1. Yours, Mine & Ours Have You Adjusted the Planning Picture for the New Normal? Fine-tune Your Clients’ Plans with Life Insurance 1/13 MKT12-256B Blended Families For Life Insurance Producer Use Only. Not for Use with the Public.

2. What Do These Families Have In Common? 2 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

3. PATTY This PHRASE is an umbrella term that covers a variety of family units blended together from other family units. The common denominator is children, whether biological, adopted, or with legal caretakers. 3 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

4. HIS, HERS, AND OURS Couple, both with children from prior relationships and have child(ren) together HIS AND HERS Couple, both with children from prior relationships but no children together HIS OR HERS Couple, only one with child(ren) from prior relationship (may have children together) SAME SEX COUPLE WITH CHILDREN Married, unmarried, civil union OLDER COUPLE WITH ADULT CHILDREN The Many Faces of Blended Families 4 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

5. *"Spotlight Statistics," Smart Stepfamilies, Updated February, 2011. The New Family Norm  1 out of 3 of all weddings today form stepfamilies *  6 out of 10 remarriages involve children from prior marriages *  4 out of 10 adults have at least one step relationship * 5 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

6. When Blends Go Sour Who owns the …  Family business?  Beachfront home?  Estate?  Assets? 6 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

7. Does “Traditional” Estate Planning Work in the Blended Family? How are you identifying the CONNECTION between family and financial? Family Dynamics Financial Dynamics  Loyalty conflicts among children  Stepchild/stepparent rejections  Custody/visitation resolutions  Distributing wealth fairly  Unintentional disinheritance  Favoritism when passing assets 7 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

8. Unique Planning Opportunities with Blended Families How are these unique in the blended family context? PersonalRetirementBusinessEstate 8 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

9.  Simon has always dreamed of working with his father in the family golf business  Simon became an integral part of the business and holds a minority interest  Simon’s father died unexpectedly and his stepmom inherited all the shares in the business – Simon’s stepmom is not active in the business “My Stepmom Is My New Boss?” 9 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

10. Business Planning Concern: Opportunity:  Your client wants to sell the family business to a child from a prior marriage, while still providing for the current spouse  Ensure business passes to child and spouse is financially taken care of 10 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

11.  Family buy-sell, one-way buy-sell, or executive bonus plan –Provides funds to equalize for non-business heirs Life Insurance Role Business Continuation Strategies Are You Getting the Most Out of Your Business? #15-31264 11 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

12. Business Planning: Examples of Probing Questions  How would your children feel if your spouse/partner was the “boss” following your death?  If you’re not transferring the business to your spouse/partner, how do you plan on providing for him or her?  If you intend to transfer your business to only certain children, how do you propose treating the others? Who do you want to end up with your business? 12 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

13.  Both have grown children from prior marriages  Candace is 19 years younger than Ron (she’s closer in age to his children than to him)  When Ron died, all of his assets passed to Candace Who Owns the Assets? 13 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

14. Estate Planning Concern: Opportunity:  Your client wants to provide equitably for his or her children and stepchildren  Ensure the interests of children and stepchildren are balanced to avoid family conflicts 14 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

15.  Irrevocable Life Insurance Trust with flexible trust provisions –Helps ensure assets are distributed equally to all named heirs Life Insurance Role Estate Equalization Planning Strategy What the Wealthiest Families Know #15-28574 15 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

16.  Do you want your children to inherit your assets at your death (if you die first) or at the subsequent death of your spouse/partner?  How will your spouse/partner/children react to your plans? How do you intend to balance providing for your spouse/partner vs. leaving a legacy for your children? Estate Planning: Examples of Probing Questions  Between your children and spouse/partner?  Among the children of your blended family? When you die, what is the potential for conflict? 16 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

17. Additional Estate Planning Tips Qualified Terminable Interest Property trust planning Helps provide for spouse and ensures children from a prior marriage are treated fairly No contest clauses (a.k.a. poison pill or in terrorem clauses) Helps reduce rancor or litigation in estates by cutting an heir out of the will/trust if he or she contests the will/trust provisions and is unsuccessful 17 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

18. KIT INCLUDES: Pocket Guide Planning Questionnaire Strategy & Case Study Workbook Where Do I Start? Request the “Yours, Mine & Ours” Kit 18 of 20 For Life Insurance Producer Use Only. Not for Use with the Public. www.blendedfamilyestates.com

19. This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Pacific Life, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor. 19 of 31 19 of 20 For Life Insurance Producer Use Only. Not for Use with the Public.

20. 20 of 20 For Life Insurance Producer Use Only. Not for Use with the Public. Investment and Insurance Products: Not a Deposit – Not FDIC Insured – Not Insured by any Federal Government Agency – No Bank Guarantee – May Lose Value Pacific Life Insurance Company Newport Beach, CA (800) 800-7681 * www.PacificLife.com Pacific Life & Annuity Company Newport Beach, CA (888) 595-6996 * www.PacificLife.com Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. Insurance products and their guarantees, including optional benefits and any fixed subaccount crediting rates, are backed by the financial strength and claims-paying ability of the issuing insurance company. Look to the strength of the life insurance company with regard to such guarantees as these guarantees are not backed by the broker-dealer, insurance agency or their affiliates from which these products are purchased. Neither these entities nor their representatives make any representation or assurance regarding the claims-paying ability of the life insurance company. MKT12-256B PT-41222-02