Charitable Lead Annuity Trust AN ANALYSIS PREPARED EXCLUSIVELY FOR Jack & Jill Flash Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT An Illustration of an Inter Vivos Charitable Lead Annuity Trust 1
Charitable Lead Annuity Trust
AN ANALYSIS PREPARED EXCLUSIVELY FOR
Jack & Jill Flash
Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
An Illustration of an Inter Vivos Charitable Lead Annuity Trust
1
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
SummaryJack & Jill Flash
Inter Vivos
Projected Results in 2039 Baseline CLAT
Charitable deduction NA 650,000
Net transferable value 6,376,027 6,468,113
Estate taxes or tax savings -2,008,655 146,827
Deferred capital gains and Medicare taxes 0 -1,077,266
Net amount to 2nd generation 4,367,372 5,537,674
Future value of CLAT payouts 990,867
Planning advantage/-disadvantage to 2nd generation 1,170,302
Present value of advantage/-disadvantage @ 3.0% 648,020
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000
Baseline
CLAT
Wealth Transfer Comparison in $Thousands
Amount to Heirs Amount to Charity
2
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Actuarial SummaryJack & Jill Flash
CLAT payout rate Variable
Income factor used 100.000%
Remainder factor used 0.000%
Annuity exhaustion test of the Sec. 7520 Regs & Rev. Rul. 77-454 Passed
Taxable gift 0
Relevant Actuarial Calculations & Applicable Tests
100.0%
0.0%
Actuarial CLAT Split at the Time of Contribution
Lead Interest Remainder Interest
3
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
AssumptionsJack & Jill Flash
Personal Jack Jill
Age 55.0 52.0
Calculated life expectancy 85.5 84.3
Life expectancy override 90.0 90.0
Planning Illustration
Transfer date 01-Jan-2020
Type of analysis Inter vivos
Tax laws to apply - income taxes TCJA provisions sunset after 2025
Tax laws to apply - estate, gift & GST TCJA provisions sunset after 2025
Transfer of Property
Transferor Jack
Gift-splitting election Yes
If Yes, adjust estate tax for consenting spouse's share Yes
Trust Assumptions
CLAT planning approach Shark-fin CLAT
Type of trust Term
Trust term 20 years
CLAT payout rate Variable
CLAT payment date End of year
CLAT payout frequency Annual
Section 7520 rate 2.0%
Estate & Gift Tax Jack Jill
DSUE amount inherited 0 0
Post-1976 adjusted taxable gifts 0 0
Unified credit used 0 0
Property Transferred
Undiscounted fair market value 1,000,000
Tax basis 300,000
Gift tax valuation discount 35.0%
Estate tax valuation discount 35.0%
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Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
AssumptionsJack & Jill Flash
Charitable Deduction
Grantor trust Yes
Total percentage of lead interest deductible 100.0%
Years needed to utilize deduction 2
Income tax deduction recapture calculation method Internal Revenue Code
Tax Rates Jack Transferee
Federal tax bracket See schedule See schedule
Federal capital gains tax rate See schedule See schedule
State income tax rate 5.0% 5.0%
Charitable income tax deduction rate See schedule NA
Estate tax rate See schedule 40.0%
Transferred Property Investment Rates
Current cash yield 5.0%
Inc/-dec rate of cash yield 0.0%
Percentage of yield subject to tax 100.0%
Qualified dividend percentage 100.0%
Base growth rate 7.0%
Other Investment Rates CLAT Non-CLAT
Taxable income rate 2.0% 2.0%
Qualified dividend percentage 100.0% 100.0%
Growth rate 6.0% 6.0%
Tax-exempt income rate 0.0% 0.0%
Portfolio turnover rate 25.0% 25.0%
Percentage of taxable income and realized gains subject to Medicare surtax 100.0% 100.0%
Charity's rate of return 8.0% NA
Opportunity cost rate associated with payment of transfer taxes NA 7.1%
Present value discount rate NA 3.0%
Other
CLAT property reverts to grantor at termination No
Summary results are shown net of deferred capital gains and Medicare taxes Yes
Inflation rate 3.0%
5
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Inter Vivos CLAT vs. Baseline ComparisonJack & Jill Flash
Inter Vivos CLAT Adv/ PV of Adv/
Projected Results in 2039 Baseline CLAT -Disadv -Disadv
Charitable deduction NA 650,000 261,300 257,495
Net transferable value 6,376,027 6,468,113 92,086 50,990
Estate taxes or tax savings -2,008,655 146,827 2,155,482 1,193,535
Deferred capital gains and Medicare taxes 0 -1,077,266 -1,077,266 -596,504
Net amount to heirs 4,367,372 5,537,674 1,170,302 648,020
Future value of CLAT payouts 990,867 990,867 212,589
Combined wealth transfer 4,367,372 6,528,541 2,161,169 860,609
On the basis of current assumptions, utilizing a CLAT in this manner will
maximize the family's after-tax wealth.
The current analysis assumes a back-loaded CRAT payout rate.
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000
Baseline
Inter Vivos CLAT
After-Tax Wealth Comparison in $Thousands
Amount to Heirs Amount to Charity
6
Charitable Lead Annuity Trust - Transfer to 20-Year Shark-Fin CLAT
Annual Net to Heirs ComparisonJack & Jill Flash Part 1 of 2
Ending Estate Net
Year Balance Taxes to Heirs
2020 1,106,500 292,800 813,700
2021 1,223,030 328,926 894,104
2022 1,350,363 368,639 981,724
2023 1,489,351 412,229 1,077,122
2024 1,640,927 460,014 1,180,913
2025 1,806,108 512,341 1,293,767
2026 1,986,182 569,664 1,416,519
2027 2,182,200 632,334 1,549,866
2028 2,395,463 700,801 1,694,662
2029 2,627,382 775,552 1,851,830
2030 2,879,479 857,112 2,022,366
2031 3,153,399 946,053 2,207,346
2032 3,450,920 1,042,990 2,407,930
2033 3,773,958 1,148,589 2,625,370
2034 4,124,583 1,263,569 2,861,014
2035 4,505,026 1,388,708 3,116,319
2036 4,917,694 1,524,844 3,392,851
2037 5,365,182 1,672,882 3,692,300
2038 5,850,288 1,833,801 4,016,487
2039 6,376,027 2,008,655 4,367,372
Baseline Illustration
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Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Annual Net to Heirs ComparisonJack & Jill Flash Part 2 of 2
Grantor's Estate Tax/ Deferred Future Value
Ending CLAT-Related Projected Capital Gains CLAT Adv/ of CLAT Combined
CLAT Accumulations Estate Tax & Medicare Net -Disadv to Payouts Adv/
Year Balance Net of Recapture Cost Taxes to Heirs Family 8.0% -Disadv
2020 1,119,000 15,423 6,169 207,900 920,354 106,654 1,000 107,654
2021 1,250,320 39,501 15,801 228,718 1,045,303 151,198 2,080 153,278
2022 1,395,142 63,231 25,292 251,489 1,181,591 199,867 3,246 203,114
2023 1,554,755 86,626 34,651 276,277 1,330,453 253,331 4,506 257,837
2024 1,730,567 109,657 43,863 303,175 1,493,186 312,273 5,867 318,139
2025 1,924,114 132,251 52,900 332,297 1,671,168 377,401 7,336 384,737
2026 2,137,073 149,035 59,614 361,085 1,865,408 448,889 8,923 457,812
2027 2,371,270 172,501 69,001 394,833 2,079,937 530,071 10,637 540,708
2028 2,628,699 195,265 78,106 431,253 2,314,605 619,943 12,488 632,431
2029 2,911,533 208,058 83,223 470,536 2,565,832 714,002 14,487 728,488
2030 3,221,142 188,469 75,388 512,894 2,821,329 798,962 17,645 816,608
2031 3,561,027 164,775 65,910 558,545 3,101,347 894,001 21,057 915,058
2032 3,933,997 136,493 54,597 607,741 3,408,151 1,000,221 24,742 1,024,963
2033 4,343,110 103,085 41,234 660,756 3,744,206 1,118,836 28,721 1,147,557
2034 4,791,701 63,955 25,582 717,883 4,112,191 1,251,177 33,019 1,284,196
2035 5,283,398 18,447 7,379 779,440 4,515,025 1,398,707 37,660 1,436,367
2036 5,822,156 -34,168 -13,667 845,773 4,955,883 1,563,032 42,673 1,605,705
2037 6,412,282 -94,690 -37,876 917,249 5,438,218 1,745,918 48,087 1,794,005
2038 7,058,461 -164,002 -65,601 994,270 5,965,790 1,949,304 53,934 2,003,237
2039 6,835,181 -367,067 -146,827 1,077,266 5,537,674 1,170,302 990,867 2,161,169
Inter Vivos CLAT Scenario CLAT Summary
8
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
CLAT Illustration - 2nd Generation TransferJack & Jill Flash
Inter Vivos Grantor Trust-Type CLAT - Transfer to 2nd Generation
On the basis of current assuptions, utilizing a CLAT in the illustrated manner is projected to produce a net after-tax
advantage of $1,170,302 in 2039, or $648,020 in today's dollars, not including the annual distributions to charity.
JackTransfers
$1,000,000
Inter Vivos CLAT$1,000,000
CLAT Valuein 2039
$6,835,181
Net to Heirsin 2039
$5,537,674
Cap Gains & HI Taxes
$1,077,266
CharityFV of Payouts
$990,867
CharityCLAT Payouts
$960,619
Charitable Deduction$650,000
Charitable Deduction Benefit
$261,300
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Charitable Lead Annuity Trust
AN ANALYSIS PREPARED EXCLUSIVELY FOR
Jack & Jill Flash
Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Sensitivity Analyses
10
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Sensitivity Analysis - Growth RatesJack & Jill Flash
2nd Gen GST Cumulative FV to To 2nd To 3rd
CLAT CLAT Payouts Charity Generation Generation
1,089,085 NA 960,619 990,867 -156,440 NA
1,930,912 NA 960,619 990,867 123,313 NA
3,109,526 NA 960,619 990,867 499,907 NA
4,791,790 NA 960,619 990,867 1,044,255 NA
7,231,685 NA 960,619 990,867 1,878,684 NA
10,645,001 NA 960,619 990,867 3,039,327 NA10.0%
2039 Net to Heirs Charitable Transfers Projected Adv/-Disadv
Growth
0.0%
2.0%
4.0%
6.0%
8.0%
The illustration above shows the impact of pretax growth rate assumptions (inside and outside the trust) on the projected
results. The graph shows the advantages or disadvantages of a CLAT, as compared to the baseline scenario, in
today's dollars. Note that all other assumptions are the same as those listed on the Assumptions schedule.
$200,000
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Pretax Growth Rates
Planning Advantage/-Disadvantage over Baseline to 2nd Generation in Today's Dollars
11
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Sensitivity Analysis - Portfolio Turnover RatesJack & Jill Flash
2nd Gen GST Cumulative FV to To 2nd To 3rd
CLAT CLAT Payouts Charity Generation Generation
5,341,905 NA 960,619 990,867 824,236 NA
5,514,932 NA 960,619 990,867 1,132,548 NA
5,589,618 NA 960,619 990,867 1,251,083 NA
5,654,238 NA 960,619 990,867 1,335,987 NA
5,692,112 NA 960,619 990,867 1,385,410 NA
5,717,052 NA 960,619 990,867 1,417,783 NA100.0%
2039 Net to Heirs Charitable Transfers Projected Adv/-Disadv
Turnover
0.0%
20.0%
40.0%
60.0%
80.0%
results. The graph shows the advantages or disadvantages of a CLAT, as compared to the baseline scenario, in
today's dollars. Note that all other assumptions are the same as those listed on the Assumptions schedule.
The illustration above shows the impact of portfolio turnover rate assumptions (inside and outside the trust) on the projected
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Portfolio Turnover Rates
Planning Advantage/-Disadvantage over Baseline to 2nd Generation in Today's Dollars
12
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Sensitivity Analysis - CLAT Payout RatesJack & Jill Flash
Gift Tax Char Cumulative 2nd 3rd To 2nd To 3rd
Deduction Payouts Generation Generation Generation Generation
531,421 650,000 5,049,278 NA 681,906 NA
650,000 910,000 4,636,251 NA 268,879 NA
650,000 1,170,000 4,009,095 NA -358,277 NA
650,000 1,430,000 3,131,380 NA -1,235,992 NA
650,000 1,690,000 1,947,939 NA -2,419,433 NA
650,000 1,950,000 476,848 NA -3,890,524 NA15.000%
2039 Charitable Transfers Net to Heirs Projected Adv/-Disadv
Payout
5.000%
7.000%
9.000%
11.000%
13.000%
relationship between the CLAT payout rate and a) the charitable deduction, b) the cumulative payouts to charity and c) the
net projected transfer to heirs. All other assumptions are the same as those listed on the Assumptions schedule.
The illustration above shows the impact of the CLAT payout rate assumption on the projected results. The graph shows the
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
5.000% 7.000% 9.000% 11.000% 13.000% 15.000%
CLAT Payout Rates
CLAT Trends
Gift Tax Charitable Deduction Cumulative Payouts Net to 2nd Generation
13
Charitable Lead Annuity Trust
AN ANALYSIS PREPARED EXCLUSIVELY FOR
Jack & Jill Flash
Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Supporting Schedules for
BASELINE SCENARIO
14
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Baseline IllustrationJack & Jill Flash Part 1 of 2
Gross
Estate
Beginning Taxable Unrealized Ending Value
Year Balance Income Growth Gains Balance 65.0%
Start 1,000,000 700,000 1,000,000 0
2020 1,000,000 50,000 70,000 770,000 1,070,000 695,500
2021 1,070,000 53,500 74,900 844,900 1,144,900 744,185
2022 1,144,900 57,245 80,143 925,043 1,225,043 796,278
2023 1,225,043 61,252 85,753 1,010,796 1,310,796 852,017
2024 1,310,796 65,540 91,756 1,102,552 1,402,552 911,659
2025 1,402,552 70,128 98,179 1,200,730 1,500,730 975,475
2026 1,500,730 75,037 105,051 1,305,781 1,605,781 1,043,758
2027 1,605,781 80,289 112,405 1,418,186 1,718,186 1,116,821
2028 1,718,186 85,909 120,273 1,538,459 1,838,459 1,194,998
2029 1,838,459 91,923 128,692 1,667,151 1,967,151 1,278,648
2030 1,967,151 98,358 137,701 1,804,852 2,104,852 1,368,154
2031 2,104,852 105,243 147,340 1,952,192 2,252,192 1,463,925
2032 2,252,192 112,610 157,653 2,109,845 2,409,845 1,566,399
2033 2,409,845 120,492 168,689 2,278,534 2,578,534 1,676,047
2034 2,578,534 128,927 180,497 2,459,032 2,759,032 1,793,371
2035 2,759,032 137,952 193,132 2,652,164 2,952,164 1,918,906
2036 2,952,164 147,608 206,651 2,858,815 3,158,815 2,053,230
2037 3,158,815 157,941 221,117 3,079,932 3,379,932 2,196,956
2038 3,379,932 168,997 236,595 3,316,528 3,616,528 2,350,743
2039 3,616,528 180,826 253,157 0 3,869,684 2,515,295
Property Retained in the Family
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Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Baseline IllustrationJack & Jill Flash Part 2 of 2
Beginning Taxable Realized Transferred Income Ending
Investment Income Growth Gains Unrealized Property & Medicare Capital Gains Investment
Year Balance 2.0% 6.0% 25.0% Gains Cash Yield Taxes Taxes Balance
Start 0 0
2020 0 0 0 0 0 50,000 1,900 11,600 36,500
2021 36,500 730 2,190 548 1,643 53,500 2,082 12,708 78,130
2022 78,130 1,563 4,688 1,583 4,748 57,245 2,295 14,011 125,320
2023 125,320 2,506 7,519 3,067 9,200 61,252 2,539 15,503 178,555
2024 178,555 3,571 10,713 4,978 14,935 65,540 2,815 17,189 238,375
2025 238,375 4,768 14,303 7,309 21,928 70,128 3,124 19,071 305,378
2026 305,378 6,108 18,323 10,063 30,188 75,037 3,466 20,978 380,401
2027 380,401 7,608 22,824 13,253 39,759 80,289 3,844 23,265 464,014
2028 464,014 9,280 27,841 16,900 50,700 85,909 4,259 25,781 557,004
2029 557,004 11,140 33,420 21,030 63,090 91,923 4,716 28,541 660,231
2030 660,231 13,205 39,614 25,676 77,028 98,358 5,215 31,565 774,627
2031 774,627 15,493 46,478 30,876 92,629 105,243 5,761 34,871 901,208
2032 901,208 18,024 54,072 36,675 110,026 112,610 6,358 38,481 1,041,075
2033 1,041,075 20,821 62,464 43,123 129,368 120,492 7,009 42,420 1,195,424
2034 1,195,424 23,908 71,725 50,273 150,820 128,927 7,718 46,715 1,365,552
2035 1,365,552 27,311 81,933 58,188 174,565 137,952 8,491 51,394 1,552,863
2036 1,552,863 31,057 93,172 66,934 200,803 147,608 9,333 56,488 1,758,879
2037 1,758,879 35,178 105,533 76,584 229,751 157,941 10,249 62,031 1,985,250
2038 1,985,250 39,705 119,115 87,217 261,650 168,997 11,245 68,061 2,233,760
2039 2,233,760 44,675 134,026 98,919 0 180,826 12,328 74,617 2,506,343
Investment Fund
16
Charitable Lead Annuity Trust
AN ANALYSIS PREPARED EXCLUSIVELY FOR
Jack & Jill Flash
Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Supporting Schedules for
CHARITABLE LEAD ANNUITY TRUST SCENARIO
17
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Inter Vivos Grantor Trust-Type CLAT IllustrationJack & Jill Flash Part 1 of 4
Taxable
Beginning Income to Unrealized CLAT EndingYear Balance Investments Growth Gains Payouts Balance
Start 1,000,000 700,000 1,000,000
2020 1,000,000 50,000 70,000 770,000 0 1,070,000
2021 1,070,000 53,500 74,900 844,900 0 1,144,900
2022 1,144,900 57,245 80,143 925,043 0 1,225,043
2023 1,225,043 61,252 85,753 1,010,796 0 1,310,796
2024 1,310,796 65,540 91,756 1,102,552 0 1,402,552
2025 1,402,552 70,128 98,179 1,200,730 0 1,500,730
2026 1,500,730 75,037 105,051 1,305,781 0 1,605,781
2027 1,605,781 80,289 112,405 1,418,186 0 1,718,186
2028 1,718,186 85,909 120,273 1,538,459 0 1,838,459
2029 1,838,459 91,923 128,692 1,667,151 0 1,967,151
2030 1,967,151 98,358 137,701 1,804,852 0 2,104,852
2031 2,104,852 105,243 147,340 1,952,192 0 2,252,192
2032 2,252,192 112,610 157,653 2,109,845 0 2,409,845
2033 2,409,845 120,492 168,689 2,278,534 0 2,578,534
2034 2,578,534 128,927 180,497 2,459,032 0 2,759,032
2035 2,759,032 137,952 193,132 2,652,164 0 2,952,164
2036 2,952,164 147,608 206,651 2,858,815 0 3,158,815
2037 3,158,815 157,941 221,117 3,079,932 0 3,379,932
2038 3,379,932 168,997 236,595 3,316,528 0 3,616,528
2039 3,616,528 180,826 253,157 3,569,684 0 3,869,684
Property Transferred to the CLAT
18
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Inter Vivos Grantor Trust-Type CLAT IllustrationJack & Jill Flash Part 2 of 4
Beginning Taxable Realized Transferred
Investment Income Growth Gains Unrealized Property CLATYear Balance 2.0% 6.0% 25.0% Gains Cash Yield Payouts
Start 0 0 0
2020 0 0 0 0 0 50,000 1,000
2021 49,000 980 2,940 735 2,205 53,500 1,000
2022 105,420 2,108 6,325 2,133 6,398 57,245 1,000
2023 170,099 3,402 10,206 4,151 12,453 61,252 1,000
2024 243,959 4,879 14,638 6,773 20,318 65,540 1,000
2025 328,015 6,560 19,681 10,000 29,999 70,128 1,000
2026 423,384 8,468 25,403 13,850 41,551 75,037 1,000
2027 531,291 10,626 31,877 18,357 55,072 80,289 1,000
2028 653,084 13,062 39,185 23,564 70,693 85,909 1,000
2029 790,240 15,805 47,414 29,527 88,580 91,923 1,000
2030 944,382 18,888 56,663 36,311 108,932 98,358 2,000
2031 1,116,290 22,326 66,977 43,977 131,932 105,243 2,000
2032 1,308,836 26,177 78,530 52,616 157,847 112,610 2,000
2033 1,524,152 30,483 91,449 62,324 186,972 120,492 2,000
2034 1,764,576 35,292 105,875 73,212 219,635 128,927 2,000
2035 2,032,669 40,653 121,960 85,399 256,196 137,952 2,000
2036 2,331,234 46,625 139,874 99,018 297,053 147,608 2,000
2037 2,663,341 53,267 159,800 114,213 342,640 157,941 2,000
2038 3,032,349 60,647 181,941 131,145 393,436 168,997 2,000
2039 3,441,934 68,839 206,516 149,988 449,964 180,826 932,619
CLAT Investment Fund
19
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Inter Vivos Grantor Trust-Type CLAT IllustrationJack & Jill Flash Part 3 of 4
Qualified
End Present Value Dividends + Planned Triggered
Valuation of Year Discount of Payouts Ordinary Capital CapitalYear for Payout Payout Period 650,000 Income Gains Gains Corpus
Start
2020 650,000 1,000 1.00000 980 1,000 0 0 0
2021 650,000 1,000 2.00000 961 987 13 0 0
2022 650,000 1,000 3.00000 942 965 35 0 0
2023 650,000 1,000 4.00000 924 940 60 0 0
2024 650,000 1,000 5.00000 906 912 88 0 0
2025 650,000 1,000 6.00000 888 885 115 0 0
2026 650,000 1,000 7.00000 871 858 142 0 0
2027 650,000 1,000 8.00000 853 832 168 0 0
2028 650,000 1,000 9.00000 837 808 192 0 0
2029 650,000 1,000 10.00000 820 785 215 0 0
2030 650,000 2,000 11.00000 1,609 1,527 473 0 0
2031 650,000 2,000 12.00000 1,577 1,487 513 0 0
2032 650,000 2,000 13.00000 1,546 1,450 550 0 0
2033 650,000 2,000 14.00000 1,516 1,416 584 0 0
2034 650,000 2,000 15.00000 1,486 1,383 617 0 0
2035 650,000 2,000 16.00000 1,457 1,353 647 0 0
2036 650,000 2,000 17.00000 1,428 1,325 675 0 0
2037 650,000 2,000 18.00000 1,400 1,298 702 0 0
2038 650,000 2,000 19.00000 1,373 1,273 727 0 0
2039 650,000 932,619 20.00000 627,626 249,665 149,988 313,428 219,538
CLAT Payouts to Charity
20
Charitable Lead Annuity Trust - Transfer $1M to 20-Year Shark-Fin CLAT
Inter Vivos Grantor Trust-Type CLATJack & Jill Flash Part 4 of 4
Qualified
Dividends + Ending
Ordinary Qualified Capital InvestmentYear Income Dividends Gains Balance
Start 0
2020 49,000 49,000 0 49,000
2021 53,493 53,493 722 105,420
2022 58,388 58,388 2,098 170,099
2023 63,714 63,714 4,091 243,959
2024 69,507 69,507 6,685 328,015
2025 75,803 75,803 9,884 423,384
2026 82,646 82,646 13,708 531,291
2027 90,083 90,083 18,189 653,084
2028 98,163 98,163 23,372 790,240
2029 106,943 106,943 29,312 944,382
2030 115,718 115,718 35,838 1,116,290
2031 126,081 126,081 43,465 1,308,836
2032 137,336 137,336 52,066 1,524,152
2033 149,560 149,560 61,740 1,764,576
2034 162,835 162,835 72,595 2,032,669
2035 177,252 177,252 84,752 2,331,234
2036 192,908 192,908 98,342 2,663,341
2037 209,910 209,910 113,511 3,032,349
2038 228,371 228,371 130,418 3,441,934
2039 0 0 0 2,965,496
Undistributed Current-Year Income
21
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
CLAT Grantor IllustrationJack & Jill Flash Part 1 of 2
Income Tax
Charitable Taxable Realized
Beginning Deduction Income Growth Gains UnrealizedYear Balance Benefit 2.0% 6.0% 25.0% Gains
2020 0 130,650 2,613 7,839 1,960 5,879
2021 126,367 130,650 5,140 15,421 5,325 15,975
2022 260,040 5,201 15,602 7,894 23,683
2023 261,273 5,225 15,676 9,840 29,520
2024 260,634 5,213 15,638 11,289 33,868
2025 257,992 5,160 15,480 12,337 37,011
2026 253,171 5,063 15,190 13,050 39,151
2027 246,152 4,923 14,769 13,480 40,440
2028 236,502 4,730 14,190 13,658 40,973
2029 223,919 4,478 13,435 13,602 40,806
2030 208,058 4,161 12,483 13,322 39,967
2031 188,469 3,769 11,308 12,819 38,456
2032 164,775 3,296 9,887 12,086 36,257
2033 136,493 2,730 8,190 11,112 33,335
2034 103,085 2,062 6,185 9,880 29,640
2035 63,955 1,279 3,837 8,369 25,108
2036 18,447 369 1,107 6,554 19,661
2037 -34,168 -683 -2,050 4,403 13,208
2038 -94,690 -1,894 -5,681 1,882 5,645
2039 -164,002 -3,280 -9,840 -1,049 0
Current-Year Returns
22
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
CLAT Grantor IllustrationJack & Jill Flash Part 2 of 2
Potential Ending
Qualified Recapture of Balance Net
Dividends + Income Ending Charitable of Deduction
Ordinary Qualified Capital & Medicare Capital Gains Balance Deduction BenefitYear Income Dividends Gains Taxes Taxes Accumulated Benefit Recapture
2020 50,000 50,000 0 2,074 12,661 126,367 110,944 15,423
2021 54,480 54,480 13 2,468 15,070 260,040 220,538 39,501
2022 59,353 59,353 35 2,754 16,816 261,273 198,041 63,231
2023 64,654 64,654 60 3,032 18,509 260,634 174,007 86,626
2024 70,419 70,419 88 3,306 20,186 257,992 148,336 109,657
2025 76,688 76,688 115 3,583 21,878 253,171 120,920 132,251
2026 83,504 83,504 142 3,867 23,405 246,152 97,118 149,035
2027 90,915 90,915 168 4,160 25,182 236,502 64,001 172,501
2028 98,971 98,971 192 4,467 27,037 223,919 28,654 195,265
2029 107,728 107,728 215 4,789 28,985 208,058 0 208,058
2030 117,245 117,245 473 5,138 31,096 188,469 0 188,469
2031 127,568 127,568 513 5,497 33,274 164,775 0 164,775
2032 138,786 138,786 550 5,879 35,585 136,493 0 136,493
2033 150,975 150,975 584 6,285 38,042 103,085 0 103,085
2034 164,218 164,218 617 6,718 40,659 63,955 0 63,955
2035 178,605 178,605 647 7,178 43,447 18,447 0 18,447
2036 194,233 194,233 675 7,670 46,421 -34,168 0 -34,168
2037 211,208 211,208 702 8,194 49,595 -94,690 0 -94,690
2038 229,644 229,644 727 8,754 52,982 -164,002 0 -164,002
2039 249,665 249,665 463,416 26,933 163,013 -367,067 0 -367,067
CLAT Taxable Income Taxes
23
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
CLAT Grantor Recapture of Income Tax Charitable DeductionJack & Jill Flash
Cumulative Cumulative Potential Potential
Discounted Charitable Recapture of Recapture of
Expected Discount Discounted CLAT Deduction Charitable Charitable
Elapsed Years Factor CLAT CLAT Income/Gains Claimed Deduction Deduction
Year Years Remaining 2.00% Income/Gains Income/Gains (A) (B) (B) - (A) Benefit
2020 1.000000 19.000000 0.980392 50,000 49,020 49,020 325,000 275,980 110,944
2021 2.000000 18.000000 0.961169 54,493 52,377 101,397 650,000 548,603 220,538
2022 3.000000 17.000000 0.942322 59,388 55,963 157,360 650,000 492,640 198,041
2023 4.000000 16.000000 0.923845 64,714 59,786 217,146 650,000 432,854 174,007
2024 5.000000 15.000000 0.905731 70,507 63,860 281,006 650,000 368,994 148,336
2025 6.000000 14.000000 0.887971 76,803 68,199 349,205 650,000 300,795 120,920
2026 7.000000 13.000000 0.870560 83,646 72,819 422,024 650,000 227,976 97,118
2027 8.000000 12.000000 0.853490 91,083 77,738 499,763 650,000 150,237 64,001
2028 9.000000 11.000000 0.836755 99,163 82,975 582,738 650,000 67,262 28,654
2029 10.000000 10.000000 0.820348 107,943 88,551 671,289 650,000 0 0
2030 11.000000 9.000000 0.804263 117,718 94,676 765,965 650,000 0 0
2031 12.000000 8.000000 0.788493 128,081 100,991 866,956 650,000 0 0
2032 13.000000 7.000000 0.773033 139,336 107,711 974,667 650,000 0 0
2033 14.000000 6.000000 0.757875 151,560 114,863 1,089,531 650,000 0 0
2034 15.000000 5.000000 0.743015 164,835 122,475 1,212,006 650,000 0 0
2035 16.000000 4.000000 0.728446 179,252 130,575 1,342,581 650,000 0 0
2036 17.000000 3.000000 0.714163 194,908 139,196 1,481,777 650,000 0 0
2037 18.000000 2.000000 0.700159 211,910 148,370 1,630,147 650,000 0 0
2038 19.000000 1.000000 0.686431 230,371 158,133 1,788,281 650,000 0 0
2039 20.000000 0.000000 0.672971 713,081 479,883 2,268,164 650,000 0 0
24
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
CLAT Basis & Gains Triggered on PayoutJack & Jill Flash
Tentative Potential Ending
Predistribution CLAT Adjusted Post-Payout Triggering Gains AdjustedYear Basis Payout Basis Value Payout Triggered Basis
2020 350,000 1,000 349,000 1,119,000 0 0 349,000
2021 404,215 1,000 403,215 1,250,320 0 0 403,215
2022 464,701 1,000 463,701 1,395,142 0 0 463,701
2023 532,506 1,000 531,506 1,554,755 0 0 531,506
2024 608,697 1,000 607,697 1,730,567 0 0 607,697
2025 694,385 1,000 693,385 1,924,114 0 0 693,385
2026 790,740 1,000 789,740 2,137,073 0 0 789,740
2027 899,012 1,000 898,012 2,371,270 0 0 898,012
2028 1,020,547 1,000 1,019,547 2,628,699 0 0 1,019,547
2029 1,156,801 1,000 1,155,801 2,911,533 0 0 1,155,801
2030 1,309,357 2,000 1,307,357 3,221,142 0 0 1,307,357
2031 1,478,903 2,000 1,476,903 3,561,027 0 0 1,476,903
2032 1,668,305 2,000 1,666,305 3,933,997 0 0 1,666,305
2033 1,879,604 2,000 1,877,604 4,343,110 0 0 1,877,604
2034 2,115,034 2,000 2,113,034 4,791,701 0 0 2,113,034
2035 2,377,038 2,000 2,375,038 5,283,398 0 0 2,375,038
2036 2,668,288 2,000 2,666,288 5,822,156 0 0 2,666,288
2037 2,991,709 2,000 2,989,709 6,412,282 0 0 2,989,709
2038 3,350,498 2,000 3,348,498 7,058,461 0 0 3,348,498
2039 3,748,151 932,619 2,815,532 6,835,181 532,966 313,428 3,128,960
25
Charitable Lead Annuity Trust
AN ANALYSIS PREPARED EXCLUSIVELY FOR
Jack & Jill Flash
Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Supporting Schedules for
TAX RATES
26
Charitable Lead Annuity Trust - Transfer $1M ShopRight, Inc. to 20-Year Shark-Fin CLAT
Tax RatesJack & Jill Flash
Federal Effective State Combined Federal Effective State Combined Heirs
Ordinary Income Tax Ordinary Combined Charitable Ordinary Income Tax Ordinary Combined
Income Tax Rate Income Tax Capital Gains Deduction Estate Tax Income Tax Rate Income Tax Capital GainsYear Rate 5.0% Rate Tax Rate Tax Rate Rate Rate 5.0% Rate Tax Rate
2020 37.0% 3.2% 40.2% 23.2% 40.2% 40.0% 37.0% 3.2% 40.2% 23.2%
2021 37.0% 3.2% 40.2% 23.2% 40.2% 40.0% 37.0% 3.2% 40.2% 23.2%
2022 37.0% 3.2% 40.2% 23.2% 40.0% 37.0% 3.2% 40.2% 23.2%
2023 37.0% 3.2% 40.2% 23.2% 40.0% 37.0% 3.2% 40.2% 23.2%
2024 37.0% 3.2% 40.2% 23.2% 40.0% 37.0% 3.2% 40.2% 23.2%
2025 37.0% 3.2% 40.2% 23.2% 40.0% 37.0% 3.2% 40.2% 23.2%
2026 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2027 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2028 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2029 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2030 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2031 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2032 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2033 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2034 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2035 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2036 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2037 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2038 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
2039 39.6% 3.0% 42.6% 23.0% 40.0% 39.6% 3.0% 42.6% 23.0%
Jack Heirs
27