A WORD

FROM FORETHOUGHT TRUST

October 2011 Volume 6 Issue 4

Security in a Changing Economy

In these turbulent financial times, you want to make sure your funeral trust dollars are safe and secure. Forethought Trust has the product solution for you. We can provide you with an FDIC InsuredPreneed Passbook Savings Account through Forethought Federal Savings Bank (FFSB). This product provides FDIC Insured protection of your funeral trusts principal and income. The Savings Option pays a current rate of 1.00% annual percentage yield (APY). And there are no trustee fees!1 And of course, the Forethought Trust funeral planning program is available for all ages. By using our program you receive the benefits of our funeral planning forms at no charge to you, postage paid envelopes, regular reporting to your funeral home, and data prepared in the proper format for your annual reports. So sleep tonight. Call us today at 1-800-763-0234 and learn more about our FDIC InsuredSavings Option and our other Forethought Trust programs.
The FDIC InsuredSavings Option is subject to certain early account closing fees. Ask for a Product Sheet to review all of the features of this program.
1

Update2011 tax year

The end of the 2011 tax year is quickly approaching. Trust contracts that have not elected QFT (Qualified Funeral Trust) status will generate a grantor letter (IRS Form 1099) which will be mailed to your families in early February 2012. Depending on their individual tax situation, they may be required to report the information contained in the grantor letter on their 2011 personal income tax return. For contracts that have elected QFT status, the trust is required to report the income and pay the tax. As of January 1, 2009, the IRS eliminated the cap on the value of a trust contract in order to be eligible for the QFT election. This gives you and your families the opportunity to change or elect QFT status without limitations. The QFT election would eliminate the IRS requirement that your families receive tax statements (i.e. grantor letters). If you wish to take advantage of the QFT election, please contact your trust administrator at 800-763-0234 or fax your request to 866-208-1236.

International Convention & Expo October 23 26, 2011 Chicago, IL

2011 NFDA

Come visit us at booth #513!

We are updating our files and requesting your contact information.

Firm Name: _________________________________________________ Phone: _____________________________________________________ Contact Name: ______________________________________________ Address: ____________________________________________________ City/State/Zip: _______________________________________________ Email: ______________________________________________________ Customer Type: o Funeral Home o Cemetery o Combo

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Vanguard share class conversions

Annual reports
In an effort to serve our customers in the best way possible, Forethought Federal Savings Bank has reviewed all states annual reports in order to provide the most useful and up to date information. Forethought Federal Savings Bank will again provide data for 2011 so you can complete your reports in a timely manner. Our goal is to send the data to you as soon as possible, prior to the states due date. The due dates are listed below. STATE Al AZ CA CO Fl IA Il IN kY DUE DATE 4/1/2012 5/1/2012 5/1/2012 3/31/2012 4/1/2012 3/1/2012 3/15/2012 3/31/2012 3/31/2012 STATE DUE DATE MO 10/31/2012 MS 3/31/2012 Ok 3/15/2012 OR 4/1/2012 TN 3/15/2012 TX 3/1/2012 WA 3/31/2012

In our continual effort to provide you with the best possible mutual fund investments available, we diligently monitor the funds held within our clients accounts.As part of this monitoring we work with our fund families to stay up to date regarding when new and better share classes are available.In the past month, we have identified seven such funds that qualified for lower cost share classes and have converted our customers shares when eligible.These funds were all part of the Vanguard family of funds that we as printed! and POSTNET barcodes. They are only valid currently offer and the transition involved e are actual size AND placed properly on the mail piece EDUCE dards. OR MOVE the FIM and POSTNET barcodes. They are only valid as printed!to either the admiral or moving from the investor share class FIM and POSTNET barcode are actual size AND placed properly on the mail piece utomation compatibility standards. class.The exact conversion depended upon the signal share eligibility of our customer. These conversions will decrease the underlying fund fees that are paid from within these funds and, as such, provide better fund performance for our customers. When looking at your most recent statements, you may see these transactions if you held any of these affected funds.As always, we will continue to monitor all the approved investments and take advantage of better share classes wherever possible. If you have any questions or would like to discuss the specifics of your own investments please contact your Trust Administrator at 800-763-0234.

Our commitment is to mail all annual reports at least 2 weeks prior to the due date. If you are aware of any changes to your reports or have any questions please contact Trust Operations at 800-763-0234.

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Upcoming 2011 holiday hours

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As a reminder, FFSB will be closed on the following holidays to allow our associates to spend time with their families. Thanksgiving Thursday, November 24 Friday, November 25 Christmas Friday, December 23 Monday, December 26

OSTNET barcodes. They are only valid as printed! actual size AND placed properly on the mail piece .

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Contact Forethought Federal Savings Bank

1-800-763-0234 1-866-208-1236 www.forethought.com FFS.Trust.Operations@ forethought.com Write: Forethought Federal Savings Bank P.O. Box 59 One Forethought Center Batesville, IN 47006 Call: Fax: Visit: Email:

ORETHOUGHTFORETHOugHT FEDERAl SAVINgS BANk FEDERAL SAVINGS BANK FORETHOUGHT MARET TTN: TRUST ROLLOVERS FEDERAL SAVINGS BANK ATTN: NATAlIE ATTN: TRUST ROLLOVERS NE FORETHOUGHT CENTER ONE FORETHOugHT CENTER ONE FORETHOUGHT CENTER ATESVILLE IN 47006-9902 BATESVIllE IN 47006-9902 BATESVILLE IN 47006-9902

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