The probability that you will die within the next year is .013235 The probability that I will die within the next year is .13516 The probability that you will predecease me next year is .011446 (.01325*(1-.13516) The probability that I will die within 5 years is .6014 The probability that you will predecease me in 5 years is .029137 At my death, assuming that I predecease you, you have the following options. with respect to both State and Federal Estate Taxes: A. You can ignore the Trusts and pay Estate Taxes on their assessed or appraised values. You then have the option of filing an amended return, asserting the valuation of shares of beneficial interest assigned to me on the books of the respective trusts. B. You can assert the Trusts and pay Estate Taxes on the assessed or appraised value of shares of beneficial interest assigned to me on the books of the respective trusts. C. If you assert the Trusts, you assume a risk of criminal liability. The risk of asserting the Trusts on an amended return would be smaller than asserting the Trusts on a primary return, but would not be absent. D. Assessing the risks of incurring criminal liability is difficult and perhaps impossible, because we live in a society where perjury is pervasive and laws are made, interpreted and enforced at random for political purposes. The analogy with automobile safety is obvious. If you drive very recklessly you are likely to be injured in an accident. But even if you drive very carefully, you cannot be certain. The only way to be certain is not to drive at all; but then you would never get anywhere. E. If I put myself in your position, then immediately upon my death I would proceed as follows: 1. I would make a preliminary inventory of the estate. Here it is as of August 3, 2018 REA::::Lisbon::100822:1:26502.00::180423:ggg REA:Lisbon::100822:1:53000::180423:ggg REA:Konnarock::170421:1:192300.00::170421:ddd REA:174 School Street::111210:1:1343000::180423:ggg REA::::174 School Street::111210:1:2157200::180423:ggg REA::::178 School Street::111210:1:926000::180423:ggg REA::::178 School Street::111210:1:1197400::180423:ggg REA:3 Red Barn Road::100822:1:1338100::180803:aaa REA::::3 Red Barn Road::100822:1:1871000.00::180803:aaa EJM::::529:::1:198631.55::180803:aaa EJM:Keo:CS 6262-1019::1:216150.76:180803:aaa EJM:Keo:MS VIP 420 016392::1:275359.25::180803:aaa EJM:Keo:Fid(Z49155870)::1:153138.28::180803:aaa EJM:Keo:CSB 535829320::1:12006.54::180803:aaa EJM:Cash:CTC 5401::1:35108.27::180803:aaa EJM:Pract:CTC 5420::1:2997.46::180803:aaa EJM:Cash:BAM 8763:170421:1:19497.16::180803:aaa EJM:MFT:CS 9065-2017::1:295243.28::180803:aaa EJM:MFT:CS 9077-2963::1:.21::180803:aaa EJM:IRA:TIAA:170421:1:13979.70::180803:aaa 2. I would draft exploratory Federal and State estate tax returns relying on and disregarding the existence of the real estate trusts. 3. I would take the list of Estate Assets to a "complimentary" conference with a Trust Officer, distinct from an Estate Tax Lawyer, of a) Cambridge Trust Co., b) State Street Bank and Trust Co., and c) one or more other Trust Companies, to ascertain: i) under what conditions, if at all, and ii) at what cost, including legal fees, the Trust Company would be willing to function as Executor of the EJM estate, 4. I would then (consider whether I should) take the real estate trusts to one or more Estate Tax Lawyers whom I would pay an hourly rate, to obtain: a) a legal opinion concerning risks (if any) of criminal prosecution from submitting the Trust data in support of an estate tax return. b) a written opinion concerning the validity of the real estate trusts 5. I would then review: a) the legal opinions I had obtained, b) the needs of individual family members, c) the total family assets available to meet these needs, d) the assets remaining to me after payment of all prospective taxes, and e) what risk, if any, of criminal prosecution that I was prepared to assume, 6. I would then decide whether a) to avoid all risks by appointing (Cambridge) Trust Co. as executor, or b) to reduce the risks by serving as executor at the direction and under the tutelage of an Estate Tax lawyer, or c) to accept the risks of proceeding as executor without professional legal advice. 7. If real estate trusts are denied, the total assets including 178 School St. are $4,972,881.00 on which there is no Federal Estate tax, and $395,282.67 Massachusetts Tax. Since total liquid assets would be $1,222,112.46 after paying the estate tax, net liquid inheritance would be $826,829.00 8. If real estate trusts are denied, the total assets excluding 178 School St. are $3,949,880.00 on which there is no Federal Estate tax, and $278,148.48 Massachusetts Tax. Since total liquid assets would be $1,222,112.46, after paying the estate tax, net liquid inheritance would be $943,965.00 However if the real estate were sold after 20 years (which is your life expectancy) $281,276.00 would have to be invested at 0.04% to generate $616,305.40 US and MA capital gains taxes which would be assessed. Thus over a 20 year span, the real estate trust denials would be financially advantageous. 9. If real estate trusts are allowed the total assets are $1,253,630.00 on which there is no Federal Estate tax, and $4036.19 Massachusetts Tax. If the adjusted taxable estate is: 5 The maximum tax credit shall be: Not over $90,000 8/10 th of 1% of the amount by which the adjusted taxable estate exceeds $40,000 Over $90,000 but not over $140,000 $400 plus 1.6% of the excess over $90,000 Over $140,000 but not over $240,000 $1,200 plus 2.41% of the excess over $140,000 Over $240,000 but not over $440,000 $3,600 plus 3.2% of the excess over $240,000 Over $440,000 but not over $640,000 $10,000 plus 4% of the excess over $440,000 Over $640,000 but not over $840,000 $18,000 plus 4.8% of the excess over $640,000 Over $840,000 but not over $1,040,000 $27,600 plus 5.6% of the excess over $840,000 Over $1,040,000 but not over $1,540,000 $38,800 plus 6.4% of the excess over $1,040,000 Over $1,540,000 but not over $2,040,000 $70,800 plus 7.2% of the excess over $1,540,000 Over $2,040,000 but not over $2,540,000 $106,800 plus 8% of the excess over $2,040,000 Over $2,540,000 but not over $3,040,000 $146,800 plus 8.8% of the excess over $2,540,000 Over $3,040,000 but not over $3,540,000 $190,800 plus 9.6% of the excess over $3,040,000 Over $3,540,000 but not over $4,040,000 $238,800 plus 10.4% of the excess over $3,540,000 Over $4,040,000 but not over $5,040,000 $290,800 plus 11.2% of the excess over $4,040,000 Over $5,040,000 but not over $6,040,000 $402,800 plus 12% of the excess over $5,040,000 Over $6,040,000 but not over $7,040,000 $522,800 plus 12.8% of the excess over $6,040,000 Over $7,040,000 but not over $8,040,000 $650,800 plus 13.6% of the excess over $7,040,000 Over $8,040,000 but not over $9,040,000 $786,800 plus 14.4% of the excess over $8,040,000 Over $9,040,000 but not over $10,040,000 $930,800 plus 15.2% of the excess over $9,040,000 Over $10,040,000 $1,082,800 plus 16% of the excess over $10,