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.
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
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
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.
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
Anderson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
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
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.
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
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
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
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.
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
Anderson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
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
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.
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
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
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
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
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
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
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
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
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
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
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
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.
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 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 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.
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.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins 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.
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.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@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
2. FAMILY WEALTH GOAL ACHIEVER™ - INITIAL
PREPARED FOR:
FERRIS AND BEATRICE BUELLER
February 24, 2011
PRESENTED BY
InKnowVision, LLC
715 Enterprise Drive
Oak Brook, IL 60523
Scott@ikvllc.com
Phone: 630-596-5090
Copyright 2011 InKnowVision, LLC
3. YOUR GOALS AND OBJECTIVES
FERRIS AND BEATRICE BUELLER
Maintain our customary lifestyle. This should take about $600,000 annually after taxes and gifts.
Provide for the financial security of the surviving spouse.
Maintain adequate liquidity for emergencies and investment opportunities. We prefer to keep at least $1,000,000 in
cash and readily marketable securities.
Assure we have sufficient liquid assets available at our deaths to eliminate the forced liquidation of our business or
real estate assets.
Maximize the inheritance that we leave for our children and grandchildren.
Reduce or eliminate our liability from Mid-Level Care.
Provide a succession plan that will allow for a smooth transition to bring our daughters into Mid-Level Care.
Provide a succession plan that will allow for a smooth transition to bring our daughters into Pizza Distributors.
Provide a strategic methodology for current and future charitable giving.
Reduce income taxes.
Eliminate or reduce estate taxes.
Page 2
4. FAMILY INFORMATION
FERRIS AND BEATRICE BUELLER
CLIENTS
Ferris Bueller Date of Birth August 5, 1951
Beatrice Bueller Date of Birth February 6, 1953
123 Main
CHILDREN
CHILD'S NAME DATE OF BIRTH SPOUSE'S NAME
Jenny Bueller - Jones May 18, 1983 Davey Jones
Megan Bueller April 27, 1986
Page 3
5. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - CONSIDERED
FERRIS AND BEATRICE BUELLER
In our planning process, we start with the universe of available planning tools. While this universe is constantly changing, the following chart outlines
many of the available tools. We examine each of these strategies and discard those that are not suitable for meeting your goals and objectives.
Charitable
Family Limited Grantor Retained Charitable Lead
Remainder Uni- 412(i) Private Annuity SCIN
Partnership Annuity Trust Annuity Trust
Trust
Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Loan to GDOT Flip CRT
Note Liability Company Insurance
Preferred Limited GDOT Distributions Corporate
Premium Finance 529 Plans Gifting ILIT
partnership for ILIT Premiums Recapitalization
Charitable Life
Walton GRAT Private Foundations NIMCRUT Annuity Withdrawal Asset Protection SPIA/Life Arbitrage
Estate
Revocable Living
SPIA/Life in a Principal Protected International
Trusts, DPAs and Crummey Powers Dynasty Trust GDOT
CLAT Notes VUL
POAs
Supporting IRA/Annuity to Business Risk
Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations Charity Management
Charitable
Defined Benefit Qualified Plan
Bargain Sales Succession Planning Risk Management Remainder Annuity ESOP Planning
Plans Limited Partnership
Trust
Page 4
6. PLAN ASSUMPTIONS
FERRIS AND BEATRICE BUELLER
The plan is based on numerous assumptions. Important among these are the yield and growth assumptions contained on
the balance sheet in the Financial Analysis section. Other important assumptions are contained on this Plan Assumptions
page.
Tax Rate Assumptions
State Income Tax Rate 6%
State Inheritance - Estate Tax No state estate tax
7520 Rates
Highest rate 2.8% February, 2011
Current rate 2.8% February, 2011
Lowest rate 1.8% December, 2010
Long Term AFR Rate 4.2% February, 2011
Annual increase in Ferris's earned income 2%
Number of years Ferris's income is expected to continue 10
Annual increase in Beatrice's earned income 0%
Number of years Beatrice's income is expected to continue 10
Lifestyle Need Assumptions
Net annual outlay for Ferris and Beatrice's lifestyle needs, not including gifts or income taxes $600,000
Annual cost of living increase used in the plan 2%
Settlement and Administrative Expenses
Fixed estate settlement costs $25,000
Variable estate settlement costs, 1st death 0.50% (of assets)
Variable estate settlement costs, 2nd death 1.00% (of assets)
Page 5
7. COMPARISON OF PLAN RESULTS - PLAN YEAR 2011
FERRIS AND BEATRICE BUELLER
Existing Plan Proposed Plan Advantage
Estate Value $ 51,886,036 $ 36,223,066
Heirs Receive Immediately $ 44,693,185 $ 60,746,885 $ 16,053,699
Heirs Receive from Deferred Inheritance $ - $ 32,375,661 $ 32,375,661
Total Benefits to Family $ 44,693,185 $ 93,122,546 $ 48,429,361
Family Charity $ - $ 27,739,960 $ 27,739,960
Estate and Income Tax $ 14,522,481 $ - $ 14,522,481
This chart assumes that you both die in 2011 and compares the results of the current plan with the proposed plan.
Page 6
8. PROPOSED PLAN RESULTS - PLAN YEAR 2011
FERRIS AND BEATRICE BUELLER
ESTATE OF FERRIS AND Date: December 31, 2011
BEATRICE BUELLER 1st National Bank
● Goal - Maximize
Inheritance
Pay to the Our Heirs $93,122,546
order of
Ninety Three Million One Hundred Twenty Two Thousand Five Hundred Forty Six Dollars and No Cents Dollars
Memo Inheritance
ESTATE OF FERRIS AND December 31, 2011
Date:
BEATRICE BUELLER 1st National Bank
Goal - Reduce
Estate Taxes
Pay to the
order of
Internal Revenue Service $0,000
No Dollars and No Cents Dollars
Memo Estate and Income Taxes
ESTATE OF FERRIS AND December 31, 2011
Date:
BEATRICE BUELLER 1st National Bank
Goal - Gift to Pay to the Charity $27,739,960
order of
Charity
Twenty Seven Million Seven Hundred Thirty Nine Thousand Nine Hundred Sixty Dollars and No Cents Dollars
Memo Family Charities
Page 7
9. PROPOSED PLAN RESULTS - PLAN YEAR 2039
FERRIS AND BEATRICE BUELLER
ESTATE OF FERRIS AND Date: December 31, 2039
BEATRICE BUELLER 1st National Bank
● Goal - Maximize Pay to the Our Heirs $252,700,834
Inheritance order of
Two Hundred Fifty Two Million Seven Hundred Thousand Eight Hundred Thirty Four Dollars and No Cents Dollars
Memo Inheritance
ESTATE OF FERRIS AND Date: December 31, 2039
BEATRICE BUELLER 1st National Bank
Goal - Reduce
Estate Taxes
Pay to the
order of
Internal Revenue Service $0,000
No Dollars and No Cents Dollars
Memo Estate and Income Taxes
ESTATE OF FERRIS AND Date: December 31, 2039
BEATRICE BUELLER 1st National Bank
Goal - Gift Pay to the Charity $30,784,252
to Charity order of
Thirty Million Seven Hundred Eighty Four Thousand Two Hundred Fifty Two Dollars and No Cents Dollars
Memo Family Charities
Page 8
10. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
FERRIS AND BEATRICE BUELLER
The following section of the plan contains a step by step roadmap for each of the strategies that we are recommending.
You will notice that the strategies are often interdependent; that is, in order for one strategy to be successful, you must
complete another strategy as well. It is the integration of each of these strategies that allows you to most efficiently
accomplish your goals.
Also keep in mind that there is often more than one way to get from point A to point B. This is true in wealth transfer
planning. If a particular strategy or combination of strategies is not acceptable to you, we may be able to reach the
desired result in a less efficient but perhaps more acceptable way.
The following pages are a conceptual road map only, there are numerous details contained in each strategy that are not
detailed in the overall plan that follows.
Page 9
11. CORPORATE RE-CAPITALIZATION
FERRIS AND BEATRICE BUELLER
Ferris and Beatrice recapitalize the existing corporate shares into voting and non-voting shares.
Businesses To Be Recapitalized
Mid-Level Care Corporation (100 sh) 11,122,006
Pizza Distributors Co., Inc (20,000 sh) ** 23,500,000
Total 34,622,006
** We believe Pizza Distributors has already been recapitalized but will need to be reappraised.
Page 10
12. HAVE THE NON-VOTING SHARES APPRAISED
FERRIS AND BEATRICE BUELLER
Ferris and Beatrice hire an appraiser to value the non-voting shares. The appraiser will value the shares taking all of the following into
account:
▪ Liquidity of the shares
▪ Transferability of the shares
▪ Degree of control that accompanies ownership of the shares
▪ The assets owned by the corporations
Appraisal
Valuation adjustment
assumed t be 35%
d to b
The assumed value of the non-voting stock is for illustration purposes only.
Note: Business appraisal is not an exact science. The IRS does not like valuation adjustments.
A well regarded appraiser should be retained to value the interests being sold.
Page 11
14. GIFT TO GRANTOR DEEMED OWNER TRUST
FERRIS AND BEATRICE BUELLER
Ferris and Beatrice each make a gift of $921,545 to their individual GDOT. This gift is designed to give each trust economic substance.
$921,545
$921,545
Page 13
15. BENEFICIARIES GUARANTEE GDOT OBLIGATION
FERRIS AND BEATRICE BUELLER
The heirs guarantee a portion of the obligation of both GDOTs.
Installment note
Beneficiaries of th GDOT ( others)
B fi i i f the (or th )
guarantee a portion of the GDOT obligation.
Page 14
16. SELL NON-VOTING SHARES TO EACH GDOT
FERRIS AND BEATRICE BUELLER
Ferris and Beatrice sell their non-voting stock to their individual GDOTs for an installment note.
Sell their combined non-voting
stock worth $22,504,304
Cash or securities of
$1,843,090 and an
installment note worth
$20,661,214 that provides
annual payments of
$857,440
The sale price is based on the assumed value of the assets
sold.
*Note payments are interest only at 4.15%.
Goals Accomplished:
- Reduce or eliminate our liability from Mid-Level Care.
- Provide a succession plan that will allow for a smooth transition to bring
our daughters into Mid-Level Care.
- Provide a succession plan that will allow for a smooth transition to bring
our daughters into Pizza Distributors.
- Maximize the inheritance that we leave for our children and grandchildren.
- Reduce estate tax liability.
- Avoid Capital Gains tax on the transfer.
Page 15
17. LOAN TO GDOT
FERRIS AND BEATRICE BUELLER
Ferris and Beatrice loan $1,000,000 to the GDOTs in year one to create adequate cash flow.
Loan $1,000,000 of cash to the
GDOTs
Annual principal and
interest payments of
$135,868
*Note payments are amortized over 10 years at 6%.
Page 16
18. PURCHASE LIFE INSURANCE IN THE GDOT
FERRIS AND BEATRICE BUELLER
The GDOT Trustees purchase second-to-die life insurance with the assets of the two GDOTs.
Premium Payment Details
Premium in the amount of $827,670 is paid in the first year with assets of the GDOTs.
No premium payments are made for 9 years, then beginning in year 11, premiums in
the amount of $388,260 are paid annually thereafter.
The premium is based on certain assumptions. This is for illustration purposes only. Actual insurance numbers can only be determined
by applying for insurance.
Goals Accomplished:
- Assure we have sufficient liquid assets available at our deaths to eliminate the forced
liquidation of our business or real estate assets.
- Maximize the inheritance that we leave for our children and grandchildren.
Page 17
19. WHY USE A ONE PAY WITH CATCH UP STRUCTURE FOR PREMIUMS
FERRIS AND BEATRICE BUELLER
Reasons to use a one pay with catch up:
1. Allows you to wait and see what will happen with the estate tax.
2. You may decide to keep all of the death benefit or you might keep the policy but reduce the death benefit. Clients in their
late 70s and 80's can consider selling the policy if they decide they do not want to keep it.
3. Better economics. Allows you to keep the “unpaid” premium dollars and invest as you normally would. You will usually be
better off than with level premiums.
4. Relatively small commitment compared to death benefit. Usually less than the equivalent of two normal premiums.
5. Works nicely with a TCLAT. Allows you to zero out the tax and give money to your kids. Keep in mind that your kids could
be in their 70s or 80s before they inherit any money from the TCLAT.
6. Policy is guaranteed (if required first year and catch up premiums are paid).
7. People often lose guarantees because they pay premiums late. Because there are no premiums to pay until the catch-up
premiums begin, there is no need to worry about losing guarantees during this time period.
8. Less administration and headache. Because you pay only one premium now, you only need to send Crummey notices this
year. Then none until premiums start up again.
Page 18
20. COMPANY INSURES RISKS - CREATES DEDUCTION
FERRIS AND BEATRICE BUELLER
GDOT Trustees create a captive insurance company.
The captive is formed to insure currently insured and uninsured risks of Mid-Level Care Corporation and/or Pizza Distributors.
Risk Coverage
The captive will be a pure captive and owned by a trust for your benefit or
for the benefit of your heirs (or both). The captive could be either a
Domestic Captive or International Captive. Costs illustrated in this plan
reflect a Domestic Captive. The decision as to which direction to follow
can be made during the feasibility phase.
NOTE: Prior to forming a Captive insurance company, there must be a feasibility study to determine insurable risk.
In the event that there are no insurable risks, there are alternative planning strategies to consider relative to income tax savings.
Page 19
21. COMPANY INSURES RISKS - CREATES DEDUCTION
FERRIS AND BEATRICE BUELLER
The Captive Insurance Company insures various risks of loss.
Pay annual premiums of
$500,000 to cover risk of
loss. Premiums for insurance
that cover real risks are
deductible.
Risk Coverage
Net premium of up to $1.2M is excludable from captive company income
if proper tax election is made.
Goals Accomplished:
- Maximize the inheritance we leave for our children and grandchilren.
- Reduce income taxes.
- Assure our financial independence during retirement.
Page 20
22. EXISTING IRREVOCABLE LIFE INSURANCE TRUST
FERRIS AND BEATRICE BUELLER
Annual premium payments of
$78,690 are distributed from
the GDOTs.
Premium Payment Details
Premium in the amount of $0,000 is paid in the first year with
assets of the ILIT. No premium payments are made for 9
years, then beginning in year 10, premiums in the amount of
$0,000 are paid annually thereafter.
Page 21
23. LEAVE YOUR IRA & ANNUITIES TO CHARITY
FERRIS AND BEATRICE BUELLER
At the 2nd death, leave your IRA and annuities to charity.
$584,300
Advantages
No estate tax
No income in respect of a decedent tax
Most efficient assets to satisfy charitable intent
Page 22
24. TESTAM TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part I) - 2011
FERRIS AND BEATRICE BUELLER
Include language in your trust or Will that creates a testamentary charitable lead trust (TCLAT) at the second death.
TCLAT Assumptions
Asset growth rate 8.00%
TCLAT payout rate 5.02%
Present value discount rate 4.00%
Assumed date of death 2011
Page 23
25. TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part II) - 2011
FERRIS AND BEATRICE BUELLER
At the end of the TCLAT term, your heirs will receive all of the remaining trust assets.
Goals Accomplished:
- Eliminate or reduce estate taxes.
- Maximize the transfer to our heirs.
- Continue a structured giving program even after our deaths.
Page 24
26. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
FERRIS AND BEATRICE BUELLER
The highlighted tools are those we have determined are most suited to achieving your goals and objectives.
Charitable
Family Limited Grantor Retained Charitable Lead
Remainder Uni- 412(i) Private Annuity SCIN
Partnership Annuity Trust Annuity Trust
Trust
Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Loan to GDOT Flip CRT
Note Liability Company Insurance
Preferred Limited GDOT Distributions Corporate
Premium Finance 529 Plans Gifting ILIT
partnership for ILIT Premiums Recapitalization
Charitable Life
Walton GRAT Private Foundations NIMCRUT Annuity Withdrawal Asset Protection SPIA/Life Arbitrage
Estate
Revocable Living
bl i i
SPIA/Life in a Principal Protected International
Trusts, DPAs and Crummey Powers Dynasty Trust GDOT
CLAT Notes VUL
POAs
Supporting IRA/Annuity to Business Risk
Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations Charity Management
Charitable
Defined Benefit Qualified Plan
Bargain Sales Succession Planning Risk Management Remainder Annuity ESOP Planning
Plans Limited Partnership
Trust
Green equals a new Blue equals a social Yellow equals an
planning tool for capital or charitable existing planning
family tool tool
Page 25
27. ESTATE PLAN OVERVIEW AND ESTATE DISTRIBUTION - 2011
FERRIS AND BEATRICE BUELLER
Gift IRA & Annuity to Charity at the 2nd death
NET WORTH
Recap Corporations
IRA TO CHARITY 36,223,066 CORP RECAP
Voting and non-voting
478,386 shares 22,504,304
Sell non-voting shares to GDOT GDOT purchases life insurance
GDOT
Installment Note Owns non-voting
EXISTING ILITs CAPTIVE INS
Seed Gift shares LIFE INSURANCE
Annual premium
8,000,000 GDOT pays annual premium to Captive Insurance Company
accumulation 30,000,000
Annual GDOT distributions for existing ILIT premiums
First Death
FAMILY TRUST / BEATRICE MARITAL TRUST / BEATRICE BEATRICE ADMIN
4,000,000 16 290 862
16,290,862 2,001,482
2 001 482 137,248
Second Death
TCLAT ADMIN
HEIRS
27,155,660 345,858
93,122,546
Heirs From
TCLAT
FAMILY CHARITY
27,739,960
Page26
28. YOUR GOALS ACCOMPLISHED WITH FULL PLAN IMPLEMENTATION
FERRIS AND BEATRICE BUELLER
The proposed plan allows you to retain sufficient cash flow to meet your lifestyle goal of $600,000 annually
throughout your lifetime.
Should one of you predecease the other, ample funds remain available to support the surviving spouse.
Your liquidity needs for emergencies or investment opportunities are sastisfied. You never have less than $1,700,000
in cash and readily marketable securities.
Full implementation of the proposed plan provides sufficient liquidity to preserve your business and real estate assets.
Under the proposed plan your heirs could expect to receive $93,100,000 today and as much as $252,700,000 at your
joint life expectancy.
By selling the non-voting shares of Mid-Level Care and Pizza Distributors to GDOTs in return for an installment
note, we're able to reduce our liability in Mid-Level Care while simultaneously providing our daughters with a
succession plan into both Pizza Distributors as well as Mid-Level Care.
Under the proposed plan charity could expect to receive $27,700,000 today and as much as $30,800,000 at your joint
life expectancy.
Income tax savings of the plan could be as much as $0,000 over 10 years.
Estate taxes have been eliminated now and at joint life expectancy.
Page 27
30. YOUR LIQUID ASSETS - PROPOSED PLAN
FERRIS AND BEATRICE BUELLER
$16,000,000
$14,000,000
$12,000,000
$10,000,000
'Annual Lifestyle' Goal
$8,000,000 -
'Annual Liquidity' Goal Accomplished
$6,000,000
Accomplished
$4,000,000
$2,000,000
$-
Liquid Assets Proposed Your Liquidity Goal Total Living Expenses
Most of our clients want to know that they have sufficient income and liquid assets to pay their living expenses for the rest of their lives. This chart assumes full
implementation of the proposed plan and shows your liquid assets over your life expectancy compared with your goal for liquid assets on hand (inflated annually).
Liquid assets include cash, stocks, bonds, annuities and qualified retirement accounts but do not include any other assets you might own such as promissory notes,
businesses or real estate.
Page 29
31. YOUR LIQUIDITY - CURRENT PLAN
FERRIS AND BEATRICE BUELLER
$140,000,000
$120,000,000
$100,000,000
$80,000,000
-
$60,000,000
$40,000,000
$20,000,000
$-
Liquid Assets Current Illiquid Assets Current Estate Tax Due
This review shows your projected estate tax due within nine months of the second of you to die versus the projected liquid and illiquid assets in your estate
situation over the next 20 years under your existing plan.
Page 30
32. YOUR LIQUIDITY - PROPOSED PLAN
FERRIS AND BEATRICE BUELLER
$55,000,000
$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
-
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5 000 000
$5,000,000
$-
Amount Needed to Fund the TCLAT Illiquid Assets Liquid Assets Proposed Liquid Assets Proposed - No Life Ins
This review shows your projected illiquid assets and amount of liquid assets needed to fund the TCLAT versus your liquid assets under a fully implemented
proposed plan and a proposed plan without new life insurance. Without the illustrated new life insurance there is some possiblity that your heirs will be left with
mostly illiquid assets that are generally more difficult to manage and to divide equally among beneficiaries. If you complete the plan with a TCLAT, having liquid
assets is important since TCLATs are most successfully funded with liquid assets.
Page 31
34. COMPARISON OF INCOME TAX RESULTS - PLAN YEAR 2011
FERRIS AND BEATRICE BUELLER
Existing Plan Proposed Plan Total Savings
2011 Estimated Income Tax $ 942,000 $ 742,000 $ 200,000
2012 Estimated Income Tax $ 967,000 $ 763,000 $ 204,000
2013 Estimated Income Tax $ 1,149,000 $ 905,000 $ 244,000
2014 Estimated Income Tax $ 1,187,000 $ 936,000 $ 251,000
2015 Estimated Income Tax $ 1,149,000 $ 967,000 $ 182,000
2016 Estimated Income Tax $ 1,187,000 $ 1,006,000 $ 181,000
2017 Estimated Income Tax $ 1,224,000 $ 1,040,000 $ 184,000
2018 Estimated Income Tax $ 1,264,000 $ 1,076,000 $ 188,000
2019 Estimated Income Tax $ 1,306,000 $ 1,114,000 $ 192,000
2020 Estimated Income Tax $ 1,350,000 $ 1,155,000 $ 195,000
10 Yr Savings Over Existing Plan $ 2,021,000
Page 33
35. INCOME TAXES PAID - CURRENT PLAN vs. PROPOSED PLAN
FERRIS AND BEATRICE BUELLER
$1,600,000
$1,400,000
$1,200,000
-
$1,000,000
$800,000
$600,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Existing Plan Captive Insurance
This chart compares the amount of income taxes paid in the current plan as against the proposed plan.
Page 34
36. FERRIS AND BEATRICE BUELLER
INCREASE INHERITANCE
AND REDUCE ESTATE TAX
Page 35
37. COMPARISON OF PLAN RESULTS - PLAN YEAR 2011
FERRIS AND BEATRICE BUELLER
CURRENT PLAN PROPOSED PLAN
0%
75% 77%
23%
25%
0%
Heirs Estate Tax Charity Heirs Estate Tax Charity
Heirs $44,693,185 Heirs $93,122,546
Estate Tax $14,522,481 Estate Tax $0
Charity $0 Charity $27,739,960
In the current plan, a portion of the benefit to heirs is qualified plan money. Withdrawals from these plans will be treated as ordinary income.
Page 36
38. COMPARISON OF PLAN RESULTS - PLAN YEAR 2039
FERRIS AND BEATRICE BUELLER
Existing Plan Proposed Plan Advantage
Estate Value $ 200,414,813 $ 31,242,270
Heirs Receive Immediately $ 96,647,995 $ 218,361,049 $ 121,713,054
Heirs Receive from Deferred Inheritance $ - $ 34,339,786 $ 34,339,786
Total Benefits to Family $ 96,647,995 $ 252,700,834 $ 156,052,840
Family Charity $ - $ 30,784,252 $ 30,784,252
Estate and Income Tax $ 109,131,287 $ - $ 109,131,287
Present Value of total to Heirs $42,242,592 $110,449,660
Discount rate for PV calculation 3.00%
This chart assumes that you both die at life expectancy and compares the results of the current plan with the proposed plan.
The present value of the total passing to heirs is our attempt to put inheritance into today's dollars to provide perspective.
We are using an inflation rate of 3% to calculate the present value numbers.
Page 37
39. COMPARISON OF PLAN RESULTS - PLAN YEAR 2039
FERRIS AND BEATRICE BUELLER
CURRENT PLAN PROPOSED PLAN
47%
0%
12%
88%
0%
53%
Heirs Estate Tax Charity Heirs Estate Tax Charity
Heirs $96,647,995 Heirs $218,361,049
Estate Tax $109,131,287 Estate Tax $0
Charity $0 Charity $30,784,252
In the current plan, a portion of the benefit to heirs is qualified plan money. Withdrawals from these plans will be treated as ordinary income.
Page 38
40. ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED
FERRIS AND BEATRICE BUELLER
$275,000,000
$250,000,000 'Estate Liquidity' Goal
Accomplished
$225,000,000
'Maximize Inheritance
$200,000,000
to Heirs' Goal
$175,000,000 Accomplished
$150,000,000 -
$125,000,000
$100,000,000
$75,000,000
$50,000,000
$25,000,000
Current Plan Proposed Plan Proposed Plan w/out Life Ins
This chart compares the amount of your assets that will pass to heirs after estate taxes and costs of implementation in the current plan as against the proposed
plan.
Page 39
42. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2011
FERRIS AND BEATRICE BUELLER
Existing Plan Proposed Plan Increase in Charity
Charity Receives from TCLAT $ - $ 27,200,000 $ 27,200,000
Charitable gift of IRA/Annuity assets $ - $ 600,000 $ 600,000
Total to Family Charity $ - $ 27,700,000 $ 27,700,000
Page 41
43. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2039
FERRIS AND BEATRICE BUELLER
Existing Plan Proposed Plan Increase in Charity
Charity Receives from TCLAT $ - $ 28,800,000 $ 28,800,000
Charitable gift of IRA/Annuity assets $ - $ 2,000,000 $ 2,000,000
Total to Family Charity $ - $ 30,800,000 $ 30,800,000
Page 42
44. GIFTING TO CHARITY - EXISTING PLAN VS. PROPOSED PLAN
FERRIS AND BEATRICE BUELLER
$44,000,000 'Provide for a Charitable
Gift at Death' Goal
$40,000,000
Accomplished
$36,000,000
$32,000,000
$28,000,000
$24,000,000
-
$20,000,000
$16,000,000
$12,000,000
$8,000,000
$4 000 000
$4,000,000
$-
Current Plan Charity Proposed Plan Charity
This chart compares the amount of your gifts to charity in the current plan as against the proposed plan.
Page 43
45. COST BENEFIT ANALYSIS
FERRIS AND BEATRICE BUELLER
All strategies have an element of risk; a chance that the program adopted does not work as planned. Estate planning strategies carry an element of risk as
well. Many advisors warn their clients of risk but do not make an effort to quantify those risks. We have taken the position in our planning that if a risk is
quantifiable, it should be identified as such and the cost of the risk should be disclosed to our client. When the risk is not quantifiable, this should also be
disclosed.
Any risk analysis begins with two questions:
What is the reward to be gained by taking the risk?
What is the cost of the potential loss if the plan fails totally?
If you are satisfied that the reward is worth the risk and that the risk of loss is acceptable, it would then make sense to pursue the strategy. If the risk is
such that you could not comfortably accept the loss, then the risk should not be taken.
Is the reward worth the risk?
The reward of the proposed plan results in an advantage to your heirs today of $48,429,361 over your existing plan.
The reward of the proposed plan results in an advantage to your heirs at life expectancy of $156,052,840 over your existing plan.
What if the Plan fails totally?
There are 4 basic areas of potential risk involved in this comprehensive plan. We assume total failure of all planning techniques in order to provide a worst
case analysis.
Transaction costs
Planning Fees 75,000
Attorneys Fees 125,000
Valuation Fees 15,000
Total $ 215,000
Annual Maintenance Fee $ 7,500
Taxes
This represents the taxes that will have to be paid if the plan fails entirely. Note that this is the same amount that would be paid without the planning.
Total additional tax over current plan = $0
Page 44
46. COST BENEFIT ANALYSIS (Continued)
Interest (cost of money)
Interest is charged on late tax payments by the IRS at the rate of the applicable federal rate plus 3%. You must invest at a rate less than this rate to lose
money. Assuming that assets earn in excess of that rate, there should be no risk of loss due to cost of money.
Nonetheless, we assume that assets actually earn 2% less than the IRS interest rates, and the risk of loss would be $277,094.
Penalties
Assuming the plan is implemented with the help of knowledgeable advisors, the only potential penalty is for substantial undervaluation. The penalty
comes into play in the case of a challenge to asset valuation. If the value reported for a transaction is less than 65% of the value as finally determined for
tax purposes (by the IRS or the courts) then there is a 25% substantial undervaluation penalty.
The valuation adjustment assumed in this plan is 35.00%. Therefore, an adjustment should not result in a substantial undervaluation penalty.
Risk Analysis
$160,000,000
$140,000,000
$120 000 000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$-
Benefit to Heirs 2011 Benefit to Heirs 2039 Potential Loss (Total Failure)
Page 45
47. DETAILED FINANCIAL ANALYSIS
FERRIS AND BEATRICE BUELLER
INTRODUCTION
The following section of the plan contains all of the financial analysis used to show you where you stand
with your current plan and what is possible with the proposed plan.
All of the numbers are based on information provided by you or gleaned from statements and tax returns. If
numbers do not look correct, please let us know so that we can make appropriate changes.
Assumed growth and yield numbers are all listed on the Net Worth pages contained in these sections.
Page 46
48. DETAILED FINANCIAL ANALYSIS
FERRIS AND BEATRICE BUELLER
CURRENT PLAN FINANCIALS
In the Current Plan Section you will find a Net Worth Statement and a detailed cash flow and asset value
projection analysis.
Page 47
49. CURRENT NET WORTH STATEMENT
FERRIS AND BEATRICE BUELLER
FERRIS BEATRICE JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Cash 500,000 500,000 2.5% 0.0%
Cash Value of Life Insurance 20,000 - 20,000 0.0% 0.0%
Total of Cash and Equivalents 20,000 - 500,000 520,000 2.4% 0.0%
MARKETABLE SECURITIES - EQUITIES
Stocks - 500,000 500,000 2.9% 5.0%
Total of Equities - - 500,000 500,000 2.9% 5.0%
ANNUITIES/DEFERRED COMPENSATION
Deferred Comp Plan 100,000 - 100,000 7.0%
Total of Annuities - 100,000 - 100,000 0.0% 7.0%
Page 48
50. CURRENT NET WORTH STATEMENT (Page 2)
FERRIS AND BEATRICE BUELLER
FERRIS BEATRICE JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
Hedge Fund 125,000 - - 125,000 12.8% 5.0%
Note to Pizza Distributors 8,993,971 - - 8,993,971 0.0% 0.0%
Total of Other Investments 9,118,971 - - 9,118,971 0.2% 0.1%
CLOSELY HELD BUSINESS
Mid-Level Care Corporation (100 sh) 5,561,003 5,561,003 - 11,122,006 13.3% 3.0%
Pizza Distributors Co., Inc (20,000 sh) 11,750,000 11,750,000 - 23,500,000 1.1% 3.0%
Total Closely Held Business 17,311,003 17,311,003 - 34,622,006 5.0% 3.0%
RETIREMENT PLANS/IRAs
401(k) 250,000 250,000 0.0% 7.0%
IRA 114,818 114,818 0.0% 7.0%
IRA 86,853 86,853 0.0% 7.0%
Total Retirement Plans 364,818 86,853 451,671 0.0% 7.0%
Page 49
51. CURRENT NET WORTH STATEMENT (Page 3)
FERRIS AND BEATRICE BUELLER
FERRIS BEATRICE JOINT TOTAL YIELD GROWTH
INVESTMENT REAL ESTATE
39 Kansas Rd. 150,000 - 150,000 2.6% 4.0%
37 Kansas Rd. 120,000 - 120,000 10.4% 4.0%
60 Acre Farm 300,000 - 300,000 0.0% 4.0%
25 Kansas Rd. 150,000 - 150,000 0.0% 4.0%
21 Kansas Rd. 10,000 10,000 0.0% 4.0%
7 Lake St. 600,000 - - 600,000 0.0% 4.0%
8 Lake St. - 865,000 - 865,000 0.0% 4.0%
35 Kansas Rd. 100,000 - 100,000 0.0% 4.0%
40 Kansas Rd. 150,000 - 150,000 0.0% 4.0%
Total of Real Estate Holdings 870,000 1,565,000 10,000 2,445,000 0.7% 4.0%
RESIDENTIAL REAL ESTATE
123 Main - - 1,800,000 1,800,000 0.0% 3.0%
Total of Personal Residences - - 1,800,000 1,800,000 0.0% 3.0%
PERSONAL PROPERTY
Personal Property 350,000 350,000 0.0% 0.0%
Antiques 50,000 50,000 0.0% 0.0%
Total of Personal Property - - 400,000 400,000 0.0% 0.0%
TOTAL ASSETS 27,684,792 19,062,856 3,210,000 49,957,648
TOTAL LIABILITIES - - - -
NET WORTH 27,684,792 19,062,856 3,210,000 49,957,648
Page 50
52. SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN
FERRIS AND BEATRICE BUELLER
COMPANY INSURED POLICY # BENEFICIARY PREMIUM CASH VALUE DEATH BENEFIT
Policies owned by Ferris
SPWL Jenny # Beatrice & Ferris - 10,000 10,000
SPWL Megan # Beatrice & Ferris - 10,000 10,000
Totals - 20,000 20,000
Policies owned by ILIT
Pac Life Ferris # Ferris's ILIT 50,590 290,381 5,000,000
Pac Life Beatrice # Beatrice's ILIT 28,100 43,562 3,000,000
Totals 78,690 333,943 8,000,000
Page 51
53. FINANCIAL ANALYSIS - EXISTING PL ASSET VALUE PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Asset Values
Cash and cash equivalents 520,000 520,000 520,000 520,000 520,000 520,000 520,000 520,000 520,000
Marketable securities - Equities 500,000 1,381,695 2,352,001 3,640,373 5,417,689 7,348,964 22,756,496 83,283,923 104,262,265
Annuities 100,000 105,915 113,329 121,262 129,750 138,833 208,350 574,845 704,209
Other investments 1 9,118,971 9,124,279 9,130,533 8,762,232 8,004,139 7,214,962 1,753,895 221,375 221,831
Closely held business 34,622,006 35,502,184 36,567,250 37,664,267 38,794,195 39,958,021 47,711,967 74,333,690 81,226,430
Retirement plans/IRAs 451,671 478,386 511,873 547,704 586,043 627,066 941,057 1,289,467 1,276,939
Investment real estate 2,445,000 2,527,816 2,628,929 2,734,086 2,843,450 2,957,188 3,741,786 6,738,745 7,580,172
Personal residences 1,800,000 1,845,761 1,901,133 1,958,167 2,016,912 2,077,420 2,480,548 3,864,613 4,222,967
Personal property 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000
Total assets in estate 49,957,648 51,886,036 54,125,048 56,348,092 58,712,179 61,242,454 80,514,099 171,226,658 200,414,813
Combined net worth $ 49,957,648 $ 51,886,036 $ 54,125,048 $ 56,348,092 $ 58,712,179 $ 61,242,454 $ 80,514,099 $ 171,226,658 $ 200,414,813
1
Decreased each year beginning in 2013 per amortization schedule for the Pizza Distributors Note.
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row by default.
If there is a cash flow shortage (because of spending or gifting capital) then the shortage is treated as a reduction in marketable securities.
Page 52
54. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Sources of taxable income
Cash and cash equivalents 12,674 12,674 12,674 12,674 12,674 12,674 12,674 12,674
Marketable securities - Equities 14,365 39,696 67,573 104,588 155,650 567,287 2,218,551 2,780,285
Other investments 15,970 15,979 15,990 15,345 14,018 4,829 387 388
Closely held business 1 1,735,964 1,780,097 1,833,499 1,888,504 1,945,160 2,322,622 3,618,570 3,954,109
Retirement plans/IRAs - - - - - - 85,109 99,098
Investment real estate 16,300 16,852 17,526 18,227 18,956 23,986 43,197 48,591
2
Interest Payments from Pizza Distributors Note 359,759 359,759 359,759 344,777 314,213 103,373 - -
Client earned income 3 205,980 205,980 210,100 214,302 218,588 222,959 147,699 - -
Spouse earned income 3 205,980 205,980 210,100 214,302 218,588 222,959 147,699 - -
Director's Fees 13,500 13,770 14,045 14,326 14,613 16,456 22,148 23,504
Gross income $ 2,580,492 $ 2,659,026 $ 2,749,670 $ 2,835,617 $ 2,921,202 $ 3,346,626 $ 6,000,636 $ 6,918,649
1
We assume in this illustration that Ferris and Beatrice receive 100% of the S Corporations' taxable distributions.
2
Note payments are interest only for the first 30 months. In the middle of 2013, they begin receiving interest and principal payments for 10 years.
3
Beginning in 2021, we assume that Ferris & Beatrice begin taking a 40% reduction in salary. Then in 2031, we assume they retire.
Page 53
55. INCOME TAX PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Income tax Estimation
Adjusted gross income:
Dividend income (marketable sec.) 14,365 39,696 67,573 104,588 155,650 567,287 2,218,551 2,780,285
Earned and other income 2,566,127 2,619,330 2,682,097 2,731,029 2,765,552 2,779,339 3,782,085 4,138,364
Adjusted gross income 2,580,492 2,659,026 2,749,670 2,835,617 2,921,202 3,346,626 6,000,636 6,918,649
Deductions
Real estate tax 35,044 35,044 35,745 36,460 37,189 37,933 42,718 57,493 61,012
State income taxes 154,830 159,542 164,980 170,137 175,272 200,798 360,038 415,119
Charitable gifts 47,257 47,257 48,202 49,166 50,150 51,152 57,606 77,530 82,276
Charitable Deduction available 47,257 48,202 49,166 50,150 51,152 57,606 77,530 82,276
Charitable Deduction allowed 47,257 48,202 49,166 50,150 51,152 57,606 77,530 82,276
Total deductions 237,131 243,489 250,606 257,475 264,357 301,122 495,062 558,407
Reductions - - (77,486) (80,065) (82,632) (95,395) (175,015) (202,555)
Deductions allowed 237,131 243,489 173,120 177,411 181,725 205,727 320,047 355,851
Taxable income 2,343,361 2,415,538 2,576,550 2,658,206 2,739,477 3,140,899 5,680,590 6,562,797
Federal and State income tax $ 942,004 $ 966,912 $ 1,149,361 $ 1,186,854 $ 1,224,172 $ 1,408,661 $ 2,573,619 $ 2,978,054
Page 54
56. CASH FLOW PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Sources of income for Lifestyle
Principal Payments from Pizza Distributors Note 1 - - 374,558 764,099 794,663 1,005,502 - -
Consumable income (taxable) 2,580,492 2,659,026 2,749,670 2,835,617 2,921,202 3,346,626 6,000,636 6,918,649
Total income available for lifestyle 2,580,492 2,659,026 3,124,229 3,599,716 3,715,864 4,352,128 6,000,636 6,918,649
Uses of Cash
Living expenses 600,000 612,000 624,240 636,725 649,459 731,397 984,364 1,044,615
Income tax 942,004 966,912 1,149,361 1,186,854 1,224,172 1,408,661 2,573,619 2,978,054
Cash gifts to ILIT 78,690 78,690 78,690 78,690 78,690 78,690 78,690 78,690
Gift taxes due - - - - - - 32,263 32,263
Cash gifts to family 52,000 52,000 52,000 52,000 52,000 52,000 52,000 52,000
Cash gifts to charity 47,257 48,202 49,166 50,150 51,152 57,606 77,530 82,276
Total uses of cash 1,719,951 1,757,804 1,953,457 2,004,418 2,055,474 2,328,353 3,798,465 4,267,897
Surplus $ 860,540 $ 901,222 $ 1,170,771 $ 1,595,298 $ 1,660,391 $ 2,023,775 $ 2,202,171 $ 2,650,752
1
Note payments are interest only for the first 30 months. In the middle of 2013, they begin receiving interest and principal payments for 10 years.
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row on the "Asset Value Projections" 3 pages earlier.
If there is a cash flow shortage (spending or gifting capital) then the shortage is treated as a reduction in marketable
securities row on the "Asset Value Projections" 3 pages earlier.
Page 55
57. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Tax calculation on Ferris's death
Combined net worth 49,957,648 51,886,036 54,125,048 56,348,092 58,712,179 61,242,454 80,514,099 171,226,658 200,414,813
Ferris's estimated estate 29,289,792 30,420,391 31,733,107 33,036,461 34,422,507 35,905,989 47,204,809 100,388,897 117,501,692
Total gross estate 29,289,792 30,420,391 31,733,107 33,036,461 34,422,507 35,905,989 47,204,809 100,388,897 117,501,692
Settlement expenses (171,449) (177,102) (183,666) (190,182) (197,113) (204,530) (261,024) (526,944) (612,508)
Joint, personal and IRA to Beatrice (1,969,818) (2,053,349) (2,152,330) (2,252,692) (2,359,610) (2,474,035) (3,346,793) (6,542,547) (7,470,162)
Insurance passing to Beatrice (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000)
Outright or in trust to Beatrice (22,246,326) (23,287,741) (24,534,257) (29,770,078) (31,081,621) (32,482,604) (43,088,243) (93,299,406) (109,399,022)
Taxable estate 4,882,199 4,882,199 4,842,854 803,509 764,164 724,819 488,749 - -
Plus Ferris's lifetime taxable gifts 117,801 117,801 157,146 196,491 235,836 275,181 511,251 1,101,426 1,219,461
Tax base 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,101,426 1,219,461
Federal Estate Tax - - - - - - - - -
Distribution of Ferris's estate
Settlement expenses 171,449 177,102 183,666 190,182 197,113 204,530 261,024 526,944 612,508
To family trust 4,882,199 4,882,199 4,842,854 803,509 764,164 724,819 488,749 - -
Joint, personal and IRA to Beatrice 1,969,818 2,053,349 2,152,330 2,252,692 2,359,610 2,474,035 3,346,793 6,542,547 7,470,162
Insurance passing to Beatrice 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Outright or in trust to Beatrice 22,246,326 23,287,741 24,534,257 29,770,078 31,081,621 32,482,604 43,088,243 93,299,406 109,399,022
Total $ 29,289,792 $ 30,420,391 $ 31,733,107 $ 33,036,461 $ 34,422,507 $ 35,905,989 $ 47,204,809 $ 100,388,897 $ 117,501,692
Assumptions
We assume that Ferris dies first, followed immediately by Beatrice.
Taxes under "Distribution of First Estate" include estate and income taxes.
Page 56
58. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Tax Calculation on Beatrice's death
Beatrice's assets 20,667,856 21,465,644 22,391,941 23,311,631 24,289,671 25,336,465 33,309,290 70,837,761 82,913,121
Plus assets from Ferris's estate 24,236,144 25,361,090 26,706,588 32,042,770 33,461,231 34,976,640 46,455,036 99,861,953 116,889,184
Beatrice's estimated estate 44,904,000 46,826,735 49,098,528 55,354,400 57,750,902 60,313,105 79,764,326 170,699,714 199,802,304
Settlement expenses (474,040) (493,267) (515,985) (578,544) (602,509) (628,131) (822,643) (1,731,997) (2,023,023)
Beatrice's taxable estate 44,429,960 46,333,467 48,582,543 54,775,856 57,148,393 59,684,974 78,941,683 168,967,716 197,779,281
Plus Beatrice's lifetime taxable gifts 117,799 117,799 157,144 196,489 235,834 275,179 511,249 1,101,424 1,219,459
Tax base 44,547,759 46,451,266 48,739,687 54,972,345 57,384,227 59,960,153 79,452,932 170,069,140 198,998,740
Federal Estate Tax 13,841,716 14,507,943 15,308,891 29,888,990 31,215,525 32,632,284 43,353,312 93,150,643 109,013,529
Tax on IRD 13,000 14,538 16,465 12,827 14,355 15,990 28,503 94,472 117,758
Total Estate Tax Due 13,854,716 14,522,481 15,325,356 29,901,817 31,229,880 32,648,274 43,381,815 93,245,115 109,131,287
Distribution of Beatrice's estate
Settlement expenses 474,040 493,267 515,985 578,544 602,509 628,131 822,643 1,731,997 2,023,023
Taxes 13,854,716 14,522,481 15,325,356 29,901,817 31,229,880 32,648,274 43,381,815 93,245,115 109,131,287
Qualified plan to heirs 451,671 478,386 511,873 547,704 586,043 627,066 941,057 1,289,467 1,276,939
Residual estate to heirs 30,123,573 31,332,600 32,745,314 24,326,335 25,332,470 26,409,634 34,618,810 74,433,134 87,371,056
Total $ 44,904,000 $ 46,826,735 $ 49,098,528 $ 55,354,400 $ 57,750,902 $ 60,313,105 $ 79,764,326 $ 170,699,714 $ 199,802,304
Assumptions
We assume that Ferris dies first, followed immediately by Beatrice.
Taxes under "Distribution of Second Estate" include estate and income taxes.
Page 57
59. SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Benefits to Family
Family trust 4,882,199 4,882,199 4,842,854 803,509 764,164 724,819 488,749 - -
Residual estate 30,123,573 31,332,600 32,745,314 24,326,335 25,332,470 26,409,634 34,618,810 74,433,134 87,371,056
Qualified plan assets 451,671 478,386 511,873 547,704 586,043 627,066 941,057 1,289,467 1,276,939
Proceeds from ILIT 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
Total assets to heirs $ 43,457,443 $ 44,693,185 $ 46,100,041 $ 33,677,548 $ 34,682,677 $ 35,761,519 $ 44,048,616 $ 83,722,601 $ 96,647,995
Page 58
60. DETAILS OF FERRIS'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Ferris's Qualified Plans
Ferris's Age 60 61 62 63 64 70 85 88
Beatrice's Age 58 59 60 61 62 68 83 86
Minimum distribution factor 36.8 35.8 34.9 33.9 33.0 27.4 14.8 12.7
Plan contributions - - - - - - - -
Plan balance 364,818 386,396 413,443 442,384 473,351 506,486 760,099 1,014,989 1,000,540
Minimum distribution - - - - - - 68,414 79,477
Preferred distribution - - - - - - - -
Actual distribution - - - - - - 68,414 79,477
Page 59
61. DETAILS OF BEATRICE'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Beatrice's Qualified Plans
Beatrice's Age 58 59 60 61 62 68 83 86
Ferris's Age 60 61 62 63 64 70 85 88
Minimum distribution factor 38.7 37.8 36.8 35.8 34.9 29.2 16.3 14.1
Plan contributions - - - - - - - -
Plan balance 86,853 91,990 98,429 105,319 112,692 120,580 180,958 274,478 276,399
Minimum distribution - - - - - - 16,695 19,621
Preferred distribution - - - - - - - -
Actual distribution - - - - - - 16,695 19,621
Page 60
62. DETAILED FINANCIAL ANALYSIS
FERRIS AND BEATRICE BUELLER
PROPOSED PLAN FINANCIALS
In the Proposed Plan Section you will find a balance sheet which reflects the repositioning of assets as set
out in the step by step roadmap in the proceeding section. You will also find detailed cash flow and asset
projection information on each of the proposed planning strategies.
Page 61
63. NET WORTH STATEMENT AFTER PLAN IMPLEMENTATION
FERRIS AND BEATRICE BUELLER
FERRIS BEATRICE JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Cash - - 500,000 500,000 2.5% 0.0%
Cash Value of Life Insurance 20,000 - - 20,000 0.0% 0.0%
Total of Cash and Equivalents 20,000 - 500,000 520,000 2.4% 0.0%
MARKETABLE SECURITIES - EQUITIES
Stocks - - 500,000 500,000 2.9% 5.0%
Total of Equities - - 500,000 500,000 2.9% 5.0%
ANNUITIES/DEFERRED COMPENSATION
Deferred Comp Plan - 100,000 - 100,000 7.0%
Total of Annuities - 100,000 - 100,000 0.0% 7.0%
Page 62
64. REVISED NET WORTH STATEMENT (Page 2)
FERRIS AND BEATRICE BUELLER
FERRIS BEATRICE JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
Hedge Fund 125,000 - - 125,000 12.8% 5.0%
Note to Pizza Distributors 8,993,971 - - 8,993,971 0.0% 0.0%
Total of Other Investments 9,118,971 - - 9,118,971 0.2% 0.1%
RETIREMENT PLANS/IRAs
401(k) 250,000 - 250,000 0.0% 7.0%
IRA 114,818 - 114,818 0.0% 7.0%
IRA - 86,853 86,853 0.0% 7.0%
Total Retirement Plans 364,818 86,853 451,671 0.0% 7.0%
Page 63
65. REVISED NET WORTH STATEMENT (Page 3)
FERRIS AND BEATRICE BUELLER
FERRIS BEATRICE JOINT TOTAL YIELD GROWTH
INVESTMENT REAL ESTATE
39 Kansas Rd. - 150,000 - 150,000 2.6% 4.0%
37 Kansas Rd. 120,000 - - 120,000 10.4% 4.0%
60 Acre Farm - 300,000 - 300,000 0.0% 4.0%
25 Kansas Rd. 150,000 - - 150,000 0.0% 4.0%
21 Kansas Rd. - - 10,000 10,000 0.0% 4.0%
7 Lake St. 600,000 - - 600,000 0.0% 4.0%
8 Lake St. - 865,000 - 865,000 0.0% 4.0%
35 Kansas Rd. - 100,000 - 100,000 0.0% 4.0%
40 Kansas Rd. - 150,000 - 150,000 0.0% 4.0%
Total of Real Estate Holdings 870,000 1,565,000 10,000 2,445,000 0.7% 4.0%
RESIDENTIAL REAL ESTATE
123 Main - - 1,800,000 1,800,000 0.0% 3.0%
Total of Personal Residences - - 1,800,000 1,800,000 0.0% 3.0%
PERSONAL PROPERTY
Personal Property - - 350,000 350,000 0.0% 0.0%
Antiques - - 50,000 50,000 0.0% 0.0%
Total of Personal Property - - 400,000 400,000 0.0% 0.0%
OTHER STRATEGY ASSETS
GDOT Note 10,330,607 10,330,607 - 20,661,214 4.15%
Total of Other Strategy Assets 10,330,607 10,330,607 - 20,661,214 4.15%
NET WORTH 20,704,396 12,082,460 3,210,000 35,996,856
Page 64
66. FINANCIAL ANALYSIS - PROPOSED PLA ASSET VALUE PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2021 2036 2039
Asset Values
Cash and cash equivalents 520,000 520,000 520,000 520,000 520,000 520,000 520,000 520,000 520,000
Marketable securities - Equities 500,000 559,696 817,901 1,324,637 2,210,266 3,129,914 9,235,640 13,177,123 7,654,939
Annuities 100,000 105,915 113,329 121,262 129,750 138,833 208,350 574,845 704,209
Other investments 1 9,118,971 9,124,279 9,130,533 8,762,232 8,004,139 7,214,962 1,753,895 221,375 221,831
Retirement plans/IRAs 451,671 478,386 511,873 547,704 586,043 627,066 941,057 1,289,467 1,276,939
Investment real estate 2,445,000 2,527,816 2,628,929 2,734,086 2,843,450 2,957,188 3,741,786 6,738,745 7,580,172
Personal residences 1,800,000 1,845,761 1,901,133 1,958,167 2,016,912 2,077,420 2,480,548 3,864,613 4,222,967
Personal property 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000
2
Note from children's GDOT 20,661,214 20,661,214 20,661,214 20,661,214 20,661,214 20,661,214 20,661,214 8,661,214 8,661,214
Total assets in estate 35,996,856 36,223,066 36,684,912 37,029,303 37,371,774 37,726,597 39,942,491 35,447,381 31,242,270
Combined net worth $ 35,996,856 $ 36,223,066 $ 36,684,912 $ 37,029,303 $ 37,371,774 $ 37,726,597 $ 39,942,491 $ 35,447,381 $ 31,242,270
1
Decreased each year beginning in 2013 per amortization schedule for the Pizza Distributors Note.
2
Principal payment from GDOT note is paid in 2036 with accumulated liquid assets of the GDOT.
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row by default.
If there is a cash flow shortage (because of spending or gifting capital) then the shortage is treated as a reduction in marketable securities.
Page 65