This redacted advanced estate planning and tax planning design plan covers the facts and circumstances, the Family Wealth Goal Achiever Process, and the solutions used in the case. Learn more at www.inknowvision.com

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2. ESTATE AND FINANCIAL PLAN DESIGN
PREPARED FOR:
BEN AND AMANDA MORGAN
January 17, 2012
PRESENTED BY
Scott Hamilton
InKnowVision, LLC
715 Enterprise Dr.
Oak Brook, IL 60523
scott@ikvllc.com
Phone: (630) 596-5090
Copyright 2012 InKnowVision, LLC - Family Wealth Goal Achiever™

3. YOUR GOALS AND OBJECTIVES
BEN AND AMANDA MORGAN
Maintain our customary lifestyle. This should take about $641,000 annually after taxes and gifts.
Provide for the financial security of the surviving spouse.
Explore options for a business succession plan that maximizes the after-tax proceeds from the sale of the
business.
Create sufficient funds for retirement.
We wish to continue giving charitably during our lives and wish to create a significant charitable gift upon
death in order to leave a family legacy.
We would like to leave our children and grandchildren an inheritance in an amount that leaves them
comfortable, but not in a manner that they become non-productive members of society.
Reduce income taxes if possible.
Implement an asset protection structure that protects our assets and the assets our children & grandchildren
will inherit.
Eliminate or reduce estate taxes.
Assure we have sufficient liquid assets available at our deaths to avoid a forced liquidation of our business and
real estate assets.
Page 2

4. FAMILY INFORMATION
BEN AND AMANDA MORGAN
CLIENTS
Ben Morgan Date of Birth February 24, 1949
Amanda Morgan Date of Birth April 8, 1952
123 Main St.
CHILDREN
CHILD'S NAME DATE OF BIRTH
Rena Morgan November 9, 1976
Beth Morgan August 17, 1978
Ann Morgan February 6, 1981
Gloria Morgan March 21, 1984
GRANDCHILDREN
NAME DATE OF BIRTH
Tim Morgan April 4, 2010
Amy Morgan September 6, 2007
Susan Morgan March 5, 2011
Page 3

5. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - POTENTIAL
The highlighted tools are the POTENTIAL strategies that were discussed during our initial comprehensive diagnositc report that could be
utilized by your family in order to enhance your wealth transfer and management planning.
Charitable
Family Limited Grantor Retained Charitable Lead
Remainder Uni- 412(e) Private Annuity SCIN
Partnership Annuity Trust Annuity Trust
Trust
Qualified Personal Sale for Installment Limited Liability
Family LLC TCLAT Flip CRT Life Insurance
Residence Trust Note Companies
Preferred Limited Corporate
Premium Finance Family Charity Plan 529 Plans Gifting ILIT
partnership Recapitalization
Annuity
Walton GRAT Family Foundation Charitable Life Estate NIMCRUT Asset Protection SPIA/Life Arbitrage
Withdrawal
Principal Protected Wills, DPAs and International
SPIA/Life in a CLAT Crummey Powers Dynasty Trust GDOT
Notes POAs VUL
Employee Stock International
Supporting Qualified Plan to
Gift Annuity Ownership Plan Life Estates Business Risk LLC/CRTs
Organizations Charity
(ESOP) Management
Charitable
Updated Buy/Sell Defined Benefit Qualified Plan
Bargain Sales Risk Management Remainder Annuity Management LLC
Agreements Plans Limited Partnership
Trust
Green equals a Blue equals a social Yellow equals an
planning tool for capital or existing planning
family charitable tool tool

6. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
BEN AND AMANDA MORGAN
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
Partnership 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
Beneficiary
Preferred Limited Corporate
Premium Finance Defective Inheritor's 529 Plans Gifting ILIT
partnership Recapitalization
Trust (BDIT)
Annuity
Walton GRAT Family Foundation Charitable Life Estate NIMCRUT Asset Protection SPIA/Life Arbitrage
Withdrawal
Principal Protected Wills, DPAs and International
SPIA/Life in a CLAT Crummey Powers Dynasty Trust GDOT
Notes POAs VUL
Supporting Revocable Living Captive Insurance
IRA to Charity Gift Annuity Life Estates LLC/CRTs
Organizations Trusts Company
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 5

7. YOUR GOALS AND OBJECTIVES - ACCOMPLISHED
BEN AND AMANDA MORGAN
Cash Flow - The plan provides cash flow to maintain your lifestyle at $641,000 increasing annually at 3% after
taxes and gifts
Business Continuation - The plan lays a foundation for business succession, while leaving control with you.
Income tax deferral - Over the next 5 years income taxes could be reduced by as much as $2,600,000
Inheritance Planning - The proposed plan provides for an inheritance to your children and executive team of at
least 75% of your estate and manages your children's inheritance in a way that provides them with
opportunities, while limiting the dangers associated with receiving too much, too soon.
Charitable Giving - Your family foundation could expect future gifts of more than $35,000,000
Estate Tax Elimination - Under your current plan, assuming current law, your estate taxes would be in excess of
$392,696,058 at life expectancy. The plan eliminates those estate taxes entirely.
Liquidity - The continued investment of company profit back into the company creates a need for liquidity. The
plan helps this problem.
Page 6

8. PLAN ASSUMPTIONS
BEN AND AMANDA MORGAN
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 9%
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.
7520 Rates
Highest rate 3.0% March, 2011
Current rate 3.0% April, 2011
Lowest rate 2.8% January, 2011
Long Term AFR Rate 4.3% April, 2011
Annual increase in Ben's earned income 2%
Number of years Ben's income is expected to continue 4
Lifestyle Need Assumptions
Net annual outlay for Ben and Amanda's lifestyle needs, not including gifts or income taxes $641,000
Annual cost of living increase used in the plan 3%
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 7

9. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
BEN AND AMANDA MORGAN
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 8

10. CREATE AND FUND A FAMILY LIMITED PARTNERSHIP
BEN AND AMANDA MORGAN
Ben and Amanda create a limited partnership and a management LLC. They receive limited partnership
shares and LLC receives GP 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.
BEN & AMANDA FAMILY LIMITED PARTNERSHIP
LP & LLC interests are split between Ben &
Amanda
LLC GP SHARES LP SHARES
1% 99%
Planning Goals Accomplished:
- Sets up a vehicle for business transition, with the potential to pass management of these assets to professional trustees and have
the children benefit from their operation.
- Controls assets so inheritance provides opportunities while minimizing problems for children and grandchildren.
- Reduces estate taxes.
- Provides a vehicle to enhance asset protection.
- Helps to avoid liquidation of real estate and business assets at your death.
Financials found on pgs. 72, 73 Page 9

11. CREATE AND FUND A FAMILY LIMITED PARTNERSHIP
BEN AND AMANDA MORGAN
Ben and Amanda transfer $6,112,095 of assets to the limited partnership.
BEN & AMANDA FAMILY LIMITED PARTNERSHIP
$6,112,095
Detail of Assets Transferred
Morgan Enterprises, LLC
1 Main St. 500,000
Loan - Mortgage - 1 Main St. (172,928)
12 Main St. 5,000,000
Loan - Mortgage - 12 Main St. (3,850,000)
123 Main St. 825,000
54 Main St. LLC 12,500
55 Main St. Office Building 2,650,000
Loan - Mortgage - 55 Main St. (2,576,000)
Open Land, LLC 1,000,000
Loan - Mortgage - Open Land, LLC (339,627)
Community, LLC 60,000
Cash 138,150
Technology, LLC (100%) 1,000,000
Note from ABC Corp - 8.59% 1,865,000
Total Assets Contributed 6,112,095
NOTE: Transfer of assets may require approval of your lender.
Financials found on pgs. 72, 73 Page 10

12. HAVE THE LIMITED PARTNERSHIP SHARES APPRAISED
BEN AND AMANDA MORGAN
Ben and Amanda hire an appraiser to value the limited partnership shares that they own. The appraiser will value the shares taking
all of the following into account:
▪ Liquidity of the shares
▪ Transferability of the shares
▪ Degree of control that accompanies ownership of the shares
▪ The assets owned by the partnership
BEN & AMANDA Appraisal FAMILY LIMITED PARTNERSHIP
Valuation adjustment
Appraised value of LP shares is $3,972,862 assumed to be 35% Inside value of assets is $6,112,095
The appraisal value of the LP units is assumed for illustration purposes only.
Note: Business appraisal is not an exact science. The IRS does not like valuation adjustments.
A well regarded appraiser should be retained to value the interests being sold.
Page 11

13. BUSINESS PURPOSE
BEN AND AMANDA MORGAN
The Family entity must have a legitimate business purpose for being organized and these purposes should be well documented. Legitimate business purposes examples are as
follows:
a. To Make a Profit – The primary reason for creating this Entity is to make a profit.
b. To Increase Wealth – This Entity will provide an effective legal vehicle to increase the wealth of the Members and their families.
c. To Provide Centralized Management of Investments – This Entity is designed to hold investment assets and allow for centralized management of those assets.
d. To Manage and Develop Real Estate – This Entity will provide the legal vehicle to effectively manage and/or develop any real estate owned or acquired by the Company.
e. To Avoid Two Layers of Taxation on Profits – This Entity provides flexibility in business planning not available to the Members through trusts, corporations, or other business
entities.
f. To Make Gifts Without Fractionalizing Assets – This Entity establishes a method by which annual gifts may be made without fractionalizing family assets.
g. To Make Gifts Without Causing a Loss of Incentive – This Entity provides a method of ownership which allows gifts to be made to children and other beneficiaries without
causing a loss of productivity or the incentive to strive to do well.
h. To Control Cash Flow to Members – This Entity provides a structure by which the Manager can control the assets and the cash flow to Members to achieve the legitimate
purposes of the Company.
i. To Provide a Buy-Sell Arrangement – This Entity provides an orderly buy-sell arrangement between the members of the families that own membership interests to keep the
ownership of Company assets in those families.
j. To Resolve Disputes Privately – This Entity provides for mediation and binding arbitration in disputes by Members that is intended to prevent expensive and embarrassing public
litigation of private family business matters.
k. To Require the Losers of Disputes to Pay the Dispute Costs – This Entity requires the loser in any dispute to pay for the costs of the dispute.
l. To Restrict the Right of Non-Members to Acquire Interests – This Entity restricts the right of non-Members to acquire interests in Company assets.
m. To Prevent Transfers of Membership Interests Because of Failed Marriages – This Entity prevents the transfer of a family member’s interest in the Company because of a failed
marriage.
n. To Prevent Commingling of the Assets of Gift Recipients – This Entity creates a method of ownership that will prevent gifts made to family members from being commingled
with assets owned by others.
o. To Make it Difficult to Withdraw – The restrictions in this Operating Agreement make it difficult for any of the parties to withdraw from the Company once they become a
Member.
p. To Protect Members from the Company’s Creditor Claims – This Entity limits the liability of Members from the Company’s creditors and further limits the liability of Members
holding particular Series of the Company from liability associated with other Series of the Company.
q. To Provide Asset Protection for Members – This Entity protects the family resource base from the claims of future creditors of Members.
The entity may conduct any lawful business and investment activity permitted under the laws of the State and/or country of organization in which it may have a business or
investment interest.
The entity may own, acquire, manage, develop, operate, sell, exchange, finance, refinance, lease and otherwise deal with real estate, personal property and any type of business as
the Manager may from time to time deem to be in the best interest of the entity.
The entity may engage in any other activities that are related or incidental to the foregoing purposes.
Page 12

14. CORPORATE RE-CAPITALIZATION OF BEN, INC
BEN AND AMANDA MORGAN
Ben and Amanda recapitalize the existing corporate shares of Ben, Inc into voting and non-voting shares.
BEN AND AMANDA MORGAN BEN, INC
VOTING NON-VOTING
1% 99%
Business To Be Recapitalized
Ben, Inc (50% S Corp)
Sub-Division Assets 7,000,000
Loan - Mortgage - Sub-division (859,885)
55 Land St., LLC 900,000
55 Land St., LLC (775,434)
Total 6,264,681
NOTE: Transfer of assets with liabilities may require lender approval.
Planning Goals Accomplished:
- Sets up a vehicle for business transition, with the potential to pass management of these assets to professional trustees and have the
children benefit from their operation.
- Controls assets so inheritance provides opportunities while minimizing problems for children and grandchildren.
- Reduces estate taxes.
- Provides a vehicle to enhance asset protection.
- Helps to avoid liquidation of real estate and business assets at your death.
Financials found on pg. 74 Page 13

15. HAVE THE NON-VOTING SHARES APPRAISED
BEN AND AMANDA MORGAN
Ben and Amanda hire an appraiser to value the non-voting shares. The appraiser will value the shares taking all of the following into
account:
▪ Liquidity of the shares
▪ Transferability of the shares
▪ Degree of control that accompanies ownership of the shares
▪ The assets owned by the corporation
BEN AND AMANDA MORGAN Appraisal BEN, INC
Adjusted value of non-voting shares is Valuation adjustment
assumed to be 35% Inside value of assets is $6,264,681
$4,072,043
The assumed value of the non-voting stock is for illustration purposes only.
Note: Business appraisal is not an exact science. The IRS does not like valuation adjustments.
A well regarded appraiser should be retained to value the interests being sold.
Page 14

16. CREATE GRANTOR DEEMED OWNER TRUSTS
BEN AND AMANDA MORGAN
Ben and Amanda create individual grantor deemed owner trusts (GDOT).
The GDOTs can be drafted to provide asset protection and long term estate tax savings through the use of dynasty trust provisions.
BEN BEN's GDOT
AMANDA AMANDA's GDOT
HEIRS
Planning Goals Accomplished:
- Controls assets so inheritance provides opportunities while minimizing problems for children, grandchildren and future generations.
- Reduces estate taxes on appreciating assets
- Provides enhanced asset protection
- Helps to avoid forced liquidation of real estate and business assets
- Flexibility of the trusts allows for transfer of ABC Corp interests to key executives when the appropriate time is determined
- Heirs can have access to income generated from assets in the trust, while not being burdened with asset management decisions Page 15

17. GIFT TO GRANTOR DEEMED OWNER TRUST
BEN AND AMANDA MORGAN
Ben and Amanda each make a gift of $1,163,750 to their individual GDOT. This gift is designed to give each trust economic substance.
BEN BEN's GDOT
$1,163,750
AMANDA $1,163,750 AMANDA's GDOT
Illustration assumes that initial gifts to the GDOTs would represent 7% of your interests in ABC Corp.
Page 16

18. SELL PARTNERSHIP AND CORPORATE SHARES TO EACH GDOT
BEN AND AMANDA MORGAN
Ben and Amanda sell their family family limited partnership shares, non-voting shares of Ben, Inc and 43% of their shares of ABC
Corp to their individual GDOTs for an installment note.
Sell their combined family limited
partnership shares, non-voting
shares of Ben, Inc and 43% of
their shares of ABC Corp worth
BEN & AMANDA $22,342,404 GDOTs
Ben and Amanda own an installment note The GDOTs own LP shares worth $3,972,862,
after the sale Receive an installment note non-voting shares of Ben, Inc worth
worth $22,342,404 that $4,072,043 and shares in ABC Corp worth
provides annual interest $16,625,000 after the sale
payments of $949,552
The sale price is based on the assumed value of the assets
sold.
* The interest rate used in calculating note payments is the long term HEIRS
AFR for April 2011 of 4.25%. Note payments also consist of annual
principal payments which continue until the note is paid off in 2027. Receive assets in the future according to
We make the assumption that in 2019, grantor status is revoked. terms of the trust
Since it is no longer a grantor trust, the trust will be responsible for
paying it's own income tax at that point.
Further detailed information regarding Sales to Grantor Deemed Owner Trusts can be found behind the
appendix of this plan.
Financials found on pg. 75 Page 17

19. ACHIEVING INHERITANCE GOALS AND LIQUIDITY NEEDS
BEN AND AMANDA MORGAN
The GDOT Trustees purchase second-to-die life insurance with the assets of the two GDOTs. This policy will have minimum
premium payments to keep the policy in place for 15 years. At the end of 15 years, the policy is assumed to be surrendered, and the
total premiums paid over 15 years would be refunded. This policy will have the effect of maintaining your goal of passing 75% of
your estate as it's currently valued over the next 15 years to your children and executive team.
GDOTs LIFE INSURANCE
Own Life Insurance $30,000,000
Premium Payment Details
Premiums in the amount of $246,000 are paid for the first 5 years. Beginning in
year 6, premiums in the amount of $63,000 are paid for 10 years. At the end of
year 15, if the policy is surrended, all premium payments totaling $1,860,000
would be refunded.
The premium is based on certain assumptions. This is for illustration purposes only. Actual insurance numbers can only be
determined by applying for insurance.
Financials found on pg. 27, 75 Page 18

20. CREATE A CAPTIVE INSURANCE COMPANY
BEN AND AMANDA MORGAN
GDOT Trustees create a captive insurance company.
The captive is formed to insure currently insured and uninsured risks of ABC CORP.
ABC CORP Premium CAPTIVE INSURANCE COMPANY
Risk Coverage
GDOTs
The captive could be a pure captive and owned by a trust for your
benefit or for the benefit of your heirs (or both). The decision as to
which direction to follow can be made during the feasibility phase. Asset protected and tax favorable trusts could
Prior to forming a captive insurance company, there must be a own the non-voting shares of the captive and
feasibility study to determine insurable risks. receive underwriting profits
Planning Goals Accomplished:
- Asset protection
- Creates a pool of liquidity in trust
- Effective tool for passing a tax advantaged inheritance
- Creates income tax deferral for the company
Financials found on pgs. 70, 71 Page 19

21. COMPANY INSURES RISKS
BEN AND AMANDA MORGAN
The Captive Insurance Company insures various risks of loss.
Pay maximum annual premiums
of $1,200,000 to cover risk of
loss. Premiums for insurance are
deductible if they're ordinary
ABC CORP CAPTIVE INSURANCE COMPANY
and necessary business expenses
Risk Coverage
UNDERWRITING PROFITS
Net premium of up to $1.2M is excludable from captive company
income if proper tax election is made.
Underwriting profits of the captive will
ultimately be distributed out to the owner of
the captive
Further detailed information regarding Captive Insurance Companies can be found behind the
appendix of this plan.
Page 20

22. POTENTIAL INSURABLE RISKS
BEN AND AMANDA MORGAN
The Captive Insurance Company must have legitimate business risks to insure and should be well documented.
Examples of legitimate insurable risks are as follows:
a. Employee Benefits
b. Legal expense reimbursement (plaintiff and defense)
c. Loss of key client/account
d. Administrative action
e. Business interruption
f. Intellectual property
g. Political risk
h. Patent infringement
i. Employment practices
j. Reputation
k. Supply chain risks
l. Service obligations
m. Long term liabilities
Page 21

23. LEAVE YOUR IRA TO CHARITY
BEN AND AMANDA MORGAN
At the 2nd death, leave your IRA and qualified plans to charity.
IRA $297,222
MORGAN FAMILY FOUNDATION
Advantages
No estate tax
No income in respect of a decedent tax
If you are interested in leaving money to charity, IRA's and Qualified Plans are the
best choice due to the heavy taxes on them when left to heirs
Page 22

24. TESTAM TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part I)
BEN AND AMANDA MORGAN
Include language in your trust or will that creates a testamentary charitable lead trust (TCLAT) at the second death.
Alternatively, you could make an outright bequest of your taxable estate to charity.
BEN & AMANDA TCLAT
At death $34,704,265 of the assets taxable
TCLAT owns assets with a value of
in your estate will pass to the TCLAT. This
$34,704,265 after your death.
should bring your estate tax to $0.
MORGAN FAMILY FOUNDATION
TCLAT Assumptions The charity will receive payments of
Asset growth rate 5.00% $1,948,846 each year for a period of 25 years
TCLAT payout rate 5.62% totaling $48,721,143.
Present value discount rate 5.00%
Assumed date of death 2012
Financials found on pg. 77 Page 23

25. TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part II)
BEN AND AMANDA MORGAN
At the end of the TCLAT term, your heirs will receive all of the assets remaining in the trust.
TCLAT HEIRS
Based on the plan assumptions, your heirs
could expect to inherit $7,237,342 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%.
Note: The amount passing to beneficiaries is entirely dependent on the rate of return of the assets in the trust. A
higher rate of return means more passing to heirs and a lower rate of return could mean that nothing passes to
heirs.
Financials found on pg. 77 Page 24

26. ESTATE PLAN OVERVIEW AND ESTATE DISTRIBUTION - 2012
BEN AND AMANDA MORGAN
Gift IRA to Charity at the 2nd death Gifts to existing ILIT
NET WORTH
Corporate Transfer Property
IRA TO CHARITY BEN, INC shares 42,477,862 FLP ILIT
Ownership Units
297,222 6,264,681 6,112,095 1,500,000
Receive voting and non- Sell FLP units, non-voting shares
voting shares back of Ben, Inc and shares of ABC GDOT purchases life insurance
Corp to GDOT
GDOT
Installment Note Owns FLP units and
corporate shares LIFE INSURANCE
Seed Gift
30,000,000
First Death
ADMIN
Amanda also owns
FAMILY TRUST / AMANDA MARITAL TRUST / AMANDA AMANDA
a note from her
3,836,250 179,253 GDOT worth
24,984,765 1,050,390
$11,171,202
Second Death
ADMIN
TCLAT HEIRS
34,704,265 417,553
56,480,890
Heirs From
TCLAT
Residual estate $3,836,250
Family trust $3,836,250
FAMILY CHARITY Excess FLP value $2,235,389
Excess S Corp value $2,255,493
35,001,488 Value of GDOT $4,180,167
Life insurance proceeds GDOT $30,000,000
Captive Insurance Company in Trust $1,400,000
Proceeds from ILIT $1,500,000
Potential Future Inheritances: Page25
NPV of TCLAT benefits to children $7,237,342

27. BEN AND AMANDA MORGAN
MEETING INHERITANCE
OBJECTIVES
Page 26

28. MEETING YOUR INHERITANCE GOALS
BEN AND AMANDA MORGAN
$300,000,000
$250,000,000
$200,000,000
$150,000,000
-
$100,000,000
$50,000,000
$-
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Inheritance Goal - 75% of Estate Proposed Plan Proposed Plan - No Insurance
This chart shows how the recommended strategies coupled with carefully managed amounts of life insurance will help you to meet your inheritance
goals.
Page 27

29. MEETING YOUR INHERITANCE AND CHARITABLE OBJECTIVES
BEN AND AMANDA MORGAN
Your Current Plan
GROSS ESTATE TODAY
$52,363,741
Existing plan distribution of estate to
charity, heirs and taxes.
MORGAN FAMILY
HEIRS TAXES
FOUNDATION
Children receive $39,043,892
$0 outright. No provision is made for $14,831,327
your senior execs.
EXECUTIVE TEAM
Inherit $0 under the existing plan.
Page 28

30. MEETING YOUR INHERITANCE AND CHARITABLE OBJECTIVES
BEN AND AMANDA MORGAN
Distribution Under the Proposed Plan
GROSS ESTATE TODAY
$52,363,741
Proposed plan distribution of estate to charity,
heirs, execs and taxes.
MORGAN FAMILY
HEIRS/EXECUTIVE TEAM TAXES
FOUNDATION
Executive team and children receive
$35,001,488 $49,243,549, which is approx. 94% $0,000
of today's gross estate
EXECUTIVE TEAM DYNASTY TRUST/FAMILY BANK
Inherits $16,414,516 under the proposed Inherits $32,829,032 under the proposed
plan, which is approx. 31% of today's gross plan, which is approx. 63% of today's gross
estate estate
Page 29

31. DYNASTY TRUST/FAMILY BANK TO HOLD INHERITANCES
BEN AND AMANDA MORGAN
The GDOTs should be set-up as Dynasty Trusts. These trusts would hold the inheritances for children, grandchildren and future
generations in asset protected and tax advantaged trusts, while protecting heirs from frivolous spending. Heirs would receive annual
income from the trust. The example on this page assumes annual distributions of 3% of the total. This payout could be higher or
lower. In addition, payments of principal could be made for health, education, maintenance, support or other items you feel would
be appropriate to allow.
DYNASTY TRUST/FAMILY BANK FOR CHILDREN
$32,829,032
Trust distributes 3% of
trust principal
annually
RENA BETH ANN GLORIA
$250,000 $250,000 $250,000 $250,000
Page 30

32. BEN AND AMANDA MORGAN
LIFETIME SPENDING
AND LIQUIDITY
Page 31

33. YOUR LIQUID ASSETS - CURRENT PLAN VS. PROPOSED PLAN
BEN AND AMANDA MORGAN
$1,000,000
$900,000
$800,000
$700,000
$600,000
$500,000 -
$400,000
$300,000
$200,000
$100,000
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Liquid Assets Proposed Liquid Assets Current
While your stated liquidity goal is at least $1,000,000 of cash/securities, your current business strategy of putting all of your excess cash flow back into
the business does not allow for a build up of liquid assets. We have illustrated your proposed and current liquid assets over time. You could increase
these by decreasing your reinvestments back into the company.
Page 32

34. SPENDING VS. INCOME - PROPOSED PLAN
BEN AND AMANDA MORGAN
$30,000,000
$25,000,000
$20,000,000
GDOT
promissory note
$15,000,000 ends -
$10,000,000
$5,000,000
GDOT ceases to be a grantor
trust and takes over income
tax obligations
$-
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Annual Cash Flow Income Total Living Expenses
This chart compares cash flow income to cash flow expense under the proposed plan year by year to life expectancy.
Page 33

35. BEN AND AMANDA MORGAN
INCOME TAX PLANNING
Page 34

36. COMPARISON OF INCOME TAX RESULTS - PLAN YEAR 2012
BEN AND AMANDA MORGAN
Existing Plan Proposed Plan Income Tax Deferred
2012 Estimated Income Tax $ 2,700,000 $ 2,200,000 $ 500,000
2013 Estimated Income Tax $ 5,100,000 $ 4,500,000 $ 600,000
2014 Estimated Income Tax $ 7,800,000 $ 7,300,000 $ 500,000
2015 Estimated Income Tax $ 11,100,000 $ 10,600,000 $ 500,000
2016 Estimated Income Tax $ 15,500,000 $ 15,000,000 $ 500,000
5 Year Estimated Income Tax Deferred $ 2,600,000
Page 35

37. BEN AND AMANDA MORGAN
INCREASE INHERITANCE
AND REDUCE ESTATE TAX
Page 36

38. COMPARISON OF PLAN RESULTS - PLAN YEAR 2012
BEN AND AMANDA MORGAN
Existing Plan Proposed Plan Advantage
Estate Value $ 52,363,741 $ 42,477,862
Heirs/Execs Receive Immediately $ 39,043,892 $ 49,243,549 $ 10,199,656
Heirs Receive from Deferred Inheritance $ - $ 7,237,342 $ 7,237,342
Total Benefits to Family & Executives $ 39,043,892 $ 56,480,890 $ 17,436,998
Family Charity $ - $ 35,001,488 $ 35,001,488
Estate and Income Tax $ 14,831,327 $ - $ 14,831,327
This chart assumes that you both die this year and compares the results of the current plan with the proposed plan.
Deferred Inheritance is a general approximation based on the long term performance of the TCLAT.
Page 37

39. COMPARISON OF PLAN RESULTS - PLAN YEAR 2038
BEN AND AMANDA MORGAN
Existing Plan Proposed Plan Advantage
Estate Value $ 725,547,201 $ 312,684,622
Heirs/Execs Receive Immediately $ 324,425,502 $ 475,598,938 $ 151,173,436
Heirs Receive from Deferred Inheritance $ - $ 64,351,036 $ 64,351,036
Total Benefits to Family & Executives $ 324,425,502 $ 539,949,975 $ 215,524,472
Family Charity $ - $ 309,193,873 $ 309,193,873
Estate and Income Tax $ 392,696,058 $ - $ 392,696,058
Present Value of total to Heirs & Executives $91,241,667 $151,855,928
Discount rate for PV calculation 5.00%
This chart assumes that you both die at life expectancy and compares the results of the current plan with the proposed plan.
Deferred Inheritance is a general approximation based on the long term performance of the TCLAT.
Page 38

40. ASSETS PASSING TO YOUR FAMILY & EXECUTIVES- CURRENT VS. PROPOSED
BEN AND AMANDA MORGAN
$500,000,000
$450,000,000
$400,000,000
$350,000,000
$300,000,000
$250,000,000
-
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$-
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Current Plan Proposed Plan
This chart compares the amount of your assets that will pass to heirs and execs after estate taxes and costs of implementation in the current plan as
against the proposed plan. There may be additional funds available to heirs. We have not included them here because of the speculative nature of the
inheritance from a TCLAT remainder.
Page 39

41. BEN AND AMANDA MORGAN
INCREASE IN
CHARITABLE GIVING
Page 40

42. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2012
BEN AND AMANDA MORGAN
Existing Plan Proposed Plan Increase in Charity
Charity Receives from TCLAT $ - $ 34,700,000 $ 34,700,000
Charitable gift of IRA assets $ - $ 300,000 $ 300,000
Family Charity $ - $ 35,000,000 $ 35,000,000
Note: An outright bequest to charity would yield a gift of $34,700,000, but your foundation would receive the money all at once.
Page 41

43. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2038
BEN AND AMANDA MORGAN
Existing Plan Proposed Plan Increase in Charity
Charity Receives from TCLAT $ - $ 308,600,000 $ 308,600,000
Charitable gift of IRA assets $ - $ 600,000 $ 600,000
Family Charity $ - $ 309,200,000 $ 309,200,000
Present Value of total to Charity $0 $86,959,635
Discount rate for PV calculation 5.00%
Note: An outright bequest to charity would yield a gift of $308,600,000, but your foundation would receive the money all at once.
Page 42

44. COST BENEFIT ANALYSIS
BEN AND AMANDA MORGAN
All strategies have an element of risk; a chance that the program adopted does not work as planned. Estate planning strategies carry an element of
risk as well. Many advisors warn their clients of risk but do not make an effort to quantify those risks. We have taken the position in our planning
that if a risk is quantifiable, it should be identified as such and the cost of the risk should be disclosed to our client. When the risk is not
quantifiable, this should also be disclosed.
Any risk analysis begins with two questions:
What is the reward to be gained by taking the risk?
What is the cost of the potential loss if the plan fails totally?
If you are satisfied that the reward is worth the risk and that the risk of loss is acceptable, it would then make sense to pursue the strategy. If
the risk is such that you could not comfortably accept the loss, then the risk should not be taken.
Is the reward worth the risk?
The reward of the proposed plan results in an advantage to your heirs today of $17,436,998 over your existing plan.
The reward of the proposed plan results in an advantage to your heirs at life expectancy of $215,524,472 over your existing plan.
What if the Plan fails totally?
There are 4 basic areas of potential risk involved in this comprehensive plan. We assume total failure of all planning techniques in order to
provide a worst case analysis.
Transaction costs
Planning Fees -
Attorneys Fees -
Valuation Fees -
Total $ -
Annual Maintenance Fee $ -
Taxes
This represents the taxes that will have to be paid if the plan fails entirely. Note that this is the same amount that would be paid without the
planning.
Total additional tax over current plan = $0
Page 43

45. COST BENEFIT ANALYSIS (Continued)
BEN AND AMANDA MORGAN
Interest (cost of money)
Interest is charged on late tax payments by the IRS at the rate of the applicable federal rate plus 3%. You must invest at a rate less than this rate
to lose money. Assuming that assets earn in excess of that rate, there should be no risk of loss due to cost of money.
Nonetheless, we assume that assets actually earn 2% less than the IRS interest rates, and the risk of loss would be $262,551.
Penalties
Assuming the plan is implemented with the help of knowledgeable advisors, the only potential penalty is for substantial undervaluation. The
penalty comes into play in the case of a challenge to asset valuation. If the value reported for a transaction is less than 65% of the value as
finally determined for tax purposes (by the IRS or the courts) then there is a 25% substantial undervaluation penalty.
The valuation adjustment assumed in this plan is 35.00%. Therefore, an adjustment should not result in a substantial valuation
penalty.
Risk Analysis
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$-
Benefit to Heirs 2012 Benefit to Heirs 2038 Potential Loss (Total Failure)
Page 44

46. DETAILED FINANCIAL ANALYSIS
BEN AND AMANDA MORGAN
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 45

47. DETAILED FINANCIAL ANALYSIS
BEN AND AMANDA MORGAN
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 46

48. CURRENT NET WORTH STATEMENT
BEN AND AMANDA MORGAN
BEN AMANDA JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Cash - - 29,579 29,579 0.0% 0.0%
Savings 9,877 - - 9,877 0.0% 0.0%
MM 30,362 - - 30,362 0.0% 0.0%
Cash Value of Life Insurance 7,068 - 7,068 0.0% 0.0%
Total of Cash and Equivalents 47,307 - 29,579 76,886 0.0% 0.0%
MARKETABLE SECURITIES - EQUITIES
Securities Account - - 15,976 15,976 2.0% 5.0%
Total of Equities - - 15,976 15,976 2.0% 5.0%
Page 47

49. CURRENT NET WORTH STATEMENT (Page 2)
BEN AND AMANDA MORGAN
93,250 373,881 8,694,904 13,376,776
BEN AMANDA JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
Morgan Enterprises, LLC - - - - 0.0% 3.0%
1 Main St. 250,000 250,000 - 500,000 0.0% 3.0%
Loan - Mortgage - 1 Main St. (86,464) (86,464) - (172,928) 0.0% 3.0%
12 Main St. 2,500,000 2,500,000 - 5,000,000 0.0% 3.0%
Loan - Mortgage - 12 Main St. (1,925,000) (1,925,000) - (3,850,000) 0.0% 3.0%
123 Main St. 412,500 412,500 - 825,000 0.0% 3.0%
54 Main St. LLC 6,250 6,250 - 12,500 0.0% 3.0%
55 Main St. Office Building 1,325,000 1,325,000 - 2,650,000 0.0% 3.0%
Loan - Mortgage - 55 Main St. (1,288,000) (1,288,000) - (2,576,000) 0.0% 3.0%
Open Land, LLC 500,000 500,000 - 1,000,000 0.0% 3.0%
Loan - Mortgage - Open Land, LLC (174,786) (164,841) - (339,627) 0.0% 3.0%
Community, LLC 30,000 30,000 - 60,000 0.0% 3.0%
Cash 69,075 69,075 - 138,150 0.0% 3.0%
Technology, LLC (100%) 1,000,000 - - 1,000,000 0.0% 3.0%
Note from ABC Corp - 8.59% 1,865,000 - - 1,865,000 0.0% 8.6%
Sub-Division, LLC (100%) 1 - - 1 0.0% 3.0%
Total of Other Investments 4,483,576 1,628,520 - 6,112,096 0.0% 4.7%
3,247,095 (8,228,018)
CLOSELY HELD BUSINESS 6,264,681 (6,592,699)
Ben, Inc (50% S Corp) - - - - 0.0% 3.0%
Sub-Division Assets 7,000,000 - - 7,000,000 0.0% 3.0%
Loan - Mortgage - Sub-division (859,885) - - (859,885) 0.0% 3.0%
55 Land St., LLC 900,000 - - 900,000 0.0% 3.0%
55 Land St., LLC (775,434) - - (775,434) 0.0% 3.0%
ABC Corp, Inc (95% S Corp) 33,250,000 - - 33,250,000 19.4% 3.0%
Total Closely Held Business 39,514,681 - - 39,514,681 16.3% 3.0%
Page 48

50. CURRENT NET WORTH STATEMENT (Page 3)
BEN AND AMANDA MORGAN
BEN AMANDA JOINT TOTAL YIELD GROWTH
RETIREMENT PLANS/IRAs
ABC Corp 401(k) 278,603 - 278,603 0.0% 7.0%
Total Retirement Plans 278,603 - 278,603 0.0% 7.0%
RESIDENTIAL REAL ESTATE
123 Main St. - - 1,200,000 1,200,000 0.0% 3.0%
Total of Personal Residences - - 1,200,000 1,200,000 0.0% 3.0%
PERSONAL PROPERTY
Autos - 25,000 - 25,000 0.0% 0.0%
Personal Property - - 200,000 200,000 0.0% 0.0%
Total of Personal Property - 25,000 200,000 225,000 0.0% 0.0%
TOTAL ASSETS 44,324,167 1,653,520 1,445,555 47,423,242
TOTAL LIABILITIES - - - -
NET WORTH 44,324,167 1,653,520 1,445,555 47,423,242
Page 49

51. SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN
BEN AND AMANDA MORGAN
COMPANY INSURED POLICY # BENEFICIARY PREMIUM CASH VALUE DEATH BENEFIT
Policies owned by Ben
UL Contract Ben # Amanda 7,398 7,068 800,000
Totals 7,398 7,068 800,000
Other Policies
ABC Corp Ben # Amanda - - 150,000
Totals - - 150,000
Policies owned by ILIT
Whole Contract 2nd to Die # ILIT 15,692 316,275 1,500,000
Totals 15,692 316,275 1,500,000
Page 50

52. FINANCIAL ANALYSIS - EXISTING PLAN ASSET VALUE PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2018 2019 2028 2038
Asset Values
Cash and cash equivalents 76,886 76,886 76,886 76,886 76,886 76,886 76,886 76,886 76,886
Marketable securities - Equities 15,976 16,739 17,576 18,455 19,377 22,432 23,553 36,539 59,518
Other investments 6,112,096 6,386,825 6,687,370 7,002,057 7,331,552 8,416,020 8,812,052 13,329,372 21,111,183
Closely held business 6,264,681 6,444,266 6,637,594 6,836,722 7,041,823 7,694,791 7,925,634 10,341,155 13,897,648
ABC Corp 33,250,000 37,682,403 44,054,582 53,775,403 67,635,023 127,350,089 148,412,985 367,617,412 686,894,999
Retirement plans/IRAs 278,603 297,222 318,028 340,290 364,110 446,051 477,274 601,175 619,873
Personal residences 1,200,000 1,234,400 1,271,432 1,309,574 1,348,862 1,473,938 1,518,156 1,980,849 2,662,095
Personal property 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000
Total assets in estate 47,423,242 52,363,741 59,288,467 69,584,387 84,042,633 145,705,206 167,471,541 394,208,387 725,547,201
Combined net worth $ 47,423,242 $ 52,363,741 $ 59,288,467 $ 69,584,387 $ 84,042,633 $ 145,705,206 $ 167,471,541 $ 394,208,387 $ 725,547,201
In the event that there is a cash flow surplus, the surplus is added to the ABC Corp row by default.
Page 51

53. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2018 2019 2028 2038
Sources of taxable income
Marketable securities - Equities 320 335 352 369 427 449 696 1,134
ABC Corp 6,435,676 10,580,435 16,477,791 23,658,328 33,738,429 33,738,429 33,738,429 33,738,429
Retirement plans/IRAs - - - - - - 30,263 52,354
Client earned income 582,832 582,832 594,489 606,378 618,506 - - - -
Gross income $ 7,018,828 $ 11,175,258 $ 17,084,521 $ 24,277,203 $ 33,738,856 $ 33,738,878 $ 33,769,388 $ 33,791,917
Page 52