1. ©2015 Legg Mason Investor Services, LLC, a Legg Mason, Inc. subsidiary. Member FINRA, SIPC Build a multi-generational legacy with 529 plans

2. 529s: Overlooked opportunity? Sources: Strategic Insight, Sallie Mae; “How Americans Pay for College 2014.”

3. Benefits of 529 plans

4. 529 plans are flexible  No limits on who can establish one or who can be a beneficiary  No income restrictions  High account balance limits  Can open separate accounts for an unlimited number of beneficiaries Source: Legg Mason Intergenerational Survey of College Finances of 1,011 parents with investable assets of $250,000 or more.

5. 529s and Grandparents

6. 529 plans help grandparents pitch in 50% of grandparents are not saving/investing to help with their grandchildren’s college expenses because they are not sure how to start. Source: Legg Mason Intergenerational Survey of College Finances of 1,011 parents with investable assets of $250,000 or more.

7. Grandparents: The wave of the 529 future What is your main motivation for trying to help fund your grandchildren’s college education? Have the financial means to help family Leaving behind a legacy Source: Legg Mason Intergenerational Survey of College Finances of 1,011 parents with investable assets of $250,000 or more.

8. Grandparents like 529 flexibility and control  Beneficiaries can be changed as needed without penalty  Withdrawals are not limited to tuition  Accounts are revocable, for an emergency or any reason

9. 529s and Estate Planning: The best of both worlds

10. Using 529 plans for education legacy planning  Contributions are considered a completed gift and removed from your taxable estate  Eligible for gift-tax annual exclusion  Special provision allows investors to make five years’ worth of contributions in a single year  5-year forward gifting provision is not subject to gift tax Source: Internal Revenue Service (IRS). The lifetime gift-tax exemption of $5.43 million is a credit applied to cumulative lifetime gifts, including those to a 529 plan. As long as your total gifting stays below the credit amount, you won’t pay gift tax. Maximum contribution per child for two married grandparents Five-year forward gift One-year gift tax exception

11. Why not simply write a check?

12. Advantages of 529 plans over direct payments

13. Case study: 529s in practice

14. Case study: The Moore family Earnings may be taxable. Please consult your tax advisor before taking withdrawals.

15. Scholars Choice 529 plan Strong performance  Recognized by Savingforcollege.com Portfolio management expertise  QS Legg Mason Global Asset Allocation Broad range of portfolio options  Age-based or static allocations  Individual portfolio options  Cash reserve option Multi-manager portfolios  ClearBridge, Western Asset, QS Batterymarch, Brandywine, Royce, Thornburg and Templeton 2 Competitive pricing and fee structure  Unit Class A maximum sales charge = 3.5%  Unit Class C = no up-front sales charge or back-end CDSC An investment in the Cash Reserve Portfolio is not a bank deposit and is not insured or guaranteed by the FDIC or any other governmental agency. There is no assurance that the Cash Reserve Portfolio will be able to maintain the value of its units at $1 per unit. It is possible to lose money by investing in this option. The Cash Reserve Portfolio will not seek capital appreciation and may underperform other investment options. 1 Savingforcollege.com's 5-Cap Ratings provide an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors groupedSavingforcollege.com into the following categories. (Scale 0 to 5; 5 is highest.) 2 Thornburg and Franklin Templeton are not affiliated with Legg Mason, Inc. 1

16. Disclosure An investor should consider the Program’s investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement at scholars-choice.com, which contains more information, should be read carefully before investing. If an investor and/or an investor’s beneficiary are not Colorado taxpayers, they should consider before investing whether their home states offer 529 plans that provide state tax and other benefits only available to state taxpayers investing in such plans. Investments in the Scholars Choice College Savings Program are not insured by the FDIC or any other government agency and are not deposits or other obligations of any depository institution. Investments are not guaranteed by the State of Colorado, CollegeInvest, QS Legg Mason Global Asset Allocation, LLC, Legg Mason Investor Services, LLC, or Legg Mason, Inc. or its affiliates and are subject to investment risks, including loss of principal amount invested. Legg Mason, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor. Scholars Choice is a registered service mark of CollegeInvest. CollegeInvest and the CollegeInvest logo are registered trademarks. Administered and issued by CollegeInvest, State of Colorado. QS Legg Mason Global Asset Allocation, LLC is the Investment Manager and Legg Mason Investor Services, LLC is the primary distributor of interests in the Program; together they serve as Manager of the Program. QS Legg Mason Global Asset Allocation, LLC, ClearBridge Investments, LLC, Brandywine Global Investment Management, LLC, QS Batterymarch Financial Management, Inc., Royce & Associates, LLC, Western Asset Management Company and Western Asset Management Company Limited, and Legg Mason Investor Services, LLC are Legg Mason, Inc. affiliates. Thornburg Investment Management, Inc. and Templeton Global Advisors Limited are not affiliated with Legg Mason, Inc. and its affiliates. QS Legg Mason Global Asset Allocation (QS LMGAA) is part of the combined QS Investors investment platform, which is composed of QS Investors, LLC, QS Batterymarch Financial Management, Inc. and QS LMGAA. scholars-choice.com ©2016 Legg Mason Investor Services, LLC, a Legg Mason, Inc. subsidiary. Member FINRA, SIPC 1/16 FN1515684