes on assets sold beyond 1 year) TYPE* CURRENT OUTSTANDING AMOUNT TOTAL CREDIT MATURITY COLLATERAL LENDER *D= Demand; R=Revolving Credit; T=Term Loan; M=Margin Credit; C=Credit Card; A=Auto; X=Taxes Due; O=Other; P=Promissory Personal wealth questionnaire 17
LIABILITIES (CONTINUED) CONTINGENT LIABILITIES Do you have any outstanding letters of credit or surety bond? Amount: Are you a guarantor or endorser of any debt of a third party? Amount: Are you contingently liable on any lease or contract? Amount: Are there any lawsuits, claims or judgments pending against you (including divorce)? Amount: Have any of your debts, debts guaranteed by you or debts of a company or partnership 20% or more owned by you been discharged through bankruptcy or settled for less than the amount owed? Amount: Do you have any other contingent liabilities such as cash calls? Amount: Are any of your tax obligations past due? Amount: Is the IRS auditing or contesting any prior tax returns? Amount: PLEASE DETAIL YOUR ATTITUDES TOWARDS DEBT AND LIQUIDITY I dislike debt and want to be debt-free. I use loans to take advantage of opportunities. I use loans aggressively to maximize my net worth. I have sufficient cash reserves for unexpected needs. I would sell liquid assets rather than borrow to meet my needs. Do you have any upcoming capital needs or large expenses (in the next 12 months)? How much?: 18 Personal wealth questionnaire
CASH FLOW INFORMATION (Please submit most recent tax return) FEDERAL INCOME TAX BRACKET % STATE INCOME TAX BRACKET % OTHER INCOME TAX BRACKET (E.G., CITY TAXES) % FILING STATUS SINGLE MARRIED MARRIED, FILING SEPARATELY HEAD OF HOUSEHOLD Note: If you wish, you may elect to provide totals only for income and expenses. It is preferable, however, to provide as much information as possible for purposes of cash flow analysis. CURRENT INCOME INCOME PRE-RETIREMENT IN RETIREMENT WAGES INVESTMENT INCOME BUSINESS INCOME RENTAL INCOME OTHER SOURCES & AMOUNTS OF RETIREMENT INCOME QUALIFIED PLAN / PENSION INCOME INVESTMENT INCOME BUSINESS INCOME RENTAL INCOME OTHER TOTAL INCOME CURRENT EXPENSES EXPENSES PRE-RETIREMENT IN RETIREMENT MORTGAGE(S) AFTER-TAX LIVING EXPENSES ANNUAL GIFTING CHARITABLE GIFTING RETIREMENT EXPENSES MORTGAGE(S) AFTER-TAX LIVING EXPENSES ANNUAL GIFTING CHARITABLE GIFTING TRAVEL TOTAL EXPENSES Note: Will there be any extraordinary expense or income item over coming years (e.g., purchase of a luxury boat, redesign of home)? Yes No If so, please give approximate amount and year. Personal wealth questionnaire 19
ESTATE & CHARITABLE PLANNING INFORMATION Do you have a will? If Yes, when was it last updated? Who is named as executor / executrix? Does your will provide for the creation of a trust at your death? If so, what type of trust is it? (e.g., credit shelter, marital) Who is named as trustee? Successor trustee? If your will includes any specific bequests to an individual or institution other than a co-client, please list the name(s) and amount(s) (and asset(s)). Do you have a living trust? If Yes, who is trustee? Successor trustee? What is type? What is market value? Are you the income or principal beneficiary of a trust established by someone else? Explain: Are you currently gifting to children, grandchildren or other individuals? If Yes, please list. DOR RECIPIENT AMOUNT DATE OF GIFT Is the gift Outright? in Trust? Have you filed gift tax returns? If Yes, please include copy. Do you currently make contributions to charity? If Yes, amount of annual cash contributions Amount of long term capital gain property 20 Personal wealth questionnaire
What are your primary objectives in gifting to charity? (please number with 1 being the highest priority) Provide Current Gift to Charity(ies) Provide Future Gift to Charity(ies) Provide Gift to Charity(ies) at Death Reduce or Postpone Capital Gains Taxes on Assets Increase Income from Current Assets Reduce Income Taxes Provide Income for Children or Others Reduce Estate Taxes If income is an objective for you or another family member, as part of your charitable gifting, please prioritize among the following. Start Income Immediately Start Income in Years Start Income at Retirement ( ) Start Income for Parents or Grandparents in Years Start Income for Co-Client at Donor s Death Start Income for Children Do you have an asset which you would like to gift to family members in the future (at a discount in value), while donating some of the growth and income to charity now? If so, do you believe the asset will appreciate significantly in the future? Are you interested in involving family members in your charitable giving commitments? If Yes, would these commitments amount to a substantial sum? (e.g., over $1,000,000.00) Do you have a charitable trust? If Yes, what kind of trust is it? If Yes, please include copy. What is the Fair Market Value? What is the Annuity or Unitrust payout? Personal wealth questionnaire 21
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PWM7025347 2012-PS-358-03/2012 2012 Morgan Stanley Private Wealth Management, a division of Morgan Stanley Smith Barney LLC. Member SIPC. 7252204 10/12