Bueller Family Wealth Goal Achiever - InKnowVision Advanced Estate Planning

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FAMILY WEALTH GOAL ACHIEVER™ - INITIAL

PREPARED FOR:

FERRIS AND BEATRICE BUELLER

February 24, 2011

PRESENTED BY

InKnowVision, LLC
715 Enterprise Drive
Oak Brook, IL 60523
Scott@ikvllc.com
Phone: 630-596-5090

Copyright 2011 InKnowVision, LLC

YOUR GOALS AND OBJECTIVES

Maintain our customary lifestyle. This should take about $600,000 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.

Maximize the inheritance that we leave for our children and grandchildren.

Reduce or eliminate our liability from Mid-Level Care.

Provide a succession plan that will allow for a smooth transition to bring our daughters into Mid-Level Care.

Provide a succession plan that will allow for a smooth transition to bring our daughters into Pizza Distributors.

Provide a strategic methodology for current and future charitable giving.

Reduce income taxes.

Eliminate or reduce estate taxes.

Page 2

FAMILY INFORMATION

CLIENTS
Ferris Bueller Date of Birth August 5, 1951
Beatrice Bueller Date of Birth February 6, 1953
123 Main

CHILDREN

CHILD'S NAME DATE OF BIRTH SPOUSE'S NAME

Jenny Bueller - Jones May 18, 1983 Davey Jones
Megan Bueller April 27, 1986

Page 3

PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - CONSIDERED

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(i) Private Annuity SCIN
Partnership Annuity Trust Annuity Trust
Trust

Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Loan to GDOT Flip CRT
Note Liability Company Insurance

Preferred Limited GDOT Distributions Corporate
Premium Finance 529 Plans Gifting ILIT
partnership for ILIT Premiums Recapitalization

Charitable Life
Walton GRAT Private Foundations NIMCRUT Annuity Withdrawal Asset Protection SPIA/Life Arbitrage
Estate

Revocable Living
SPIA/Life in a Principal Protected International
Trusts, DPAs and Crummey Powers Dynasty Trust GDOT
CLAT Notes VUL
POAs

Supporting IRA/Annuity to Business Risk
Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations Charity Management

Charitable
Defined Benefit Qualified Plan
Bargain Sales Succession Planning Risk Management Remainder Annuity ESOP Planning
Plans Limited Partnership
Trust

Page 4

PLAN ASSUMPTIONS

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 6%
State Inheritance - Estate Tax No state estate tax

7520 Rates
Highest rate 2.8% February, 2011
Current rate 2.8% February, 2011
Lowest rate 1.8% December, 2010
Long Term AFR Rate 4.2% February, 2011
Annual increase in Ferris's earned income 2%
Number of years Ferris's income is expected to continue 10
Annual increase in Beatrice's earned income 0%
Number of years Beatrice's income is expected to continue 10

Lifestyle Need Assumptions
Net annual outlay for Ferris and Beatrice's lifestyle needs, not including gifts or income taxes $600,000
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

COMPARISON OF PLAN RESULTS - PLAN YEAR 2011

Existing Plan Proposed Plan Advantage

Estate Value $ 51,886,036 $ 36,223,066

Heirs Receive Immediately $ 44,693,185 $ 60,746,885 $ 16,053,699

Heirs Receive from Deferred Inheritance $ - $ 32,375,661 $ 32,375,661

Total Benefits to Family $ 44,693,185 $ 93,122,546 $ 48,429,361

Family Charity $ - $ 27,739,960 $ 27,739,960

Estate and Income Tax $ 14,522,481 $ - $ 14,522,481

This chart assumes that you both die in 2011 and compares the results of the current plan with the proposed plan.

Page 6

PROPOSED PLAN RESULTS - PLAN YEAR 2011

ESTATE OF FERRIS AND Date: December 31, 2011
BEATRICE BUELLER 1st National Bank
● Goal - Maximize
Inheritance
Pay to the Our Heirs $93,122,546
order of
Ninety Three Million One Hundred Twenty Two Thousand Five Hundred Forty Six Dollars and No Cents Dollars

Memo Inheritance

ESTATE OF FERRIS AND December 31, 2011
Date:
Goal - Reduce
Estate Taxes
Pay to the
order of
Internal Revenue Service $0,000

No Dollars and No Cents Dollars

Memo Estate and Income Taxes

ESTATE OF FERRIS AND December 31, 2011
Date:
Goal - Gift to Pay to the Charity $27,739,960
order of
Charity
Twenty Seven Million Seven Hundred Thirty Nine Thousand Nine Hundred Sixty Dollars and No Cents Dollars

Memo Family Charities

Page 7

PROPOSED PLAN RESULTS - PLAN YEAR 2039

● Goal - Maximize Pay to the Our Heirs $252,700,834
Inheritance order of
Two Hundred Fifty Two Million Seven Hundred Thousand Eight Hundred Thirty Four Dollars and No Cents Dollars

Memo Inheritance

Goal - Reduce
Estate Taxes
Pay to the
order of
Internal Revenue Service $0,000

No Dollars and No Cents Dollars

Memo Estate and Income Taxes

Goal - Gift Pay to the Charity $30,784,252
to Charity order of
Thirty Million Seven Hundred Eighty Four Thousand Two Hundred Fifty Two Dollars and No Cents Dollars

Memo Family Charities

Page 8

INTRODUCTION TO THE PLAN STRATEGIES ROADMAP

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 9

CORPORATE RE-CAPITALIZATION

Ferris and Beatrice recapitalize the existing corporate shares into voting and non-voting shares.

Businesses To Be Recapitalized
Mid-Level Care Corporation (100 sh) 11,122,006
Pizza Distributors Co., Inc (20,000 sh) ** 23,500,000
Total 34,622,006

** We believe Pizza Distributors has already been recapitalized but will need to be reappraised.

Page 10

HAVE THE NON-VOTING SHARES APPRAISED

Ferris and Beatrice 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 corporations

Appraisal

Valuation adjustment
assumed t be 35%
d to b

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 11

CREATE GRANTOR DEEMED OWNER TRUSTS

Ferris and Beatrice create individual grantor deemed owner trusts (GDOT).

Page 12

GIFT TO GRANTOR DEEMED OWNER TRUST

Ferris and Beatrice each make a gift of $921,545 to their individual GDOT. This gift is designed to give each trust economic substance.

$921,545

$921,545

Page 13

BENEFICIARIES GUARANTEE GDOT OBLIGATION

The heirs guarantee a portion of the obligation of both GDOTs.

Installment note

Beneficiaries of th GDOT ( others)
B fi i i f the (or th )
guarantee a portion of the GDOT obligation.

Page 14

SELL NON-VOTING SHARES TO EACH GDOT

Ferris and Beatrice sell their non-voting stock to their individual GDOTs for an installment note.

Sell their combined non-voting
stock worth $22,504,304

Cash or securities of
$1,843,090 and an
installment note worth
$20,661,214 that provides
annual payments of
$857,440

The sale price is based on the assumed value of the assets
sold.
*Note payments are interest only at 4.15%.

Goals Accomplished:
- Reduce or eliminate our liability from Mid-Level Care.
- Provide a succession plan that will allow for a smooth transition to bring
our daughters into Mid-Level Care.
- Provide a succession plan that will allow for a smooth transition to bring
our daughters into Pizza Distributors.
- Maximize the inheritance that we leave for our children and grandchildren.
- Reduce estate tax liability.
- Avoid Capital Gains tax on the transfer.

Page 15

LOAN TO GDOT

Ferris and Beatrice loan $1,000,000 to the GDOTs in year one to create adequate cash flow.

Loan $1,000,000 of cash to the
GDOTs

Annual principal and
interest payments of
$135,868

*Note payments are amortized over 10 years at 6%.

Page 16

PURCHASE LIFE INSURANCE IN THE GDOT

The GDOT Trustees purchase second-to-die life insurance with the assets of the two GDOTs.

Premium Payment Details
Premium in the amount of $827,670 is paid in the first year with assets of the GDOTs.
No premium payments are made for 9 years, then beginning in year 11, premiums in
the amount of $388,260 are paid annually thereafter.

The premium is based on certain assumptions. This is for illustration purposes only. Actual insurance numbers can only be determined
by applying for insurance.

Goals Accomplished:
- Assure we have sufficient liquid assets available at our deaths to eliminate the forced
liquidation of our business or real estate assets.
- Maximize the inheritance that we leave for our children and grandchildren.
Page 17

WHY USE A ONE PAY WITH CATCH UP STRUCTURE FOR PREMIUMS

Reasons to use a one pay with catch up:

1. Allows you to wait and see what will happen with the estate tax.

2. You may decide to keep all of the death benefit or you might keep the policy but reduce the death benefit. Clients in their
late 70s and 80's can consider selling the policy if they decide they do not want to keep it.

3. Better economics. Allows you to keep the “unpaid” premium dollars and invest as you normally would. You will usually be
better off than with level premiums.

4. Relatively small commitment compared to death benefit. Usually less than the equivalent of two normal premiums.

5. Works nicely with a TCLAT. Allows you to zero out the tax and give money to your kids. Keep in mind that your kids could
be in their 70s or 80s before they inherit any money from the TCLAT.

6. Policy is guaranteed (if required first year and catch up premiums are paid).

7. People often lose guarantees because they pay premiums late. Because there are no premiums to pay until the catch-up
premiums begin, there is no need to worry about losing guarantees during this time period.

8. Less administration and headache. Because you pay only one premium now, you only need to send Crummey notices this
year. Then none until premiums start up again.

Page 18

COMPANY INSURES RISKS - CREATES DEDUCTION

GDOT Trustees create a captive insurance company.
The captive is formed to insure currently insured and uninsured risks of Mid-Level Care Corporation and/or Pizza Distributors.

Risk Coverage

The captive will be a pure captive and owned by a trust for your benefit or
for the benefit of your heirs (or both). The captive could be either a
Domestic Captive or International Captive. Costs illustrated in this plan
reflect a Domestic Captive. The decision as to which direction to follow
can be made during the feasibility phase.

NOTE: Prior to forming a Captive insurance company, there must be a feasibility study to determine insurable risk.
In the event that there are no insurable risks, there are alternative planning strategies to consider relative to income tax savings.
Page 19

COMPANY INSURES RISKS - CREATES DEDUCTION

The Captive Insurance Company insures various risks of loss.

Pay annual premiums of
$500,000 to cover risk of
loss. Premiums for insurance
that cover real risks are
deductible.

Risk Coverage

Net premium of up to $1.2M is excludable from captive company income
if proper tax election is made.

Goals Accomplished:
- Maximize the inheritance we leave for our children and grandchilren.
- Reduce income taxes.
- Assure our financial independence during retirement.

Page 20

EXISTING IRREVOCABLE LIFE INSURANCE TRUST

Annual premium payments of
$78,690 are distributed from
the GDOTs.

Premium Payment Details
Premium in the amount of $0,000 is paid in the first year with
assets of the ILIT. No premium payments are made for 9
years, then beginning in year 10, premiums in the amount of
$0,000 are paid annually thereafter.

Page 21

LEAVE YOUR IRA & ANNUITIES TO CHARITY

At the 2nd death, leave your IRA and annuities to charity.

$584,300

Advantages
No estate tax
No income in respect of a decedent tax
Most efficient assets to satisfy charitable intent

Page 22

TESTAM TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part I) - 2011

Include language in your trust or Will that creates a testamentary charitable lead trust (TCLAT) at the second death.

TCLAT Assumptions
Asset growth rate 8.00%
TCLAT payout rate 5.02%
Present value discount rate 4.00%
Assumed date of death 2011

Page 23

TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part II) - 2011

At the end of the TCLAT term, your heirs will receive all of the remaining trust assets.

Goals Accomplished:
- Eliminate or reduce estate taxes.
- Maximize the transfer to our heirs.
- Continue a structured giving program even after our deaths.

Page 24

PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED

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(i) Private Annuity SCIN
Partnership Annuity Trust Annuity Trust
Trust

Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Loan to GDOT Flip CRT
Note Liability Company Insurance

Preferred Limited GDOT Distributions Corporate
Premium Finance 529 Plans Gifting ILIT
partnership for ILIT Premiums Recapitalization

Charitable Life
Walton GRAT Private Foundations NIMCRUT Annuity Withdrawal Asset Protection SPIA/Life Arbitrage
Estate

Revocable Living
bl i i
SPIA/Life in a Principal Protected International
Trusts, DPAs and Crummey Powers Dynasty Trust GDOT
CLAT Notes VUL
POAs

Supporting IRA/Annuity to Business Risk
Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations Charity Management

Charitable
Defined Benefit Qualified Plan
Bargain Sales Succession Planning Risk Management Remainder Annuity ESOP Planning
Plans Limited Partnership
Trust

Green equals a new Blue equals a social Yellow equals an
planning tool for capital or charitable existing planning
family tool tool
Page 25

ESTATE PLAN OVERVIEW AND ESTATE DISTRIBUTION - 2011

Gift IRA & Annuity to Charity at the 2nd death
NET WORTH
Recap Corporations
IRA TO CHARITY 36,223,066 CORP RECAP
Voting and non-voting
478,386 shares 22,504,304

Sell non-voting shares to GDOT GDOT purchases life insurance
GDOT
Installment Note Owns non-voting
EXISTING ILITs CAPTIVE INS
Seed Gift shares LIFE INSURANCE
Annual premium
8,000,000 GDOT pays annual premium to Captive Insurance Company
accumulation 30,000,000

Annual GDOT distributions for existing ILIT premiums
First Death

FAMILY TRUST / BEATRICE MARITAL TRUST / BEATRICE BEATRICE ADMIN

4,000,000 16 290 862
16,290,862 2,001,482
2 001 482 137,248
Second Death

TCLAT ADMIN
HEIRS

27,155,660 345,858
93,122,546
Heirs From
TCLAT

FAMILY CHARITY

27,739,960

Page26

YOUR GOALS ACCOMPLISHED WITH FULL PLAN IMPLEMENTATION

The proposed plan allows you to retain sufficient cash flow to meet your lifestyle goal of $600,000 annually
throughout your lifetime.

Should one of you predecease the other, ample funds remain available to support the surviving spouse.

Your liquidity needs for emergencies or investment opportunities are sastisfied. You never have less than $1,700,000
in cash and readily marketable securities.

Full implementation of the proposed plan provides sufficient liquidity to preserve your business and real estate assets.

Under the proposed plan your heirs could expect to receive $93,100,000 today and as much as $252,700,000 at your
joint life expectancy.

By selling the non-voting shares of Mid-Level Care and Pizza Distributors to GDOTs in return for an installment
note, we're able to reduce our liability in Mid-Level Care while simultaneously providing our daughters with a
succession plan into both Pizza Distributors as well as Mid-Level Care.

Under the proposed plan charity could expect to receive $27,700,000 today and as much as $30,800,000 at your joint
life expectancy.

Income tax savings of the plan could be as much as $0,000 over 10 years.

Estate taxes have been eliminated now and at joint life expectancy.

Page 27


LIFETIME SPENDING
AND LIQUIDITY

Page 28

YOUR LIQUID ASSETS - PROPOSED PLAN

$16,000,000

$14,000,000

$12,000,000

$10,000,000

'Annual Lifestyle' Goal
$8,000,000 -
'Annual Liquidity' Goal Accomplished
$6,000,000
Accomplished

$4,000,000

$2,000,000

$-

Liquid Assets Proposed Your Liquidity Goal Total Living Expenses

Most of our clients want to know that they have sufficient income and liquid assets to pay their living expenses for the rest of their lives. This chart assumes full
implementation of the proposed plan and shows your liquid assets over your life expectancy compared with your goal for liquid assets on hand (inflated annually).
Liquid assets include cash, stocks, bonds, annuities and qualified retirement accounts but do not include any other assets you might own such as promissory notes,
businesses or real estate.
Page 29

YOUR LIQUIDITY - CURRENT PLAN

$140,000,000

$120,000,000

$100,000,000

$80,000,000
-

$60,000,000

$40,000,000

$20,000,000

$-

Liquid Assets Current Illiquid Assets Current Estate Tax Due

This review shows your projected estate tax due within nine months of the second of you to die versus the projected liquid and illiquid assets in your estate
situation over the next 20 years under your existing plan.

Page 30

YOUR LIQUIDITY - PROPOSED PLAN

$55,000,000

$50,000,000

$45,000,000

$40,000,000

$35,000,000

$30,000,000
-
$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5 000 000
$5,000,000

$-

Amount Needed to Fund the TCLAT Illiquid Assets Liquid Assets Proposed Liquid Assets Proposed - No Life Ins

This review shows your projected illiquid assets and amount of liquid assets needed to fund the TCLAT versus your liquid assets under a fully implemented
proposed plan and a proposed plan without new life insurance. Without the illustrated new life insurance there is some possiblity that your heirs will be left with
mostly illiquid assets that are generally more difficult to manage and to divide equally among beneficiaries. If you complete the plan with a TCLAT, having liquid
assets is important since TCLATs are most successfully funded with liquid assets.
Page 31


INCOME TAX SAVINGS

Page 32

COMPARISON OF INCOME TAX RESULTS - PLAN YEAR 2011

Existing Plan Proposed Plan Total Savings

2011 Estimated Income Tax $ 942,000 $ 742,000 $ 200,000

2012 Estimated Income Tax $ 967,000 $ 763,000 $ 204,000

2013 Estimated Income Tax $ 1,149,000 $ 905,000 $ 244,000



2016 Estimated Income Tax $ 1,187,000 $ 1,006,000 $ 181,000





10 Yr Savings Over Existing Plan $ 2,021,000

Page 33

INCOME TAXES PAID - CURRENT PLAN vs. PROPOSED PLAN

$1,600,000

$1,400,000

$1,200,000

-

$1,000,000

$800,000

$600,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Existing Plan Captive Insurance

This chart compares the amount of income taxes paid in the current plan as against the proposed plan.

Page 34


INCREASE INHERITANCE
AND REDUCE ESTATE TAX

Page 35


CURRENT PLAN PROPOSED PLAN

0%
75% 77%

23%
25%

0%

Heirs Estate Tax Charity Heirs Estate Tax Charity

Heirs $44,693,185 Heirs $93,122,546
Estate Tax $14,522,481 Estate Tax $0
Charity $0 Charity $27,739,960

In the current plan, a portion of the benefit to heirs is qualified plan money. Withdrawals from these plans will be treated as ordinary income.

Page 36


Existing Plan Proposed Plan Advantage

Estate Value $ 200,414,813 $ 31,242,270

Heirs Receive Immediately $ 96,647,995 $ 218,361,049 $ 121,713,054

Heirs Receive from Deferred Inheritance $ - $ 34,339,786 $ 34,339,786

Total Benefits to Family $ 96,647,995 $ 252,700,834 $ 156,052,840

Family Charity $ - $ 30,784,252 $ 30,784,252

Estate and Income Tax $ 109,131,287 $ - $ 109,131,287

Present Value of total to Heirs $42,242,592 $110,449,660

Discount rate for PV calculation 3.00%

This chart assumes that you both die at life expectancy and compares the results of the current plan with the proposed plan.

The present value of the total passing to heirs is our attempt to put inheritance into today's dollars to provide perspective.
We are using an inflation rate of 3% to calculate the present value numbers.
Page 37


CURRENT PLAN PROPOSED PLAN

47%
0%

12%
88%

0%
53%

Heirs Estate Tax Charity Heirs Estate Tax Charity

Heirs $96,647,995 Heirs $218,361,049
Estate Tax $109,131,287 Estate Tax $0
Charity $0 Charity $30,784,252

In the current plan, a portion of the benefit to heirs is qualified plan money. Withdrawals from these plans will be treated as ordinary income.

Page 38

ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED

$275,000,000

$250,000,000 'Estate Liquidity' Goal
Accomplished
$225,000,000
'Maximize Inheritance
$200,000,000
to Heirs' Goal
$175,000,000 Accomplished

$150,000,000 -

$125,000,000

$100,000,000

$75,000,000

$50,000,000

$25,000,000

Current Plan Proposed Plan Proposed Plan w/out Life Ins

This chart compares the amount of your assets that will pass to heirs after estate taxes and costs of implementation in the current plan as against the proposed
plan.

Page 39


INCREASE IN
CHARITABLE GIVING

Page 40

COMPARISON OF CHARITY RESULTS - PLAN YEAR 2011

Existing Plan Proposed Plan Increase in Charity

Charity Receives from TCLAT $ - $ 27,200,000 $ 27,200,000

Charitable gift of IRA/Annuity assets $ - $ 600,000 $ 600,000

Total to Family Charity $ - $ 27,700,000 $ 27,700,000

Page 41

COMPARISON OF CHARITY RESULTS - PLAN YEAR 2039

Existing Plan Proposed Plan Increase in Charity

Charity Receives from TCLAT $ - $ 28,800,000 $ 28,800,000

Charitable gift of IRA/Annuity assets $ - $ 2,000,000 $ 2,000,000

Total to Family Charity $ - $ 30,800,000 $ 30,800,000

Page 42

GIFTING TO CHARITY - EXISTING PLAN VS. PROPOSED PLAN

$44,000,000 'Provide for a Charitable
Gift at Death' Goal
$40,000,000
Accomplished
$36,000,000

$32,000,000

$28,000,000

$24,000,000
-
$20,000,000

$16,000,000

$12,000,000

$8,000,000

$4 000 000
$4,000,000

$-

Current Plan Charity Proposed Plan Charity

This chart compares the amount of your gifts to charity in the current plan as against the proposed plan.

Page 43

COST BENEFIT ANALYSIS

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 $48,429,361 over your existing plan.
The reward of the proposed plan results in an advantage to your heirs at life expectancy of $156,052,840 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 75,000
Attorneys Fees 125,000
Valuation Fees 15,000
Total $ 215,000

Annual Maintenance Fee $ 7,500

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 44

COST BENEFIT ANALYSIS (Continued)

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 $277,094.

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 undervaluation penalty.

Risk Analysis

$160,000,000
$140,000,000
$120 000 000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$-
Benefit to Heirs 2011 Benefit to Heirs 2039 Potential Loss (Total Failure)

Page 45

DETAILED FINANCIAL ANALYSIS

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 46


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 47

CURRENT NET WORTH STATEMENT

FERRIS BEATRICE JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Cash 500,000 500,000 2.5% 0.0%
Cash Value of Life Insurance 20,000 - 20,000 0.0% 0.0%
Total of Cash and Equivalents 20,000 - 500,000 520,000 2.4% 0.0%

MARKETABLE SECURITIES - EQUITIES
Stocks - 500,000 500,000 2.9% 5.0%
Total of Equities - - 500,000 500,000 2.9% 5.0%

ANNUITIES/DEFERRED COMPENSATION
Deferred Comp Plan 100,000 - 100,000 7.0%
Total of Annuities - 100,000 - 100,000 0.0% 7.0%

Page 48

CURRENT NET WORTH STATEMENT (Page 2)

OTHER INVESTMENTS
Hedge Fund 125,000 - - 125,000 12.8% 5.0%
Note to Pizza Distributors 8,993,971 - - 8,993,971 0.0% 0.0%
Total of Other Investments 9,118,971 - - 9,118,971 0.2% 0.1%

CLOSELY HELD BUSINESS
Mid-Level Care Corporation (100 sh) 5,561,003 5,561,003 - 11,122,006 13.3% 3.0%
Pizza Distributors Co., Inc (20,000 sh) 11,750,000 11,750,000 - 23,500,000 1.1% 3.0%
Total Closely Held Business 17,311,003 17,311,003 - 34,622,006 5.0% 3.0%

RETIREMENT PLANS/IRAs
401(k) 250,000 250,000 0.0% 7.0%
IRA 114,818 114,818 0.0% 7.0%
IRA 86,853 86,853 0.0% 7.0%
Total Retirement Plans 364,818 86,853 451,671 0.0% 7.0%

Page 49

CURRENT NET WORTH STATEMENT (Page 3)

INVESTMENT REAL ESTATE
39 Kansas Rd. 150,000 - 150,000 2.6% 4.0%
37 Kansas Rd. 120,000 - 120,000 10.4% 4.0%
60 Acre Farm 300,000 - 300,000 0.0% 4.0%
25 Kansas Rd. 150,000 - 150,000 0.0% 4.0%
21 Kansas Rd. 10,000 10,000 0.0% 4.0%
7 Lake St. 600,000 - - 600,000 0.0% 4.0%
8 Lake St. - 865,000 - 865,000 0.0% 4.0%
35 Kansas Rd. 100,000 - 100,000 0.0% 4.0%
40 Kansas Rd. 150,000 - 150,000 0.0% 4.0%
Total of Real Estate Holdings 870,000 1,565,000 10,000 2,445,000 0.7% 4.0%

RESIDENTIAL REAL ESTATE
123 Main - - 1,800,000 1,800,000 0.0% 3.0%
Total of Personal Residences - - 1,800,000 1,800,000 0.0% 3.0%

PERSONAL PROPERTY
Personal Property 350,000 350,000 0.0% 0.0%
Antiques 50,000 50,000 0.0% 0.0%
Total of Personal Property - - 400,000 400,000 0.0% 0.0%

TOTAL ASSETS 27,684,792 19,062,856 3,210,000 49,957,648

TOTAL LIABILITIES - - - -

NET WORTH 27,684,792 19,062,856 3,210,000 49,957,648

Page 50

SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN

COMPANY INSURED POLICY # BENEFICIARY PREMIUM CASH VALUE DEATH BENEFIT

Policies owned by Ferris
SPWL Jenny # Beatrice & Ferris - 10,000 10,000
SPWL Megan # Beatrice & Ferris - 10,000 10,000
Totals - 20,000 20,000

Policies owned by ILIT
Pac Life Ferris # Ferris's ILIT 50,590 290,381 5,000,000
Pac Life Beatrice # Beatrice's ILIT 28,100 43,562 3,000,000
Totals 78,690 333,943 8,000,000

Page 51

FINANCIAL ANALYSIS - EXISTING PL ASSET VALUE PROJECTIONS - EXISTING PLAN

YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Asset Values
Cash and cash equivalents 520,000 520,000 520,000 520,000 520,000 520,000 520,000 520,000 520,000
Marketable securities - Equities 500,000 1,381,695 2,352,001 3,640,373 5,417,689 7,348,964 22,756,496 83,283,923 104,262,265
Annuities 100,000 105,915 113,329 121,262 129,750 138,833 208,350 574,845 704,209
Other investments 1 9,118,971 9,124,279 9,130,533 8,762,232 8,004,139 7,214,962 1,753,895 221,375 221,831
Closely held business 34,622,006 35,502,184 36,567,250 37,664,267 38,794,195 39,958,021 47,711,967 74,333,690 81,226,430
Retirement plans/IRAs 451,671 478,386 511,873 547,704 586,043 627,066 941,057 1,289,467 1,276,939
Investment real estate 2,445,000 2,527,816 2,628,929 2,734,086 2,843,450 2,957,188 3,741,786 6,738,745 7,580,172
Personal residences 1,800,000 1,845,761 1,901,133 1,958,167 2,016,912 2,077,420 2,480,548 3,864,613 4,222,967
Personal property 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000
Total assets in estate 49,957,648 51,886,036 54,125,048 56,348,092 58,712,179 61,242,454 80,514,099 171,226,658 200,414,813
Combined net worth $ 49,957,648 $ 51,886,036 $ 54,125,048 $ 56,348,092 $ 58,712,179 $ 61,242,454 $ 80,514,099 $ 171,226,658 $ 200,414,813
1
Decreased each year beginning in 2013 per amortization schedule for the Pizza Distributors Note.

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 52

TAXABLE INCOME PROJECTIONS - EXISTING PLAN

YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Sources of taxable income
Cash and cash equivalents 12,674 12,674 12,674 12,674 12,674 12,674 12,674 12,674
Marketable securities - Equities 14,365 39,696 67,573 104,588 155,650 567,287 2,218,551 2,780,285
Other investments 15,970 15,979 15,990 15,345 14,018 4,829 387 388
Closely held business 1 1,735,964 1,780,097 1,833,499 1,888,504 1,945,160 2,322,622 3,618,570 3,954,109
Retirement plans/IRAs - - - - - - 85,109 99,098
Investment real estate 16,300 16,852 17,526 18,227 18,956 23,986 43,197 48,591
2
Interest Payments from Pizza Distributors Note 359,759 359,759 359,759 344,777 314,213 103,373 - -
Client earned income 3 205,980 205,980 210,100 214,302 218,588 222,959 147,699 - -
Spouse earned income 3 205,980 205,980 210,100 214,302 218,588 222,959 147,699 - -
Director's Fees 13,500 13,770 14,045 14,326 14,613 16,456 22,148 23,504
Gross income $ 2,580,492 $ 2,659,026 $ 2,749,670 $ 2,835,617 $ 2,921,202 $ 3,346,626 $ 6,000,636 $ 6,918,649
1
We assume in this illustration that Ferris and Beatrice receive 100% of the S Corporations' taxable distributions.
2
Note payments are interest only for the first 30 months. In the middle of 2013, they begin receiving interest and principal payments for 10 years.
3
Beginning in 2021, we assume that Ferris & Beatrice begin taking a 40% reduction in salary. Then in 2031, we assume they retire.

Page 53

INCOME TAX PROJECTIONS - EXISTING PLAN

YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Income tax Estimation
Adjusted gross income:
Dividend income (marketable sec.) 14,365 39,696 67,573 104,588 155,650 567,287 2,218,551 2,780,285
Earned and other income 2,566,127 2,619,330 2,682,097 2,731,029 2,765,552 2,779,339 3,782,085 4,138,364
Adjusted gross income 2,580,492 2,659,026 2,749,670 2,835,617 2,921,202 3,346,626 6,000,636 6,918,649

Deductions
Real estate tax 35,044 35,044 35,745 36,460 37,189 37,933 42,718 57,493 61,012
State income taxes 154,830 159,542 164,980 170,137 175,272 200,798 360,038 415,119
Charitable gifts 47,257 47,257 48,202 49,166 50,150 51,152 57,606 77,530 82,276
Charitable Deduction available 47,257 48,202 49,166 50,150 51,152 57,606 77,530 82,276
Charitable Deduction allowed 47,257 48,202 49,166 50,150 51,152 57,606 77,530 82,276
Total deductions 237,131 243,489 250,606 257,475 264,357 301,122 495,062 558,407
Reductions - - (77,486) (80,065) (82,632) (95,395) (175,015) (202,555)
Deductions allowed 237,131 243,489 173,120 177,411 181,725 205,727 320,047 355,851

Taxable income 2,343,361 2,415,538 2,576,550 2,658,206 2,739,477 3,140,899 5,680,590 6,562,797
Federal and State income tax $ 942,004 $ 966,912 $ 1,149,361 $ 1,186,854 $ 1,224,172 $ 1,408,661 $ 2,573,619 $ 2,978,054

Page 54

CASH FLOW PROJECTIONS - EXISTING PLAN

YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Sources of income for Lifestyle
Principal Payments from Pizza Distributors Note 1 - - 374,558 764,099 794,663 1,005,502 - -
Consumable income (taxable) 2,580,492 2,659,026 2,749,670 2,835,617 2,921,202 3,346,626 6,000,636 6,918,649
Total income available for lifestyle 2,580,492 2,659,026 3,124,229 3,599,716 3,715,864 4,352,128 6,000,636 6,918,649

Uses of Cash
Living expenses 600,000 612,000 624,240 636,725 649,459 731,397 984,364 1,044,615
Income tax 942,004 966,912 1,149,361 1,186,854 1,224,172 1,408,661 2,573,619 2,978,054
Cash gifts to ILIT 78,690 78,690 78,690 78,690 78,690 78,690 78,690 78,690
Gift taxes due - - - - - - 32,263 32,263
Cash gifts to family 52,000 52,000 52,000 52,000 52,000 52,000 52,000 52,000
Cash gifts to charity 47,257 48,202 49,166 50,150 51,152 57,606 77,530 82,276
Total uses of cash 1,719,951 1,757,804 1,953,457 2,004,418 2,055,474 2,328,353 3,798,465 4,267,897

Surplus $ 860,540 $ 901,222 $ 1,170,771 $ 1,595,298 $ 1,660,391 $ 2,023,775 $ 2,202,171 $ 2,650,752
1
Note payments are interest only for the first 30 months. In the middle of 2013, they begin receiving interest and principal payments for 10 years.

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 55

FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN

YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Tax calculation on Ferris's death
Combined net worth 49,957,648 51,886,036 54,125,048 56,348,092 58,712,179 61,242,454 80,514,099 171,226,658 200,414,813
Ferris's estimated estate 29,289,792 30,420,391 31,733,107 33,036,461 34,422,507 35,905,989 47,204,809 100,388,897 117,501,692
Total gross estate 29,289,792 30,420,391 31,733,107 33,036,461 34,422,507 35,905,989 47,204,809 100,388,897 117,501,692
Settlement expenses (171,449) (177,102) (183,666) (190,182) (197,113) (204,530) (261,024) (526,944) (612,508)
Joint, personal and IRA to Beatrice (1,969,818) (2,053,349) (2,152,330) (2,252,692) (2,359,610) (2,474,035) (3,346,793) (6,542,547) (7,470,162)
Insurance passing to Beatrice (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000)
Outright or in trust to Beatrice (22,246,326) (23,287,741) (24,534,257) (29,770,078) (31,081,621) (32,482,604) (43,088,243) (93,299,406) (109,399,022)
Taxable estate 4,882,199 4,882,199 4,842,854 803,509 764,164 724,819 488,749 - -
Plus Ferris's lifetime taxable gifts 117,801 117,801 157,146 196,491 235,836 275,181 511,251 1,101,426 1,219,461
Tax base 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,101,426 1,219,461
Federal Estate Tax - - - - - - - - -

Distribution of Ferris's estate
Settlement expenses 171,449 177,102 183,666 190,182 197,113 204,530 261,024 526,944 612,508
To family trust 4,882,199 4,882,199 4,842,854 803,509 764,164 724,819 488,749 - -
Joint, personal and IRA to Beatrice 1,969,818 2,053,349 2,152,330 2,252,692 2,359,610 2,474,035 3,346,793 6,542,547 7,470,162
Insurance passing to Beatrice 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Outright or in trust to Beatrice 22,246,326 23,287,741 24,534,257 29,770,078 31,081,621 32,482,604 43,088,243 93,299,406 109,399,022
Total $ 29,289,792 $ 30,420,391 $ 31,733,107 $ 33,036,461 $ 34,422,507 $ 35,905,989 $ 47,204,809 $ 100,388,897 $ 117,501,692

Assumptions
We assume that Ferris dies first, followed immediately by Beatrice.
Taxes under "Distribution of First Estate" include estate and income taxes.

Page 56

SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN

YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Tax Calculation on Beatrice's death
Beatrice's assets 20,667,856 21,465,644 22,391,941 23,311,631 24,289,671 25,336,465 33,309,290 70,837,761 82,913,121
Plus assets from Ferris's estate 24,236,144 25,361,090 26,706,588 32,042,770 33,461,231 34,976,640 46,455,036 99,861,953 116,889,184
Beatrice's estimated estate 44,904,000 46,826,735 49,098,528 55,354,400 57,750,902 60,313,105 79,764,326 170,699,714 199,802,304
Settlement expenses (474,040) (493,267) (515,985) (578,544) (602,509) (628,131) (822,643) (1,731,997) (2,023,023)
Beatrice's taxable estate 44,429,960 46,333,467 48,582,543 54,775,856 57,148,393 59,684,974 78,941,683 168,967,716 197,779,281
Plus Beatrice's lifetime taxable gifts 117,799 117,799 157,144 196,489 235,834 275,179 511,249 1,101,424 1,219,459
Tax base 44,547,759 46,451,266 48,739,687 54,972,345 57,384,227 59,960,153 79,452,932 170,069,140 198,998,740

Federal Estate Tax 13,841,716 14,507,943 15,308,891 29,888,990 31,215,525 32,632,284 43,353,312 93,150,643 109,013,529
Tax on IRD 13,000 14,538 16,465 12,827 14,355 15,990 28,503 94,472 117,758
Total Estate Tax Due 13,854,716 14,522,481 15,325,356 29,901,817 31,229,880 32,648,274 43,381,815 93,245,115 109,131,287

Distribution of Beatrice's estate
Settlement expenses 474,040 493,267 515,985 578,544 602,509 628,131 822,643 1,731,997 2,023,023
Taxes 13,854,716 14,522,481 15,325,356 29,901,817 31,229,880 32,648,274 43,381,815 93,245,115 109,131,287
Qualified plan to heirs 451,671 478,386 511,873 547,704 586,043 627,066 941,057 1,289,467 1,276,939
Residual estate to heirs 30,123,573 31,332,600 32,745,314 24,326,335 25,332,470 26,409,634 34,618,810 74,433,134 87,371,056
Total $ 44,904,000 $ 46,826,735 $ 49,098,528 $ 55,354,400 $ 57,750,902 $ 60,313,105 $ 79,764,326 $ 170,699,714 $ 199,802,304

Assumptions
We assume that Ferris dies first, followed immediately by Beatrice.
Taxes under "Distribution of Second Estate" include estate and income taxes.

Page 57

SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN

YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Benefits to Family
Family trust 4,882,199 4,882,199 4,842,854 803,509 764,164 724,819 488,749 - -
Residual estate 30,123,573 31,332,600 32,745,314 24,326,335 25,332,470 26,409,634 34,618,810 74,433,134 87,371,056
Qualified plan assets 451,671 478,386 511,873 547,704 586,043 627,066 941,057 1,289,467 1,276,939
Proceeds from ILIT 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
Total assets to heirs $ 43,457,443 $ 44,693,185 $ 46,100,041 $ 33,677,548 $ 34,682,677 $ 35,761,519 $ 44,048,616 $ 83,722,601 $ 96,647,995

Page 58

DETAILS OF FERRIS'S QUALIFIED PLAN - EXISTING PLAN

YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Ferris's Qualified Plans
Ferris's Age 60 61 62 63 64 70 85 88
Beatrice's Age 58 59 60 61 62 68 83 86
Minimum distribution factor 36.8 35.8 34.9 33.9 33.0 27.4 14.8 12.7
Plan contributions - - - - - - - -
Plan balance 364,818 386,396 413,443 442,384 473,351 506,486 760,099 1,014,989 1,000,540
Minimum distribution - - - - - - 68,414 79,477
Preferred distribution - - - - - - - -
Actual distribution - - - - - - 68,414 79,477

Page 59

DETAILS OF BEATRICE'S QUALIFIED PLAN - EXISTING PLAN

YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Beatrice's Qualified Plans
Beatrice's Age 58 59 60 61 62 68 83 86
Ferris's Age 60 61 62 63 64 70 85 88
Minimum distribution factor 38.7 37.8 36.8 35.8 34.9 29.2 16.3 14.1
Plan contributions - - - - - - - -
Plan balance 86,853 91,990 98,429 105,319 112,692 120,580 180,958 274,478 276,399
Minimum distribution - - - - - - 16,695 19,621
Preferred distribution - - - - - - - -
Actual distribution - - - - - - 16,695 19,621

Page 60


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 61

NET WORTH STATEMENT AFTER PLAN IMPLEMENTATION

CASH AND EQUIVALENTS
Cash - - 500,000 500,000 2.5% 0.0%
Cash Value of Life Insurance 20,000 - - 20,000 0.0% 0.0%
Total of Cash and Equivalents 20,000 - 500,000 520,000 2.4% 0.0%

MARKETABLE SECURITIES - EQUITIES
Stocks - - 500,000 500,000 2.9% 5.0%
Total of Equities - - 500,000 500,000 2.9% 5.0%

ANNUITIES/DEFERRED COMPENSATION
Deferred Comp Plan - 100,000 - 100,000 7.0%
Total of Annuities - 100,000 - 100,000 0.0% 7.0%

Page 62

REVISED NET WORTH STATEMENT (Page 2)

OTHER INVESTMENTS
Hedge Fund 125,000 - - 125,000 12.8% 5.0%
Note to Pizza Distributors 8,993,971 - - 8,993,971 0.0% 0.0%
Total of Other Investments 9,118,971 - - 9,118,971 0.2% 0.1%

RETIREMENT PLANS/IRAs
401(k) 250,000 - 250,000 0.0% 7.0%
IRA 114,818 - 114,818 0.0% 7.0%
IRA - 86,853 86,853 0.0% 7.0%
Total Retirement Plans 364,818 86,853 451,671 0.0% 7.0%

Page 63

REVISED NET WORTH STATEMENT (Page 3)

INVESTMENT REAL ESTATE

39 Kansas Rd. - 150,000 - 150,000 2.6% 4.0%
37 Kansas Rd. 120,000 - - 120,000 10.4% 4.0%
60 Acre Farm - 300,000 - 300,000 0.0% 4.0%
25 Kansas Rd. 150,000 - - 150,000 0.0% 4.0%
21 Kansas Rd. - - 10,000 10,000 0.0% 4.0%
7 Lake St. 600,000 - - 600,000 0.0% 4.0%
8 Lake St. - 865,000 - 865,000 0.0% 4.0%
35 Kansas Rd. - 100,000 - 100,000 0.0% 4.0%
40 Kansas Rd. - 150,000 - 150,000 0.0% 4.0%
Total of Real Estate Holdings 870,000 1,565,000 10,000 2,445,000 0.7% 4.0%

RESIDENTIAL REAL ESTATE
123 Main - - 1,800,000 1,800,000 0.0% 3.0%
Total of Personal Residences - - 1,800,000 1,800,000 0.0% 3.0%

PERSONAL PROPERTY
Personal Property - - 350,000 350,000 0.0% 0.0%
Antiques - - 50,000 50,000 0.0% 0.0%
Total of Personal Property - - 400,000 400,000 0.0% 0.0%

OTHER STRATEGY ASSETS
GDOT Note 10,330,607 10,330,607 - 20,661,214 4.15%
Total of Other Strategy Assets 10,330,607 10,330,607 - 20,661,214 4.15%

NET WORTH 20,704,396 12,082,460 3,210,000 35,996,856

Page 64

FINANCIAL ANALYSIS - PROPOSED PLA ASSET VALUE PROJECTIONS - PROPOSED PLAN

YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Asset Values
Cash and cash equivalents 520,000 520,000 520,000 520,000 520,000 520,000 520,000 520,000 520,000
Marketable securities - Equities 500,000 559,696 817,901 1,324,637 2,210,266 3,129,914 9,235,640 13,177,123 7,654,939
Annuities 100,000 105,915 113,329 121,262 129,750 138,833 208,350 574,845 704,209
Other investments 1 9,118,971 9,124,279 9,130,533 8,762,232 8,004,139 7,214,962 1,753,895 221,375 221,831
Retirement plans/IRAs 451,671 478,386 511,873 547,704 586,043 627,066 941,057 1,289,467 1,276,939
Investment real estate 2,445,000 2,527,816 2,628,929 2,734,086 2,843,450 2,957,188 3,741,786 6,738,745 7,580,172
Personal residences 1,800,000 1,845,761 1,901,133 1,958,167 2,016,912 2,077,420 2,480,548 3,864,613 4,222,967
Personal property 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000
2
Note from children's GDOT 20,661,214 20,661,214 20,661,214 20,661,214 20,661,214 20,661,214 20,661,214 8,661,214 8,661,214
Total assets in estate 35,996,856 36,223,066 36,684,912 37,029,303 37,371,774 37,726,597 39,942,491 35,447,381 31,242,270
Combined net worth $ 35,996,856 $ 36,223,066 $ 36,684,912 $ 37,029,303 $ 37,371,774 $ 37,726,597 $ 39,942,491 $ 35,447,381 $ 31,242,270
1
Decreased each year beginning in 2013 per amortization schedule for the Pizza Distributors Note.
2
Principal payment from GDOT note is paid in 2036 with accumulated liquid assets of the GDOT.

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 65

Bueller Family Wealth Goal Achiever - InKnowVision Advanced Estate Planning

Bueller Family Wealth Goal Achiever - InKnowVision Advanced Estate Planning

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