DEFINED ASSET FUNDSSM
- --------------------------------------------------------------------------------
MUNICIPAL INVESTMENT 4.96% ESTIMATED CURRENT RETURN shows the estimated
TRUST FUND annual cash to be received from interest-bearing
INTERMEDIATE TERM bonds in the Portfolio (net of estimated annual
SERIES 251 expenses) divided by the Public Offering Price
A UNIT INVESTMENT TRUST (including the maximum sales charge).
- ------------------------------5.25% ESTIMATED LONG TERM RETURN is a measure of
/ / SHORT INTERMEDIATE the estimated return over the estimated life of
MATURITIES the Fund (about six years). This represents an
/ / DESIGNED FOR FEDERALLY average of the yields to maturity (or in certain
TAX-FREE INCOME cases, to an earlier call date) of the individual
/ / DEFINED PORTFOLIO OF bonds in the Portfolio, adjusted to reflect the
MUNICIPAL BONDS maximum sales charge and estimated expenses. The
/ / MONTHLY INCOME average yield for the Portfolio is derived by
/ / PROFESSIONAL SELECTION weighting each bond's yield by its market value
4.96% and the time remaining to the call or maturity
ESTIMATED CURRENT RETURN date, depending on how the bond is priced. Unlike
5.25% Estimated Current Return, Estimated Long Term
ESTIMATED LONG TERM RETURN Return takes into account maturities, discounts
AS OF APRIL 6, 1995 and premiums of the underlying bonds.
No return estimate can be predictive of your
actual return because returns will vary with
purchase price (including sales charges), how long
units are held, changes in Portfolio composition,
changes in interest income and changes in fees and
expenses. Therefore, Estimated Current Return and
Estimated Long Term Return are designed to be
comparative rather than predictive. A yield
calculation which is more comparable to an
individual bond may be higher or lower than
Estimated Current Return or Estimated Long Term
Return which are more comparable to return
calculations used by other investment products.
-------------------------------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES COMMISSION NOR
SPONSORS: HAS THE COMMISSION OR ANY STATE SECURITIES
Merrill Lynch, COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
Pierce, Fenner & Smith OF THIS DOCUMENT. ANY REPRESENTATION TO THE
Incorporated CONTRARY IS A CRIMINAL OFFENSE.
Smith Barney Inc. Inquiries should be directed to the Trustee at
PaineWebber Incorporated 1-800-221-7771.
Prudential Securities Prospectus dated April 7, 1995.
Incorporated INVESTORS SHOULD READ THIS PROSPECTUS CAREFULLY
Dean Witter Reynolds Inc. AND RETAIN IT FOR FUTURE REFERENCE.
<PAGE>
- --------------------------------------------------------------------------------
Defined Asset FundsSM
Defined Asset Funds is America's oldest and largest family of unit investment
trusts, with over $95 billion sponsored since 1971. Each Defined Asset Fund is a
portfolio of preselected securities. The portfolio is divided into 'units'
representing equal shares of the underlying assets. Each unit receives an equal
share of income and principal distributions.
Defined Asset Funds offer several defined 'distinctives'. You know in advance
what you are investing in and that changes in the portfolio are limited - a
defined portfolio. Most defined bond funds pay interest monthly - defined
income. The portfolio offers a convenient and simple way to invest - simplicity
defined.
Your financial professional can help you select a Defined Asset Fund to meet
your personal investment objectives. Our size and market presence enable us to
offer a wide variety of investments. The Defined Asset Funds family offers:
o Municipal portfolios
o Corporate portfolios
o Government portfolios
o Equity portfolios
o International portfolios
Termination dates are as short as one year or as long as 30 years. Special
defined funds are available including: insured funds, double and triple tax-free
funds and funds with 'laddered maturities' to help protect against changing
interest rates. Defined Asset Funds are offered by prospectus only.
- ----------------------------------------------------------------
Defined Intermediate Term Series
- ----------------------------------------------------------------
Our defined portfolio of municipal bonds offers you a simple and convenient way
to earn tax-free monthly income. And by purchasing Defined Asset Funds, you not
only receive professional selection but also gain the advantage of reduced risk
by investing in bonds of several different issuers.
INVESTMENT OBJECTIVE
To provide interest income exempt from regular federal income taxes through
investment in a fixed portfolio consisting of short intermediate term municipal
bonds issued by or on behalf of states and their local governments and
authorities.
DIVERSIFICATION
The Portfolio is diversified among 16 bond issues. Spreading your investment
among different issuers reduces your risk, but does not eliminate it. Because of
maturities, sales or other dispositions of bonds, the size, composition and
return of the Portfolio will change over time.
- ----------------------------------------------------------------
Defining Your Portfolio
- ----------------------------------------------------------------
PROFESSIONAL SELECTION AND SUPERVISION
The Portfolio contains a variety of bonds selected by experienced buyers and
research analysts. The Fund is not actively managed; however, it is regularly
reviewed and a bond can be sold if retaining it is considered detrimental to
investors' interests.
TYPES OF BONDS
The Portfolio consists of $13,615,000 face amount of municipal bonds which are
payable from the income generated by a specific project or authority:
SOURCE OF REVENUE
/ / General Obligations 11%
/ / Hospitals/Health Care Facilities 17%
/ / Lease Rental Appropriation 33%
/ / Financial Institutions 21%
/ / Miscellaneous 4%
/ / State/Local Municipal Electric Utilities 9%
/ / Housing 5%
LETTERS OF CREDIT OR INSURANCE
Approximately 5% of the bonds included in the Portfolio are backed by bank
letters of credit, which are irrevocable obligations of the issuing banks.
Approximately 25% the bonds included in the Portfolio are insured. Letters of
credit and insurance guarantee the timely payment of principal and interest of
the bonds, but do not guarantee the value of the bonds or the Fund units.
Insurance may not cover accelerated payments of principal or any increase in
interest payments or premiums payable on mandatory redemptions, including if
interest on a bond is determined to be taxable. (See Bonds Backed by Letters of
Credit or Insurance in Part B.)
BOND CALL FEATURES
It is possible that during periods of falling interest rates, a bond with a
coupon higher than current market rates will be prepaid or 'called', at the
option of the bond issuer, before its expected maturity. When bonds are
initially callable, the price is usually at a premium to par which then declines
to par over time. Bonds may also be subject to a mandatory sinking fund or have
extraordinary redemption provisions. For example, if the bond's proceeds are not
able to be used as intended the bond may be redeemed. This redemption and the
sinking fund are often at par.
2
<PAGE>
CALL PROTECTION
Although each of the bonds is subject to optional refunding or call provisions,
we have selected bonds with call protection. This call protection means that any
bond in the Portfolio generally cannot be called for a number of years and
thereafter at a declining premium over par.
TAX INFORMATION
Based on the opinion of bond counsel, income from the bonds held by this Fund is
generally 100% exempt under existing laws from regular federal income tax.
Interest on approximately 23% of the bonds will be a preference item for
purposes of the Alternative Minimum Tax (AMT). Any gain on a disposition of the
underlying bonds or units will be subject to tax.
- ----------------------------------------------------------------
Defining Your Risks
- ----------------------------------------------------------------
RISK FACTORS
Unit price fluctuates and could be adversely affected by increasing interest
rates as well as the financial condition of the issuers of the bonds and any
banks or insurance companies backing the bonds. Because of the possible
maturity, sale or other disposition of securities, the size, composition and
return of the portfolio may change at any time. Because of the sales charges,
returns of principal and fluctuations in unit price, among other reasons, the
sale price will generally be less than the cost of your units. Unit prices could
also be adversely affected if a limited trading market exists in any security to
be sold. There is no guarantee that the Fund will achieve its investment
objective.
The Fund is concentrated in lease rental appropriation bonds and is therefore
dependent to a significant degree on revenues generated from those particular
activities. (See Risk Factors in Part B). Also, since interest on some of the
bonds will be a preference item for purposes of AMT, the Fund may not be
appropriate for investors who are subject to AMT.
- ----------------------------------------------------------------
Defining Your Investment
- ----------------------------------------------------------------
PUBLIC OFFERING PRICE PER UNIT $1,004.93
The Public Offering Price as of April 6, 1995, the business day prior to the
Initial Date of Deposit, is based on the aggregate offer side value of the
underlying bonds in the Fund ($13,305,868.35), the price at which they can be
directly purchased by the public assuming they were available, divided by the
number of units outstanding (13,615) plus a maximum sales charge of 2.75%. The
Public Offering Price on any subsequent date will vary. An amount equal to net
accrued but undistributed interest on the unit is added to the Public Offering
Price. The underlying bonds are evaluated by an independent evaluator at 3:30
p.m. Eastern time on every business day.
LOW MINIMUM INVESTMENT
You can get started with a minimum purchase of about $1,000.
REINVESTMENT OPTION
You can elect to automatically reinvest your distributions into a separate
portfolio of federally tax-exempt bonds. Reinvesting helps to compound your
income tax-free.
PRINCIPAL DISTRIBUTIONS
Principal from sales, redemptions and maturities of bonds in the Fund will be
distributed to investors periodically when the amount to be distributed is more
than $5.00 per unit.
TERMINATION DATE
The Fund will generally terminate no later than the maturity date of the last
maturing bond listed in the Portfolio. The Fund may be terminated if the value
is less than 40% of the face amount of bonds deposited.
SPONSORS' PROFIT OR LOSS
The Sponsors' profit or loss associated with the Fund will include the receipt
of applicable sales charges, any fees for underwriting or placing bonds,
fluctuations in the Public Offering Price or secondary market price of units and
a gain of $67,519.00 on the deposit of the bonds.
UNDERWRITING ACCOUNT
None of the Sponsors has participated as sole underwriter, managing underwriter
or member of an underwriting syndicate from which any of the bonds in the
Portfolio were acquired.
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
P.O. Box 9051,
Princeton, NJ 08543-9051 66.21%
SMITH BARNEY INC.
388 Greenwich Street--23rd Floor,
New York, NY 10013 11.02%
PAINEWEBBER INCORPORATED
1285 Avenue of the Americas,
New York, NY 10019 11.02%
PRUDENTIAL SECURITIES INCORPORATED
One Seaport Plaza--199 Water Street,
New York, NY 10292 6.98%
DEAN WITTER REYNOLDS INC.
Two World Trade Center--59th Floor,
New York, NY 10048 4.40%
GRUNTAL & CO. INC.
14 Wall Street,
New York, NY 10005 ____.37%
100.00%
3
<PAGE>
- --------------------------------------------------------------------------------
Defined Portfolio
- --------------------------------------------------------------------------------
Municipal Investment Trust Fund
Intermediate Term Series--251 April 7, 1995
<TABLE><CAPTION>
OPTIONAL SINKING
RATING REFUNDING FUND COST
PORTFOLIO TITLE OF ISSUES (1) REDEMPTIONS (2) REDEMPTIONS (2) TO FUND (3)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. $500,000 Alaska Stud. Loan
Corp., State Assist. Stud. Loan
Rev. Bonds, 1993 Ser. A, 5.20%,
7/1/01(4) A -- -- $ 492,125.00
2. The Municipality of Anchorage,
AK, Cert. of Part., Ser. 1994 B
(Asset Guaranty Ins.) AA
$415,000, 5.90%, 4/1/00 -- -- 425,781.70
$850,000, 6.00%, 4/1/01 -- -- 875,780.50
3. Arkansas Dev. Fin. Auth., Econ.
Dev. Rev. Bonds (Vinyl Bldg.
Products, Inc. Proj.), Ser. 1995
G(4) A-
$180,000, 5.45%, 4/1/99 -- -- 180,635.40
$145,000, 5.60%, 4/1/00 -- -- 145,622.05
$160,000, 5.70%, 4/1/01 -- -- 160,801.60
4. $1,000,000 State Pub. Wks. Bd.,
CA, Lse. Rev. Rfdg. Bonds (Dept. of
Corrections), 1993 Ser. C (Del
Norte), 4.50%, 12/1/01 A(m) -- -- 926,400.00
5. $1,500,000 District of Columbia
(Washington, DC), Gen. Oblig. Rfdg.
Bonds, Ser. 1994 A-1 (MBIA Ins.),
4.65%, 6/1/02 AAA -- -- 1,404,225.00
6. $370,000 Illinois Hlth. Fac.
Auth. Rev. Bonds (South Suburban
Hosp.), Ser. 1992, 6.30%, 2/15/00 A -- -- 381,643.90
7. $1,000,000 New England Educ.
Loan Marketing Corp., MA, Stud.
Loan Rev. Rfdg. Bonds, 1993 Ser. G,
5.00%, 8/1/00 A1(m) -- -- 986,170.00
8. The Econ. Dev. Corp. of the
Cnty. of Ottawa, MI, Econ. Dev.
Ltd. Oblig. Rfdg. Rev. Bonds
(Sunset Manor, Inc. Proj.), Ser.
1995 A (Letter of Credit - Old Kent
Bank) A
$200,000, 5.40%, 3/1/98 -- -- 200,786.00
$250,000, 5.60%, 3/1/99 -- -- 251,287.50
$200,000, 5.90%, 3/1/02 -- -- 201,676.00
</TABLE>
- ------------------------------------
(1) These ratings are ratings of the bonds themselves by Standard & Poor's or
by Moody's if followed by '(m)', or by Fitch if followed by '(f)'; except that
(i) '*' following a rating indicates that it is a rating of the letter of credit
securing the bond, (ii) '**' indicates that it is a rating of the outstanding
bonds of the institution providing the letter of credit (or a rating of the
claims-paying ability of the insurance company insuring the bond), and (iii)
'***' indicates that while there is no such available rating, in the opinion of
Defined Asset Funds research analysts, the bond has credit characteristics
comparable to bonds rated A or better. (See Appendix A.)
(2) None of the bonds are subject to optional refunding or sinking fund
redemptions.
4
<PAGE>
- --------------------------------------------------------------------------------
Defined Portfolio
- --------------------------------------------------------------------------------
Municipal Investment Trust Fund
Intermediate Term Series--251 (Continued) April 7, 1995
<TABLE><CAPTION>
OPTIONAL SINKING
RATING REFUNDING FUND COST
PORTFOLIO TITLE OF ISSUES (1) REDEMPTIONS (2) REDEMPTIONS (2) TO FUND (3)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
9. $405,000 Mississippi Higher
Educ. Assist. Corp., Stud. Loan
Rev. Bonds, Sen. Ser. 1993-B,
5.40%, 9/1/02(4) Aaa(m) -- -- 402,537.60
10. $660,000 New York State Urban
Dev. Corp., Correctional Capital
Fac. Rev. Bonds, Ser. 4, 4.80%,
1/1/00 A(f) -- -- 632,946.60
11. The Connetquot Ctr. Sch. Dist.
of Islip, NY, Certs. of Part. (5) ***
$300,000, 5.40%, 4/1/98 -- -- 301,224.00
$615,000, 5.60%, 4/1/99 -- -- 618,253.35
$350,000, 5.70%, 4/1/00 -- -- 352,254.00
$340,000, 5.90%, 4/1/02 -- -- 342,893.40
12. $680,000 North Carolina Med.
Care Com. Hosp. Rev. Bonds
(Scotland Mem. Hosp. Proj.), Ser.
1993 (Asset Guaranty Ins.), 4.40%,
10/1/99 AA -- -- 653,214.80
13. $605,000 Chester Cnty., PA,
Hlth. and Educ. Fac. Auth. Hlth.
Sys. Rev. Bonds (Maine Line Hlth.
Sys.), Ser. A of 1994, 4.70%,
5/15/02 AA- -- -- 576,800.95
14. $1,000,000 Volunteer State
Stud. Funding Corp., TN, Educl.
Loan Rev. Bonds Sen. Sub. Ser. 1993
B, 5.15%, 12/1/02 (4) Aa(m) -- -- 972,220.00
15. $1,160,000 Memphis, TN, Elec.
Sys. Rev. Rfdg. Bonds, Ser. of
1993, 4.30%, 1/1/02 AA -- -- 1,088,648.40
16. Utah Hsg. Fin. Agy., Single
Family Mtge. Bonds, 1995 Iss. C
(Federally Ins. or Guaranteed Mtge.
Loans) (4)(5) AAA
$165,000, 5.55%, 1/1/01 -- -- 165,384.45
$285,000, 5.65%, 1/1/02 -- -- 285,760.95
$280,000, 5.65%, 7/1/02 -- -- 280,795.20
--------------------
$ 13,305,868.35
--------------------
--------------------
</TABLE>
- ------------------------------------
(3) Evaluation of the bonds by the Evaluator is made on the basis of current
offer side evaluation. On this basis, 37% of the bonds were purchased at a
premium and 63% at a discount from par.
(4) These bonds are subject to AMT.
(5) These bonds are when issued bonds that are expected to settle 1 to 16 days
after the settlement date for Units. The Trustee's fee will be reduced during
the first year by $0.16 per unit to compensate for interest that would have
accrued on the bonds between the settlement date for units and the actual date
of delivery of the bonds. (See Income, Distributions and Reinvestment--Income in
Part B.)
5
<PAGE>
- ---------------------------------------------- -------------------------------
Defining Your Costs Defining Your Income
- ---------------------------------------------- -------------------------------
SALES CHARGE
Although the Fund is a unit investment trust rather than a mutual fund, the
following information is presented to permit a comparison of fees and an
understanding of the direct or indirect costs and expenses that you pay.
As a Percentage
of Initial As a Percentage of
Offering Period Secondary Market
Public Offering Public Offering
Price Price
----------------- -------------------
Maximum Sales Charges 2.75% 3.5%
ESTIMATED ANNUAL FUND OPERATING EXPENSES
Trustee's Fee .072% $ 0.72
Maximum Portfolio Supervision,
Bookkeeping and Administrative
Fees .041% $ 0.41
Evaluator's Fee .012% $ 0.12
Other Operating Expenses .027% $ 0.27
----------------- --------------
TOTAL .152% $ 1.52
COSTS OVER TIME
You would pay the following cumulative expenses on a $1,000 investment, assuming
a 5% annual return on the investment throughout the indicated periods.
1 Year 3 Years 5 Years
$29 $32 $36
The example assumes reinvestment of all distributions into additional units of
the Fund (a reinvestment option different from that offered by this Fund) and
uses a 5% annual rate of return as mandated by Securities and Exchange
Commission regulations applicable to mutual funds. The Costs Over Time above
reflect both sales charges and operating expenses on an increasing investment
(because the net annual return is reinvested). The example should not be
considered a representation of past or future expenses or annual rate of return;
the actual expenses and annual rate of return may be more or less than the
example.
SELLING YOUR INVESTMENT
You may sell your units at any time. Your price is based on the Fund's then
current net asset value (based on the offer side evaluation of the bonds during
the initial public offering period and the lower, bid side evaluation
thereafter, as determined by an independent evaluator, plus accrued interest).
The bid side redemption and secondary market repurchase price as of April 6,
1995 was $971.29 ($33.64 less than the Public Offering Price). There is no fee
for selling your units.
MONTHLY FEDERALLY TAX-FREE INTEREST INCOME
The Fund pays monthly income, even though the bonds generally pay interest
semi-annually.
WHAT YOU MAY EXPECT
(PAYABLE ON THE 25TH DAY OF THE MONTH TO HOLDERS OF RECORD ON THE 10TH DAY OF
THE MONTH):
First Distribution per unit
(July 25, 1995): $ 4.78
Regular Monthly Income per unit
(Beginning on August 25, 1995): $ 4.15
Annual Income per unit: $ 49.80
Estimated distributions of principal and income per unit are as follows:
Date Amount Date Amount
- ---------------- ----------- ---------------- -----------
7/95 $ 4.78 2/01-3/01 $ 2.42
7/95-2/98 4.15 4/01 77.30
3/98 18.96 5/01-6/01 2.06
4/98 26.31 7/01 39.08
5/98-2/99 3.98 8/01-11/01 1.90
3/99 22.51 12/01 75.87
4/99 62.80 1/02 108.52
5/99-9/99 3.63 2/02 1.22
10/99 53.92 3/02 16.04
11/99-12/99 3.45 4/02 26.35
1/00 52.29 5/02 1.02
2/00 3.25 6/02 156.77
3/00 30.70 7/02 21.17
4/00 70.56 8/02 0.33
5/00-7/00 2.79 9/02 30.33
8/00 76.81 10/02-11/02 0.19
9/00-12/00 2.48 12/02 74.24
1/01 14.71
These figures are estimates determined as of the business day prior to the
Initial Date of Deposit and actual payments may vary.
6
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsors, Trustee and Holders of Municipal Investment Trust Fund,
Intermediate Term Series 251, Defined Asset Funds (the 'Fund'):
We have audited the accompanying statement of condition and the related
portfolio included in the prospectus of the Fund as of April 7, 1995. This
financial statement is the responsibility of the Trustee. Our responsibility is
to express an opinion on this financial statement based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statement. Our procedures included
confirmation of securities and the irrevocable letters of credit deposited for
the purchase of securities, as described in the statement of condition, with the
Trustee. An audit also includes assessing the accounting principles used and
significant estimates made by the Trustee, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statement referred to above presents fairly, in
all material respects, the financial position of the Fund as of April 7, 1995 in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, N.Y.
April 7, 1995
STATEMENT OF CONDITION AS OF APRIL 7, 1995
TRUST PROPERTY
Investments--Bonds and Contracts to purchase Bonds(1) $ 13,305,868.35
Accrued interest to Initial Date of Deposit on underlying
Bonds 117,819.94
--------------------
Total $ 13,423,688.29
--------------------
--------------------
LIABILITY AND INTEREST OF HOLDERS
Liability--Accrued interest to Initial Date of Deposit on
underlying Bonds(2) $ 117,819.94
Interest of Holders of 13,615 Units of fractional
undivided interest outstanding:
Cost to investors(3) 13,682,186.95
Gross underwriting commissions(4) (376,318.60)
--------------------
Total $ 13,423,688.29
--------------------
--------------------
- ---------------
(1) Aggregate cost to the Fund of the bonds listed under Defined
Portfolio is based upon the offer side evaluation determined by the Evaluator at
the evaluation time on the business day prior to the Initial Date of Deposit.
The contracts to purchase the bonds are collateralized by irrevocable letters of
credit which have been issued by San Paolo Bank, New York Branch, in the amount
of $13,364,094.34 and deposited with the Trustee. The amount of letters of
credit includes $13,238,349.35 for the purchase of $13,615,000 face amount of
the bonds, plus $125,744.99 for accrued interest.
(2) Representing a special distribution by the Trustee of an amount
equal to the accrued interest on the bonds as of the Initial Date of Deposit.
(3) Aggregate public offering price (exclusive of interest) computed
on the basis of the offer side evaluation of the underlying bonds as of the
evaluation time on the business day prior to the Initial Date of Deposit.
(4) Assumes the maximum sales charge of 2.75%.
7
<PAGE>
- --------------------------------------------------------------------------------
TAX-FREE VS. TAXABLE INCOME: A COMPARISON OF TAXABLE AND TAX-FREE YIELDS
<TABLE><CAPTION>
TAXABLE INCOME 1995* EFFECTIVE % TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN TAX BRACKET 4% 4.5% 5% 5.5% 6% 6.5%
IS EQUIVALENT TO A TAXABLE YIELD OF
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0- 23,350 $ 0- 39,000 15.00 4.71 5.29 5.88 6.47 7.06 7.65
- ---------------------------------------------------------------------------------------------------------------------------
$ 23,350- 56,550 $ 39,000- 94,250 28.00 5.56 6.25 6.94 7.64 8.33 9.03
- ---------------------------------------------------------------------------------------------------------------------------
$ 56,550-117,950 $ 94,250-143,600 31.00 5.80 6.52 7.25 7.97 8.70 9.42
- ---------------------------------------------------------------------------------------------------------------------------
$117,950-256,500 $143,600-256,500 36.00 6.25 7.03 7.81 8.59 9.38 10.16
- ---------------------------------------------------------------------------------------------------------------------------
OVER $256,500 OVER $256,500 39.60 6.62 7.45 8.28 9.11 9.93 10.76
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
TAXABLE INCOME 199
SINGLE RETURN 7% 7.5% 8%
- ------------------
0- 23,350 8.24 8.82 9.41
- ------------------
$ 23,350- 56,550 9.72 10.42 11.11
- ------------------
$ 56,550-117,950 10.14 10.87 11.59
- ------------------
$117,950-256,500 10.94 11.72 12.50
- ------------------
OVER $256,500 11.59 12.42 13.25
- ------------------
To compare the yield of a taxable security with the yield of a tax-free
security, find your taxable income and read across. The table incorporates
projected 1995 federal income tax rates and assumes that all income would
otherwise be taxed at the investor's highest tax rate. Yield figures are for
example only.
*Based upon net amount subject to federal income tax after deductions and
exemptions. This table does not reflect the possible effect of other tax
factors, such as alternative minimum tax, personal exemptions, the phase out of
exemptions, itemized deductions or the possible partial disallowance of
deductions. Consequently, holders are urged to consult their own tax advisers in
this regard.
MUNICIPAL BONDS AND THE ALTERNATIVE MINIMUM TAX
INCOME+ MUNICIPAL BOND 'PREFERENCE'
INTEREST INCOME*
NOTES:
(STATE INCOME TAX RATES) * Assuming no "prefererence"
SINGLE ++ JOINT ++ 0% 7% 11% or similar items except
- -------------------------------------------------- for municipal bond
$50,000 $23,000 $18,000 $16,000 "preference" interest
- -------------------------------------------------- income and state income
$30,000 $21,000 $18,000 $16,000 taxes.
- -------------------------------------------------- + Regular taxable income
$100,000 $27,000 $18,000 $14,000 plusstate income taxes
- -------------------------------------------------- and personal exemptions.
$55,000 $23,000 $18,000 $15,000 ++ Assuming no dependents.
- --------------------------------------------------
$225,000 $33,000 $16,000 $7,000
- --------------------------------------------------
$205,000 $32,000 $16,000 $8,000
- --------------------------------------------------
Under the tax law, interest income on certain municipal bonds, although
exempt from regular federal income tax, is treated as a 'preference' item for
purposes of AMT. The table above shows amounts of such municipal bond
'preference' interest income that individual taxpayers could receive in 1995
without becoming subject to the AMT. The table gives information for single and
joint returns of individuals having no dependents. The table provides three
income levels and three hypothetical state income tax rates.
<PAGE>
MUNICIPAL INVESTMENT TRUST FUND
INTERMEDIATE TERM SERIES
DEFINED ASSET FUNDS
I want to learn more about automatic reinvestment in the Investment Accumulation
Program. Please send me information about participation in the Municipal Fund
Accumulation Program, Inc. and a current Prospectus.
My name (please
print) ________________________________________________________________________
My address (please print):
Street and Apt.
No. ___________________________________________________________________________
City, State, Zip
Code __________________________________________________________________________
This page is a self-mailer. Please complete the information above, cut along the
dotted line, fold along the lines on the reverse side, tape, and mail with the
Trustee's address displayed on the outside.
<PAGE>
BUSINESS REPLY MAIL NO POSTAGE
FIRST CLASS PERMIT NO. 1313 NEW YORK, NY NECESSARY
IF MAILED
POSTAGE WILL BE PAID BY ADDRESSEE IN THE
THE BANK OF NEW YORK UNITED STATES
UNIT INVESTMENT TRUST DEPARTMENT
P.O. BOX 974
WALL STREET STATION
NEW YORK, NY 10268-0974
- --------------------------------------------------------------------------------
(Fold along this line.)
- --------------------------------------------------------------------------------
(Fold along this line.)
<PAGE>
Defined
Asset FundsSM
SPONSORS: MUNICIPAL INVESTMENT
Merrill Lynch, Pierce, Fenner & TRUST FUND
Smith Incorporated Intermediate Term Series--251
Defined Asset Funds (Short Intermediate Maturities)
P.O. Box 9051, A Unit Investment Trust
Princeton, NJ
08543-9051 Units of this Fund may no longer be available
(609) 282-8500 and therefore information contained herein
Smith Barney Inc. may be subject to amendment. A registration
388 Greenwich Street--23rd Floor, statement relating to securities of a future
New York, NY series has been filed with the Securities and
10013 Exchange Commission. These securities may not
(800) 223-2532 be sold nor may offers to buy be accepted
PaineWebber Incorporated prior to the time the registration statement
1285 Avenue of the Americas, becomes effective.
New York, NY For more complete information about a future
10019 series, including additional information on
(201) 902-3000 charges and expenses, please call or write
Prudential Securities Incorporated one of the Sponsors listed here for a
One Seaport Plaza--199 Water prospectus. Read the prospectus before you
Street, invest or send money. This Prospectus does
New York, NY not contain all of the information with
10292 respect to the investment company set forth
(212) 776-1000 in its registration statement and exhibits
Dean Witter Reynolds Inc. relating thereto which have been filed with
Two World Trade Center--59th Floor,the Securities and Exchange Commission,
New York, NY Washington, D.C. under the Securities Act of
10048 1933 and the Investment Company Act of 1940,
(212) 392-2222 and to which reference is hereby made.
EVALUATOR: No person is authorized to give any
Kenny S&P Evaluation Services, information or to make any representations
a division of J. J. Kenny Co., Inc.with respect to this investment company not
65 Broadway, New York, NY 10019 contained in this Prospectus; and any
TRUSTEE: information or representation not contained
The Bank of New York herein must not be relied upon as having been
(a New York Banking Corporation) authorized. This Prospectus shall not
Box 974--Wall Street Division constitute an offer to sell or the
New York, NY 10268-0974 solicitation of an offer to buy nor shall
1-800-221-7771 there be any sale of these securities in any
State in which such offer solicitation or
sale would be unlawful prior to registration
or qualification under the securities laws of
any such State.
15093--4/95
