1





                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------



        Presented by ____________________________ on ____________, 19___        


B1                              Personal Information                              
B0


--------------- Husband --------------    ---------------- Wife ----------------

Name:_________________________________    Name:_________________________________

Date of Birth:_______________ Age:____    Date of Birth:_______________ Age:____

Final Expenses: $_____________________    Final Expenses: $_____________________


                    Husband/Wife Dies First  (H/W):   ______

                    Years until 1st Death.....(  ):   ______

                    Interval Between Deaths...(  ):   ______

                    Estimated Probate Fee..........   ______ %

                    Estimated Administrative Fee...   ______ %

                    Pay Off Liabilities at 1st Death. ______  

                    Pay Off Liabilities at 2nd Death. ______  

                    State..........................   ______

                    Use Maximum State Tax Credit...   ______


Notes:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------


B1                                Record of Assets                                
B0

                                Market                       Probate   Growth
    Item          Type  Owner    Value          Liability     Value      Rate

    Residence     ____  _____  $___________   $___________  $__________  ____

    Real Estate   ____  _____  $___________   $___________  $__________  ____

    Securities    ____  _____  $___________   $___________  $__________  ____

    Business      ____  _____  $___________   $___________  $__________  ____

    Cash          ____  _____  $___________   $___________  $__________  ____

    Automobile    ____  _____  $___________   $___________  $__________  ____

    Household     ____  _____  $___________   $___________  $__________  ____

    Personal      ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____


 Type:  R=Residence, B=Business, F=Farm, L=Liquid, O=Other
Owner:  J=Joint with spouse, H=Husband, W=Wife
        HS=Joint with survivorship(Husband), WS=Joint with survivorship(Wife)

Joint with spouse indicates the husband and wife own the property together.
Joint with survivorship indicates the husband or wife owns property with
someone other than the spouse.

If property is owned by the husband/wife with someone other than the
spouse but not as a survivorship, enter the husband or wife as the
owner and enter the value of his/her portion of the asset in the
Market Value column and his/her portion of the liability in the
Liability column.






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------



B1                               Existing Insurance                               
B0

                           Illus.     Company or     Policy         Surrender
Insured    Owner   Benef.  In Trust   Policy No.     Value          Value

________   ____    ____     ____      ___________   $____________  $____________

________   ____    ____     ____      ___________   $____________  $____________

________   ____    ____     ____      ___________   $____________  $____________

________   ____    ____     ____      ___________   $____________  $____________

________   ____    ____     ____      ___________   $____________  $____________

________   ____    ____     ____      ___________   $____________  $____________

________   ____    ____     ____      ___________   $____________  $____________

________   ____    ____     ____      ___________   $____________  $____________


Insured:  N=None, H=Husband, W=Wife, S=Survivor
  Owner:  H=Husband, W=Wife, T=Trust, O=Other
 Benef.:  H=Husband, W=Wife, T=Trust, O=Other

If the Illus. in Trust option is taken, the insurance policy will be
removed from the estate of the insured and placed in a trust, meaning
the value of the policy and/or the proceeds of the policy will not be
a part of the estate and therefore not subject to estate taxes.






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------




B1                                Gift Information                                



B0                                  Planned Gifts


                   $________________ per year for ____ years*                   



                           Charitable Bequest at Death


                    At Husband's Death: $_______________                     

                    At Wife's Death.... $________________

            To Others at First Death (None/Specify/Percent):______ %

            Amount (if Specify): $___________  Percent: __________ %



                                   Prior Gifts


                                          Husband       Wife

               Pre 1977  Gifts.......  $___________  $___________

                      Tax Paid.......  $___________  $___________


                Post 1976 Gifts......  $___________  $___________

                       Tax Paid......  $___________  $___________




* Planned gifts are assumed to be eligible for the annual exclusion
  of $10,000 per donee per year ($20,000 joint gift with spouse)






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------


B1                             State Tax Information                                  
B0

            Distribution of Estate Assets for State Tax Calculations                                 



                                First Death             Second Death


        To Family Members:      Pct.    Shares           Pct.    Shares

          Spouse...........    ______ %  _____          ______ %  _____

          Children.........    ______ %  _____          ______ %  _____

          Parents..........    ______ %  _____          ______ %  _____


        To Others:                            

          Class A..........    ______ %  _____          ______ %  _____

          Class B..........    ______ %  _____          ______ %  _____

          Class C..........    ______ %  _____          ______ %  _____

          Class D..........    ______ %  _____          ______ %  _____

          Class E..........    ______ %  _____          ______ %  _____






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------




B1                                  Planning
B0


                       Marital Deduction Option:   _______      

               (O=Optimal, M=Minimal, N=None, S=Specify, P=Percent)          


                       Amount (if Specify): $___________      

                         Percent: __________ %

                       Equalize Estate...........  _______           



                             Select Planning        

                                 Option               


                      ____ Simple Will - No Planning 

                      ____ QTIP Trust

                      ____ Credit Shelter Trust       

                      ____ QTIP + Credit Shelter      

                      ____ Living Trust               

                      ____ Living Trust + QTIP        

                      ____ Living Trust + Shelter     

                      ____ Living + QTIP + Shelter    






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------




B1                              Funding Alternatives
B0


                   -----Funding Alternative Assumptions-----      


                 Cost of Borrowing..................... _____ %       

                 Duration of Loan...................... _____          

                 6166 Interest Rate.................... _____ %        

                 Net Present Value Rate................ _____ %        



                   --------------New Insurance--------------         


                 Add New Survivor Policy?.............. _____         

                 Add New Individual Policy for Husband? _____          

                 Add New Individual Policy for Wife?... _____          






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------




B1                                 New Insurance                                  
B0


                                Survivor Policy                                 

             Owner(H/W/T/O): ______     Beneficiary(H/W/T/O): _____             

             Face Amount........$___________________                            

             Annual Premium.....$___________________ for ____ years             



                               Policy on Husband                                

             Owner(H/W/T/O): ______     Beneficiary(H/W/T/O): _____             

             Face Amount........$___________________                            

             Annual Premium.....$___________________ for ____ years             



                                 Policy on Wife                                 

             Owner(H/W/T/O): ______     Beneficiary(H/W/T/O): _____             

             Face Amount........$___________________                            

             Annual Premium.....$___________________ for ____ years             



       Owner:  H=Husband, W=Wife, T=Trust, O=Other
 Beneficiary:  H=Husband, W=Wife, T=Trust, O=Other






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------




B1                              Illustration Options                              
B0

Presentation------------------------------    Ledgers------------------------

  Cover Page (None, Text, Graphic)...  ___      Estate Summary........... ___ 

  Your Estate........................  ___      Future Needs Graph....... ___ 

  Before Your Heirs Get Anything.....  ___    

  Effects of Planning................  ___    Resources----------------------

  Payment Alternatives...............  ___      No Problem Now........... ___ 

  The Solution.......................  ___      The Cost of 6166/6161.... ___ 

  Comparison of Funding Alternatives.  ___      303 Redemption........... ___ 

  Which Check........................  ___      CPI Chart................ ___

  Action Plan........................  ___      Irrev. Insurance Trusts.. ___

                                                Credit Shelter Trusts.... ___

Custom Title: ___        Page Numbers: ___      Living Trusts............ ___

Title: ___________________________________      QTIP Trusts.............. ___

                                                 

     



2





                             -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------


B1                                    Record of Assets                                
B0

                                 Market                       Probate   Growth
    Item          Type  Owner    Value          Liability     Value      Rate

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____


 Type:  R=Residence, B=Business, F=Farm, L=Liquid, O=Other
Owner:  J=Joint with spouse, H=Husband, W=Wife
        HS=Joint with survivorship(Husband), WS=Joint with survivorship(Wife)

Joint with spouse indicates the husband and wife own the property together.
Joint with survivorship indicates the husband or wife owns property with
someone other than the spouse.

If property is owned by the husband/wife with someone other than the
spouse but not as a survivorship, enter the husband or wife as the
owner and enter the value of his/her portion of the asset in the
Market Value column and his/her portion of the liability in the
Liability column.

3





                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------



        Presented by ____________________________ on ____________, 19___        


B1                              Personal Information                              



B0                     Name:_________________________________

                     Date of Birth:_______________ Age:____

                     Sex:______      State:_______




                     Final Expenses...............$________

                     Years Until Death(  )........... _____

                     Estimated Probate Fee........... _____ %

                     Estimated Administrative Fee.... _____ %

                     Pay Off Liabilities at Death.... _____

                     Use Max. State Tax Credit....... _____


Notes:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------


B1                                Record of Assets                                
B0

                        Joint    Market                       Probate   Growth
    Item          Type  Owner    Value          Liability     Value      Rate

    Residence     ____  _____  $___________   $___________  $__________  ____

    Real Estate   ____  _____  $___________   $___________  $__________  ____

    Securities    ____  _____  $___________   $___________  $__________  ____

    Business      ____  _____  $___________   $___________  $__________  ____

    Cash          ____  _____  $___________   $___________  $__________  ____

    Automobile    ____  _____  $___________   $___________  $__________  ____

    Household     ____  _____  $___________   $___________  $__________  ____

    Personal      ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____

    ____________  ____  _____  $___________   $___________  $__________  ____


 Type:  R=Residence, B=Business, F=Farm, L=Liquid, O=Other
Joint:  Y=Yes, N=No






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------




B1                               Existing Insurance                               
B0

                     Illus.        Company or     Policy         Surrender
Owner      Benef.    In Trust      Policy No.     Value          Value

________   ______    ________      ___________   $____________  $____________

________   ______    ________      ___________   $____________  $____________

________   ______    ________      ___________   $____________  $____________

________   ______    ________      ___________   $____________  $____________

________   ______    ________      ___________   $____________  $____________


 Owner:  S=Self, T=Trust, O=Other
Benef.:  S=Self, T=Trust, O=Other

If the Illus. in Trust option is taken, the insurance policy will be
removed from the estate of the insured and placed in a trust, meaning
the value of the policy and/or the proceeds of the policy will not be
a part of the estate and therefore not subject to estate taxes.






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------





B1                                Gift Information                                
B0


                                  Planned Gifts


                   $________________ per year for ____ years*                   



                           Charitable Bequest at Death


                            Amount: $_______________                            



                                   Prior Gifts


               Pre  1977 Gifts.......  $_______________

                      Tax Paid.......  $_______________


               Post 1976 Gifts.......  $_______________

                      Tax Paid.......  $_______________




* Planned gifts are assumed to be eligible for the annual exclusion
  of $10,000 per donee per year ($20,000 joint gift with spouse)






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------




B1                              State Tax Information
B0


          --Distribution of Estate Assets for State Tax Calculations--



              To Family Members:         Pct.          Shares                     


                Children.........      ________ %      ______

                Parents..........      ________ %      ______        


              To Others:                                      

                Class A..........      ________ %      ______

                Class B..........      ________ %      ______        

                Class C..........      ________ %      ______        

                Class D..........      ________ %      ______        

                Class E..........      ________ %      ______        







B1                                  Planning
B0


                   -------Planning Alternative--------


                            Living Trust....... ____          






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------




B1                  ----------Funding Alternatives---------
B0


                 Net Present Value Rate................ _____ %    

                 6166 Interest Rate.................... _____ %         

                 Cost of Borrowing..................... _____ %         

                 Duration of Loan...................... _____           



                    --------------New Insurance--------------


                 Add New Insurance Policy?............. _____







B1                                 New Insurance
B0


                                   New Policy                                 

             Owner(E/T/O): ______     Beneficiary(E/T/O): _____             

             Face Amount........$___________________                            

             Annual Premium.....$___________________ for ____ years             






                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------




B1                              Illustration Options                              
B0

Presentation------------------------------    Ledgers------------------------

  Cover Page (None, Text, Graphic)...  ___      Estate Summary........... ___ 

  Your Estate........................  ___      Future Needs Graph....... ___ 

  Before Your Heirs Get Anything.....  ___    

  Effects of Planning................  ___    Resources----------------------

  Payment Alternatives...............  ___      No Problem Now........... ___ 

  The Solution.......................  ___      The Cost of 6166/6161.... ___ 

  Comparison of Funding Alternatives.  ___      303 Redemption........... ___ 

  Which Check........................  ___      CPI Chart................ ___

  Action Plan........................  ___      Irrev. Insurance Trusts.. ___

                                                Credit Shelter Trusts.... ___

Custom Title: ___        Page Numbers: ___      Living Trusts............ ___

Title: ___________________________________      QTIP Trusts.............. ___





4





                         -----------------------------
B1                         New York Life Estate Analysis                          
B0                         -----------------------------


                                Record of Assets                                


                        Joint    Market                       Probate   Growth
    Item          Type  Owner    Value          Liability     Value      Rate
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____
    ____________  ____  _____  $___________   $___________  $__________  ____

 Type:  R=Residence, B=Business, F=Farm, L=Liquid, O=Other
Joint:  Y=Yes, N=No

5




                             ---------------------
B1                             Problems of 6161/6166                          
B0                             ---------------------


B1                              Pitfalls of 6161:
                                   ----------------

B0       1. IRS must be convinced there is sufficient reason why taxes

         cannot be paid on time.


       2. Interest charged is the IRS rate for deficiencies and is

         subject to change.




B1                            Pitfalls of 6166:
                                   ----------------

B0       3. Deferred payment available only on business/farm assets.


       4. Difficult to plan for its use: Estate may cease to qualify if

         non-business assets appreciate faster than business assets or

         the value of the business declines.


       5. An IRS lien can be placed on the business.  This frees the

         executor of responsibility but can impair the business, its

         public image, and the heirs.


       6. Full amount of deferral becomes due if:

           a. A payment is late or missed,


           b. 50% or more of the assets from the business are

              withdrawn,


           c. 50% or more of the value of the business interest is

              sold, exchanged, or distributed to anyone other than a

              beneficiary who is designated in the will as entitled to

              receive the interest.

6




                           -------------------------
B1                           Sec. 303 Stock Redemption                      
B0                           -------------------------




B1                                 How it Works
                                 ------------

B0        The Sec. 303 Stock Redemption option would be beneficial for
        a major stockholder who wants to his stock in the corporation
        to remain in the family, but who has not provided enough
        liquidity in his estate to cover his final expenses and
        administrative costs.

        Under the provisions of Sec. 303, the surviving family can
        sell a portion of the decedent's stock to the corporation,
        thereby getting cash to pay the decedent's final expenses and
        estate taxes.  This transaction is treated as an exchange
        and the gain is treated as a capital gain rather than taxable
        interest.




B1                              Pitfalls of Sec. 303
                              --------------------

B0       1. The amount redeemable is limited to the cost of the funeral,
          administrative expenses, and estate taxes (both federal and
          state).


          2. The party whose stock is being redeemed must be bearing the
          tax and administrative costs.


          3. To qualify, corporation stock must comprise more than 35%
          of the adjusted gross estate, or the decedent must have
          owned 20% or more of at least two corporations.


          4. It is difficult to plan its use:  Other estate assets may
          appreciate to the point that the 35% rule is not met, the
          stock value may decline, etc.


7


                           -------------------------
B1                               Insurance in Trust                      
B0                           -------------------------

B1                                 How it Works
                                 ------------
B0    In general, the proceeds of an insurance policy will pass free of
    probate unless the beneficiary of the policy is the insured
    person.  In the latter situation, the proceeds of the policy are
    payable to the decedent's estate and are subject to estate taxes. 

    The value of any policies owned by an individual are treated as
    property owned at his death and are also subject to estate taxes.

    To avoid the estate taxes that result from owning a policy or
    being the beneficiary of a policy, the policy can be placed in a
    trust.

    Frequently, a couple will think they are safe from taxes if they own
    policies on each other.  They may not be.  Take for example the husband
    who is the owner and beneficiary of a policy on his wife.  The wife
    dies first.  The husband receives the proceeds of the insurance
    policy tax-free, but unless he puts those funds into a trust, they
    become part of his taxable estate at his death.


B1                         Pitfalls of Insurance in a Trust
                         --------------------------------
B0    To avoid the estate taxes, the trust must be irrevocable.  This
    means the beneficiaries, the trustee, and the terms of the trust
    cannot be changed.

    If an existing policy is transferred to a trust and the insured
    dies within the next three years, the proceeds of the policy are
    includible in the estate under the Three Year Rule.  To avoid this
    possible pitfall, a new policy can be purchased by the trustee
    using cash in the trust.  If the insured then dies within the next
    three years, the proceeds can be excluded from the estate.

    Frequently, the policy premiums for a policy in trust will be
    paid by the trust with money received as a gift from the grantor.
    These gifts may lose the annual $10,000 gift tax exclusion because
    they are considered to have "future interest" rather than "present
    interest".  To avoid this possible pitfall, limited power to
    withdraw funds may be granted the beneficiaries.  This would give
    the gift "present interest" and qualify it for the annual gift
    exclusion even though it is still used to pay the premium.


8


                           -------------------------
B1                              Credit Shelter Trust                      
B0                           -------------------------

B1                                 How it Works
                                 ------------

B0    A credit shelter trust allows a married couple to take full advantage
    of the Unified Credit available to each individual, thereby reducing
    their estate and probate costs, and passing more of the estate to
    the heirs.  The major characteristics of a Credit Shelter Trust are:

            1. At the first death, the will provides for the
            establishment of a trust equal to the amount that could be
            passed tax free through the Unified Credit.

            2. The balance of the estate passes to the surviving spouse
            outright or in a trust.

            3. Income and limited amounts of principal from the Credit
            Shelter Trust may be made available to the surviving
            spouse.

            4. At the second death, the spouse's estate is subject to
            taxation.  Again, the Unified Credit is available to
            reduce the taxes due by as much as $192,800.

B1                    Advantages of a Credit Shelter Trust
                    ____________________________________

B0            1. The assets in the Credit Shelter Trust pass directly to
            the heirs and avoid both taxation and probate at the
            surviving spouse's death.

            2. More of the estate passes to the heirs than would through
            the use of a Simple Will.  The taxes saved go directly
            to the heirs.

            3. The amount of the estate passing to the spouse qualifies
            for the unlimited marital deduction and therefore passes
            tax-free.

            4. Provides peace of mind that the decedent's heirs are
            certain to get their intended assets.


9


                               ------------
B1                               Living Trust                          
B0                               ------------

B1                               How it Works
                               ------------
B0    A Living Trust is a flexible planning tool that can be used to
    effectively reduce estate taxes and probate costs.  A living
    trust can be established for a limited period of time or can extend
    beyond the life of the grantor.  It can be revocable or irrevocable. 
    In order to take advantage of the tax benefits available from such a
    trust, the trust must be irrevocable.

    The major characteristics of a Living Trust are:

            1. Assets from the decedent's estate are placed in trust
            for some beneficiaries named by the decedent.

            2. Depending on the stipulations stated in the will, the
            surviving spouse may have unlimited access to the funds
            with whatever remaining going to the beneficiaries, or the
            surviving spouse may have very limited access to the trust
            funds.  Such provisions and any other that are desirable are
            determined by decedent in his will.
        
            3. Through use of the trust, it is possible to reduce probate
            and administrative costs.

B1                        Advantages of a Living Trust
                        ____________________________

B0            1. Someone other than the grantor may take responsibility
            for the trust assets.

            2. The handling of the assets is a private affair both during
            the life of the grantor and at his death.

            3. Probate and administrative fees are reduced at death.

            4. If irrevocable, the income earned by the trust is not taxed
            to the grantor of the trust.

B1                      Disadvantages of a Living Trust
                      _______________________________

B0            1. If irrevocable, the grantor gives up the right to 
            change the beneficiaries or the trustee, or regain any 
            of the trust assets.

            2. The trust generates trustee fees and setup fees.

            3. A gift tax may be due, and an income tax return must be
            filed for the trust annually.

10


                           -------------------------
B1                                    QTIP Trust                          
B0                           -------------------------

B1                                 How it Works
                                 ------------
B0    The qualified terminable interest trust, or QTIP trust provides
    a way to use the unlimited marital deduction yet still control the
    ultimate disposition of the estate assets after the death of the
    second spouse.  The major characteristics of a QTIP are:

            1. At the first death, the will provides that some or all of
            the estate's assets are placed in the trust.

            2. All income from the trust must be paid out at least
            annually to the surviving spouse.

            3. Principal may be used to provide for the surviving spouse
            under certain circumstances.

            4. The executor may be given the right to determine the
            disposition of the assets at the second death.

            5. If specified in the will, the surviving spouse may be given
            a limited power of appointment over the principal of the
            estate to distribute the proceeds among a designated class
            of beneficiaries.

            6. The proceeds from the trust will be taxed at the second
            death.

B1                      Advantages of a QTIP Trust          
                    ____________________________________

B0            1. Probate and administrative costs are reduced.

            2. Provides control over the final distribution of the
            estate.

            3. Takes advantage of the available tax exemptions.

            4. Protects against possible spendthrift habits of the
            surviving spouse.

            5. The surviving spouse's creditors can not invade the trust
            to pay the spouse's debts.


