Investments (Tables)

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity Available-for-Sale Securities

The following table presents the fixed maturity securities available-for-sale (“AFS”) by sector. U.S. corporate and foreign corporate sectors include redeemable preferred stock. Residential mortgage-backed securities (“RMBS”) includes agency, prime, alternative and sub-prime mortgage-backed securities. Asset-backed securities (“ABS”) includes securities collateralized by corporate loans and consumer loans. Municipals includes taxable and tax-exempt revenue bonds and, to a much lesser extent, general obligations of states, municipalities and political subdivisions. Commercial mortgage-backed securities (“CMBS”) primarily includes securities collateralized by multiple commercial mortgage loans. RMBS, ABS and CMBS are, collectively, “Structured Products.”

	June 30, 2021										December 31, 2020
	Amortized Cost				Gross Unrealized (1)				Estimated Fair Value		Amortized Cost				Gross Unrealized (1)				Estimated Fair Value
Sector			Allowance for Credit Loss		Gains		Losses						Allowance for Credit Loss		Gains		Losses
	(In millions)
U.S. corporate	$	80,103	$	(39)	$	11,557	$	250	$	91,371	$	79,788	$	(44)	$	13,924	$	252	$	93,416
Foreign government	58,674		(21)		6,728		751		64,630		63,243		(21)		8,883		406		71,699
Foreign corporate	59,400		(32)		6,690		453		65,605		60,995		(16)		8,897		468		69,408
U.S. government and agency	41,292		—		5,599		335		46,556		39,094		—		8,095		89		47,100
RMBS	28,211		—		1,753		116		29,848		28,415		—		2,062		42		30,435
ABS	16,519		—		224		30		16,713		16,963		—		231		75		17,119
Municipals	11,439		—		2,497		13		13,923		10,982		—		2,746		6		13,722
CMBS	11,464		(7)		633		41		12,049		11,331		—		681		102		11,910
Total fixed maturity securities AFS	$	307,102	$	(99)	$	35,681	$	1,989	$	340,695	$	310,811	$	(81)	$	45,519	$	1,440	$	354,809

_________________

(1)Excludes gross unrealized gains (losses) related to assets held-for-sale; these unrealized gains (losses) are included in AOCI as no component of equity is held-for-sale. See Note 3 for information on the Company’s business dispositions.

Available-for-sale fixed maturity securities by contractual maturity date

The amortized cost, net of allowance for credit loss (“ACL”), and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at June 30, 2021:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Products		Total Fixed Maturity Securities AFS
	(In millions)
Amortized cost, net of ACL	$	10,526	$	52,424	$	57,986	$	129,880	$	56,187	$	307,003
Estimated fair value	$	10,670	$	55,246	$	64,867	$	151,302	$	58,610	$	340,695

Continuous Gross Unrealized Losses for Fixed Maturity Securities Available-for-Sale

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position without an ACL by sector and aggregated by length of time that the securities have been in a continuous unrealized loss position.

	June 30, 2021								December 31, 2020
	Less than 12 Months				Equal to or Greater than 12 Months				Less than 12 Months				Equal to or Greater than 12 Months
Sector & Credit Quality	Estimated Fair Value		Gross Unrealized Losses (1)		Estimated Fair Value		Gross Unrealized Losses (1)		Estimated Fair Value		Gross Unrealized Losses (1)		Estimated Fair Value		Gross Unrealized Losses (1)
	(Dollars in millions)
U.S. corporate	$	5,081	$	169	$	1,278	$	77	$	4,338	$	196	$	506	$	50
Foreign government	8,679		409		2,751		338		6,795		305		836		100
Foreign corporate	5,915		275		1,991		178		4,856		321		1,255		147
U.S. government and agency	10,982		318		144		17		4,619		87		33		2
RMBS	5,353		98		442		18		1,531		27		152		14
ABS	3,105		13		1,078		16		3,428		26		2,842		49
Municipals	554		13		6		—		273		6		—		—
CMBS	815		14		763		27		1,887		63		612		39
Total fixed maturity securities AFS	$	40,484	$	1,309	$	8,453	$	671	$	27,727	$	1,031	$	6,236	$	401
Investment grade	$	38,324	$	1,225	$	7,132	$	548	$	24,572	$	829	$	5,841	$	350
Below investment grade	2,160		84		1,321		123		3,155		202		395		51
Total fixed maturity securities AFS	$	40,484	$	1,309	$	8,453	$	671	$	27,727	$	1,031	$	6,236	$	401
Total number of securities in an unrealized loss position	2,939				827				2,177				690

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(1)Excludes gross unrealized losses related to assets held-for-sale; these unrealized losses are included in AOCI as no component of equity is held-for-sale. See Note 3 for information on the Company’s business dispositions.

Debt Securities, Available-for-sale, Allowance for Credit Loss

The rollforward of ACL for fixed maturity securities AFS by sector is as follows:

	U.S.  Corporate		Foreign Government		Foreign Corporate		RMBS		CMBS		Total
Three Months Ended June 30, 2021	(In millions)
Balance, at beginning of period	$	43	$	21	$	33	$	—	$	7	$	104
Additions:
ACL not previously recorded	—		—		4		—		4		8
Changes for securities with previously recorded ACL	4		—		(1)		—		(4)		(1)
Securities sold or exchanged	(8)		—		(4)		—		—		(12)
Securities intended/required to be sold prior to recovery of amortized cost basis	—		—		—		—		—		—
Balance, at end of period	$	39	$	21	$	32	$	—	$	7	$	99
Three Months Ended June 30, 2020
Balance, at beginning of period	$	51	$	136	$	—	$	—	$	—	$	187
Additions:
ACL not previously recorded	7		3		16		2		—		28
Changes for securities with previously recorded ACL	(7)		(4)		—		—		—		(11)
Securities sold or exchanged	(20)		(6)		—		—		—		(26)
Securities intended/required to be sold prior to recovery of amortized cost basis	(1)		—		—		—		—		(1)
Balance, at end of period	$	30	$	129	$	16	$	2	$	—	$	177

	U.S.  Corporate		Foreign Government		Foreign Corporate		RMBS		CMBS		Total
Six Months Ended June 30, 2021	(In millions)
Balance, at beginning of period	$	44	$	21	$	16	$	—	$	—	$	81
Additions:
ACL not previously recorded	—		—		25		—		11		36
Changes for securities with previously recorded ACL	3		—		(5)		—		(4)		(6)
Securities sold or exchanged	(8)		—		(4)		—		—		(12)
Securities intended/required to be sold prior to recovery of amortized cost basis	—		—		—		—		—		—
Balance, at end of period	$	39	$	21	$	32	$	—	$	7	$	99
Six Months Ended June 30, 2020
Balance, at beginning of period	$	—	$	—	$	—	$	—	$	—	$	—
Additions:
ACL not previously recorded	58		139		16		2		—		215
Changes for securities with previously recorded ACL	(7)		(4)		—		—		—		(11)
Securities sold or exchanged	(20)		(6)		—		—		—		(26)
Securities intended/required to be sold prior to recovery of amortized cost basis	(1)		—		—		—		—		(1)
Balance, at end of period	$	30	$	129	$	16	$	2	$	—	$	177

Disclosure of Mortgage Loans Net of Valuation Allowance

Mortgage loans are summarized as follows at:

	June 30, 2021				December 31, 2020
Portfolio Segment	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial	$	51,602	63.3	%	$	52,434	62.5	%
Agricultural	18,044		22.1		18,128		21.6
Residential	12,281		15.1		13,782		16.4
Total amortized cost	81,927		100.5		84,344		100.5
Allowance for credit loss	(570)		(0.7)		(590)		(0.7)
Subtotal mortgage loans, net	81,357		99.8		83,754		99.8
Residential — FVO	140		0.2		165		0.2
Total mortgage loans, net	$	81,497	100.0	%	$	83,919	100.0	%

Allowance for Loan and Lease Losses, Provision for Loss, Net

The changes in the ACL, by portfolio segment, were as follows:

	Six Months Ended June 30,
	2021								2020
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Balance, beginning of period	$	252	$	106	$	232	$	590	$	246	$	52	$	55	$	353
Provision (release)	22		(7)		(23)		(8)		47		6		62		115
Adoption of credit loss guidance	—		—		—		—		(118)		35		161		78
Initial credit losses on PCD loans (1)	—		—		2		2		—		—		16		16
Charge-offs, net of recoveries	—		(13)		(1)		(14)		—		(2)		(5)		(7)
Balance, end of period	$	274	$	86	$	210	$	570	$	175	$	91	$	289	$	555

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(1)Represents the initial credit losses on purchased mortgage loans accounted for as purchased financial assets with credit deterioration (“PCD”).

Schedule of Past Due and Non Accrual Mortgage Loans

The past due and nonaccrual mortgage loans at amortized cost, prior to ACL, by portfolio segment, were as follows:

	Past Due				Greater than 90 Days Past Due  and Still Accruing Interest				Nonaccrual
Portfolio Segment	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
	(In millions)
Commercial	$	—	$	10	$	—	$	7	$	163	$	317
Agricultural	227		252		3		20		259		266
Residential	474		556		8		64		466		534
Total	$	701	$	818	$	11	$	91	$	888	$	1,117

Disclosure Real Estate and Real Estate Joint Ventures

Real estate investments, by income type, as well as income earned, were as follows at and for the periods indicated:

	June 30, 2021		December 31, 2020		Three Months Ended June 30,				Six Months Ended June 30,
					2021		2020		2021		2020
Income Type	Carrying Value				Income
	(In millions)
Leased real estate investments	$	5,245	$	5,450	$	108	$	101	$	219	$	207
Other real estate investments	440		419		44		24		86		59
Real estate joint ventures	6,216		6,064		53		(23)		76		1
Total real estate and real estate joint ventures	$	11,901	$	11,933	$	205	$	102	$	381	$	267

Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss)

The components of net unrealized investment gains (losses), included in AOCI, were as follows:

	June 30, 2021		December 31, 2020
	(In millions)
Fixed maturity securities AFS	$	33,813	$	44,415
Derivatives	1,353		1,924
Other	233		267
Subtotal	35,399		46,606
Amounts allocated from:
Policyholder liabilities	(6,862)		(10,797)
DAC, VOBA and DSI	(3,451)		(4,050)
Subtotal	(10,313)		(14,847)
Deferred income tax benefit (expense)	(6,456)		(8,009)
Net unrealized investment gains (losses)	18,630		23,750
Net unrealized investment gains (losses) attributable to noncontrolling interests	(22)		(20)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	18,608	$	23,730

The changes in net unrealized investment gains (losses) were as follows:

	Six Months Ended June 30, 2021
	(In millions)
Balance, beginning of period	$	23,730
Unrealized investment gains (losses) during the period	(11,207)
Unrealized investment gains (losses) relating to:
Policyholder liabilities	3,935
DAC, VOBA and DSI	599
Deferred income tax benefit (expense)	1,553
Net unrealized investment gains (losses)	18,610
Net unrealized investment gains (losses) attributable to noncontrolling interests	(2)
Balance, end of period	$	18,608
Change in net unrealized investment gains (losses)	$	(5,120)
Change in net unrealized investment gains (losses) attributable to noncontrolling interests	(2)
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	(5,122)

Securities Lending and Repurchase Agreements

A summary of the outstanding securities lending and repurchase agreements is as follows:

		June 30, 2021						December 31, 2020
		Securities (1)						Securities (1)
Agreement Type		Estimated Fair Value		Cash Collateral Received from Counterparties (2), (3)		Reinvestment Portfolio at Estimated Fair Value		Estimated Fair Value		Cash Collateral Received from Counterparties (2), (3)		Reinvestment Portfolio at Estimated Fair Value
	(In millions)
Securities lending		$	20,110	$	20,480	$	20,573	$	18,262	$	18,628	$	18,884
Repurchase agreements		$	3,551	$	3,460	$	3,497	$	3,276	$	3,210	$	3,251

__________________

(1)Securities on loan in connection with these programs are included within fixed maturity securities AFS and short-term investments.

(2)In connection with securities lending and repurchase agreements, in addition to cash collateral received, the Company received from counterparties non-cash security collateral of $31 million and $1 million at June 30, 2021 and December 31, 2020, respectively, which is not reflected on the interim condensed consolidated financial statements.

(3)The liability for cash collateral for these programs is included within payables for collateral under securities loaned and other transactions and other liabilities.

A summary of the remaining contractual maturities of securities lending and repurchase agreements is as follows:

	June 30, 2021										December 31, 2020
	Remaining Maturities										Remaining Maturities
Security Type	Open (1)		1 Month or Less		Over 1 Month  to 6 Months		Over 6 Months to 1 Year		Total		Open (1)		1 Month or Less		Over 1 Month  to 6 Months		Over 6 Months to 1 Year		Total
	(In millions)
Cash collateral liability by loaned security type:
Securities lending:
U.S. government and agency	$	5,063	$	7,818	$	6,446	$	—	$	19,327	$	2,946	$	10,553	$	4,009	$	—	$	17,508
Foreign government	—		296		731		—		1,027		—		291		826		—		1,117
Agency RMBS	—		—		124		—		124		—		—		—		—		—
U.S. corporate	1		—		—		—		1		3		—		—		—		3
Municipals	1		—		—		—		1		—		—		—		—		—
Total	$	5,065	$	8,114	$	7,301	$	—	$	20,480	$	2,949	$	10,844	$	4,835	$	—	$	18,628
Repurchase agreements:
U.S. government and agency	$	—	$	3,460	$	—	$	—	$	3,460	$	—	$	3,210	$	—	$	—	$	3,210

__________________

(1)The related loaned security could be returned to the Company on the next business day, which would require the Company to immediately return the cash collateral.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at:

	June 30, 2021		December 31, 2020
	(In millions)
Invested assets on deposit (regulatory deposits)	$	1,892	$	1,933
Invested assets held in trust (external reinsurance agreements) (1)	1,107		1,124
Invested assets pledged as collateral (2)	25,752		25,884
Total invested assets on deposit, held in trust and pledged as collateral	$	28,751	$	28,941

__________________

(1)    Represents assets held in trust related to third-party reinsurance agreements. Excludes assets held in trust of $2.1 billion and $2.4 billion related to reinsurance agreements between wholly-owned subsidiaries as of June 30, 2021 and December 31, 2020, respectively.

(2)     The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements, secured debt, a collateral financing arrangement (see Notes 4, 13 and 14 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report) and derivative transactions (see Note 7).

Components of Net Investment Income

The components of net investment income were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Asset Type	2021		2020		2021		2020
	(In millions)
Fixed maturity securities AFS	$	2,739	$	2,787	$	5,492	$	5,662
Equity securities	9		11		20		25
FVO Securities (1)	50		114		86		36
Mortgage loans	885		862		1,748		1,746
Policy loans	120		124		241		250
Real estate and real estate joint ventures	205		102		381		267
Other limited partnership interests	1,047		(607)		2,329		(287)
Cash, cash equivalents and short-term investments	24		52		49		144
Operating joint ventures	15		31		38		56
Other	40		29		94		131
Subtotal investment income	5,134		3,505		10,478		8,030
Less: Investment expenses	232		236		469		560
Subtotal, net	4,902		3,269		10,009		7,470
Unit-linked investments (1)	378		818		585		(322)
Net investment income	$	5,280	$	4,087	$	10,594	$	7,148

__________________

(1)Changes in estimated fair value subsequent to purchase of FVO Securities and contractholder-directed equity securities supporting unit-linked variable annuity type liabilities (“Unit-linked investments”) still held as of the end of the respective periods and included in net investment income were $347 million and $549 million for the three months and six months ended June 30, 2021, respectively, and $766 million and ($322) million for the three months and six months ended June 30, 2020, respectively.

Components of Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Asset Type	2021		2020		2021		2020
	(In millions)
Fixed maturity securities AFS	$	5	$	150	$	(62)	$	154
Equity securities (1)	55		72		130		(212)
FVO Securities	1		(4)		4		(3)
Mortgage loans	(2)		(80)		58		(143)
Real estate and real estate joint ventures	368		2		416		3
Other limited partnership interests	(8)		1		(13)		5
Other (2), (3)	22		101		42		125
Subtotal	441		242		575		(71)
Change in estimated fair value of other limited partnership interests and real estate joint ventures	5		(13)		14		(12)
Non-investment portfolio gains (losses) (4)	1,159		2		1,150		26
Subtotal	1,164		(11)		1,164		14
Total net investment gains (losses)	$	1,605	$	231	$	1,739	$	(57)

__________________

(1)Changes in estimated fair value subsequent to purchase for equity securities still held as of the end of the periods included in net investment gains (losses) were $50 million and $113 million for the three months and six months ended June 30, 2021, respectively, and $63 million and ($193) million for the three months and six months ended June 30, 2020, respectively.

(2)Other gains (losses) included de-designated cash flow hedge gains of $19 million and $48 million for the three months and six months ended June 30, 2021, respectively, and $43 million and $55 million for the three months and six months ended June 30, 2020, respectively.

(3)Other gains (losses) included a leveraged lease gain of $81 million for both the three months and six months ended June 30, 2020.

(4)See Note 3 for information on the Company’s business dispositions.

Schedule of Realized Gain (Loss)

Sales of securities are determined on a specific identification basis. Proceeds from sales or disposals and the components of net investment gains (losses) were as shown in the table below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions)
Proceeds	$	10,923	$	9,981	$	26,563	$	22,070
Gross investment gains	$	145	$	424	$	363	$	761
Gross investment (losses)	(132)		(266)		(391)		(384)
Net credit loss (provision) release	(8)		(8)		(34)		(223)
Net investment gains (losses)	$	5	$	150	$	(62)	$	154

Commercial Mortgage Loans

Accounts, Notes, Loans and Financing Receivable [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The amortized cost of commercial mortgage loans by credit quality indicator and vintage year was as follows at June 30, 2021:

Credit Quality Indicator	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
LTV ratios:
Less than 65%	$	2,289	$	5,108	$	4,305	$	5,301	$	4,069	$	12,943	$	1,980	$	35,995	69.8	%
65% to 75%	747		1,262		4,003		2,458		1,465		2,673		—		12,608		24.4
76% to 80%	66		40		340		66		404		503		—		1,419		2.7
Greater than 80%	8		—		4		80		249		1,239		—		1,580		3.1
Total	$	3,110	$	6,410	$	8,652	$	7,905	$	6,187	$	17,358	$	1,980	$	51,602	100.0	%
DSCR:
> 1.20x	$	2,937	$	5,671	$	8,214	$	7,880	$	5,667	$	15,787	$	1,980	$	48,136	93.3	%
1.00x - 1.20x	86		450		65		25		135		787		—		1,548		3.0
<1.00x	87		289		373		—		385		784		—		1,918		3.7
Total	$	3,110	$	6,410	$	8,652	$	7,905	$	6,187	$	17,358	$	1,980	$	51,602	100.0	%

Residential Mortgage Loans

Accounts, Notes, Loans and Financing Receivable [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at June 30, 2021:

Credit Quality Indicator	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
Performance indicators:
Performing	$	103	$	526	$	1,783	$	840	$	378	$	8,177	$	—	$	11,807	96.1	%
Nonperforming (1)	—		4		56		17		6		391		—		474		3.9
Total	$	103	$	530	$	1,839	$	857	$	384	$	8,568	$	—	$	12,281	100.0	%

__________________

(1)Includes residential mortgage loans in process of foreclosure of $83 million and $103 million at June 30, 2021 and December 31, 2020, respectively.

Agricultural Mortgage Loans

Accounts, Notes, Loans and Financing Receivable [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at June 30, 2021:

Credit Quality Indicator	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
LTV ratios:
Less than 65%	$	994	$	3,079	$	1,951	$	2,833	$	973	$	5,518	$	860	$	16,208	89.8	%
65% to 75%	234		405		175		101		52		582		100		1,649		9.1
76% to 80%	—		—		—		—		—		11		—		11		0.1
Greater than 80%	—		—		134		—		—		42		—		176		1.0
Total	$	1,228	$	3,484	$	2,260	$	2,934	$	1,025	$	6,153	$	960	$	18,044	100.0	%

Variable Interest Entity, Primary Beneficiary

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Variable Interest Entities

The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at:

	June 30, 2021				December 31, 2020
Asset Type	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
Investment funds (1)	$	319	$	10	$	258	$	1
Renewable energy partnership (1)	82		—		87		—
Other investments (2)	2		—		4		5
Total	$	403	$	10	$	349	$	6

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(1)Assets of the investment funds and renewable energy partnership primarily consisted of other invested assets.

(2)Assets of other investments primarily consisted of other assets at June 30, 2021, and cash and cash equivalents at December 31, 2020.

Variable Interest Entity, Not Primary Beneficiary

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Variable Interest Entities

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:

	June 30, 2021				December 31, 2020
Asset Type	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS (2)	$	60,152	$	60,152	$	60,115	$	60,115
Other limited partnership interests	10,766		17,029		8,355		14,911
Other invested assets	1,217		1,293		1,320		1,404
Other investments	660		663		619		639
Total	$	72,795	$	79,137	$	70,409	$	77,069

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(1)The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third-parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $3 million at both June 30, 2021 and December 31, 2020. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.

(2)For variable interests in Structured Products included within fixed maturity securities AFS, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.