The document provides an overview of a case study webinar presented by InKnowVision for their monthly webinar series on high net worth families. It includes an agenda for the webinar covering initial planning for Anthony and Dina Donfrio, including their goals, family information, estate planning elements considered, plan assumptions, and an introduction to proposed plan strategies. Some of the proposed strategies include creating and funding a family limited liability company, increasing annual charitable giving, and including language in their trust or will to create a testamentary charitable lead annuity trust.

1. InKnowVision’s Monthly
HNW Webinar Series
Case Study Webinar
©2012. InKnowVision LLC. All rights reserved. www.inknowvision.com

2. FAMILY WEALTH GOAL ACHIEVER™ - INITIAL
PREPARED FOR:
ANTHONY AND DINA DONFRIO
February 22, 2011
PRESENTED BY
Scott Hamilton
InKnowVision, LLC
715 Enterprise DR
Oak Brook, IL
Scott@ikvllc.com
Phone: (630) 596-5090
Copyright 2011 InKnowVision, LLC

3. YOUR GOALS AND OBJECTIVES ACCOMPLISHED
ANTHONY AND DINA DONFRIO
Maintain our customary lifestyle. This should take about $850,000 annually after taxes and gifts.
Provide for the financial security of the surviving spouse.
Maintain adequate liquidity for emergencies and investment opportunities. We prefer to keep at least
$1,000,000 in cash and readily marketable securities.
Assure we have sufficient liquid assets available at our deaths to eliminate the forced liquidation of our business
or real estate assets.
Under the proposed plan your heirs could expect to receive approximately 25% of your estate today.
Under the proposed plan charity could expect to receive as much as 75% of your estate today.
Income tax savings could be as much as $3,900,000 over the next 10 years.
Eliminate or reduce estate taxes.
Page 2

4. FAMILY INFORMATION
ANTHONY AND DINA DONFRIO
CLIENTS
Anthony Donfrio Date of Birth April 27, 1956
Dina Donfrio Date of Birth February 27, 1959
15 N. Berwyn
Northbrook, IL 60670
CHILDREN
CHILD'S NAME YEAR OF BIRTH
Dave Donfrio 1992
Tony Donfrio 1993
Cathy Donfrio 1995
Debbie Donfrio 1996
Peter Donfrio 1998
Mary Donfrio 2000
Page 3

5. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - CONSIDERED
ANTHONY AND DINA DONFRIO
In our planning process, we start with the universe of available planning tools. While this universe is constantly changing, the following chart
outlines many of the available tools. We examine each of these strategies and discard those that are not suitable for meeting your goals and
objectives.
Charitable
Family Limited Grantor Retained Charitable Lead
Remainder Uni- 412(e) Private Annuity SCIN
Liability Company Annuity Trust Annuity Trust
Trust
Qualified Personal Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Flip CRT
Residence Trust Note Liability Company Insurance
Outright gift to Long Term Care Corporate
Premium Finance 529 Plans Family Trusts New ILIT
charity at death Insurance Recapitalization
Charitable Life
Walton GRAT Private Foundations NIMCRUT Valuation Planning Asset Protection SPIA/Life Arbitrage
Estate
Revocable Living
Increased Annual International Delaware Asset
SPIA/Life in a CLAT Trusts, DPAs and Crummey Powers Dynasty Trust
Charitable Giving VUL Protection Trust
POAs
Supporting Transfer of Captive
IRA to Charity Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations Ownership to ILIT
Charitable
Succession Defined Benefit Qualified Plan
Bargain Sales Risk Management Remainder Annuity ESOP Planning
Planning Plans Limited Partnership
Trust
Page 4

6. PLAN ASSUMPTIONS
ANTHONY AND DINA DONFRIO
The plan is based on numerous assumptions. Important among these are the yield and growth assumptions
contained on the balance sheet in the Financial Analysis section. Other important assumptions are contained on
this Plan Assumptions page.
Tax Rate Assumptions
State Income Tax Rate 5%
State Inheritance - Estate Tax No state estate tax
Tax on IRD
Unless a qualified plan is given to charity, we assume the beneficiary designations are changed to provide for a
stretch out distribution.
Salary and Other Earned Income Assumptions
Annual increase in Anthony's earned income 5%
Number of years Anthony's income is expected to continue 20
Lifestyle Need Assumptions
Net annual outlay for Anthony and Dina's lifestyle needs, not including gifts or income taxes $850,000
Annual cost of living increase used in the plan 2%
Settlement and Administrative Expenses
Fixed estate settlement costs $25,000
Variable estate settlement costs, 1st death 0.50% (of assets)
Variable estate settlement costs, 2nd death 1.00% (of assets)
Page 5

7. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
ANTHONY AND DINA DONFRIO
The following section of the plan contains a step by step roadmap for each of the strategies that we are recommending.
You will notice that the strategies are often interdependent; that is, in order for one strategy to be successful, you must
complete another strategy as well. It is the integration of each of these strategies that allows you to most efficiently
accomplish your goals.
Also keep in mind that there is often more than one way to get from point A to point B. This is true in wealth transfer
planning. If a particular strategy or combination of strategies is not acceptable to you, we may be able to reach the desired
result in a less efficient but perhaps more acceptable way.
The following pages are a conceptual road map only, there are numerous details contained in each strategy that are not
detailed in the overall plan that follows.
Page 6

8. CREATE AND FUND A FAMILY LIMITED LIABILITY COMPANY
ANTHONY AND DINA DONFRIO
Anthony and Dina create a limited liability company. They receive membership units including management
shares. The new entity is organized to develop new investments, protect family members, streamline
business succession planning, create a gifting mechanism and provide centralized management of
investments.
ANTHONY & DINA FAMILY LIMITED LIABILITY COMPANY
Management & Member interests are split
between Anthony & Dina
MANAGEMENT MEMBER
INTERESTS INTERESTS
1% 99%
Page 7

9. DONFRIO CONSTUCTION DISTRIBUTION
ANTHONY AND DINA DONFRIO
Donfrio Construction distributes $20,000,000 of cash to Anthony. This distribution is subject to approval from all lien
holders (including Edward and Tess Donfrio) and the bonding company. This distribution is also subject to agreement to
issuance of guarantees to the bonding company and Edward and Tess.
DONFIO CONSTRUCTION Distributes $20,000,000 of ANTHONY DONFRIO
cash
Note: There are additional distributions contemplated in the future.
Page 8

10. CREATE AND FUND A FAMILY LIMITED LIABILITY COMPANY
ANTHONY AND DINA DONFRIO
Anthony and Dina transfer $20,000,000 of cash to the limited liability company.
ANTHONY & DINA FAMILY LIMITED LIABILITY COMPANY
$20,000,000
Detail of Assets Transferred
Cash from Donfrio Construction Acquisition Trust 20,000,000
Total Assets Contributed 20,000,000
Note: There are expected to be future capital contributions to the FLLC.
Page 9

11. BONDING COMPANY INTERESTS
ANTHONY AND DINA DONFRIO
Donfrio Construction pays a
DONFRIO CONSTRUCTION fee to FLLC for pledging FLLC
assets
FLLC pledges assets to bonding
company to secure Donfrio
Construction performance
obligation
BONDING COMPANY
Page 10

12. EDWARD AND TESS SECURITY INTEREST
ANTHONY AND DINA DONFRIO
Donfrio Construction pays a
DONFRIO CONSTRUCTION FLLC
fee to FLLC for pledging
assets
FLLC pledges assets to Edward and Tess
to secure Donfrio Family Trust
performance on SCIN payments
EDWARD AND TESS
Page 11

13. CAPTIVE INSURANCE COMPANY OWNERSHIP
ANTHONY AND DINA DONFRIO
Donfrio Construction transfers ownership so that Anthony's existing ILIT is the owner of his captive interest.
The ownership for Anthony's captive will be set-up such that the profits of the company are outside of his estate for estate tax purposes.
This transfer is a gift. Valuation of Anthony's interests will need to be done in order to determine the value of the gift.
Anthony's interest in the
ANTHONY DONFRIO Captive Insurance Company is
ANTHONY'S ILIT
gifted to his ILIT
Owns interests in Captive Insurance
Owns interests in Captive Insurance
Company after transfer. Profits from
Company
Captive are distributed to ILIT
Note: Anthony's interest in the captive is held in a
single member LLC. The LLC interests will be gifted to
the ILIT.
Page 12

14. IRREVOCABLE LIFE INSURANCE TRUST
ANTHONY AND DINA DONFRIO
Captive insurance company profits can be distributed to Anthony's existing ILIT. Distributions could
be used to purchase life insurance. Money could also be loaned to the ILIT to pay premiums. The
loan could be repaid from later captive distributions.
CAPTIVE INSURANCE COMPANY Profits ILIT
Owns life insurance with a death benefit of
$50,000,000
Premium Payment Details
Survivorship policy on Anthony & Dina, annual premium payment in
all years of $227,350. The first premium will be loaned to the ILIT.
HEIRS
Death benefit of $50,000,000, less any money
lent to the ILIT for premiums, are distributed
according to the terms of the ILIT.
Page 13

15. INCREASE ANNUAL CHARITABLE GIVING
ANTHONY AND DINA DONFRIO
Increase charitable giving during life through annual gifts to charity from Donfrio Construction.
ANTHONY & DINA $1,000,000
FAMILY CHARITY
Give annually through Donfrio
Construction
Advantages
No estate tax
No income in respect of a decedent tax
Most efficient asset to satisfy charitable intent
Page 14

16. CASH AVAILABLE TO DINA IN THE EVENT OF ANTHONY'S
PREMATURE DEATH - 2011
ANTHONY AND DINA DONFRIO
CASH DONFRIO CONSTRUCTION - EQUITY FAMILY LLC RETIREMENT FUNDS MARKETABLE SECURITIES
621,616 42,124,690 20,000,000 149,395 209,146
In the event of Anthony's premature death
DINA
63,104,847
Note: Eight years of projected available cash are shown on the next page.
Page15

17. FINANCIAL ANALYSIS - PROPOSED PLA CASH AVAILABLE TO Dina
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Asset Values
Cash and cash equivalents 621,616 621,616 621,616 621,616 621,616 621,616 621,616 621,616 621,616
Marketable securities - Equities 600,000 209,146 1,304,005 2,443,312 3,096,324 3,785,795 4,514,275 5,284,492 7,875,793
Donfrio Construction - Cash 42,124,690 42,124,690 41,459,127 41,673,666 41,771,565 44,673,464 43,095,363 41,517,262 36,992,953
Retirement plans/IRAs 141,000 149,395 159,853 171,042 183,015 195,826 209,534 224,202 274,657
Value of Family Limited Liability Comp. 20,000,000 20,000,000 30,000,000 40,000,000 45,000,000 45,000,000 50,000,000 55,000,000 60,000,000
Total Cash Available to Dinaa $ 63,487,306 $ 63,104,847 $ 73,544,601 $ 84,909,637 $ 90,672,520 $ 94,276,702 $ 98,440,788 $ 102,647,572 $ 105,765,019
Figures above reflect the cash available to Dina, each year, in the event of Anthony's premature death.
Page 16

18. ANTHONY AND DINA DONFRIO
STRATEGIES
CONSIDERED BUT NOT
BEING PURSUED AT THIS
TIME
Page 17

19. CREATE DELAWARE ASSET PROTECTION TRUSTS
ANTHONY AND DINA DONFRIO
Anthony and Dina create individual Delaware Asset Protection trusts (DAPTs).
It's recommended that an independent trustee is used for the trusts.
ANTHONY ANTHONY's DAPT
DINA DINA's DAPT
HEIRS
Page 18

20. TRANSFER FUNDS TO DELAWARE ASSET PROTECTION TRUST
ANTHONY AND DINA DONFRIO
Anthony and Dina each transfer their Family Limited Liability Company assets to their individual DAPT. The
transfer of FLLC units to the DAPTs will be incomplete gifts for gift tax purposes.
ANTHONY ANTHONY's DAPT
50% of FLLC interests
DINA DINA's DAPT
50% of FLLC interests
ANTHONY AND DINA
Anthony & Dina are discretionary
beneficiaries of the DAPT assets
Page 19

21. NEW CAPTIVE INSURANCE COMPANY
ANTHONY AND DINA DONFRIO
Consider creating a new captive insurance for Donfrio Construction to insure other risks.
The ownership would be set-up such that the profits of the company are outside of his estate for estate tax purposes.
DONFRIO CONSTRUCTION Premium NEW 831(b) CAPTIVE
COMPANY
Coverage for other risks
not covered under
existing Captive
ANTHONY'S ILIT
Owns Anthony's Captive interest
Page 20

22. TESTAM TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part I) - 2011
ANTHONY AND DINA DONFRIO
Include language in your trust or Will that creates a testamentary charitable lead trust (TCLAT) at the second death.
ANTHONY & DINA TCLAT
At death $205,481,887 of the assets taxable
TCLAT owns assets with a value of
in your estate will pass to the TCLAT. This
$205,481,887 after your death.
should bring your estate tax to $0.
DONFRIO FAMILY CHARITY
TCLAT Assumptions The charity will receive payments of
Asset growth rate 5.00% $11,578,010 each year for a period of 25 years
TCLAT payout rate 5.63% totaling $289,450,245.
Present value discount rate 5.00%
Assumed date of death 2011
Page 21

23. TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part II) - 2011
ANTHONY AND DINA DONFRIO
At the end of the TCLAT term, your heirs will receive all of the remaining trust assets.
TCLAT HEIRS
Based on the plan assumptions, your heirs
could expect to inherit $42,302,058 from the
At the end of the 25 year term, the TCLAT
TCLAT. The amount passing to heirs is a
assets will be distributed to your heirs.
present value number using a discount rate of
5%.
Page 22

24. TRANSFER XYZ
ANTHONY AND DINA DONFRIO
Anthony and Dina own Series A & Series B stock in XYZ, Inc.
Transfer stock in XYZ, Inc. to a trust established outside Anthony & Dina's taxable estate.
Transfer stock in XYZ
ANTHONY & DINA worth $966,000 IRREVOCABLE TRUST
Owns XYZ stock outside of Anthony &
Own Series A & Series B stock in XYZ, Inc.
Dina's estate after transfer
HEIRS
Page 23

25. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
ANTHONY AND DINA DONFRIO
The highlighted tools are those we have determined are most suited to achieving your goals and objectives.
Charitable
Family Limited Grantor Retained Charitable Lead
Remainder Uni- 412(e) Private Annuity SCIN
Liability Company Annuity Trust Annuity Trust
Trust
Qualified Personal Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Flip CRT
Residence Trust Note Liability Company Insurance
Outright gift to Long Term Care Anthony Donfrio Corporate
Premium Finance 529 Plans New ILIT
charity at death Insurance Family Trust Recapitalization
Charitable Life Anthony Donfrio
Walton GRAT Private Foundations NIMCRUT Asset Protection SPIA/Life Arbitrage
Estate ILIT
Revocable Living
Increased Annual Donfrio International Delaware Asset
SPIA/Life in a CLAT Trusts, DPAs and Crummey Powers
Charitable Giving Construction Trust VUL Protection Trust
POAs
Supporting Transfer of Captive
IRA to Charity Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations Ownership to ILIT
Charitable
Succession Defined Benefit Qualified Plan
Bargain Sales Risk Management Remainder Annuity ESOP Planning
Planning Plans Limited Partnership
Trust
Green equals a new Blue equals a social Yellow equals an
planning tool for capital or existing planning
family charitable tool tool
Page 24

26. ANTHONY AND DINA DONFRIO
INCREASE IN
CHARITABLE GIVING
Page 25

27. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2011
ANTHONY AND DINA DONFRIO
Existing Plan Proposed Plan Increase in Charity
Outright Gift to Charity (at 2nd death) $ - $ 205,482,000 $ 205,482,000
Cumulative annual gifts $ 425,000 $ 1,000,000 $ 575,000
Family Charity $ 425,000 $ 206,631,000 $ 206,206,000
Page 26

28. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2020
ANTHONY AND DINA DONFRIO
Existing Plan Proposed Plan Increase in Charity
Outright Gift to Charity (at 2nd death) $ - $ 263,037,000 $ 263,037,000
Cumulative annual gifts $ 4,654,000 $ 10,950,000 $ 6,296,000
Family Charity $ 4,654,000 $ 274,261,000 $ 269,607,000
Page 27

29. GIFTING TO CHARITY - EXISTING PLAN VS. PROPOSED PLAN
ANTHONY AND DINA DONFRIO
$280,000,000
$240,000,000
$200,000,000
$160,000,000
-
$120,000,000
$80,000,000
$40,000,000
$-
11
12
13
14
15
16
17
18
19
20
20
20
20
20
20
20
20
20
20
20
Proposed Plan Charity Current Plan Charity
This chart compares the amount of your gifts to charity in the current plan as against the proposed plan.
Page 28

30. ANTHONY AND DINA DONFRIO
INCOME TAX SAVINGS
Page 29

31. COMPARISON OF INCOME TAX RESULTS - PLAN YEAR 2011
ANTHONY AND DINA DONFRIO
Existing Plan Proposed Plan Income Tax Saved
2011 Estimated Income Tax $ 12,946,000 $ 12,556,000 $ 390,000
2012 Estimated Income Tax $ 8,063,000 $ 7,673,000 $ 390,000
2013 Estimated Income Tax $ 8,626,000 $ 8,236,000 $ 390,000
2014 Estimated Income Tax $ 5,248,000 $ 4,858,000 $ 390,000
2015 Estimated Income Tax $ 3,844,000 $ 3,454,000 $ 390,000
2016 Estimated Income Tax $ 3,844,000 $ 3,454,000 $ 390,000
2017 Estimated Income Tax $ 3,844,000 $ 3,454,000 $ 390,000
2018 Estimated Income Tax $ 3,844,000 $ 3,454,000 $ 390,000
2019 Estimated Income Tax $ 3,844,000 $ 3,454,000 $ 390,000
2020 Estimated Income Tax $ 3,844,000 $ 3,454,000 $ 390,000
10 Year Estimated Income Tax Saved $ 3,900,000
Note: These income tax estimations represent the income taxes due inside of the Donfrio Construction. Savings are created through
increase in annual charitable giving.
Page 30

32. INCOME TAXES DUE - CURRENT VS. PROPOSED
ANTHONY AND DINA DONFRIO
$13,000,000
$12,000,000
$11,000,000
$10,000,000
$9,000,000
$8,000,000 -
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Current Plan Proposed Plan
Page 31

33. COMPARISON OF PLAN RESULTS - PLAN YEAR 2020
ANTHONY AND DINA DONFRIO
Existing Plan Proposed Plan Advantage
Estate Value $ 205,382,022 $ 267,450,791
Heirs Receive Immediately $ 97,025,133 $ 56,747,790 $ (40,277,344)
Family Charity $ 4,653,631 $ 274,261,005 $ 269,607,373
Estate and Income Tax $ 111,363,538 $ - $ 111,363,538
** This does not include $20M of life insurance on Anthony's life.
This chart assumes that you both die at life expectancy and compares the results of the current plan with the proposed plan.
Page 32

34. DETAILED FINANCIAL ANALYSIS
ANTHONY AND DINA DONFRIO
INTRODUCTION
The following section of the plan contains all of the financial analysis used to show you where you
stand with your current plan and what is possible with the proposed plan.
All of the numbers are based on information provided by you or gleaned from statements and tax
returns. If numbers do not look correct, please let us know so that we can make appropriate
changes.
Assumed growth and yield numbers are all listed on the Net Worth pages contained in these sections.
Page 33

35. DETAILED FINANCIAL ANALYSIS
ANTHONY AND DINA DONFRIO
CURRENT PLAN FINANCIALS
In the Current Plan Section you will find a Net Worth Statement and a detailed cash flow and asset
value projection analysis.
Page 34

36. CURRENT NET WORTH STATEMENT
ANTHONY AND DINA DONFRIO
ANTHONY DINA JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Bank 300,000 300,000 - 600,000 0.7% 0.0%
Brokerage 10,808 10,808 - 21,616 2.0% 0.0%
Total of Cash and Equivalents 310,808 310,808 - 621,616 0.8% 0.0%
MARKETABLE SECURITIES - EQUITIES
Brokerage 300,000 300,000 - 600,000 1.2% 5.0%
Total of Equities 300,000 300,000 - 600,000 1.2% 5.0%
529 PLANS
529 Plans 390,000 - - 390,000 0.0% 0.0%
Total of 529 Plans 390,000 - - 390,000 0.0% 0.0%
Page 35

37. CURRENT NET WORTH STATEMENT (Page 2)
ANTHONY AND DINA DONFRIO
ANTHONY DINA JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
XYZ-A 163,000 163,000 - 326,000 0.0% 5.0%
XYZ-B 320,000 320,000 - 640,000 0.0% 5.0%
Captive Insurance Company 100,000 100,000 - 200,000 0.0% 0.0%
Total of Other Investments 583,000 583,000 - 1,166,000 0.0% 4.1%
Donfrio Construction
Donfrio Construction 192,000,000 - - 192,000,000 0.0% 3.0%
Total of Donfrio Construction 192,000,000 - - 192,000,000 0.0% 3.0%
RETIREMENT PLANS/IRAs
Donfrio Construction Co. 401(k) 120,000 - 120,000 0.0% 7.0%
Brokerage IRA 5,000 - 5,000 0.0% 7.0%
Brokerage IRA - 16,000 16,000 0.0% 7.0%
Total Retirement Plans 125,000 16,000 141,000 0.0% 7.0%
Page 36

38. CURRENT NET WORTH STATEMENT (Page 3)
ANTHONY AND DINA DONFRIO
ANTHONY DINA JOINT TOTAL YIELD GROWTH
CLOSELY HELD BUSINESS
Other Trust 200,000 - - 200,000 0.0% 0.0%
Total of Closely Held Business 200,000 - - 200,000 0.0% 0.0%
RESIDENTIAL REAL ESTATE
15 N. Berwyn 1,000,000 1,000,000 - 2,000,000 0.0% 3.0%
Total of Personal Residences 1,000,000 1,000,000 - 2,000,000 0.0% 3.0%
PERSONAL PROPERTY
Toys 5,000 5,000 - 10,000 0.0% 0.0%
Jewelry 20,000 20,000 - 40,000 0.0% 0.0%
Furnishings 90,000 90,000 - 180,000 0.0% 0.0%
Personal Property 5,000 5,000 - 10,000 0.0% 0.0%
Total of Personal Property 120,000 120,000 - 240,000 0.0% 0.0%
TOTAL ASSETS 195,028,808 2,329,808 - 197,358,616
TOTAL LIABILITIES - - - -
NET WORTH 195,028,808 2,329,808 - 197,358,616
Page 37

39. SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN
ANTHONY AND DINA DONFRIO
COMPANY INSURED POLICY # BENEFICIARY PREMIUM CASH VALUE DEATH BENEFIT
Policies owned by Anthony
Term Insurance Anthony # Dina - - 1,250,000
Term Insurance Anthony # Dina - - 250,000
Totals - - 1,500,000
Other Policies - Owned by ANTHONY DONFRIO Irrevocable Trust
Term Insurance Anthony # Donfrio Family Trust 17,000 - 20,000,000
Totals 17,000 - 20,000,000
Policies owned by ILIT
VUL Anthony # Donfrio ILIT 3,000 200,000 4,000,000
Totals 3,000 200,000 4,000,000
Page 38

40. FINANCIAL ANALYSIS - EXISTING PLAN ASSET VALUE PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Asset Values
Cash and cash equivalents 621,616 621,616 621,616 621,616 621,616 621,616 621,616 621,616 621,616
Marketable securities - Equities 600,000 (138,363) 592,003 1,364,458 1,638,537 1,935,005 2,256,019 2,603,915 3,833,415
529 Plans (value inside estate) 390,000 312,000 234,000 156,000 78,000 - - - -
Other investments 1,166,000 1,477,164 1,808,354 2,153,263 2,512,459 2,886,534 3,006,105 3,130,629 3,536,013
Donfrio Construction Trust 192,000,000 192,000,000 192,000,000 192,000,000 192,000,000 192,000,000 192,000,000 192,000,000 192,000,000
Retirement plans/IRAs 141,000 149,395 159,853 171,042 183,015 195,826 209,534 224,202 274,657
Closely Held Business 1 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2,200,000
Personal residences 2,000,000 2,051,177 2,112,713 2,176,094 2,241,377 2,308,618 2,377,877 2,449,213 2,676,321
Personal property 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000
Total assets in estate 197,358,616 197,112,990 198,368,538 199,682,473 200,515,003 201,387,599 202,111,151 202,869,574 205,382,022
Combined net worth $ 197,358,616 $ 197,112,990 $ 198,368,538 $ 199,682,473 $ 200,515,003 $ 201,387,599 $ 202,111,151 $ 202,869,574 $ 205,382,022
1
Projected growth for Trust is $200k annually.
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row by default.
If there is a cash flow shortage (because of spending or gifting capital) then the shortage is treated as a reduction in marketable securities.
Page 39

41. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Sources of taxable income
Cash and cash equivalents 4,898 4,898 4,898 4,898 4,898 4,898 4,898 4,898
Marketable securities - Equities 7,402 (1,707) 7,303 16,833 20,214 23,872 27,832 41,824
Client earned income 500,000 500,000 525,000 551,250 578,813 607,753 638,141 670,048 775,664
Gross income $ 512,300 $ 528,191 $ 563,452 $ 600,544 $ 632,866 $ 666,911 $ 702,778 $ 822,386
Page 40

42. INCOME TAX PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Income tax Estimation
Adjusted gross income:
Dividend income (marketable sec.) 7,402 (1,707) 7,303 16,833 20,214 23,872 27,832 41,824
Earned and other income 504,898 529,898 556,148 583,711 612,651 643,039 674,946 780,562
Adjusted gross income 512,300 528,191 563,452 600,544 632,866 666,911 702,778 822,386
Deductions
Real estate tax 47,650 47,650 48,603 49,575 50,567 51,578 52,609 53,662 56,946
Illinois state income taxes 25,615 26,410 28,173 30,027 31,643 33,346 35,139 41,119
Interest 78,521 78,521 80,091 81,693 83,327 84,994 86,694 88,427 93,840
Charitable gifts 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000
Charitable Deduction available 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000
Charitable Deduction allowed 256,150 264,096 281,726 300,272 316,433 333,455 351,389 411,193
Deduction carried over 168,850 160,904 143,274 124,728 108,567 91,545 73,611 13,807
Total deductions 407,936 419,200 441,167 464,193 484,648 506,104 528,617 603,098
Reductions - - (11,900) (13,012) (13,982) (15,003) (16,079) (19,668)
Deductions allowed 407,936 419,200 429,267 451,180 470,666 491,100 512,538 583,431
Taxable income 104,364 108,992 134,184 149,363 162,200 175,810 190,240 238,955
Federal and State income tax $ 43,216 $ 45,907 $ 58,256 $ 64,661 $ 70,257 $ 76,178 $ 82,445 $ 104,860
Note: Does not include income taxes being paid by DFT. All company income and tax is computed on the DFT equity forecast pages.
Page 41

43. CASH FLOW PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Sources of income for Lifestyle
Distribution from Marketable Securities 763,916 - - - - - - -
Distribution from DFT 1,545,000 1,550,000 1,550,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Consumable income (taxable) 512,300 528,191 563,452 600,544 632,866 666,911 702,778 822,386
Total income available for lifestyle 2,821,216 2,078,191 2,113,452 1,600,544 1,632,866 1,666,911 1,702,778 1,822,386
Uses of Cash
Living expenses 850,000 867,000 884,340 902,027 920,067 938,469 957,238 1,015,829
Income tax 43,216 45,907 58,256 64,661 70,257 76,178 82,445 104,860
Cash gifts to ILIT 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Mortgage Pay Off 1,500,000 - - - - - - -
Cash gifts to charity 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000
Total uses of cash 2,821,216 1,340,907 1,370,596 1,394,688 1,418,324 1,442,647 1,467,683 1,548,688
Surplus $ - $ 737,284 $ 742,855 $ 205,856 $ 214,541 $ 224,264 $ 235,095 $ 273,698
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row on the "Asset Value Projections" 3 pages earlier.
If there is a cash flow shortage (spending or gifting capital) then the shortage is treated as a reduction in
marketable securities row on the "Asset Value Projections" 3 pages earlier.
Page 42

44. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Tax calculation on Anthony's death
Combined net worth 197,358,616 197,112,990 198,368,538 199,682,473 200,515,003 201,387,599 202,111,151 202,869,574 205,382,022
Anthony's estimated estate 195,028,808 194,786,081 196,026,808 197,325,232 198,147,934 199,010,229 199,725,239 200,474,709 202,957,498
Death benefit exceeding CV 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Total gross estate 196,528,808 196,286,081 197,526,808 198,825,232 199,647,934 200,510,229 201,225,239 201,974,709 204,457,498
Settlement expenses (1,007,644) (1,006,430) (1,012,634) (1,019,126) (1,023,240) (1,027,551) (1,031,126) (1,034,874) (1,047,287)
Joint, personal and IRA to Dina (245,000) (252,442) (261,713) (271,633) (282,248) (293,605) (305,757) (318,760) (363,490)
Insurance passing to Dina (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000)
Outright or in trust to Dina (189,126,164) (188,877,208) (190,102,460) (195,384,473) (196,192,447) (197,039,073) (197,738,356) (198,471,076) (200,896,721)
Taxable estate 4,650,000 4,650,000 4,650,000 650,000 650,000 650,000 650,000 650,000 650,000
Plus Anthony's lifetime taxable gifts 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000
Tax base 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Federal Estate Tax - - - - - - - - -
Distribution of Anthony's estate
Settlement expenses 1,007,644 1,006,430 1,012,634 1,019,126 1,023,240 1,027,551 1,031,126 1,034,874 1,047,287
To family trust 4,650,000 4,650,000 4,650,000 650,000 650,000 650,000 650,000 650,000 650,000
Joint, personal and IRA to Dina 245,000 252,442 261,713 271,633 282,248 293,605 305,757 318,760 363,490
Insurance passing to Dina 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Outright or in trust to Dina 189,126,164 188,877,208 190,102,460 195,384,473 196,192,447 197,039,073 197,738,356 198,471,076 200,896,721
Total $ 196,528,808 $ 196,286,081 $ 197,526,808 $ 198,825,232 $ 199,647,934 $ 200,510,229 $ 201,225,239 $ 201,974,709 $ 204,457,498
Assumptions
We assume that Anthony dies first, followed immediately by Dina.
Taxes under "Distribution of First Estate" include estate and income taxes.
Page 43

45. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Tax Calculation on Dina's death
Dina's assets 2,329,808 2,326,908 2,341,730 2,357,241 2,367,069 2,377,370 2,385,911 2,394,865 2,424,524
Plus assets from Anthony's estate 190,871,164 190,629,651 191,864,174 197,156,106 197,974,695 198,832,678 199,544,113 200,289,836 202,760,211
Dina's estimated estate 193,200,972 192,956,559 194,205,904 199,513,347 200,341,764 201,210,048 201,930,024 202,684,700 205,184,735
Settlement expenses (1,957,010) (1,954,566) (1,967,059) (2,020,133) (2,028,418) (2,037,100) (2,044,300) (2,051,847) (2,076,847)
Dina's taxable estate 191,243,962 191,001,994 192,238,845 197,493,213 198,313,346 199,172,948 199,885,724 200,632,853 203,107,887
Tax base 191,243,962 191,001,994 192,238,845 197,493,213 198,313,346 199,172,948 199,885,724 200,632,853 203,107,887
Federal Estate Tax 65,185,387 65,100,698 65,533,596 108,275,467 108,726,540 109,199,321 109,591,348 110,002,269 111,363,538
Total Estate Tax Due 65,185,387 65,100,698 65,533,596 108,275,467 108,726,540 109,199,321 109,591,348 110,002,269 111,363,538
Distribution of Dina's estate
Settlement expenses 1,957,010 1,954,566 1,967,059 2,020,133 2,028,418 2,037,100 2,044,300 2,051,847 2,076,847
Taxes 65,185,387 65,100,698 65,533,596 108,275,467 108,726,540 109,199,321 109,591,348 110,002,269 111,363,538
Qualified plan to heirs 141,000 149,395 159,853 171,042 183,015 195,826 209,534 224,202 274,657
Residual estate to heirs 125,917,575 125,751,901 126,545,396 89,046,704 89,403,790 89,777,800 90,084,842 90,406,382 91,469,693
Total $ 193,200,972 $ 192,956,559 $ 194,205,904 $ 199,513,347 $ 200,341,764 $ 201,210,048 $ 201,930,024 $ 202,684,700 $ 205,184,735
Assumptions
We assume that Anthony dies first, followed immediately by Dina.
Taxes under "Distribution of Second Estate" include estate and income taxes.
Page 44

46. SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Benefits to Family
Family trust 4,650,000 4,650,000 4,650,000 650,000 650,000 650,000 650,000 650,000 650,000
Residual estate 125,917,575 125,751,901 126,545,396 89,046,704 89,403,790 89,777,800 90,084,842 90,406,382 91,469,693
Qualified plan assets 141,000 149,395 159,853 171,042 183,015 195,826 209,534 224,202 274,657
529 Plan 130,000 135,536 142,313 149,429 156,900 164,745 172,983 181,632 210,261
529 Plan 130,000 135,536 142,313 149,429 156,900 164,745 172,983 181,632 210,261
529 Plan 130,000 135,536 142,313 149,429 156,900 164,745 172,983 181,632 210,261
Proceeds from Donfrio Accumulation Trust 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
Total assets to heirs $ 135,098,575 $ 134,957,905 $ 135,782,189 $ 94,316,033 $ 94,707,507 $ 95,117,862 $ 95,463,324 $ 95,825,479 $ 97,025,133
Page 45

47. BENEFITS TO CHARITY - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Cumulative Annual Gifts to Charity
Annual gift to charity 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000
Cumulative Annual Gifts to Charity 425,000 858,500 1,300,670 1,751,683 2,211,717 2,680,951 3,159,570 4,653,631
Page 46

48. DETAILS OF ANTHONY'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Anthony's Qualified Plans
Anthony's Age 55 56 57 58 59 60 61 64
Dina's Age 52 53 54 55 56 57 58 61
Minimum distribution factor 41.6 40.7 39.7 38.7 37.8 36.8 35.8 33.0
Plan contributions - - - - - - - -
Plan balance 125,000 132,442 141,713 151,633 162,248 173,605 185,757 198,760 243,490
Page 47

49. DETAILS OF DINA'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Dina's Qualified Plans
Dina's Age 52 53 54 55 56 57 58 61
Anthony's Age 55 56 57 58 59 60 61 64
Minimum distribution factor 44.6 43.6 42.6 41.6 40.7 39.7 38.7 35.8
Plan contributions - - - - - - - -
Plan balance 16,000 16,953 18,139 19,409 20,768 22,221 23,777 25,441 31,167
Page 48

50. DETAILED FINANCIAL ANALYSIS
ANTHONY AND DINA DONFRIO
PROPOSED PLAN FINANCIALS
In the Proposed Plan Section you will find a balance sheet which reflects the repositioning of assets
as set out in the step by step roadmap in the proceeding section. You will also find detailed cash
flow and asset projection information on each of the proposed planning strategies.
Page 49

51. NET WORTH STATEMENT AFTER PLAN IMPLEMENTATION
ANTHONY AND DINA DONFRIO
ANTHONY DINA JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Bank 300,000 300,000 - 600,000 0.7% 0.0%
Brokerage 10,808 10,808 - 21,616 2.0% 0.0%
Total of Cash and Equivalents 310,808 310,808 - 621,616 0.8% 0.0%
MARKETABLE SECURITIES - EQUITIES
Brokerage 300,000 300,000 - 600,000 1.2% 5.0%
Total of Equities 300,000 300,000 - 600,000 1.2% 5.0%
529 PLANS
529 Plans 390,000 - - 390,000 0.0% 0.0%
Total of 529 Plans 390,000 - - 390,000 0.0% 0.0%
Page 50

52. REVISED NET WORTH STATEMENT (Page 2)
ANTHONY AND DINA DONFRIO
ANTHONY DINA JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
XYZ-A 163,000 163,000 - 326,000 0.0% 5.0%
XYZ-B 320,000 320,000 - 640,000 0.0% 5.0%
Total of Other Investments 483,000 483,000 - 966,000 0.0% 5.0%
Donfrio Construction
Donfrio Construction 192,000,000 - - 192,000,000 0.0% 3.0%
Total of Donfrio Construction 192,000,000 - - 192,000,000 0.0% 3.0%
RETIREMENT PLANS/IRAs
Donfrio Construction Co. 401(k) 120,000 - 120,000 0.0% 7.0%
Brokerage IRA 5,000 - 5,000 0.0% 7.0%
Brokerage IRA - 16,000 16,000 0.0% 7.0%
Total Retirement Plans 125,000 16,000 141,000 0.0% 7.0%
Page 51

53. REVISED NET WORTH STATEMENT (Page 3)
ANTHONY AND DINA DONFRIO
ANTHONY DINA JOINT TOTAL YIELD GROWTH
CLOSELY HELD BUSINESS
Other Trust 200,000 - - 200,000 0.0% 0.0%
Total of Closely Held Business 200,000 - - 200,000 0.0% 0.0%
RESIDENTIAL REAL ESTATE
15 N. Berwyn 1,000,000 1,000,000 - 2,000,000 0.0% 3.0%
Total of Personal Residences 1,000,000 1,000,000 - 2,000,000 0.0% 3.0%
PERSONAL PROPERTY
Toys 5,000 5,000 - 10,000 0.0% 0.0%
Jewelry 20,000 20,000 - 40,000 0.0% 0.0%
Furnishings 90,000 90,000 - 180,000 0.0% 0.0%
Personal Property 5,000 5,000 - 10,000 0.0% 0.0%
Total of Personal Property 120,000 120,000 - 240,000 0.0% 0.0%
OTHER STRATEGY ASSETS
Family Limited Liability Company 10,000,000 10,000,000 - 20,000,000
Total of Other Strategy Assets 10,000,000 10,000,000 - 20,000,000
TOTAL ASSETS 204,928,808 12,229,808 - 217,158,616
TOTAL LIABILITIES - - - -
NET WORTH 204,928,808 12,229,808 - 217,158,616
Page 52

54. FINANCIAL ANALYSIS - PROPOSED PLA ASSET VALUE PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Asset Values
Cash and cash equivalents 621,616 621,616 621,616 621,616 621,616 621,616 621,616 621,616 621,616
Marketable securities - Equities 600,000 209,146 1,304,005 2,443,312 3,096,324 3,785,795 4,514,275 5,284,492 7,875,793
529 Plans (value inside estate) 390,000 312,000 234,000 156,000 78,000 - - - -
Other investments 966,000 1,007,139 1,057,496 1,110,371 1,165,890 1,224,184 1,285,394 1,349,663 1,562,404
Donfrio Construction Trust 192,000,000 192,000,000 192,000,000 192,000,000 192,000,000 192,000,000 192,000,000 192,000,000 192,000,000
Retirement plans/IRAs 141,000 149,395 159,853 171,042 183,015 195,826 209,534 224,202 274,657
Closely Held Business 1 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2,200,000
Personal residences 2,000,000 2,051,177 2,112,713 2,176,094 2,241,377 2,308,618 2,377,877 2,449,213 2,676,321
Personal property 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000
Value of Family Limited Liability Company 20,000,000 20,000,000 30,000,000 40,000,000 45,000,000 45,000,000 50,000,000 55,000,000 60,000,000
Total assets in estate 217,158,616 216,990,474 228,329,683 239,718,436 245,626,222 246,576,040 252,648,696 258,769,186 267,450,791
Combined net worth $ 217,158,616 $ 216,990,474 $ 228,329,683 $ 239,718,436 $ 245,626,222 $ 246,576,040 $ 252,648,696 $ 258,769,186 $ 267,450,791
1
Projected growth for Trust is $200k annually.
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row by default.
If there is a cash flow shortage (because of spending or gifting capital) then the shortage is treated as a reduction in marketable securities.
Page 53

55. TAXABLE INCOME PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Sources of Taxable Income
Cash and cash equivalents 4,898 4,898 4,898 4,898 4,898 4,898 4,898 4,898
Marketable securities - Equities 7,402 2,580 16,087 30,142 38,198 46,704 55,691 85,888
Client earned income 500,000 500,000 525,000 551,250 578,813 607,753 638,141 670,048 775,664
Gross income $ 512,300 $ 532,478 $ 572,235 $ 613,853 $ 650,850 $ 689,743 $ 730,637 $ 866,451
Note: All company income and tax is computed on the DFT equity forecast pages.
Page 54

56. INCOME TAX PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Income Tax Estimation
Adjusted gross income:
Dividend income (Marketable Sec.) 7,402 2,580 16,087 30,142 38,198 46,704 55,691 85,888
Earned and other income 504,898 529,898 556,148 583,711 612,651 643,039 674,946 780,562
Adjusted gross income 512,300 532,478 572,235 613,853 650,850 689,743 730,637 866,451
Deductions
Real Estate Tax 47,650 48,603 49,575 50,567 51,578 52,609 53,662 56,946
Illinois state income taxes 25,615 26,624 28,612 30,693 32,542 34,487 36,532 43,323
Interest 78,521 80,091 81,693 83,327 84,994 86,694 88,427 93,840
Total deductions 151,786 155,318 159,880 164,586 169,114 173,790 178,621 194,109
Reductions - - (12,163) (13,412) (14,521) (15,688) (16,915) (20,990)
Deductions allowed 151,786 155,318 147,717 151,175 154,593 158,102 161,706 173,119
Taxable income 360,514 377,160 424,518 462,678 496,257 531,641 568,931 693,332
Federal and State income tax $ 120,707 $ 128,077 $ 160,788 $ 177,980 $ 193,127 $ 209,084 $ 225,896 $ 281,949
Note: Does not include income taxes being paid by DFT. All company income and tax is computed on the DFT equity forecast pages.
Page 55

57. CASH FLOW PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Sources of Income for Lifestyle
Consumable income (taxable) 512,300 532,478 572,235 613,853 650,850 689,743 730,637 866,451
Distribution from DFT 1,545,000 1,550,000 1,550,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Distribution from Marketable Securities 416,407 - - - - - - -
Total income available for lifestyle 2,473,707 2,082,478 2,122,235 1,613,853 1,650,850 1,689,743 1,730,637 1,866,451
Uses of Cash
Living expenses 850,000 867,000 884,340 902,027 920,067 938,469 957,238 1,015,829
Income tax 120,707 128,077 160,788 177,980 193,127 209,084 225,896 281,949
Mortgage Pay Off 1,500,000 - - - - - - -
Cash gifts to ILIT 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Total uses of cash 2,473,707 998,077 1,048,128 1,083,007 1,116,195 1,150,553 1,186,134 1,300,778
Surplus $ - $ 1,084,402 $ 1,074,107 $ 530,846 $ 534,655 $ 539,190 $ 544,503 $ 565,673
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row on the "Asset Value Projections" 3 pages earlier.
Page 56

58. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Tax calculation on Anthony's death
Combined Net Worth 217,158,616 216,990,474 228,329,683 239,718,436 245,626,222 246,576,040 252,648,696 258,769,186 267,450,791
Anthony's estimated estate 204,928,808 204,770,135 215,470,749 226,218,118 231,793,192 232,689,519 238,420,179 244,195,979 252,388,658
Death benefit exceeding CV 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Total gross estate 206,428,808 206,270,135 216,970,749 227,718,118 233,293,192 234,189,519 239,920,179 245,695,979 253,888,658
Settlement expenses (1,057,144) (1,056,351) (1,109,854) (1,163,591) (1,191,466) (1,195,948) (1,224,601) (1,253,480) (1,294,443)
Joint, personal and IRA to Dina (245,000) (252,442) (261,713) (271,633) (282,248) (293,605) (305,757) (318,760) (363,490)
Insurance passing to Dina (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000)
Outright or in trust to Dina (198,976,664) (198,811,342) (209,449,182) (224,132,894) (229,669,479) (230,549,967) (236,239,820) (241,973,739) (250,080,725)
Taxable estate 4,650,000 4,650,000 4,650,000 650,000 650,000 650,000 650,000 650,000 650,000
Plus Anthony's lifetime taxable gifts 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000
Tax base 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Tentative Federal Estate Tax - - - - - - - - -
Distribution of First Estate
Settlement expenses 1,057,144 1,056,351 1,109,854 1,163,591 1,191,466 1,195,948 1,224,601 1,253,480 1,294,443
To family trust 4,650,000 4,650,000 4,650,000 650,000 650,000 650,000 650,000 650,000 650,000
Joint, personal and IRA to Dina 245,000 252,442 261,713 271,633 282,248 293,605 305,757 318,760 363,490
Insurance passing to Dina 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Outright or in trust to Dina 198,976,664 198,811,342 209,449,182 224,132,894 229,669,479 230,549,967 236,239,820 241,973,739 250,080,725
Total $ 206,428,808 $ 206,270,135 $ 216,970,749 $ 227,718,118 $ 233,293,192 $ 234,189,519 $ 239,920,179 $ 245,695,979 $ 253,888,658
Assumptions
We assume that Anthony dies first, followed immediately by Dina.
Taxes under "Distribution of First Estate" include estate and income taxes, if any.
Page 57

59. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Tax Calculation on Dina's death
Dina's assets 12,229,808 12,220,339 12,858,933 13,500,318 13,833,029 13,886,521 14,228,517 14,573,207 15,062,132
Plus assets from Anthony's estate 200,721,664 200,563,784 211,210,895 225,904,527 231,451,726 232,343,572 238,045,578 243,792,499 251,944,215
Dina's estimated estate 212,951,472 212,784,123 224,069,829 239,404,845 245,284,756 246,230,092 252,274,095 258,365,706 267,006,347
Settlement expenses (2,154,515) (2,152,841) (2,265,698) (2,419,048) (2,477,848) (2,487,301) (2,547,741) (2,608,657) (2,695,063)
Charitable gift of IRA assets (141,000) (149,395) (159,853) (171,042) (183,015) (195,826) (209,534) (224,202) (274,657)
Deduction from Gift to Charity (205,655,957) (205,481,887) (216,644,278) (235,814,755) (241,623,893) (242,546,965) (248,516,819) (254,532,847) (263,036,627)
Taxable estate 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Tax base 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Federal Estate Tax - - - - - - - - -
Distribution of Second Estate
Settlement expenses 2,154,515 2,152,841 2,265,698 2,419,048 2,477,848 2,487,301 2,547,741 2,608,657 2,695,063
Taxes - - - - - - - - -
Other gifts to charity 141,000 149,395 159,853 171,042 183,015 195,826 209,534 224,202 274,657
Residual estate to heirs 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Outright Gift to Charity 205,655,957 205,481,887 216,644,278 235,814,755 241,623,893 242,546,965 248,516,819 254,532,847 263,036,627
Total $ 212,951,472 $ 212,784,123 $ 224,069,829 $ 239,404,845 $ 245,284,756 $ 246,230,092 $ 252,274,095 $ 258,365,706 $ 267,006,347
Assumptions
We assume that Anthony dies first, followed immediately by Dina.
Taxes under "Distribution of Second Estate" include estate and income taxes, if any.
Page 58

60. SUMMARY OF BENEFITS TO FAMILY - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Benefits to Family
Residual estate 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Family trust 4,650,000 4,650,000 4,650,000 650,000 650,000 650,000 650,000 650,000 650,000
Captive Insurance Company 42,650 42,650 86,153 130,526 175,787 221,952 269,041 317,072 467,006
529 Plan 130,000 135,536 142,313 149,429 156,900 164,745 172,983 181,632 210,261
529 Plan 130,000 135,536 142,313 149,429 156,900 164,745 172,983 181,632 210,261
529 Plan 130,000 135,536 142,313 149,429 156,900 164,745 172,983 181,632 210,261
Proceeds from ILIT 54,000,000 54,000,000 54,000,000 54,000,000 54,000,000 54,000,000 54,000,000 54,000,000 54,000,000
Total assets to heirs $ 64,082,650 $ 64,099,259 $ 64,163,093 $ 56,228,813 $ 56,296,487 $ 56,366,188 $ 56,437,989 $ 56,511,967 $ 56,747,790
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61. CAPTIVE INSURANCE COMPANY DETAILS - PROPOSED PLAN
Transferred
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Cash Flow Details
Anthony's share of Captive profits 270,000 270,000 270,000 270,000 270,000 270,000 270,000 270,000
Annual Profits distributed to ILIT (227,350) (227,350) (227,350) (227,350) (227,350) (227,350) (227,350) (227,350)
Excess Cash Flow in Captive 42,650 42,650 42,650 42,650 42,650 42,650 42,650 42,650
Cumulative Excess Cash Flow in Captive 42,650 86,153 130,526 175,787 221,952 269,041 317,072 467,006
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62. FAMILY LIMITED LIABILITY COMPANY DETAILS - PROPOSED PLAN
0%
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Balance Sheet
Family Limited Liability Company Assets
Cumulative Capital Contribution from DFT 20,000,000 30,000,000 40,000,000 45,000,000 45,000,000 50,000,000 55,000,000 60,000,000
Total 20,000,000 30,000,000 40,000,000 45,000,000 45,000,000 50,000,000 55,000,000 60,000,000
Annual Capital Contributions 20,000,000 10,000,000 10,000,000 5,000,000 - 5,000,000 5,000,000
Assets in Family Limited Liability Company $ 20,000,000 $ 30,000,000 $ 40,000,000 $ 45,000,000 $ 45,000,000 $ 50,000,000 $ 55,000,000 $ 60,000,000
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63. IRREVOCABLE LIFE INSURANCE TRUST DETAILS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Premiums for Existing ILIT 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Total outlay to ILITs 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
-
New Policy Premiums funded by profits from the transferred Captive Insurance Company interests
New Policy - Annual Premium 227,350 227,350 227,350 227,350 227,350 227,350 227,350 227,350
DB from Donfrio Accumulation Trust 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
Net death benefit from new ILIT 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Total potential death benefit $ 54,000,000 $ 54,000,000 $ 54,000,000 $ 54,000,000 $ 54,000,000 $ 54,000,000 $ 54,000,000 $ 54,000,000 $ 54,000,000
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64. BENEFITS TO DONFRIO FAMILY CHARITY - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2016 2017 2020
Charitable gift of IRA assets 141,000 149,395 159,853 171,042 183,015 195,826 209,534 224,202 274,657
Cumulative annual gifts to charity - 1,000,000 2,020,000 3,060,400 4,121,608 5,204,040 6,308,121 7,434,283 10,949,721
Outright Gift to Charity at 2nd death 205,655,957 205,481,887 216,644,278 235,814,755 241,623,893 242,546,965 248,516,819 254,532,847 263,036,627
Total benefits to foundation $ 205,796,957 $ 206,631,282 $ 218,824,131 $ 239,046,197 $ 245,928,516 $ 247,946,832 $ 255,034,475 $ 262,191,332 $ 274,261,005
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