Jeff is 75 and Theresa is 72. Jeff recently retired from an executive position in a public company. As a result of his retirement he exercised over $45M in stock options and has 5 more years of deferred compensation payments. Jeff has also sold his 50% interest in his Corporation and the note payments are providing significant income for the next 9 years.
Jeff and Theresa have annual living expense desires of $725,000, with the available income to more than meet this need. Jeff’s deferred compensation payments average more than $2M/yr. for the next 5 years; his annual pension payments are $660k/yr. (inflating); and he also has note payments totaling $360k/yr. for the next 9 years from the buyout of his Corporation interests. These sources of income are in addition to an investment portfolio that generates more than $1.7M/yr. in income and various oil/gas ventures that generate over $100k/yr. in income. With annual income totaling over $5M/yr. for the family, they have the luxury of accumulating a very significant cash flow surplus each year.
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth. As part of Chris’s retirement package, he has an annual pension payment of approx. $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000. As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The main planning objective is to take advantage of the lifetime gifting exemption ($5M each) while it is still available. This is due in part to the large concentration of conservatively invested assets that are growing inside Chris and Beth’s estate. In addition, they are looking to preserve enough assets in order to provide sufficient cash flow that will ensure a comfortable lifestyle with flexibility during retirement.
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth.
As part of Chris’ retirement package, he has an annual pension payment of approximately $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000.
As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The primary planning goals were to:
Make sure that they have sufficient funds to live on for the rest of their lives (approximately $230,000 after taxes and gifts).
Provide for the financial security of the surviving spouse.
Create an inheritance for their children which protects them from any potential future creditors and/or predators.
Provide a charitable gift at death as long as it doesn’t greatly diminish the amount they pass to their heirs.
Eliminate or reduce estate taxes.
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
The primary planning goals are to:
Provide for the financial security of the surviving spouse.
Maintain Carter Manufacturing as a viable company in their hometown after they exit the business.Maintain their customary lifestyle and gifting. This should take approx. $650,000 annually after taxes.
Eliminate or reduce estate taxes.
Maintain adequate gifting to their children and grandchildren. Their main priority is providing funds for their grandchildren’s educations.
Maximize the inheritance they leave to their children and grandchildren.
Establish a family foundation for lifetime and future family charitable giving.
Learn more at www.inknowvision.com
InKnowVision November 2012 Case Study - Basic Family Wealth Goal AchieverInKnowVision
Tom is 83 and Jane is 76. They have two children who are both well employed and live productive and happy lives. Tom was an attorney who headed a large patent firm in Washington DC. Jane served as an expert in international trade for much of her professional life. During the latter part of his career, Tom agreed to do work for a start up company that became very successful. Today, Tom’s share of the company is valued at $3.2M but generates $1.4M-$1.5M per year in taxable distributions. Several years ago, the company spun out one of its divisions and took the new company public. It has seen massive growth; almost no dividends have been distributed, and the company has a value to Tom today of approximately $6.4M. Tom and Jane also have approximately $5.2M in cash, $3.2M in retirement funds, and real estate of $4M for a total net worth of about $22M.
The primary planning goals are to:
Make sure that they have sufficient funds to live on for the rest of their lives
Maximize what they leave to their children and grandchildren
Increase the amount of charitable giving that they are currently doing
Equalize the financial positions of their son and daughter
Make a substantial provision for charity in place of estate tax if possible
Myer Family Wealth Goal Achiever- InKnowVision Advanced Estate PlanningInKnowVision
James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
Learn more at www.inknowvision.com
Myer Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
The primary planning goals are to:
Make sure that he has sufficient funds to live on for the rest of his life (approx. $600,000/yr., including alimony, after taxes and gifts).
Reduce income taxes.
Maximize the inheritance that he leaves to his children and grandchildren. Consider passing his business interests to his children involved in the industry while providing an equal inheritance of non-business interests to those that are uninterested.
Assure that he has sufficient liquid assets available at his death to eliminate the forced liquidation of his business assets.
Eliminate or reduce estate taxes.
Taylor Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Donfrio Family Wealth Goal Achiever- InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth. As part of Chris’s retirement package, he has an annual pension payment of approx. $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000. As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The main planning objective is to take advantage of the lifetime gifting exemption ($5M each) while it is still available. This is due in part to the large concentration of conservatively invested assets that are growing inside Chris and Beth’s estate. In addition, they are looking to preserve enough assets in order to provide sufficient cash flow that will ensure a comfortable lifestyle with flexibility during retirement.
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth.
As part of Chris’ retirement package, he has an annual pension payment of approximately $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000.
As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The primary planning goals were to:
Make sure that they have sufficient funds to live on for the rest of their lives (approximately $230,000 after taxes and gifts).
Provide for the financial security of the surviving spouse.
Create an inheritance for their children which protects them from any potential future creditors and/or predators.
Provide a charitable gift at death as long as it doesn’t greatly diminish the amount they pass to their heirs.
Eliminate or reduce estate taxes.
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
The primary planning goals are to:
Provide for the financial security of the surviving spouse.
Maintain Carter Manufacturing as a viable company in their hometown after they exit the business.Maintain their customary lifestyle and gifting. This should take approx. $650,000 annually after taxes.
Eliminate or reduce estate taxes.
Maintain adequate gifting to their children and grandchildren. Their main priority is providing funds for their grandchildren’s educations.
Maximize the inheritance they leave to their children and grandchildren.
Establish a family foundation for lifetime and future family charitable giving.
Learn more at www.inknowvision.com
InKnowVision November 2012 Case Study - Basic Family Wealth Goal AchieverInKnowVision
Tom is 83 and Jane is 76. They have two children who are both well employed and live productive and happy lives. Tom was an attorney who headed a large patent firm in Washington DC. Jane served as an expert in international trade for much of her professional life. During the latter part of his career, Tom agreed to do work for a start up company that became very successful. Today, Tom’s share of the company is valued at $3.2M but generates $1.4M-$1.5M per year in taxable distributions. Several years ago, the company spun out one of its divisions and took the new company public. It has seen massive growth; almost no dividends have been distributed, and the company has a value to Tom today of approximately $6.4M. Tom and Jane also have approximately $5.2M in cash, $3.2M in retirement funds, and real estate of $4M for a total net worth of about $22M.
The primary planning goals are to:
Make sure that they have sufficient funds to live on for the rest of their lives
Maximize what they leave to their children and grandchildren
Increase the amount of charitable giving that they are currently doing
Equalize the financial positions of their son and daughter
Make a substantial provision for charity in place of estate tax if possible
Myer Family Wealth Goal Achiever- InKnowVision Advanced Estate PlanningInKnowVision
James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
Learn more at www.inknowvision.com
Myer Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
The primary planning goals are to:
Make sure that he has sufficient funds to live on for the rest of his life (approx. $600,000/yr., including alimony, after taxes and gifts).
Reduce income taxes.
Maximize the inheritance that he leaves to his children and grandchildren. Consider passing his business interests to his children involved in the industry while providing an equal inheritance of non-business interests to those that are uninterested.
Assure that he has sufficient liquid assets available at his death to eliminate the forced liquidation of his business assets.
Eliminate or reduce estate taxes.
Taylor Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Donfrio Family Wealth Goal Achiever- InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate Planning InKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
Learn more at www.inknowvision.com
Bueller Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Advanced Planning For the Ultra High Net Worth.The recordings for this program can be found at http://tinyurl.com/6yojnrt.
Learn more at www.inknowvision.com
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Morgan Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
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
Presentation slides for the SMSF Tax Planning webinar presented by Aaron Dunn of the SMSF Academy on 24 April 2013.
With the growing number of self-managed super funds, the need to appropriately plan and take advantage of the various contribution, pension, investment strategy and tax issues all lead to the value of discussing some key tax planning strategies with SMSF trustees.
If you wish to view the webinar recording, this can be purchased for $99 (incl. GST). You can visit the SMSF Academy online store to purchase this recording, https://nq129.infusionsoft.com/app/storeFront/showCategoryPage?categoryId=9
TORONTO – The Investment Funds Institute of Canada (IFIC) released a seminal report
– The Value of Advice: Report - which provides a clear, unbiased view of what advice means to
the financial well-being of Canadians and how it builds their confidence in their financial future.
InKnowVision June 2012 HNW Marketing WebinarInKnowVision
In this HNW marketing webinar you will learn:
Why your conversations with the HNW need to change.
What new opportunities will drive your HNW business.
How you can prepare for the changes ahead.
Learn more at www.inknowvision.com
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate Planning InKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
Learn more at www.inknowvision.com
Bueller Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Advanced Planning For the Ultra High Net Worth.The recordings for this program can be found at http://tinyurl.com/6yojnrt.
Learn more at www.inknowvision.com
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Morgan Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
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
Presentation slides for the SMSF Tax Planning webinar presented by Aaron Dunn of the SMSF Academy on 24 April 2013.
With the growing number of self-managed super funds, the need to appropriately plan and take advantage of the various contribution, pension, investment strategy and tax issues all lead to the value of discussing some key tax planning strategies with SMSF trustees.
If you wish to view the webinar recording, this can be purchased for $99 (incl. GST). You can visit the SMSF Academy online store to purchase this recording, https://nq129.infusionsoft.com/app/storeFront/showCategoryPage?categoryId=9
TORONTO – The Investment Funds Institute of Canada (IFIC) released a seminal report
– The Value of Advice: Report - which provides a clear, unbiased view of what advice means to
the financial well-being of Canadians and how it builds their confidence in their financial future.
InKnowVision June 2012 HNW Marketing WebinarInKnowVision
In this HNW marketing webinar you will learn:
Why your conversations with the HNW need to change.
What new opportunities will drive your HNW business.
How you can prepare for the changes ahead.
Learn more at www.inknowvision.com
materi Ini adalah milik ust fauzul adhim (penulis buku buku best dan pakar parenting islam indonesia), Saya sudah ijin untuk publish dan penulis mempersilahkan materi ini di copy paste dan share untuk kebaikan.
denganharapan ini sebagai salah satu jariyah beliau juga
Jackson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
In this case we used a Charitable Life Estate as a planning too.
This infrequently used technique can be very powerful when working with high net worth clients.
We will look at a couple examples where InKnowVision has used this structure to create significant income and estate tax savings and paired this technique with wealth replacement trusts in order to deliver full value to the family.
In this presentation we will explore how to present the concept to clients and also take a look into the variables that go into the ultimate calculation.
Learn more at www.inknowvision.com
Donfrio Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Griffin Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
John is 48 and recently divorced with two young children. He currently spends about $200,000 a year after taxes. John owns and operates a trucking company which creates significant taxable income each year in excess of $2M. This income is somewhat deceiving because it’s not really free cash to John. Instead, he uses the profits to plow back into his business so that he can purchase and transport more product. In this planning scenario, it is essential that John have the ability to push all of his company profits each month back into the business to build and grow value for future sale.
Learn more at www.inknowvision.com
Thomason Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
InKnowVision October 2013 Case Study - Lewis FWGAInKnowVision
Duncan and Tina are both 65. They live a comfortable lifestyle, spending about $1,600,000 a year after taxes and gifting about $2,000,000 a year to their family foundation. With assets worth approximately $62M and annual income of over $7M, they currently pay just over $2M a year in income taxes and have an increasing estate tax and ongoing income tax exposure.
The primary planning goals are to:
-Make sure that they have sufficient funds to live on for the rest of their lives (approx. $1,600,000/yr. after taxes and gifts).
-Assure that Duncan's, Inc. does not have to be liquidated as a result of their death.
-Provide a successful transition of the business to their son, Jason, while ensuring an equal inheritance for their son, Jeremy. They would like to leave 50% of their estate to Jason & Jeremy and another 25% to their grandchildren and other family members.
-They wish to continue annual giving to their family foundation and ultimately leave 25% of their estate to the foundation at death.
-Make sure the company buy/sell agreement accurately reflects the wishes of the family owners in the most tax efficient manner possible.
-Eliminate or reduce estate taxes.
Crowdfunding In The Kitchen - Seattle Chefs Collaborative National Sustainabl...Gregory Heller
Crowd-funding in the kitchen: non-traditional financing and funding for your food-related project
Small business owners have found it difficult to access tradition financing from banks over the past few years. An increasing number of them, including chefs and value added producers, have turned toward crowd funding to put together the capital necessary to start or expand their businesses. From food trucks to fine dining, a variety of different models have been successfully employed. What’s worked? What’s flopped? We’ll discuss with our colleagues who have gotten help from the crowd to fund their projects. Whether by Kickstarter or pre-sale of discounted goods or gift cards, crowd funding builds on the familiar concept of Community Supported Agriculture (CSA) and takes it to the next level. Moderated by Gregory Heller, Seattle Chefs Collaborative. Presenters include Tim Crosby and Arno Hesse, both of Slow Money, chef Thierry Rautureau of Luc and Rover’s restaurants, and Jared Stoneberger of the Lark Cookbook Project.
WFG - Helping People Create Better Financial Futurespetervinhong
This presentation gives an overview of why WFG associates go to work each day: to build and protect wealth for families and individuals. It overviews the six components of WFG\'s financial needs analysis and describes fundamental financial concepts and strategies - such as the rule of 72 - that can help people secure their financial futures.
InKnowVision July 2014 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Review the recording as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
InKnowVision June 2014 HNW Case Study - Martin FWGAInKnowVision
Jim and Jan are 60 and 52 respectively. Several years ago they started up a national sales and education business. After a few years getting the business off the ground and building their intellectual property, the capture of new markets and increased margins are generating rapidly increasing revenues and profits. As a result, they have recently been approached by a 3rd party buyer and it has motivated them to begin thinking about their business succession plan. Their eldest son has become very involved in the business, playing an ever increasing role in day to day operations, and would like to take the business over at some point.
Their current net worth is approx. $22M with $20M tied up in the business. Until now, all of the profits were reinvested into the business to help generate their rapid growth. Jim and Jan feel they can finally afford to distribute some of the excess profits and begin to plan for their future retirement.
The primary planning goals are to:
- Build personal wealth outside of the business.
- Create a business succession/transition plan.
- Equalize the inheritances for their children.
- Provide pathways into the business should their other 3 sons decide to participate.
- Support their church and other community causes through charitable planning.
- Protect the business and family wealth from estate taxes
InKnowVision March 2014 Buy-Sell Problem Solver Case StudyInKnowVision
Last month we unveiled our Buy-Sell Problem Solver™ client engagement tool which includes:
- Legal Audit
- Tax Minimizer
- Value Identifier
- Funding Review
This new tool is specifically designed to help advisors quickly engage new business clients and uncover advanced planning opportunities.
View the recording for a case study showing how InKnowVision’s Buy-Sell Problem Solver™ led to a comprehensive planning engagement with a family business worth over $100M.
The owners of this successful family business thought they were doing everything right:
- They had a buy-sell agreement in place
- Their agreement was fully funded with insurance
- They continually updated their insurance to keep pace with the growing company value
Unfortunately, the agreement they had in place was going to cost the family millions of dollars in unnecessary taxes when it was triggered. Join us to learn how we helped this family solve a significant problem they didn’t know they had.
Who should attend:
- Investment Advisors
- CPAs
- Attorneys
- Insurance Professionals
InKnowVision February 2014 Case Study - Anderson FWGAInKnowVision
Jeff is 75 and Theresa is 72. Jeff recently retired from an executive position in a public company. As a result of his retirement he exercised over $45M in stock options and has 5 more years of deferred compensation payments. Jeff has also sold his 50% interest in his Corporation and the note payments are providing significant income for the next 9 years.
Jeff and Theresa have annual living expense desires of $725,000, with the available income to more than meet this need. Jeff’s deferred compensation payments average more than $2M/yr. for the next 5 years; his annual pension payments are $660k/yr. (inflating); and he also has note payments totaling $360k/yr. for the next 9 years from the buyout of his Corporation interests. These sources of income are in addition to an investment portfolio in excess of $60M that comprises a large portion of their $90M net worth.
The primary planning goals are to:
- Provide an inheritance to their children in a manner which will enable them to create opportunities for themselves but not encourage them to be unproductive.
- Provide for a charitable gift at death to their family foundation as long as it doesn’t greatly diminish the amount they pass to their heirs.
- Eliminate or reduce estate taxes.
InKnowVision December 2013 Case Study - Watson FWGAInKnowVision
Ben and Sara Watson are 55 and 54 respectively. They own and operate a very profitable well drilling and maintenance business that has allowed them to acquire and accumulate oil and gas rights totaling $30M over the last 5 years. These oil and gas rights are generating in excess of $1.5M a year on top of the $925k of income from their separate drilling and maintenance business. Ben and Sara have 3 daughters. Their youngest daughter, Katie, and her husband have played key roles in growing Watson Drilling. Ben would like to begin transitioning the business to them and ultimately leave them with the benefit of the business. With the business going to just one of the daughters, Ben and Sara want to equalize the inheritance to their other two daughters. For this, they have already purchased four whole life insurance policies. Two of these policies have significant loans against them and very little cash surrender value. With premiums totaling $400k for the four policies, all owned inside their estate, and insufficient death benefit to cover potential estate taxes and equalize the daughters’ inheritances, these policies may not meet the family’s needs.
The primary planning goals are to:
-Maintain their customary base lifestyle need of $250,000, with approximately another $750,000 for discretionary and other expenses.
-Provide for the financial security of the surviving spouse.
Provide a succession plan that will allow for a smooth transition of Watson Drilling to their daughter, Katie.
-Assure they have sufficient liquid assets available at their deaths to eliminate the forced liquidation of business or real estate assets.
-Maximize the inheritance that they leave for their children and grandchildren.
InKnowVision November 2013 HNW Technical PPT - Liquidity PlanningInKnowVision
In this presentation we looked at the problem seen in many large estates - the lack of liquidity to deal with estate equalization, estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
View this recording to see various designs for creating liquidity.
InKnowVision September 2013 Captive Insurance PowerpointInKnowVision
After completing this course, you will be able to:
- Identify the benefits of Captive Insurance companies
- Differentiate which clients would be ideal for a Captive
- List the necessary steps to form a Captive
- Define and address Captive tax issues
- Apply all of the processes to form a successful Captive Insurance company
InKnowVision August 2013 HNW Technical PPT - Family BanksInKnowVision
One of the common themes that we continue to see among our clients is the idea that leaving too much money to children will spoil them. InKnowVision often employs the family bank concept to help people understand how they can re-gain control in this complex area.
Join us as we look at this interesting concept and understand how to present it to clients, how to determine the client profile for this strategy and how to implement this type of planning.
InKnowVision July 2013 HNW Marketing PPTInKnowVision
Using HNW Content on LinkedIn to Market Your Firm
In this high net worth marketing webinar, we will focus on using HNW content on LinkedIn.
You will learn:
- How using HNW content on LinkedIn attracts your ideal client, referral sources and more
- Why regular updates to your LinkedIn profile using HNW content matters
- Which types of content posted on LinkedIn actually make a difference
Join us for the fourth part of our HNW Content Marketing Series. We will also be featuring a short Q&A with a current Educate2Motivate customer who will describe how content marketing has helped him reach his target market.
InKnowVision July 2013 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Join us as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
InKnowVision June 2013 HNW Marketing PPTInKnowVision
5 HNW Content Strategies You Won't Want To Miss
Recently we’ve shared with you why you need to use high net worth content and how to find it. Now it’s time to learn how to deploy high net worth content and start measuring your results.
In this high net worth marketing webinar, we will show you:
-What top 5 strategies are most important in reaching the high net worth
-How these top 5 strategies are used to deploy high net worth content
-Why they have the most impact on your high net worth audience
-Who will benefit most using these 5 top strategies
InKnowVision June 2013 HNW Technical PPT - Buy Sell PlanningInKnowVision
"Buy Sell Planning"
Redemption, cross purchase, hybrid or entity. Which is the best way to approach a buy sell for your clients? How best to fund the buy sells? And should you be using these agreements at all? Each of these will be on the table for discussion during this engaging session.
InKnowVision May 2013 HNW Marketing PPT - Content Marketing Part IIInKnowVision
In this session, we’ll discuss how HNW content marketing is measured and what return on investment you can expect when implementing even the simplest content marketing strategies.
Content marketing is a multiplier strategy, meaning that you can leverage one piece of content up to 10 different ways. Talk about a return on your investment!
The key however is to deliver exceptional content on a consistent basis. When it comes to the high net worth, content marketing will make the largest impact in creating “online” trust and lead nurturing hands down.
This will be 25 minutes of jam packed content marketing information you won’t want to miss.
InKnowVision March 2013 HNW Technical PPT - Liquidity Needs in Estate PlanningInKnowVision
In this presentation we’ll be looking at the problem seen in many large estates - The lack of liquidity to deal with estate equalization and liquidity for areas such as estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
In this session we will look at various designs for creating liquidity.
InKnowVision February 2013 HNW Marketing PPTInKnowVision
In this 25 minute HNW marketing webinar you will learn:
What current trends are driving HNW planning
How successful HNW Marketing retooling can bring new opportunities
Why Content Marketing is the #1 strategy in the search for top HNW advisors
When your existing book of business is your best HNW lead source
InKnowVision strives to bring you the most current marketing strategies to stay on top of your HNW prospect and client opportunities. We hope you will join us for this informative live HNW marketing webinar.
InKnowVision February 2013 HNW Technical PPT - Captive InsuranceInKnowVision
Scott Hamilton, CEO of InKnowVision, will discuss the use of captive insurance companies for estate planning, business tax planning, risk management and income tax benefits. All of these benefits can be substantial for the right company. As a CPA, attorney or financial advisor you will want to learn about captive insurance planning to help your clients reduce their tax liability, transfer more wealth out of their estate, manage risk, and much more.
This program is ideal for those who wish to reach the HNW market and those who have business clients with gross revenues of $10M and higher.
InKnowVision January 2013 HNW Marketing PPTInKnowVision
In this 30 minute webinar, you will learn:
Why $30M-$49M in net worth is the fastest growing segment
How you can attract these HNW clients
What three new marketing messages you must use in 2013
Why you need to prepare your marketing plan now
Learn more at www.inknowvision.com
InKnowVision November 2012 HNW Marketing PPTInKnowVision
2013 is Poised to be a Banner Year for HNW Planners:
Will you be one of them?
In this 25 minute HNW marketing webinar you will learn:
Why $30M-$49M in net worth is the fastest growing segment
How you can attract these HNW clients
What three new marketing messages you must use in 2013
Why you need to prepare your marketing plan now
InKnowVision November 2012 Special HNW Marketing Webinar - Tom KaszaInKnowVision
Our guest speaker Tom Kasza of Hillard Heintze will educate us on why HNW clients need a security strategy today. By designing and implementing security strategies your HNW client can be prepared for managing unforeseen personal security risks.
You will learn:
How to introduce this service to your HNW clients
How it will elevate you in your HNW market place
How to identify potential risks to your HNW clients
InKnowVision October 2012 HNW Technical Webinar w/ Guest Presenter Bob ScarlataInKnowVision
As an investment banker for some 26 years who has sold dozens of middle market privately held companies to private equity groups throughout the U.S. and Canada, Bob Scarlata will describe for us how private equity groups make their money and how private business owners can benefit and profit from their professional management strategies.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
2. FAMILY WEALTH GOAL ACHIEVER™ - INITIAL
PREPARED FOR:
JEFF AND THERESA ANDERSON
February 1, 2012
DRAFT FOR DISCUSSION PURPOSES ONLY
PRESENTED BY
Scott Hamilton
InKnowVision, LLC
715 Enterprise Dr.
Oak Brook, IL 60523
scott@ikvllc.com
(630) 596-5090
Copyright 2012 InKnowVision, LLC
3. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
JEFF AND THERESA ANDERSON
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)
Anderson Family Annuity
Walton GRAT Charitable Life Estate NIMCRUT Asset Protection SPIA/Life Arbitrage
Foundation Withdrawal
Charitable Bequest Revocable Living
International
SPIA/Life in a CLAT of $10M to Family Trusts, DPAs and Crummey Powers Dynasty Trust GDOT
VUL
Foundation POAs
International
Supporting
IRA to Charity Gift Annuity Remainder Sales Life Estates Business Risk LLC/CRTs
Organizations
Management
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 2
5. PERSONAL LIVING EXPENSES vs. AVAILABLE CASH FLOW
JEFF AND THERESA ANDERSON
$6,000,000
$5,000,000
Deferred Comp payments
end in 2016
$4,000,000
$3,000,000 -
$2,000,000
$1,000,000
$-
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Proposed Living Expenses Proposed Annual Cash Flow
Illustration compares your living expenses under the proposed plan as against your annual cash flow available.
Page 4
6. YOUR LIQUID ASSETS - CURRENT PLAN VS. PROPOSED PLAN
JEFF AND THERESA ANDERSON
$220,000,000
$200,000,000
$180,000,000
$160,000,000
The liquidity gap is created through
valuation adjustments and a freeze
$140,000,000
on the value of assets inside of your
estate with the notes from sale
$120,000,000 -
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$-
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Readily Liquid Assets - Proposed Liquidity Available from GDOT Notes - Proposed Current Liquid Assets
This illustration reflects the amount of liquid assets available to you during life under the current plan assumptions as against the proposed plan
assumptions. Liquid assets include cash, securities, bonds (corporate and municipal), annuities and retirement funds. Due to the nature of the assets
involved in the Trust transaction there is liquidity available during life from the Trust notes.
Page 5
7. JEFF AND THERESA ANDERSON
INCREASE INHERITANCE
AND REDUCE ESTATE TAX
Page 6
8. COMPARISON OF PLAN RESULTS - PLAN YEAR 2012
JEFF AND THERESA ANDERSON
Existing Plan Proposed Plan Advantage
Estate Value $ 97,373,504 $ 81,325,584
Total Benefits to Family $ 62,325,076 $ 114,627,062 $ 52,301,985
Family Charity $ 15,687,087 $ 15,687,087 $ -
Estate and Income Tax $ 28,277,506 $ 24,998,429 $ 3,279,076
This chart assumes that you both die this year and compares the results of the current plan with the proposed plan.
Page 7
9. COMPARISON OF PLAN RESULTS - PLAN YEAR 2031
JEFF AND THERESA ANDERSON
Existing Plan Proposed Plan Advantage
Estate Value $ 233,163,934 $ 132,306,482
Total Benefits to Family $ 105,490,474 $ 171,375,204 $ 65,884,730
Family Charity $ 19,816,617 $ 19,816,617 $ -
Estate and Income Tax $ 122,087,556 $ 67,334,516 $ 54,753,039
Present Value of total to Heirs $60,159,743 $97,732,884
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 8
10. ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED
JEFF AND THERESA ANDERSON
$180,000,000
$160,000,000
$140,000,000
$120,000,000
-
$100,000,000
$80,000,000
$60,000,000
$40,000,000
nt
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ur
C
Current Plan Proposed Plan
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 9
11. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
JEFF AND THERESA ANDERSON
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 10
12. CREATE AND FUND A FAMILY LIMITED PARTNERSHIP
JEFF AND THERESA ANDERSON
Jeff and Theresa 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.
JEFF & THERESA FAMILY LIMITED PARTNERSHIP
LP & LLC interests are split between Jeff &
Theresa
LLC GP SHARES LP SHARES
1% 99%
Page 11
13. CREATE AND FUND A FAMILY LIMITED PARTNERSHIP
JEFF AND THERESA ANDERSON
Jeff and Theresa transfer $37,622,700 of assets to the limited partnership.
JEFF & THERESA FAMILY LIMITED PARTNERSHIP
$37,622,700
Detail of Assets Transferred
Securities Acct. 34,282,700
Corp Sale Note (50%) ** 3,240,000
Energy Investment 100,000
Total Assets Contributed 37,622,700
Page 12
14. HAVE THE LIMITED PARTNERSHIP SHARES APPRAISED
JEFF AND THERESA ANDERSON
Jeff and Theresa 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
JEFF & THERESA Appraisal FAMILY LIMITED PARTNERSHIP
Valuation adjustment
Appraised value of LP shares is $30,098,160 assumed to be 20% Inside value of assets is $37,622,700
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 13
15. BUSINESS PURPOSE
JEFF AND THERESA ANDERSON
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 14
16. CREATE GRANTOR DEEMED OWNER TRUSTS
JEFF AND THERESA ANDERSON
Jeff and Theresa create individual grantor deemed owner trusts (GDOT).
The Trusts can be drafted to provide asset protection and long term estate tax savings through the use of dynasty trust provisions.
JEFF JEFF's GDOT
THERESA THERESA's GDOT
HEIRS
Theresa may be a discretionary
beneficiary of Jeff's Trust
Note: Jeff may also be a discretionary beneficiary of Theresa's trust. Attention should be paid to avoid reciprocal trust doctrine.
Page 15
17. GIFT TO GRANTOR DEEMED OWNER TRUST
JEFF AND THERESA ANDERSON
Jeff and Theresa each make a gift of $3,250,000 in cash/securities to their individual GDOT. This gift is designed to give each trust
economic substance and maximize their available lifetime exemption.
JEFF JEFF's GDOT
$3,250,000
THERESA $3,250,000 THERESA's GDOT
Note: After 2012, the exemption may be reduced back down to $1M. This locks in the use of the $5M exemption.
Page 16
18. SELL PARTNERSHIP SHARES TO EACH GDOT
JEFF AND THERESA ANDERSON
Jeff and Theresa sell their limited partnership shares to their individual GDOTs for an installment note.
Sell their combined limited
partnership shares worth
JEFF & THERESA $30,098,160 GDOTs
Jeff and Theresa own an installment note The GDOTs own LP shares worth
after the sale Installment note with a $30,098,160 after the sale
value of $30,098,160 that
provides annual payments
of $791,582
The sale price is based on the assumed value of the assets
sold.
HEIRS
Receive assets in the future according to
*Note payments are assumed to be interest only at Jan.
terms of the trust
2012 long term AFR of 2.63%.
** The note can be re-financed or paid off during the term of the note.
Page 17
19. PURCHASE LIFE INSURANCE IN THE GDOT
JEFF AND THERESA ANDERSON
The GDOT Trustees purchase second-to-die life insurance with the assets of the two GDOTs.
Premium in the amount of
$1,175,000 is scheduled to be
GDOTs paid for all years with assets of LIFE INSURANCE
the GDOTs.
Own Life Insurance $50,000,000
Policy Benefits:
- Used as wealth replacement, it can allow increased charitable giving that reduces or eliminates
estate taxes but ensures a significant inheritance for your heirs
- Policy has a good tax-free return on investment (see IRR page)
- Increased inheritance in trust for heirs
- Over time, annual premiums paid into this vehicle (which is income and estate tax free) will
reduce the income taxes from other investment assets subject to income taxes
The premium is based on certain assumptions. This is for illustration purposes only. Actual insurance numbers can only be
determined by applying for insurance.
Page 18
21. COMPARISON OF POTENTIAL PLAN RESULTS - PLAN YEAR 2022
JEFF AND THERESA ANDERSON
Existing Plan Proposed Plan A Proposed Plan B ** Proposed Plan C**
Heirs Receive Immediately $ 69,439,755 $ 129,450,502 $ 107,056,032 $ 86,844,710
Deferred Inheritance** $ - $ - $ 14,878,130 $ 29,756,259
Total Benefits to Family $ 69,439,755 $ 129,450,502 $ 121,934,162 $ 116,600,969
Family Charity $ 17,571,894 $ 17,571,894 $ 67,337,383 $ 112,705,210
Estate and Income Tax $ 78,617,525 $ 52,527,524 $ 25,156,505 $ -
** Plans B & C use charitable techniques at death that decrease estate taxes and could provide a deferred inheritance.
This chart assumes that you both die in 2022 and compares the results of the current plan with the proposed plan(s).
Page 20
22. DETAILED FINANCIAL ANALYSIS
JEFF AND THERESA ANDERSON
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 21
23. DETAILED FINANCIAL ANALYSIS
JEFF AND THERESA ANDERSON
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 22
25. CURRENT NET WORTH STATEMENT (Page 2)
JEFF AND THERESA ANDERSON
JEFF THERESA JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
Corp Sale Note (50%) ** 3,240,000 - - 3,240,000 0.0% 0.0%
LLC Investment 1 1,824,000 - - 1,824,000 0.0% 3.0%
LLC Investment 2 1,126,000 - - 1,126,000 0.0% 3.0%
LLC Investment 2 1,051,000 - - 1,051,000 0.0% 3.0%
LLC Investment 3 750,000 - - 750,000 0.0% 3.0%
LLC Investment 4 640,000 - - 640,000 0.0% 3.0%
LLC Investment 5 633,000 - - 633,000 0.0% 3.0%
Oil & Gas Ventures 300,000 - - 300,000 0.0% 3.0%
LLC Investment 6 270,000 - - 270,000 0.0% 3.0%
LLC Investment 7 225,000 - - 225,000 0.0% 3.0%
LLC Investment 8 210,000 - - 210,000 0.0% 3.0%
LLC Investment 9 200,000 - - 200,000 0.0% 3.0%
LLC Investment 10 50,000 - - 50,000 0.0% 3.0%
Energy Investment 100,000 - - 100,000 120.0% 0.0%
Total of Other Investments 10,619,000 - - 10,619,000 1.1% 2.1%
** Value reflects the remaining 9 years of payments due from buyout.
EMPLOYEE BENEFITS
Corp Outstanding Stock Options 353,300 - - 353,300 0.0% 5.0%
Other Stock Options 260,200 - - 260,200 0.0% 5.0%
Total Employee Benefits 613,500 - - 613,500 0.0% 5.0%
Page 24
26. CURRENT NET WORTH STATEMENT (Page 3)
JEFF AND THERESA ANDERSON
JEFF THERESA JOINT TOTAL YIELD GROWTH
RETIREMENT PLANS/IRAs
SEP/IRA 54,400 - 54,400 0.0% 5.0%
IRA - 25,000 25,000 0.0% 5.0%
401(k) 4,555,000 - 4,555,000 0.0% 5.0%
Total Retirement Plans 4,609,400 25,000 4,634,400 0.0% 5.0%
RESIDENTIAL REAL ESTATE
123 Main St. 2,387,500 2,387,500 - 4,775,000 0.0% 0.0%
2nd Residence (QPRT) 1,000,000 1,000,000 - 2,000,000 0.0% 2.0%
Vacation Homes 1,000,000 1,000,000 - 2,000,000 0.0% 2.0%
Europe Home 500,000 500,000 - 1,000,000 0.0% 2.0%
Lake Home 32,500 32,500 - 65,000 0.0% 2.0%
Total of Personal Residences 4,920,000 4,920,000 - 9,840,000 0.0% 1.0%
PERSONAL PROPERTY
Collections/Art/Jewelry 250,000 250,000 - 500,000 0.0% 0.0%
Autos 50,000 50,000 - 100,000 0.0% 0.0%
Furnishings 200,000 200,000 - 400,000 0.0% 0.0%
Total of Personal Property 500,000 500,000 - 1,000,000 0.0% 0.0%
TOTAL ASSETS 53,562,522 38,755,622 - 92,318,143
TOTAL LIABILITIES - - - -
NET WORTH 53,562,522 38,755,622 - 92,318,143
Page 25
27. SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN
JEFF AND THERESA ANDERSON
COMPANY INSURED POLICY # BENEFICIARY PREMIUM CASH VALUE DEATH BENEFIT
Policies owned by Jeff
UL Policy 2nd to die # Children 41,806 - 2,064,053
Totals 41,806 - 2,064,053
Policies owned by ILIT
UL Policy 2nd to die # ILIT 48,850 - 3,005,028
Totals 48,850 - 3,005,028
Page 26
28. FINANCIAL ANALYSIS - EXISTING PLAN ASSET VALUE PROJECTIONS - EXISTING PLAN
613,500 613,500 644,175 676,384 710,203 906,419 1,156,846
2,000,000 2,036,572 2,077,303 2,118,849 2,161,226 2,386,169 2,634,523
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Asset Values
Cash and cash equivalents 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000
Investment Assets 63,183,243 68,296,961 73,403,462 78,890,220 84,786,054 113,416,288 147,976,189 204,188,541
Other investments 10,619,000 10,458,650 10,313,723 10,165,815 10,014,866 9,212,261 10,199,235 11,524,160
Employee Benefits 613,500 613,500 644,175 676,384 710,203 906,419 1,156,846 1,550,284
Retirement plans/IRAs 4,634,400 4,643,737 4,664,970 4,678,304 4,681,904 4,541,768 4,079,678 3,077,245
Personal residences 1 9,840,000 9,932,656 10,034,910 10,138,216 10,242,587 8,394,608 8,835,697 9,395,704
Personal property 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Total assets in estate 92,318,143 97,373,504 102,489,239 107,976,939 113,863,613 139,899,343 175,675,646 233,163,934
Combined net worth $ 92,318,143 $ 97,373,504 $ 102,489,239 $ 107,976,939 $ 113,863,613 $ 139,899,343 $ 175,675,646 $ 233,163,934
1
Assumes the 2nd residence was put in a 15 yr. QPRT in 2004. Beginning in 2020, the residence is outside of Jeff & Theresa's estate.
In the event that there is a cash flow surplus, the surplus is added to the investment assets 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 investment assets.
Page 27
29. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Sources of taxable income
Investment Assets 1,741,935 1,882,918 2,023,702 2,174,970 2,960,192 3,867,496 5,334,455
Other investments 120,000 120,000 120,000 120,000 120,000 120,000 120,000
Retirement plans/IRAs 202,260 210,954 219,915 230,315 281,618 330,440 359,295
1
Deferred Compensation 1,989,119 2,128,357 2,277,342 2,436,756 - - -
2
Corp Buyout 360,000 360,000 360,000 360,000 360,000 - -
Social security income 35,431 35,431 35,431 35,431 35,431 35,431 35,431
Pension income 660,000 669,900 679,949 690,148 743,485 800,945 875,787
Gross income $ 5,108,745 $ 5,407,559 $ 5,716,338 $ 6,047,619 $ 4,500,726 $ 5,154,312 $ 6,724,967
1
Deferred compensation payments are made until 2016.
2
$30,000/month payments over the next 9 years.
Page 28
30. INCOME TAX PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Income tax Estimation
Adjusted gross income:
Dividend income (marketable sec.) 1,741,935 1,882,918 2,023,702 2,174,970 2,960,192 3,867,496 5,334,455
Earned and other income 3,366,810 3,524,641 3,692,636 3,872,649 1,540,533 1,286,815 1,390,513
Adjusted gross income 5,108,745 5,407,559 5,716,338 6,047,619 4,500,726 5,154,312 6,724,967
Deductions
Real estate tax 92,000 92,000 93,840 95,717 97,631 107,793 119,012 134,027
Charitable gifts to Family Foundation 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Charitable Deduction available 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Charitable Deduction allowed 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total deductions 102,000 103,840 105,717 107,631 117,793 129,012 144,027
Reductions - (83,072) (84,573) (86,105) (94,234) (103,209) (115,221)
Deductions allowed 102,000 20,768 21,143 21,526 23,559 25,802 28,805
Taxable income 5,006,745 5,386,791 5,695,195 6,026,093 4,477,167 5,128,509 6,696,162
Federal income tax $ 1,373,113 $ 2,096,364 $ 2,218,491 $ 2,349,527 $ 1,736,153 $ 1,994,084 $ 2,614,875
Page 29
31. CASH FLOW PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Sources of income for Lifestyle
Non-taxable Social Security Income 6,252 6,252 6,252 6,252 6,252 6,252 6,252
Consumable income (taxable) 5,108,745 5,407,559 5,716,338 6,047,619 4,500,726 5,154,312 6,724,967
Total income available for lifestyle 5,114,997 5,413,812 5,722,590 6,053,871 4,506,978 5,160,564 6,731,220
Uses of Cash
Living expenses 725,000 739,500 754,290 769,376 849,453 937,865 1,056,188
Income tax 1,373,113 2,096,364 2,218,491 2,349,527 1,736,153 1,994,084 2,614,875
Personally held insurance premiums 41,806 41,806 41,806 41,806 41,806 41,806 41,806
Cash gifts to ILIT 48,850 48,850 48,850 48,850 48,850 48,850 48,850
Cash gifts to family 158,000 158,000 158,000 158,000 158,000 158,000 158,000
Cash gifts to Family Foundation 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total uses of cash 2,356,769 3,094,520 3,231,437 3,377,559 2,844,262 3,190,605 3,929,719
Surplus $ 2,758,228 $ 2,319,292 $ 2,491,153 $ 2,676,313 $ 1,662,717 $ 1,969,959 $ 2,801,501
In the event that there is a cash flow surplus, the surplus is added to the investment assets 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 30
32. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Tax calculation on Jeff's death
Combined net worth 92,318,143 97,373,504 102,489,239 107,976,939 113,863,613 139,899,343 175,675,646 233,163,934
Jeff's estimated estate 53,562,522 56,495,617 59,463,740 62,647,676 66,063,095 81,168,894 101,926,125 135,280,540
Death benefit exceeding CV 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053
Total gross estate 55,626,575 58,559,670 61,527,793 64,711,729 68,127,148 83,232,947 103,990,178 137,344,593
Settlement expenses (303,133) (317,798) (332,639) (348,559) (365,636) (441,165) (544,951) (711,723)
Joint, personal and IRA to Theresa (5,109,400) (5,118,687) (5,139,805) (5,153,067) (5,156,647) (5,017,267) (4,557,671) (3,560,645)
Insurance passing to Theresa (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053)
Outright or in trust to Theresa (44,750,726) (47,659,869) (53,991,296) (57,146,051) (60,540,812) (75,710,462) (96,823,503) (131,008,172)
Taxable estate 3,399,263 3,399,263 - - - - - -
Plus Jeff's lifetime taxable gifts 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737
Tax base 5,120,000 5,120,000 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737
Federal Estate Tax - - - - - - - -
Distribution of Jeff's estate
Settlement expenses 303,133 317,798 332,639 348,559 365,636 441,165 544,951 711,723
To family trust 3,399,263 3,399,263 - - - - - -
Joint, personal and IRA to Theresa 5,109,400 5,118,687 5,139,805 5,153,067 5,156,647 5,017,267 4,557,671 3,560,645
Insurance passing to Theresa 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053
Outright or in trust to Theresa 44,750,726 47,659,869 53,991,296 57,146,051 60,540,812 75,710,462 96,823,503 131,008,172
Total $ 55,626,575 $ 58,559,670 $ 61,527,793 $ 64,711,729 $ 68,127,148 $ 83,232,947 $ 103,990,178 $ 137,344,593
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of First Estate" include estate and income taxes.
Page 31
33. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Tax Calculation on Theresa's death
Theresa's assets 38,755,622 40,877,888 43,025,499 45,329,263 47,800,518 58,730,449 73,749,521 97,883,394
Plus assets from Jeff's estate 51,924,179 54,842,608 61,195,154 64,363,171 67,761,512 82,791,782 103,445,227 136,632,870
Theresa's estimated estate 90,679,800 95,720,496 104,220,653 109,692,434 115,562,030 141,522,231 177,194,748 234,516,264
Charitable Bequest (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000)
Settlement expenses (931,798) (982,205) (1,067,207) (1,121,924) (1,180,620) (1,440,222) (1,796,947) (2,370,163)
Theresa's taxable estate 79,208,002 84,198,291 92,613,447 98,030,509 103,841,410 129,542,009 164,857,800 221,606,101
Plus Theresa's lifetime taxable gifts 1,714,582 1,714,582 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Tax base 80,922,584 85,912,873 93,613,447 99,030,509 104,841,410 130,542,009 165,857,800 222,606,101
Federal Estate Tax 26,530,904 28,277,506 51,141,596 54,120,980 57,316,975 71,452,305 90,875,990 122,087,556
Total Estate Tax Due 26,530,904 28,277,506 51,141,596 54,120,980 57,316,975 71,452,305 90,875,990 122,087,556
Distribution of Theresa's estate
Settlement expenses 931,798 982,205 1,067,207 1,121,924 1,180,620 1,440,222 1,796,947 2,370,163
Taxes 26,530,904 28,277,506 51,141,596 54,120,980 57,316,975 71,452,305 90,875,990 122,087,556
Qualified plan to heirs 4,634,400 4,643,737 4,664,970 4,678,304 4,681,904 4,541,768 4,079,678 3,077,245
Charitable Bequest 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000
Residual estate to heirs 48,042,698 51,277,048 36,806,881 39,231,226 41,842,531 53,547,936 69,902,132 96,441,301
Total $ 90,679,800 $ 95,720,496 $ 104,220,653 $ 109,692,434 $ 115,562,030 $ 141,522,231 $ 177,194,748 $ 234,516,264
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of Second Estate" include estate and income taxes.
Page 32
34. SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Benefits to Family
Family trust 3,399,263 3,399,263 - - - - - -
Residual estate 48,042,698 51,277,048 36,806,881 39,231,226 41,842,531 53,547,936 69,902,132 96,441,301
Qualified plan assets 4,634,400 4,643,737 4,664,970 4,678,304 4,681,904 4,541,768 4,079,678 3,077,245
QPRT - 2nd Residence 1 - - - - - 2,386,169 2,634,523 2,966,901
Proceeds from ILIT 3,005,028 3,005,028 3,005,028 3,005,028 3,005,028 3,005,028 3,005,028 3,005,028
Total assets to heirs $ 59,081,389 $ 62,325,076 $ 44,476,879 $ 46,914,557 $ 49,529,462 $ 63,480,901 $ 79,621,361 $ 105,490,474
Estate Taxes $ 26,530,904 $ 28,277,506 $ 51,141,596 $ 54,120,980 $ 57,316,975 $ 71,452,305 $ 90,875,990 $ 122,087,556
1
Assumes the 2nd residence was put in a 15 yr. QPRT in 2004. Beginning in 2020, the residence is outside of Jeff & Theresa's estate.
Page 33
35. ANDERSON FAMILY FOUNDATION DETAILS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Anderson Family Foundation
Beginning of Year Foundation Value 5,000,000 5,137,087 5,301,500 5,470,845 5,645,270 6,599,100 7,704,849 9,266,617
Annual Contributions 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Amount passing to charity (EOY) 5,000,000 5,147,087 5,311,500 5,480,845 5,655,270 6,609,100 7,714,849 9,276,617
Charitable Bequest** 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000
Total to Charity 15,540,000 15,687,087 15,851,500 16,020,845 16,195,270 17,149,100 18,254,849 19,816,617
** The Charitable Bequest includes $540,000 in bequests to various charitable organizations and $10,000,000 to the Anderson Family Foundation.
Page 34
36. DETAILS OF JEFF'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Jeff's Qualified Plans
Jeff's Age 75 76 77 78 83 88 94
Theresa's Age 72 73 74 75 80 85 91
Minimum distribution factor 22.9 22.0 21.2 20.3 16.3 12.7 9.1
Plan contributions - - - - - - -
Plan balance 4,609,400 4,618,572 4,639,566 4,652,696 4,656,134 4,515,912 4,055,284 3,057,094
Minimum distribution 201,284 209,935 218,847 229,197 280,230 328,762 357,346
Preferred distribution - - - - - - -
Actual distribution 201,284 209,935 218,847 229,197 280,230 328,762 357,346
Page 35
37. DETAILS OF THERESA'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Theresa's Qualified Plans
Theresa's Age 72 73 74 75 80 85 91
Jeff's Age 75 76 77 78 83 88 94
Minimum distribution factor 25.6 24.7 23.8 22.9 18.7 14.8 10.8
Plan contributions - - - - - - -
Plan balance 25,000 25,165 25,404 25,607 25,769 25,855 24,394 20,151
Minimum distribution 977 1,019 1,067 1,118 1,387 1,678 1,949
Preferred distribution - - - - - - -
Actual distribution 977 1,019 1,067 1,118 1,387 1,678 1,949
Page 36
38. DETAILED FINANCIAL ANALYSIS
JEFF AND THERESA ANDERSON
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 37
39. NET WORTH STATEMENT AFTER PLAN IMPLEMENTATION
JEFF AND THERESA ANDERSON
JEFF THERESA JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Cash Acct 250,000 250,000 - 500,000 0.0% 0.0%
Cash Acct 100,000 100,000 - 200,000 0.0% 0.0%
Cash Acct 464,000 464,000 - 928,000 0.0% 0.0%
Cash Acct 400,000 400,000 - 800,000 0.0% 0.0%
Total of Cash and Equivalents 1,214,000 1,214,000 - 2,428,000 0.0% 0.0%
INVESTMENT ASSETS
Securities Acct. 9,442,850 9,442,850 - 18,885,700 3.0% 4.0%
Securities Acct. 1,004,550 1,004,550 - 2,009,100 0.0% 5.0%
Securities Acct. 516,150 516,150 - 1,032,300 0.0% 5.0%
Securities Acct. - 1,010,000 - 1,010,000 0.0% 5.0%
Securities Acct. 505,500 505,500 - 1,011,000 0.0% 5.0%
Securities Acct. 28,172 28,172 - 56,343 0.0% 5.0%
Securities Acct. 2,448,050 2,448,050 - 4,896,100 3.0% 4.0%
Total of Investment Assets 13,945,272 14,955,272 - 28,900,543 2.5% 4.2%
Page 38
41. REVISED NET WORTH STATEMENT (Page 3)
JEFF AND THERESA ANDERSON
JEFF THERESA JOINT TOTAL YIELD GROWTH
RESIDENTIAL REAL ESTATE
123 Main St. 2,387,500 2,387,500 - 4,775,000 0.0% 0.0%
2nd Residence (QPRT) 1,000,000 1,000,000 - 2,000,000 0.0% 2.0%
Vacation Homes 1,000,000 1,000,000 - 2,000,000 0.0% 2.0%
Europe Home 500,000 500,000 - 1,000,000 0.0% 2.0%
Lake Home 32,500 32,500 - 65,000 0.0% 2.0%
Total of Personal Residences 4,920,000 4,920,000 - 9,840,000 0.0% 1.0%
PERSONAL PROPERTY
Collections/Art/Jewelry 250,000 250,000 - 500,000 0.0% 0.0%
Autos 50,000 50,000 - 100,000 0.0% 0.0%
Furnishings 200,000 200,000 - 400,000 0.0% 0.0%
Total of Personal Property 500,000 500,000 - 1,000,000 0.0% 0.0%
OTHER STRATEGY ASSETS
GDOT Note 15,049,080 15,049,080 - 30,098,160 2.63%
Total of Other Strategy Assets 15,049,080 15,049,080 - 30,098,160 2.63%
TOTAL ASSETS 48,130,252 36,663,352 - 84,793,603
TOTAL LIABILITIES - - - -
NET WORTH 48,130,252 36,663,352 - 84,793,603
Page 40
42. FINANCIAL ANALYSIS - PROPOSED PLAN ASSET VALUE PROJECTIONS - PROPOSED PLAN
613,500 613,500 644,175 676,384 710,203 906,419 1,156,846
2,000,000 2,036,572 2,077,303 2,118,849 2,161,226 2,386,169 2,634,523
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Asset Values
Cash and cash equivalents 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000
Investment assets** 22,400,543 25,130,959 27,549,941 30,175,589 33,025,373 43,207,687 54,618,881 71,643,368
Other investments 7,279,000 7,478,572 7,702,929 7,934,017 8,172,037 9,473,631 10,982,535 13,113,721
Employee Benefits 613,500 613,500 644,175 676,384 710,203 906,419 1,156,846 1,550,284
Retirement plans/IRAs 4,634,400 4,643,737 4,664,970 4,678,304 4,681,904 4,541,768 4,079,678 3,077,245
Personal residences 1 9,840,000 9,932,656 10,034,910 10,138,216 10,242,587 8,394,608 8,835,697 9,395,704
Personal property 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Note from children's GDOT 30,098,160 30,098,160 30,098,160 30,098,160 30,098,160 30,098,160 30,098,160 30,098,160
Total assets in estate 78,293,603 81,325,584 84,123,085 87,128,669 90,358,263 100,050,272 113,199,797 132,306,482
Combined net worth $ 78,293,603 $ 81,325,584 $ 84,123,085 $ 87,128,669 $ 90,358,263 $ 100,050,272 $ 113,199,797 $ 132,306,482
1
Assumes the 2nd residence was put in a 15 yr. QPRT in 2004. Beginning in 2020, the residence is outside of Jeff & Theresa's estate.
** Reduced by Seed Gift to GDOT
In the event that there is a cash flow surplus, the surplus is added to the investment assets 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 investment assets.
Page 41
43. TAXABLE INCOME PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Investment assets 552,992 620,396 680,112 744,930 1,020,230 1,287,320 1,691,889
Investment assets - GDOT 1,223,481 1,260,296 1,303,919 1,350,596 1,637,812 1,992,697 2,594,227
1
Deferred Compensation 1,989,119 2,128,357 2,277,342 2,436,756 - - -
Retirement plans/IRAs 202,260 210,954 219,915 230,315 281,618 330,440 359,295
Other taxable earnings - GDOT 480,000 480,000 480,000 480,000 480,000 120,000 120,000
Social security income 35,431 35,431 35,431 35,431 35,431 35,431 35,431
Pension income 660,000 669,900 679,949 690,148 743,485 800,945 875,787
Gross income $ 5,143,283 $ 5,405,333 $ 5,676,667 $ 5,968,176 $ 4,198,576 $ 4,566,832 $ 5,676,628
1
Deferred compensation payments are made until 2016.
Page 42
44. INCOME TAX PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Income Tax Estimation
Adjusted gross income:
Dividend income (Marketable Sec.) 1,776,473 1,880,692 1,984,031 2,095,526 2,658,042 3,280,016 4,286,116
Earned and other income 3,366,810 3,524,641 3,692,636 3,872,649 1,540,533 1,286,815 1,390,513
Adjusted gross income 5,143,283 5,405,333 5,676,667 5,968,176 4,198,576 4,566,832 5,676,628
Deductions
Real Estate Tax 92,000 93,840 95,717 97,631 107,793 119,012 134,027
Cash charitable gifts 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Charitable Deduction available 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Charitable Deduction allowed 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total deductions 102,000 103,840 105,717 107,631 117,793 129,012 144,027
Reductions - (83,072) (84,573) (86,105) (94,234) (103,209) (115,221)
Deductions allowed 102,000 20,768 21,143 21,526 23,559 25,802 28,805
Taxable income 5,041,283 5,384,565 5,655,524 5,946,649 4,175,017 4,541,029 5,647,823
Federal income tax $ 1,378,294 $ 2,095,482 $ 2,202,782 $ 2,318,068 $ 1,616,501 $ 1,761,442 $ 2,199,732
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45. CASH FLOW PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Sources of Income for Lifestyle
Consumable income (taxable) 3,439,802 3,665,038 3,892,748 4,137,580 2,080,764 2,454,135 2,962,402
Non-taxable Social Security Income 6,252 6,252 6,252 6,252 6,252 6,252 6,252
Distribution from Investment assets - - - - - - -
Note Payment from GDOT 791,582 791,582 791,582 791,582 791,582 791,582 791,582
Total income available for lifestyle 4,237,636 4,462,872 4,690,582 4,935,414 2,878,598 3,251,969 3,760,236
Uses of Cash
Living expenses 725,000 739,500 754,290 769,376 849,453 937,865 1,056,188
Income tax 1,378,294 2,095,482 2,202,782 2,318,068 1,616,501 1,761,442 2,199,732
Personally held insurance premiums 41,806 41,806 41,806 41,806 41,806 41,806 41,806
Cash gifts to ILIT 48,850 48,850 48,850 48,850 48,850 48,850 48,850
Cash gifts to family 158,000 158,000 158,000 158,000 158,000 158,000 158,000
Cash gifts to charity 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total uses of cash 2,361,950 3,093,638 3,215,728 3,346,099 2,724,610 2,957,963 3,514,576
Surplus $ 1,875,686 $ 1,369,233 $ 1,474,854 $ 1,589,314 $ 153,987 $ 294,006 $ 245,660
In the event that there is a cash flow surplus, the surplus is added to the investment assets row on the "Asset Value Projections" 3 pages earlier.
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46. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Tax calculation on Jeff's death
Combined Net Worth 78,293,603 81,325,584 84,123,085 87,128,669 90,358,263 100,050,272 113,199,797 132,306,482
Jeff's estimated estate 44,440,744 46,161,746 47,749,654 49,455,674 51,288,845 56,790,189 64,254,077 75,099,347
Death benefit exceeding CV 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053
Total gross estate 46,504,797 48,225,799 49,813,707 51,519,727 53,352,898 58,854,242 66,318,130 77,163,400
Settlement expenses (257,524) (266,129) (274,069) (282,599) (291,764) (319,271) (356,591) (410,817)
Joint, personal and IRA to Theresa (5,109,400) (5,118,687) (5,139,805) (5,153,067) (5,156,647) (5,017,267) (4,557,671) (3,560,645)
Insurance passing to Theresa (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053)
Outright or in trust to Theresa (38,924,557) (40,627,668) (42,335,781) (44,020,008) (45,840,433) (51,453,651) (59,339,816) (71,127,885)
Taxable estate 149,263 149,263 - - - - - -
Plus Jeff's lifetime taxable gifts 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737
Tax base 5,120,000 5,120,000 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737
Tentative Federal Estate Tax - - - - - - - -
Distribution of First Estate
Settlement expenses 257,524 266,129 274,069 282,599 291,764 319,271 356,591 410,817
To family trust 149,263 149,263 - - - - - -
Joint, personal and IRA to Theresa 5,109,400 5,118,687 5,139,805 5,153,067 5,156,647 5,017,267 4,557,671 3,560,645
Insurance passing to Theresa 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053
Outright or in trust to Theresa 38,924,557 40,627,668 42,335,781 44,020,008 45,840,433 51,453,651 59,339,816 71,127,885
Total $ 46,504,797 $ 48,225,799 $ 49,813,707 $ 51,519,727 $ 53,352,898 $ 58,854,242 $ 66,318,130 $ 77,163,400
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of First Estate" include estate and income taxes, if any.
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47. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Tax Calculation on Theresa's death
Theresa's assets 33,852,859 35,163,837 36,373,431 37,672,996 39,069,418 43,260,083 48,945,720 57,207,134
Plus assets from Jeff's estate 46,098,010 47,810,407 49,539,639 51,237,128 53,061,133 58,534,971 65,961,539 76,752,583
Theresa's estimated estate 79,950,869 82,974,245 85,913,070 88,910,124 92,130,551 101,795,054 114,907,259 133,959,718
Settlement expenses (824,509) (854,742) (884,131) (914,101) (946,306) (1,042,951) (1,174,073) (1,364,597)
Existing Charitable Bequest (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000)
Taxable estate 68,586,360 71,579,502 74,488,939 77,456,022 80,644,246 90,212,103 103,193,187 122,055,121
Plus Theresa's lifetime taxable gifts 4,964,582 4,964,582 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Tax base 73,550,942 76,544,084 75,488,939 78,456,022 81,644,246 91,212,103 104,193,187 123,055,121
Federal Estate Tax 23,950,830 24,998,429 41,173,116 42,805,012 44,558,535 49,820,857 56,960,453 67,334,516
Distribution of Second Estate
Settlement expenses 824,509 854,742 884,131 914,101 946,306 1,042,951 1,174,073 1,364,597
Taxes 23,950,830 24,998,429 41,173,116 42,805,012 44,558,535 49,820,857 56,960,453 67,334,516
Qualified plan to heirs 4,634,400 4,643,737 4,664,970 4,678,304 4,681,904 4,541,768 4,079,678 3,077,245
Other gifts to charity 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000
Residual estate to heirs 40,001,131 41,937,336 28,650,853 29,972,707 31,403,807 35,849,479 42,153,056 51,643,359
Total $ 79,950,869 $ 82,974,245 $ 85,913,070 $ 88,910,124 $ 92,130,551 $ 101,795,054 $ 114,907,259 $ 133,959,718
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of Second Estate" include estate and income taxes, if any.
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