1. Presented by: March 9, 2013 Succession Planning for Forest Land Owners 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com

2. C. Dennis Brislawn, Jr. J.D. Principal in The Private Client Law Group Member of a Washington Pioneer Family that homesteaded in Omak & Sprague (Wheat Growers) 25 years as an estate planning attorney with experience in family business transitions including Farms, Dairies, Forest lands and Vineyards 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com

3. Today (30 min)  Planning Process  Setting Goals  Planning Process  Tools to consider that help: keep land in forestry provide income reduce taxes maintain family harmony What Will Be Covered 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com March 19 (3 Hours)  Detailed discussion of planning tools  Designing your plan  Creating the team to implement the plan

4. I/we L ove the Land  “Never harvest my trees!!” Accepting that Equal is not Fair  Equity vs. Control Family Communications  Do the kids all want/need the same thing?  Should they?  Can they? Challenges for Forest Owners 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com

5. Farm & Timber Land Quadrants 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com Passive Ownership of Land Active Farm/Timber Operation Lower Net WorthHigher Net Worth

6. Start by Identifying Your Goals 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com Generate Cash Flow Avoid or Reduce Taxes Preserve the Land as is Family Legacy Family Harmony

7. Tools of Farm & Forest Transfer 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com Estate Disability Tools –GDPOA vs. Living Trust –Health Care Documents –Liquidity Issues –Care Issues Death & Tax Planning –Will vs. Living Trust –Tax Exemption Planning –Remarriage Planning –Liquidity Issues Business Entities –LLCs –Corporations Business Agreements –Leases –Management Contracts –Buy-Sells Special Conservation Easements Dynasty Protection Trusts

8. 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com Financial Tools Agreements –Land use leases –Management contracts Sale – Selling to family – Selling to 3 rd party – Value… – Rights Development Grazing Crop production, harvest Protecting the Land Charitable Leverage –Conservation Easements Income tax deduction Estate tax reduction Perpetuate land use Tools of Farm & Forest Transfer

9. Some Stories Timber & Taxes 50 year forest grower Mature trees Facing estate taxation Need for income for health, other Desire to pass on land and legacy Pasture of Perfection Dairy Farm Family 3 rd generation, same land One kid involved in business One kid living at home with the grandchildren One kid, professional, in city

10. Planned Outcomes 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com  Take care of mom / dad first  Maintain family harmony, unity  Create / manage cash flow  Perpetuate desired use of land  Reduce fees, costs, & taxes

11. Start Charting Your Course 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com Identify what you want. Inventory Your Values, State Your Goals. Consider the Tools of Farm & Timber Transfer. Inventory your assets. Consider them in light of your goals with help of your Team… attorney, CPA, financial planner, insurance agent, business consultant to identify and examine the tools that might work. Remember: Failing to plan… means planning to fail. THANKS!