A WORD

FROM FORETHOUGHT TRUST

January 2012 Volume 7 Issue 1

Lets Grow Together

Meet the faces of Forethought, our Executives in the field. They are working hard to help Forethought grow your business and continue to offer innovative, valuable services to your firm and the families you serve. Click here to view our Lets Grow Together Video www.forethought.com/preneed/Letsgrowtogether The Lets Grow Together Video, introduced during the October 2011 National Funeral Directors Convention, opens with an introduction by David de Gorter, President Forethought Financial Services. It offers an overview of many of the product offerings available to our partner firms and features the following individuals: Tony Torres President, Forethought Federal Savings Bank George Junker Vice President and Chief Operating Officer, Trust Services Stephane Hayes Director Training and Development, Forethought University Will Bischoff Managing Director, Forethought Capital Funding, Inc. Forethought continues to provide you with the tools you need to be successful. We are financially strong and completely committed to growing with you. For additional information about specific Forethought Trust offerings, go to www.forethought.com/trust For more information about other product offerings, visit us at www.forethought.com and click on Funeral/Cemetery Professionals.

Paperless ReportsSave the Trees!

You can help us save the environment and decrease the time it takes to receive your Trust Reports. Sign up for emailed reports today! Your emailed Trust Reports will have the same information as your paper ones. It only takes a few minutes to go paperless by calling your Trust Administrator at 1-800-763-0234. Simply indicate you would like to have your Trust Reports emailed to you instead of having them sent to you. Its that easy! Well start sending you an email with your Trust Reports attached based on your current reporting cycle.

2012 Annual Report Reminder

FFSB will start sending annual reports in January for you to complete your state reporting. All reports will be sent at least two weeks prior to the due date. If you have not received your report by this time, call Trust Operations for a copy at 1-800-763-0234.

If you ever do need a paper copy of your Trust Reports, you can print one from your computer. Should you change your mind and want to start receiving paper Trust Reports again, simply call your Trust Administrator. Its that simple! Lets work together to help our environment!

FFSB Privacy Policy

With technology advancing at a rapid rate, there are many ways to disseminate personal information. We are constantly bombarded with requests from financial service providers to share our personal information with outside sources. These requests usually contain a lot of fine print, which the average person can overlook and feel overwhelmed by. Typically, the fine print states that our personal data will be used for commercial purposes unless we take an action to opt out. And who has the time to opt out of every request. Forethought Federal Savings Banks privacy policy is short, simple and to the point. Simply stated: We do not share or disclose any personal information, pertaining to your firm or the families you serve, with any outside sources or third parties. That is our privacy policy, pure and simple. If you have any questions about this policy, and would like to discuss, please do not hesitate to contact us at 1-800-763-0234.

2011 Tax Year Statements

As tax year 2011 comes to a close, statements will soon be mailed to the purchasers of FFSB preneed trusts who have not elected QFT (Qualified Funeral Trust). IRS regulations require FFSB to send Grantor Letters (substitute Form 1099) to the purchasers of the preneed trusts. These letters provide the purchasers with the information necessary to report the income from the trust on their personal income tax returns. As these letters are received by families there tend to be questions about the Grantor Letters, which lead to phone calls to the funeral homes and cemeteries. The FFSB Trust Operations staff is available to assist you in explaining this requirement to your families and to answer any other questions you may have. Please contact us at 1-800-763-0234.

Qualified Funeral Trust (QFT) Election

QFT election is available for all new preneed trust contracts as well as existing Grantor trust contracts. Effective January 1, 2009, the IRS removed the cap on the value of a preneed trust contract to be eligible for QFT. By making the QFT election, the preneed trust will pay the tax. The QFT election also eliminates the IRS requirement that the purchasers of a preneed trust receive a Grantor Letter each tax year. If you wish to take advantage of the QFT election for the tax year 2011, please send an email to Trust.Operations@forethought.com detailing your request to elect QFT by March 1, 2012. This election only needs to be done once and is effective for all future tax years.

2012 Holiday Schedule

Forethought employees will observe the following holidays in 2012. The office will be closed on: January 2, 2012 New Years Observation April 6, 2012 Good Friday May 28, 2012 Memorial Day July 4, 2012 Independence Day September 3, 2012 Labor Day November 22, 2012 Thanksgiving Day November 23, 2012 Day after Thanksgiving December 24, 2012 Christmas Eve December 25, 2012 Christmas Day

Contact Forethought Federal Savings Bank

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

2012 FFSB 0112