The document is a presentation for Jonathan and Susan Gilbert that outlines their current financial plan and goals, and proposes a new plan. The key points are:
1) The current plan does not maximize inheritance for their daughters and grandchildren or provide significant charitable gifts, while the proposed plan increases inheritance to $214 million and directs $127 million to charity.
2) The proposed plan saves $1.5 million in income taxes over two years compared to the current plan.
3) It creates a charitable remainder trust and life estate that provide $680,000 and $74 million in tax benefits respectively.
4) The proposed plan eliminates $45 million in estate taxes compared to the current plan.
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.
The section of Solutions for America discusses the President's budget, the rise of welfare and the collapse of marriage, among other things. It offers several solutions for fixing these broken institutions.
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.
The section of Solutions for America discusses the President's budget, the rise of welfare and the collapse of marriage, among other things. It offers several solutions for fixing these broken institutions.
Here is a fabulous tool you might find useful for your individual tax return preparation.
This document contains key numbers and tax rate tables for 2011 and 2012.
Presentation slides for the Cultural Alliance's Arts, Culture and Economic Prosperity report. Delivered by Alliance president Tom Kaiden at the 2012 Annual Meeting on September 24th at the Annenberg Center at the University of Pennsylvania.
Sample 5 page loan modifcation proposal with before and after budgets, cash flow, payments based on HAMP NPV model version 3. Excellant way to begin rapport with lender. Organization, calculation, presentation & negotiation. Used alongside lenders papaerwork.
A compilation of key financial and tax numbers. It thought this would be helpful to my financial services, CPA and attorney friends. But it is good information really for anyone. Feel free to download and share.
As the impact of healthcare reform on the U.S. delivery system comes into focus, there is little doubt that it is a “game changer” for clinical engineering and biomedical equipment technology. Carol will describe and discuss the future of the CE and BMET professions under new regulations and a new payment system. She will address why medical devices will cost much more, why equipment must have longer life cycles, why CEs and BMETs will and must have more involvement in IT-related activities, how CEs’ and BMETs’ responsibilities in regulatory compliance will expand and how you can prepare for this new environment.
About Carol Davis-Smith, CCE
Career Summary
Carol Davis-Smith is a Director in Premier’s Consulting Solution Division with responsibility for the development and deployment of capital lifecycle management processes and tools to Premier staff and owners.
Education and Affiliations
Ms. Davis-Smith received a B.S. in bioengineering technology
from the University of Dayton and an M.S. in engineering from the University of Arizona. She is a certified clinical engineer and a member of the Association for the Advancement of Medical Instrumentation (AAMI). Over the past 20 years, she has presented and published papers on a variety of clinical engineering and capital contracting topics. In 2009, Ms. Davis-Smith received the AAMI Clinical Engineering Achievement Award.
Thank you to all who could make the webinar “New GFE/HUD-1, Mortgage Brokers Really Need to Know This Stuff", I have included the power point for you.
If you did not get a chance to attend, I’ll forward the web address once available.
Regards and thanks for all the great feedback!
Here is a fabulous tool you might find useful for your individual tax return preparation.
This document contains key numbers and tax rate tables for 2011 and 2012.
Presentation slides for the Cultural Alliance's Arts, Culture and Economic Prosperity report. Delivered by Alliance president Tom Kaiden at the 2012 Annual Meeting on September 24th at the Annenberg Center at the University of Pennsylvania.
Sample 5 page loan modifcation proposal with before and after budgets, cash flow, payments based on HAMP NPV model version 3. Excellant way to begin rapport with lender. Organization, calculation, presentation & negotiation. Used alongside lenders papaerwork.
A compilation of key financial and tax numbers. It thought this would be helpful to my financial services, CPA and attorney friends. But it is good information really for anyone. Feel free to download and share.
As the impact of healthcare reform on the U.S. delivery system comes into focus, there is little doubt that it is a “game changer” for clinical engineering and biomedical equipment technology. Carol will describe and discuss the future of the CE and BMET professions under new regulations and a new payment system. She will address why medical devices will cost much more, why equipment must have longer life cycles, why CEs and BMETs will and must have more involvement in IT-related activities, how CEs’ and BMETs’ responsibilities in regulatory compliance will expand and how you can prepare for this new environment.
About Carol Davis-Smith, CCE
Career Summary
Carol Davis-Smith is a Director in Premier’s Consulting Solution Division with responsibility for the development and deployment of capital lifecycle management processes and tools to Premier staff and owners.
Education and Affiliations
Ms. Davis-Smith received a B.S. in bioengineering technology
from the University of Dayton and an M.S. in engineering from the University of Arizona. She is a certified clinical engineer and a member of the Association for the Advancement of Medical Instrumentation (AAMI). Over the past 20 years, she has presented and published papers on a variety of clinical engineering and capital contracting topics. In 2009, Ms. Davis-Smith received the AAMI Clinical Engineering Achievement Award.
Thank you to all who could make the webinar “New GFE/HUD-1, Mortgage Brokers Really Need to Know This Stuff", I have included the power point for you.
If you did not get a chance to attend, I’ll forward the web address once available.
Regards and thanks for all the great feedback!
On January 10th, Auburn’s Center for the Study of Theological Education hosted a webinar for financial aid officers, admissions staff and student personnel at theological schools on the latest government regulations for income-based repayment plans for federal educational loans. This information will assist financial aid officers and others who counsel students and recent graduates in repayment options as they move into ministry.
InKnowVision July 2014 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Review the recording as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
InKnowVision June 2014 HNW Case Study - Martin FWGAInKnowVision
Jim and Jan are 60 and 52 respectively. Several years ago they started up a national sales and education business. After a few years getting the business off the ground and building their intellectual property, the capture of new markets and increased margins are generating rapidly increasing revenues and profits. As a result, they have recently been approached by a 3rd party buyer and it has motivated them to begin thinking about their business succession plan. Their eldest son has become very involved in the business, playing an ever increasing role in day to day operations, and would like to take the business over at some point.
Their current net worth is approx. $22M with $20M tied up in the business. Until now, all of the profits were reinvested into the business to help generate their rapid growth. Jim and Jan feel they can finally afford to distribute some of the excess profits and begin to plan for their future retirement.
The primary planning goals are to:
- Build personal wealth outside of the business.
- Create a business succession/transition plan.
- Equalize the inheritances for their children.
- Provide pathways into the business should their other 3 sons decide to participate.
- Support their church and other community causes through charitable planning.
- Protect the business and family wealth from estate taxes
InKnowVision March 2014 Buy-Sell Problem Solver Case StudyInKnowVision
Last month we unveiled our Buy-Sell Problem Solver™ client engagement tool which includes:
- Legal Audit
- Tax Minimizer
- Value Identifier
- Funding Review
This new tool is specifically designed to help advisors quickly engage new business clients and uncover advanced planning opportunities.
View the recording for a case study showing how InKnowVision’s Buy-Sell Problem Solver™ led to a comprehensive planning engagement with a family business worth over $100M.
The owners of this successful family business thought they were doing everything right:
- They had a buy-sell agreement in place
- Their agreement was fully funded with insurance
- They continually updated their insurance to keep pace with the growing company value
Unfortunately, the agreement they had in place was going to cost the family millions of dollars in unnecessary taxes when it was triggered. Join us to learn how we helped this family solve a significant problem they didn’t know they had.
Who should attend:
- Investment Advisors
- CPAs
- Attorneys
- Insurance Professionals
InKnowVision February 2014 Case Study - Anderson FWGAInKnowVision
Jeff is 75 and Theresa is 72. Jeff recently retired from an executive position in a public company. As a result of his retirement he exercised over $45M in stock options and has 5 more years of deferred compensation payments. Jeff has also sold his 50% interest in his Corporation and the note payments are providing significant income for the next 9 years.
Jeff and Theresa have annual living expense desires of $725,000, with the available income to more than meet this need. Jeff’s deferred compensation payments average more than $2M/yr. for the next 5 years; his annual pension payments are $660k/yr. (inflating); and he also has note payments totaling $360k/yr. for the next 9 years from the buyout of his Corporation interests. These sources of income are in addition to an investment portfolio in excess of $60M that comprises a large portion of their $90M net worth.
The primary planning goals are to:
- Provide an inheritance to their children in a manner which will enable them to create opportunities for themselves but not encourage them to be unproductive.
- Provide for a charitable gift at death to their family foundation as long as it doesn’t greatly diminish the amount they pass to their heirs.
- Eliminate or reduce estate taxes.
InKnowVision December 2013 Case Study - Watson FWGAInKnowVision
Ben and Sara Watson are 55 and 54 respectively. They own and operate a very profitable well drilling and maintenance business that has allowed them to acquire and accumulate oil and gas rights totaling $30M over the last 5 years. These oil and gas rights are generating in excess of $1.5M a year on top of the $925k of income from their separate drilling and maintenance business. Ben and Sara have 3 daughters. Their youngest daughter, Katie, and her husband have played key roles in growing Watson Drilling. Ben would like to begin transitioning the business to them and ultimately leave them with the benefit of the business. With the business going to just one of the daughters, Ben and Sara want to equalize the inheritance to their other two daughters. For this, they have already purchased four whole life insurance policies. Two of these policies have significant loans against them and very little cash surrender value. With premiums totaling $400k for the four policies, all owned inside their estate, and insufficient death benefit to cover potential estate taxes and equalize the daughters’ inheritances, these policies may not meet the family’s needs.
The primary planning goals are to:
-Maintain their customary base lifestyle need of $250,000, with approximately another $750,000 for discretionary and other expenses.
-Provide for the financial security of the surviving spouse.
Provide a succession plan that will allow for a smooth transition of Watson Drilling to their daughter, Katie.
-Assure they have sufficient liquid assets available at their deaths to eliminate the forced liquidation of business or real estate assets.
-Maximize the inheritance that they leave for their children and grandchildren.
InKnowVision November 2013 HNW Technical PPT - Liquidity PlanningInKnowVision
In this presentation we looked at the problem seen in many large estates - the lack of liquidity to deal with estate equalization, estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
View this recording to see various designs for creating liquidity.
InKnowVision September 2013 Captive Insurance PowerpointInKnowVision
After completing this course, you will be able to:
- Identify the benefits of Captive Insurance companies
- Differentiate which clients would be ideal for a Captive
- List the necessary steps to form a Captive
- Define and address Captive tax issues
- Apply all of the processes to form a successful Captive Insurance company
InKnowVision August 2013 HNW Technical PPT - Family BanksInKnowVision
One of the common themes that we continue to see among our clients is the idea that leaving too much money to children will spoil them. InKnowVision often employs the family bank concept to help people understand how they can re-gain control in this complex area.
Join us as we look at this interesting concept and understand how to present it to clients, how to determine the client profile for this strategy and how to implement this type of planning.
InKnowVision July 2013 HNW Marketing PPTInKnowVision
Using HNW Content on LinkedIn to Market Your Firm
In this high net worth marketing webinar, we will focus on using HNW content on LinkedIn.
You will learn:
- How using HNW content on LinkedIn attracts your ideal client, referral sources and more
- Why regular updates to your LinkedIn profile using HNW content matters
- Which types of content posted on LinkedIn actually make a difference
Join us for the fourth part of our HNW Content Marketing Series. We will also be featuring a short Q&A with a current Educate2Motivate customer who will describe how content marketing has helped him reach his target market.
InKnowVision July 2013 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Join us as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
InKnowVision June 2013 HNW Marketing PPTInKnowVision
5 HNW Content Strategies You Won't Want To Miss
Recently we’ve shared with you why you need to use high net worth content and how to find it. Now it’s time to learn how to deploy high net worth content and start measuring your results.
In this high net worth marketing webinar, we will show you:
-What top 5 strategies are most important in reaching the high net worth
-How these top 5 strategies are used to deploy high net worth content
-Why they have the most impact on your high net worth audience
-Who will benefit most using these 5 top strategies
InKnowVision June 2013 HNW Technical PPT - Buy Sell PlanningInKnowVision
"Buy Sell Planning"
Redemption, cross purchase, hybrid or entity. Which is the best way to approach a buy sell for your clients? How best to fund the buy sells? And should you be using these agreements at all? Each of these will be on the table for discussion during this engaging session.
InKnowVision May 2013 HNW Marketing PPT - Content Marketing Part IIInKnowVision
In this session, we’ll discuss how HNW content marketing is measured and what return on investment you can expect when implementing even the simplest content marketing strategies.
Content marketing is a multiplier strategy, meaning that you can leverage one piece of content up to 10 different ways. Talk about a return on your investment!
The key however is to deliver exceptional content on a consistent basis. When it comes to the high net worth, content marketing will make the largest impact in creating “online” trust and lead nurturing hands down.
This will be 25 minutes of jam packed content marketing information you won’t want to miss.
InKnowVision March 2013 HNW Technical PPT - Liquidity Needs in Estate PlanningInKnowVision
In this presentation we’ll be looking at the problem seen in many large estates - The lack of liquidity to deal with estate equalization and liquidity for areas such as estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
In this session we will look at various designs for creating liquidity.
InKnowVision February 2013 HNW Marketing PPTInKnowVision
In this 25 minute HNW marketing webinar you will learn:
What current trends are driving HNW planning
How successful HNW Marketing retooling can bring new opportunities
Why Content Marketing is the #1 strategy in the search for top HNW advisors
When your existing book of business is your best HNW lead source
InKnowVision strives to bring you the most current marketing strategies to stay on top of your HNW prospect and client opportunities. We hope you will join us for this informative live HNW marketing webinar.
InKnowVision February 2013 HNW Technical PPT - Captive InsuranceInKnowVision
Scott Hamilton, CEO of InKnowVision, will discuss the use of captive insurance companies for estate planning, business tax planning, risk management and income tax benefits. All of these benefits can be substantial for the right company. As a CPA, attorney or financial advisor you will want to learn about captive insurance planning to help your clients reduce their tax liability, transfer more wealth out of their estate, manage risk, and much more.
This program is ideal for those who wish to reach the HNW market and those who have business clients with gross revenues of $10M and higher.
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 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
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.
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.
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when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
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.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
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.
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An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
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@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
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1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
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7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
2. FAMILY WEALTH GOAL ACHIEVER™ - INITIAL
PREPARED FOR:
JONATHAN AND SUSAN GILBERT
January 1, 2011
PRESENTED BY
Scott Hamilton
InKnowVision
Copyright InKnowVision, LLC 2011
3. YOUR GOALS AND OBJECTIVES
JONATHAN AND SUSAN GILBERT
Maintain our customary lifestyle. This should take about $2,000,000 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 $2,000,000 in
cash and readily marketable securities.
Maximize the inheritance that we leave to our daughters and our grandchildren.
Provide for lifetime annual charitable gifts for Cancer Research (or other charitable causes) and a significant
charitable gift at death.
Reduce income taxes.
Eliminate or reduce estate taxes.
Provide asset protection for our estate as well as our children.
Page 2
5. YOUR LIQUID ASSETS - CURRENT PLAN VS. PROPOSED PLAN
JONATHAN AND SUSAN GILBERT
$200,000,000
$180,000,000
$160,000,000
$140,000,000
$120,000,000
$100,000,000 -
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$20 000 000
$-
Liquid Assets Current Liquid Assets Proposed Total Living Expenses
Most of our clients want to know that they have sufficient income and liquid assets to pay for 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 liquid assets if you left your current planning in place.
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 4
7. COMPARISON OF INCOME TAX RESULTS - PLAN YEAR 2011
JONATHAN AND SUSAN GILBERT
Existing Plan Proposed Plan Income Tax Saved
2011 Estimated Income Tax $ 4,500,000 $ 3,400,000 $ 1,100,000
2012 Estimated Income Tax $ 4,700,000 $ 4,300,000 $ 400,000
2 Year Estimated Income Tax Savings $ 1,500,000
Page 6
8. INCOME TAXES PAID - CURRENT VS. PROPOSED
JONATHAN AND SUSAN GILBERT
$12,000,000
$10,000,000
$8,000,000
-
$6,000,000
$4,000,000
$2,000,000
$-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Current Plan Proposed Plan
This chart compares the amount of income taxes paid in the current plan as against the proposed plan.
Page 7
9. CREATE A CHARITABLE LIFE ESTATE
JONATHAN AND SUSAN GILBERT
Jonathan & Susan create a charitable life estate with a DAF or Cancer Research Charity.
Assumptions:
Value of Property $ 3,500,000
Life of Property 40 What am I keeping?
Salvage Value $ 350,000 -The right to live in the house
Land Value $ 700,000 -The right to make improvements
7520 Rate 3.20% -The right to rent the property
Age of Donor 76
Age of Donor Spouse 74
Remainder Interest* $ 1,977,402
Potential Tax Savings $ 680,507
*(Value of Income Tax Deduction)
Page 8
10. DISTRIBUTION OF HOME UPON SECOND DEATH
JONATHAN AND SUSAN GILBERT
Upon the second death, the home will be distributed to the DAF or Cancer Research Charity.
Page 9
11. BEGIN MAKING ANNUAL CHARITABLE GIFTS
JONATHAN AND SUSAN GILBERT
Jonathan & Susan make charitable gifts.
Assumptions:
Annual Gifts $ 600,000
Approx Annual Tax Savings 230,250
Amount of gift is for illustration only.
Gift is built into liquidity results.
Page 10
12. JONATHAN AND SUSAN GILBERT
INCREASE INHERITANCE
AND REDUCE ESTATE TAX
Page 11
13. COMPARISON OF PLAN RESULTS - PLAN YEAR 2011
JONATHAN AND SUSAN GILBERT
Existing Plan Proposed Plan Advantage
Estate Value $ 141,785,579 $ 136,933,458
Heirs Receive Immediately $ 113,798,140 $ 139,786,697 $ 25,988,557
Heirs Receive Benefits from TCLAT $ - $ 74,608,048 $ 74,608,048
Total Benefits to Family $ 113,798,140 $ 214,394,745 $ 100,596,605
Family Charity $ - $ 127,030,966 $ 127,030,966
Estate and Income Tax $ 45,923,753 $ - $ 45,923,753
This chart assumes that you both die this year and compares the results of the current plan with the proposed plan.
Page 12
14. COMPARISON OF PLAN RESULTS - PLAN YEAR 2011
JONATHAN AND SUSAN GILBERT
CURRENT PLAN PROPOSED PLAN
Heirs Estate Tax Charity Heirs Estate Tax Charity
Heirs $113,798,140 Heirs $214,394,745
Estate Tax $45,923,753 Estate Tax $0
Charity $0 Charity $127,030,966
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 13
15. COMPARISON OF PLAN RESULTS - PLAN YEAR 2026
JONATHAN AND SUSAN GILBERT
Existing Plan Proposed Plan Advantage
Estate Value $ 397,435,879 $ 261,714,223
Heirs Receive Immediately $ 199,577,351 $ 192,956,191 $ (6,621,160)
Heirs Receive Benefits from TCLAT $ - $ 152,896,387 $ 152,896,387
Total Benefits to Family $ 199,577,351 $ 345,852,577 $ 146,275,226
Family Charity $ - $ 267,377,348 $ 267,377,348
Estate and Income Tax $ 215,276,801 $ - $ 215,276,801
Present Value of total to Heirs $128,101,107 $221,989,609
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 14
16. COMPARISON OF PLAN RESULTS - PLAN YEAR 2026
JONATHAN AND SUSAN GILBERT
CURRENT PLAN PROPOSED PLAN
Heirs Estate Tax Charity Heirs Estate Tax Charity
Heirs $199,577,351 Heirs $192,956,191
Estate Tax $215,276,801 Estate Tax $0
Charity $0 Charity $267,377,348
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 15
17. ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED
JONATHAN AND SUSAN GILBERT
$360,000,000
$320,000,000
$280,000,000
$240,000,000
-
$200,000,000
$160,000,000
$120,000,000
$80,000,000
Current Plan Proposed Plan Proposed Plan w/out Life Ins Proposed Plan w/out TCLAT
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 16
18. ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED
JONATHAN AND SUSAN GILBERT
$360,000,000
$320,000,000
$280,000,000
$240,000,000
-
$200,000,000
$160,000,000
$120,000,000
$80,000,000
Proposed Plan - Heirs Receive at Death Proposed Plan - Heirs Receive 16 years after death Current Plan Proposed Plan Without TCLAT
This chart compares the amount of money passing to your heirs at death in the various plans against a background of assets passing to heirs immediately and assets
passing to heirs at the end of the TCLAT.
Page 17
19. BENEFITS - PLAN YEAR - VALUE OF LIFE INSURANCE
JONATHAN AND SUSAN GILBERT
With Life Insurance Without Life Insurance Advantage
Death Occurs Today - Heirs Receive $ 218,757,960 $ 98,757,960 $ 120,000,000
Death Occurs in 2026 - Heirs Receive $ 345,852,577 $ 327,845,601 $ 18,006,976
The benefits are based on certain assumptions. This is for illustration purposes only. Actual insurance numbers can only be determined by applying for insurance.
Page 18
21. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2011
JONATHAN AND SUSAN GILBERT
Existing Plan Proposed Plan Increase in Charity
Charity Receives from TCLAT $ - $ 122,800,000 $ 122,800,000
Family Charity $ - $ 127,000,000 $ 127,000,000
Page 20
22. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2026
JONATHAN AND SUSAN GILBERT
Existing Plan Proposed Plan Increase in Charity
Charity Receives from TCLAT $ - $ 251,700,000 $ 251,700,000
Family Charity $ - $ 267,400,000 $ 267,400,000
Page 21
23. GIFTING TO CHARITY - EXISTING PLAN VS. PROPOSED PLAN
JONATHAN AND SUSAN GILBERT
$280,000,000
$240,000,000
$200,000,000
$160,000,000
-
$120,000,000
$80,000,000
$40,000,000
$-
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 22
24. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - CONSIDERED
JONATHAN AND SUSAN GILBERT
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 Charitable Lead
Remainder Uni- 412(i) Private Annuity GDOT SCIN
Partnership Annuity Trust
Trust
Qualified Personal Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Flip CRT
Residence Trust Note Liability Company Insurance
Preferred Limited Long Term Care Sell 60% Monster
Premium Finance 529 Plans Gifting ILIT
partnership Insurance Biz Stock to GDOT
Charitable Life
Walton GRAT Private Foundations NIMCRUT Annuity Withdrawal Asset Protection SPIA/Life Arbitrage
Estate
New Annual Revocable Living GDOT Purchases
SPIA/Life in a
Lifetime Gifts to Trusts, DPAs and Crummey Powers Dynasty Trust Life Insurance GDOT
CLAT
Charity of $600,000 POAs Policy From LLC 1
Supporting Short-Term Loan to
IRA Maximizer Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations GDOT
Charitable
Defined Benefit Qualified Plan
Bargain Sales Succession Planning Risk Management Remainder Annuity ESOP Planning
Plans Limited Partnership
Trust
Page 23
25. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
JONATHAN AND SUSAN GILBERT
The highlighted tools are those we have determined are most suited to achieving your goals and objectives.
Charitable
Family Limited Charitable Lead
Remainder Uni- 412(i) Private Annuity GDOT SCIN
Partnership Annuity Trust
Trust
Qualified Personal Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Flip CRT
Residence Trust Note Liability Company Insurance
Preferred Limited Long Term Care Sell 60% Monster
Premium Finance 529 Plans Gifting ILIT
partnership Insurance Biz Stock to GDOT
Charitable Life
Walton GRAT Private Foundations NIMCRUT Annuity Withdrawal Asset Protection SPIA/Life Arbitrage
Estate
New Annual Revocable Living GDOT Purchases
SPIA/Life in a
Lifetime Gifts to Trusts, DPAs and Crummey Powers Dynasty Trust Life Insurance GDOT
CLAT
Charity of $600,000 POAs Policy From LLC 1
Supporting Short-Term Loan to
IRA Maximizer Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations GDOT
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 24
26. ESTATE PLAN OVERVIEW AND ESTATE DISTRIBUTION - 2008
JONATHAN AND SUSAN GILBERT
Gifts to ILIT
NET WORTH
129,801,661 EXISTING ILIT
LIFE ESTATE Short term loan to GDOT
1,055,324
3,500,000
INSURANCE
Sell Monster Biz Shares to GDOT
15,000,000 GDOT
Installment note
Owns Monster Biz
GDOT Purchases Life Insurance from LLC 1 Stock
INSURANCE
GDOT Purchases New Life Insurance
120,000,000
First Death
FAMILY TRUST / SUSAN MARITAL TRUST / SUSAN SUSAN ADMIN
irst
4,235,543 119 736 945
119,736,945 745,348
745 348 651,848
Second Death
TCLAT ADMIN
Heirs From HEIRS
TCLAT
115,904,584 1,274,143
218,757,960
FAMILY CHARITY
120,004,584
Page25
27. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
JONATHAN AND SUSAN GILBERT
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 26
28. HAVE THE MONSTER BIZ SHARES APPRAISED
JONATHAN AND SUSAN GILBERT
Hire an appraiser to value 6.12% of the Monster Biz shares. The appraiser will value the shares taking all of the following into account:
▪ Liquidity of the shares
▪ Transferability of the shares
▪ Degree of control that accompanies ownership of the shares
▪ The assets owned by the corporation
Appraisal
The assumed value of the Monster Biz 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 27
29. CREATE GRANTOR DEEMED OWNER TRUST
JONATHAN AND SUSAN GILBERT
Jonathan creates an individual grantor deemed owner trust (GDOT).
Page 28
30. SELL MONSTER BIZ SHARES TO THE GDOT
JONATHAN AND SUSAN GILBERT
Jonathan sells 60% of his Monster Biz stock to the GDOT for an installment note.
Sells his Monster Biz stock
worth $42,165,000
An installment note worth
$42,165,000 that provides
annual payments of
$1,880,559
The sale price is based on the assumed value of the assets
sold.
*Note payments are interest only at 4.46%.
Page 29
31. LOAN TO GRANTOR DEEMED OWNER TRUST
JONATHAN AND SUSAN GILBERT
Jonathan makes a short term loan to the grantor deemed owner trust (GDOT).
Page 30
32. BENEFICIARIES GUARANTEE GDOT OBLIGATION
JONATHAN AND SUSAN GILBERT
The heirs guarantee the obligation of the GDOT.
Installment note
Beneficiaries of th GDOT ( others)
B fi i i f the (or th )
guarantee a portion of the GDOT obligation.
Page 31
33. PURCHASE LIFE INSURANCE IN THE GDOT
JONATHAN AND SUSAN GILBERT
The GDOT Trustees purchase second-to-die life insurance with the assets of the GDOT.
Premium Payment Details
Premium in the amount of $13,440,000 is paid in the first year with assets of the
GDOT. No premium payments are made for 10 years, then beginning in year 11,
premiums in the amount of $9,363,183 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.
Page 32
34. WHY USE A ONE PAY WITH CATCH UP STRUCTURE FOR PREMIUMS
Reasons to use a one pay with catch up:
1. Allows you to wait and see what will happen with the estate tax.
2. You may decide to keep all of the death benefit or you might keep the policy but reduce the death benefit. Clients in their
late 70s and 80's can consider selling the policy if they decide they do not want to keep it.
3. Better economics. Allows you to keep the “unpaid” premium dollars and invest as you normally would. You will usually be
better off than with level premiums.
4. Relatively small commitment compared to death benefit. Usually less than the equivalent of two normal premiums.
5. Works nicely with a TCLAT. Allows you to zero out the tax and give money to your kids. Keep in mind that your kids could
be in their 70s or 80s before they inherit any money from the TCLAT.
6. Policy is guaranteed (if required first year and catch up premiums are paid).
7. People often lose guarantees because they pay premiums late. Because there are no premiums to pay until the catch-up
premiums begin, there is no need to worry about losing guarantees during this time period.
8. Less administration and headache. Because you pay only one premium now, you only need to send Crummey notices this
year. Then none until premiums start up again.
Page 33
35. GDOT PURCHASES LIFE INSURANCE FROM LLC 1
JONATHAN AND SUSAN GILBERT
The GDOT Trustees purchase insurance policies from LLC 1
GDOT purchases
insurance policies from
LLC 1 for a note issued
by the GDOT to LLC 1.
The GDOT will issue a mid term note to LLC 1 collateralized by the policy.
This reduces the value of LLC 1 over time and shifts assets to your daughters.
Page 34
36. TESTAM TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part I)
JONATHAN AND SUSAN GILBERT
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 8.08%
Present value discount rate 3.00%
Assumed date of death 2011
Page 35
37. TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part II)
JONATHAN AND SUSAN GILBERT
At the end of the TCLAT term, your heirs will receive all of the remaining trust assets.
Page 36
38. COST BENEFIT ANALYSIS
JONATHAN AND SUSAN GILBERT
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 $100,596,605 over your existing plan.
The reward of the proposed plan results in an advantage to your heirs at life expectancy of $146,275,226 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
Attorneys Fees 200,000
Valuation Fees 15,000
Total $ 215,000
Annual Maintenance Fee $ 15,000
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 37
39. 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 $835,828.
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 0.00%. 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 2026 Potential Loss (Total Failure)
Page 38
40. DETAILED FINANCIAL ANALYSIS
JONATHAN AND SUSAN GILBERT
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 39
41. DETAILED FINANCIAL ANALYSIS
JONATHAN AND SUSAN GILBERT
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 40
42. CURRENT NET WORTH STATEMENT
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Private Bank 536,343 - - 536,343 2.0% 0.0%
Private Bank CD 15,000,000 2,400,000 - 17,400,000 5.5% 0.0%
Private Bank MMF 5,304,042 583,353 - 5,887,395 3.0% 0.0%
National City - 23,997 - 23,997 2.0% 0.0%
Bank of America MMF 100,686 - - 100,686 2.0% 0.0%
Bank of America 31,425 - - 31,425 2.0% 0.0%
Bank of America 320,235 - - 320,235 2.0% 0.0%
LLC 1 - 3,756 - 3,756 2.0% 0.0%
LLC 2 - 3,054 - 3,054 2.0% 0.0%
LLC 3 - 3,507 - 3,507 2.0% 0.0%
LLC 4 - 5,556 - 5,556 2.0% 0.0%
Cash on Hand - - 25,500 25,500 2.0% 0.0%
Total of Cash and Equivalents 21,292,731 3,023,223 25,500 24,341,454 4.7% 0.0%
Page 41
43. CURRENT NET WORTH STATEMENT (Page 2)
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
Note 1 1,059,000 - - 1,059,000 5.0% 5.0%
Note 2 893,352 - - 893,352 0.0% 10.0%
Total of Other Investments 1,952,352 - - 1,952,352 2.7% 7.3%
CLOSELY HELD BUSINESS
Monster Biz (10.2%) 70,275,000 - - 70,275,000 13.0% 3.0%
Total Closely Held Business 70,275,000 - - 70,275,000 13.0% 3.0%
INVESTMENT REAL ESTATE
LLC 1 3,900,000 - - 3,900,000 2.4% 4.0%
LLC 2 4,647,000 - - 4,647,000 8.4% 4.0%
LLC 3 6,000,000 - - 6,000,000 0.0% 4.0%
LLC 4 19,800,000 - - 19,800,000 4.6% 4.0%
LLC 5 13,926,000 - - 13,926,000 4.3% 4.0%
LLC 6 11,010,000 - - 11,010,000 3.3% 4.0%
LLC 7 13,500,000 - - 13,500,000 1.6% 4.0%
LLC 8 2,400,000 - - 2,400,000 0.0% 4.0%
LLC 9 3,000,000 - - 3,000,000 4.0% 4.0%
Total of Real Estate Holdings 78,183,000 - - 78,183,000 3.4% 4.0%
Page 42
44. CURRENT NET WORTH STATEMENT (Page 3)
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
RESIDENTIAL REAL ESTATE
12345 Main St - 3,500,000 - 3,500,000 0.0% 3.0%
Florida Condo 3,500,000 - - 3,500,000 0.0% 3.0%
Total of Personal Residences 3,500,000 3,500,000 - 7,000,000 0.0% 3.0%
PERSONAL PROPERTY
Personal Property - - 1,500,000 1,500,000 0.0% 0.0%
Total of Personal Property - - 1,500,000 1,500,000 0.0% 0.0%
TOTAL ASSETS 175,203,083 6,523,223 1,525,500 183,251,806
LIABILITIES
12345 Main St - 686,001 - 686,001
LLC 1 3,113,664 - - 3,113,664
LLC 2 15,641,955 - - 15,641,955
LLC 3 10,427,970 - - 10,427,970
LLC 4 8,689,974 - - 8,689,974
LLC 5 10,315,581 - - 10,315,581
LLC 6 - - 75,000 75,000
LLC 7 2,250,000 2,250,000 - 4,500,000
Total Liabilities 50,439,144 2,936,001 75,000 53,450,145
TOTAL LIABILITIES 50,439,144 2,936,001 75,000 53,450,145
NET WORTH 124,763,939 3,587,222 1,450,500 129,801,661
Page 43
45. SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN
JONATHAN AND SUSAN GILBERT
COMPANY INSURED POLICY # BENEFICIARY PREMIUM CASH VALUE DEATH BENEFIT
Policies owned by LLC 1
John Hancock Jonathan & Susan 1234567 LLC 1 240,330 482,209 10,000,000
Metlife Jonathan & Susan 2345678 LLC 1 108,968 197,729 5,000,000
Totals 349,298 679,938 15,000,000
Policies owned by ILIT
AXA Jonathan 3456789 ILIT DTD 03/12/1996 20,251 103,349 1,055,324
Totals 20,251 103,349 1,055,324
Page 44
46. FINANCIAL ANALYSIS - EXISTING PLAN ASSET VALUE PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Asset Values
Cash and cash equivalents 24,341,454 30,753,104 37,571,662 44,118,551 51,058,392 83,130,976 134,542,064 172,557,606
Other investments 1,059,000 1,111,801 1,167,391 1,225,761 1,287,049 1,564,416 1,996,636 2,311,355
Closely held business 70,275,000 72,377,388 74,548,710 76,785,171 79,088,727 89,015,058 103,192,850 112,761,613
Note 2 1 893,352 982,431 1,080,674 1,188,741 1,307,615 1,914,479 3,083,288 4,103,857
Investment real estate 78,183,000 81,301,583 84,553,647 87,935,793 91,453,224 106,987,337 130,166,454 146,419,559
Personal residences 7,000,000 7,209,416 7,425,699 7,648,470 7,877,924 8,866,672 10,278,904 11,232,035
Personal property 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Total assets in estate 183,251,806 195,235,724 207,847,783 220,402,486 233,572,930 292,978,940 384,760,196 450,886,024
Less estimated liabilities (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145)
Combined net worth $ 129,801,661 $ 141,785,579 $ 154,397,638 $ 166,952,341 $ 180,122,785 $ 239,528,795 $ 331,310,051 $ 397,435,879
1
We're assuming the note will not be paid off, and it will continue accruing at 10%. Our assumption is that the 10% interest is taxable.
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 45
47. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Sources of taxable income
Cash and cash equivalents 1,154,703 1,458,857 1,782,314 2,092,883 3,530,573 5,840,892 7,554,666
Other investments 52,950 55,590 58,370 61,288 74,496 95,078 110,065
Closely held business 9,135,750 9,409,060 9,691,332 9,982,072 11,234,910 13,024,340 14,232,048
Investment real estate 2,692,896 2,800,311 2,912,323 3,028,816 3,543,287 4,310,950 4,849,232
Social security income 17,856 18,213 18,577 18,949 20,511 22,646 24,032
Pension income 48,000 48,000 48,000 48,000 48,000 48,000 48,000
Gross income $ 13,102,155 $ 13,790,032 $ 14,510,917 $ 15,232,009 $ 18,451,777 $ 23,341,905 $ 26,818,043
Page 46
48. INCOME TAX PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Income tax Estimation
Adjusted gross income:
Earned and other income 13,102,155 13,790,032 14,510,917 15,232,009 18,451,777 23,341,905 26,818,043
Adjusted gross income 13,102,155 13,790,032 14,510,917 15,232,009 18,451,777 23,341,905 26,818,043
Deductions
Real estate tax 50,956 50,956 51,975 53,015 54,075 58,532 64,625 68,580
Interest 25,000 25,000 25,500 26,010 26,530 28,717 31,706 33,647
Charitable gifts 57,250 57,250 58,395 59,563 60,754 65,762 72,607 77,051
Charitable Deduction available 57,250 58,395 59,563 60,754 65,762 72,607 77,051
Charitable Deduction allowed 57,250 58,395 59,563 60,754 65,762 72,607 77,051
Total deductions 133,206 135,870 138,588 141,359 153,012 168,937 179,278
Reductions - - (110,870) (113,087) (122,409) (135,150) (143,422)
Deductions allowed 133,206 135,870 27,718 28,272 30,602 33,787 35,856
Taxable income 12,968,949 13,654,162 14,483,199 15,203,737 18,421,174 23,308,118 26,782,188
Federal and State income tax $ 4,509,004 $ 4,748,828 $ 5,699,414 $ 5,984,747 $ 7,258,852 $ 9,194,082 $ 10,569,813
Page 47
49. CASH FLOW PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Sources of income for Lifestyle
Depreciation Add Back 52,000 52,000 52,000 52,000 52,000 52,000 -
Consumable income (taxable) 13,102,155 13,790,032 14,510,917 15,232,009 18,451,777 23,341,905 26,818,043
Total income available for lifestyle 13,154,155 13,842,032 14,562,917 15,284,009 18,503,777 23,393,905 26,818,043
Uses of Cash
Living expenses 2,000,000 2,040,000 2,080,800 2,122,416 2,297,371 2,536,484 2,691,737
Income tax 4,509,004 4,748,828 5,699,414 5,984,747 7,258,852 9,194,082 10,569,813
Cash gifts to ILIT 20,251 20,251 20,251 20,251 20,251 20,251 20,251
Cash gifts to family 156,000 156,000 156,000 156,000 156,000 156,000 156,000
Cash gifts to charity 57,250 58,395 59,563 60,754 65,762 72,607 77,051
Total uses of cash 6,742,505 7,023,474 8,016,028 8,344,168 9,798,237 11,979,423 13,514,852
Surplus $ 6,411,650 $ 6,818,558 $ 6,546,889 $ 6,939,841 $ 8,705,540 $ 11,414,482 $ 13,303,191
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 48
50. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Tax calculation on Jonathan's death
Combined net worth 129,801,661 141,785,579 154,397,638 166,952,341 180,122,785 239,528,795 331,310,051 397,435,879
Jonathan's estimated estate 125,489,189 137,074,959 149,268,000 161,405,592 174,138,467 231,570,798 320,302,754 384,231,648
Total gross estate 125,489,189 137,074,959 149,268,000 161,405,592 174,138,467 231,570,798 320,302,754 384,231,648
Settlement expenses (652,446) (710,375) (771,340) (832,028) (895,692) (1,182,854) (1,626,514) (1,946,158)
Joint, personal and IRA to Susan (725,250) (792,209) (862,677) (932,825) (1,006,413) (1,338,336) (1,851,152) (2,220,622)
Outright or in trust to Susan (119,875,950) (131,336,833) (143,398,440) (159,405,196) (172,000,819) (228,814,065) (316,589,546) (379,829,325)
Taxable estate 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Plus Jonathan's lifetime taxable gifts 764,457 764,457 764,457 764,457 764,457 764,457 764,457 764,457
Tax base 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Federal Estate Tax - - - - - - - -
Distribution of Jonathan's estate
Settlement expenses 652,446 710,375 771,340 832,028 895,692 1,182,854 1,626,514 1,946,158
To family trust 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Joint, personal and IRA to Susan 725,250 792,209 862,677 932,825 1,006,413 1,338,336 1,851,152 2,220,622
Outright or in trust to Susan 119,875,950 131,336,833 143,398,440 159,405,196 172,000,819 228,814,065 316,589,546 379,829,325
Total $ 125,489,189 $ 137,074,959 $ 149,268,000 $ 161,405,592 $ 174,138,467 $ 231,570,798 $ 320,302,754 $ 384,231,648
Assumptions
We assume that Jonathan dies first, followed immediately by Susan.
Taxes under "Distribution of First Estate" include estate and income taxes.
Page 49
51. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Tax Calculation on Susan's death
Susan's assets 4,312,472 4,710,620 5,129,638 5,546,749 5,984,318 7,957,997 11,007,296 13,204,231
Plus assets from Jonathan's estate 120,601,200 132,129,041 144,261,117 160,338,021 173,007,231 230,152,401 318,440,698 382,049,947
Susan's estimated estate 124,913,672 136,839,661 149,390,755 165,884,770 178,991,550 238,110,398 329,447,994 395,254,178
Settlement expenses (1,274,137) (1,393,397) (1,518,908) (1,683,848) (1,814,915) (2,406,104) (3,319,480) (3,977,542)
Susan's taxable estate 123,639,535 135,446,265 147,871,847 164,200,923 177,176,634 235,704,294 326,128,514 391,276,636
Plus Susan's lifetime taxable gifts 764,457 764,457 764,457 764,457 764,457 764,457 764,457 764,457
Tax base 124,403,992 136,210,722 148,636,304 164,965,380 177,941,091 236,468,751 326,892,971 392,041,093
Federal Estate Tax 41,791,397 45,923,753 50,272,706 90,385,159 97,521,800 129,712,013 179,445,334 215,276,801
Total Estate Tax Due 41,791,397 45,923,753 50,272,706 90,385,159 97,521,800 129,712,013 179,445,334 215,276,801
Distribution of Susan's estate
Settlement expenses 1,274,137 1,393,397 1,518,908 1,683,848 1,814,915 2,406,104 3,319,480 3,977,542
Taxes 41,791,397 45,923,753 50,272,706 90,385,159 97,521,800 129,712,013 179,445,334 215,276,801
Residual estate to heirs 81,848,138 89,522,512 97,599,141 73,815,764 79,654,834 105,992,281 146,683,180 175,999,835
Total $ 124,913,672 $ 136,839,661 $ 149,390,755 $ 165,884,770 $ 178,991,550 $ 238,110,398 $ 329,447,994 $ 395,254,178
Assumptions
We assume that Jonathan dies first, followed immediately by Susan.
Taxes under "Distribution of Second Estate" include estate and income taxes.
Page 50
52. SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Benefits to Family
Family trust 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Residual estate 81,848,138 89,522,512 97,599,141 73,815,764 79,654,834 105,992,281 146,683,180 175,999,835
Grandchildren's Trust 378,010 396,857 416,700 437,535 459,412 558,418 712,699 825,038
LLC 1 (Insurance Policies) 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000
LLC 1 (Other)1 3,449,907 3,587,903 3,731,419 3,880,676 4,035,903 4,721,436 5,744,349 6,461,611
Proceeds from ILIT 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324
Total assets to heirs $ 105,966,922 $ 113,798,140 $ 122,038,127 $ 94,424,842 $ 100,441,016 $ 127,563,002 $ 169,431,095 $ 199,577,351
1
LLC 1:
34567 Main St, Fairview Heights, IL $4,000,000 ($7.5 M value, debt of $3.5M)
John Hancock 2nd to die policy 1234567 $15,000,000 (death benefit)
Debt owed to Jonathan -$353,000
Private Bank Accounts $475,539
Page 51
53. DETAILED FINANCIAL ANALYSIS
JONATHAN AND SUSAN GILBERT
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 52
54. NET WORTH STATEMENT AFTER PLAN IMPLEMENTATION
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Private Bank 536,343 - - 536,343 2.0% 0.0%
Private Bank CD 15,000,000 2,400,000 - 17,400,000 5.5% 0.0%
Private Bank MMF 5,304,042 583,353 - 5,887,395 3.0% 0.0%
National City - 23,997 - 23,997 2.0% 0.0%
Bank of America MMF 100,686 - - 100,686 2.0% 0.0%
Bank of America 31,425 - - 31,425 2.0% 0.0%
Bank of America 320,235 - - 320,235 2.0% 0.0%
LLC 1 - 3,756 - 3,756 2.0% 0.0%
LLC 2 - 3,054 - 3,054 2.0% 0.0%
LLC 3 - 3,507 - 3,507 2.0% 0.0%
LLC 4 - 5,556 - 5,556 2.0% 0.0%
Cash on Hand - - 25,500 25,500 2.0% 0.0%
Total o Cas a d Equivalents
ota of Cash and qu va e ts 21,292,731
, 9 ,73 3,0 3, 3
3,023,223 25,500
5,500 24,341,454
,3 , 5 4.7%
.7% 0.0%
Page 53
55. REVISED NET WORTH STATEMENT (Page 2)
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
Note 1 1,059,000 - - 1,059,000 5.0% 5.0%
Note 2 893,352 - - 893,352 0.0% 10.0%
Total of Other Investments 1,952,352 - - 1,952,352 2.7% 7.3%
CLOSELY HELD BUSINESS
Monster Biz (10.2%) 28,110,000 - - 28,110,000 13.0% 3.0%
Total Closely Held Business 28,110,000 - - 28,110,000 13.0% 3.0%
INVESTMENT REAL ESTATE
LLC 1 3,900,000 - - 3,900,000 2.4% 4.0%
LLC 2 4,647,000 - - 4,647,000 8.4% 4.0%
LLC 3 6,000,000 - - 6,000,000 0.0% 4.0%
LLC 4 19,800,000 - - 19,800,000 4.6% 4.0%
LLC 5 13,926,000 - - 13,926,000 4.3% 4.0%
LLC 6 11,010,000 - - 11,010,000 3.3% 4.0%
LLC 7 13,500,000 - - 13,500,000 1.6% 4.0%
LLC 8 2,400,000 - - 2,400,000 0.0% 4.0%
LLC 9 3,000,000 - - 3,000,000 4.0% 4.0%
Total of Real Estate Holdings 78,183,000 - - 78,183,000 3.4% 4.0%
Page 54
56. REVISED NET WORTH STATEMENT (Page 3)
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
RESIDENTIAL REAL ESTATE
12345 Main St - 3,500,000 - 3,500,000 0.0% 3.0%
Total of Personal Residences - 3,500,000 - 3,500,000 0.0% 3.0%
PERSONAL PROPERTY
Personal Property - - 1,500,000 1,500,000 0.0% 0.0%
Total of Personal Property - - 1,500,000 1,500,000 0.0% 0.0%
OTHER STRATEGY ASSETS
GDOT Note 42,165,000 - - 42,165,000 4.46%
Total of Other Strategy Assets 42,165,000 - - 42,165,000 4.46%
TOTAL ASSETS 171,703,083 6,523,223 1,525,500 179,751,806
LIABILITIES
12345 Main St - 686,001 - 686,001
LLC 1 3,113,664 - - 3,113,664
LLC 2 15,641,955 - - 15,641,955
LLC 3 10,427,970 - - 10,427,970
LLC 4 8,689,974 - - 8,689,974
LLC 5 10,315,581 - - 10,315,581
LLC 6 - - 75,000 75,000
LLC 7 2,250,000 2,250,000 - 4,500,000
Total Liabilities 50,439,144 2,936,001 75,000 53,450,145
TOTAL LIABILITIES 50,439,144 2,936,001 75,000 53,450,145
NET WORTH 121,263,939 3,587,222 1,450,500 126,301,661
Page 55
57. FINANCIAL ANALYSIS - PROPOSED PLA ASSET VALUE PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Asset Values
Cash and cash equivalents 13,091,454 15,912,416 18,454,642 20,350,452 22,297,614 41,946,149 58,764,580 67,327,917
Other investments 1,059,000 1,111,801 1,167,391 1,225,761 1,287,049 1,564,416 1,996,636 2,311,355
Closely held business 28,110,000 28,950,955 29,819,484 30,714,069 31,635,491 35,606,023 41,277,140 45,104,645
Note 2 1 893,352 982,431 1,080,674 1,188,741 1,307,615 1,914,479 3,083,288 4,103,857
Loan to the GDOT 11,250,000 11,250,000 11,250,000 11,250,000 11,250,000 - - -
Investment real estate 78,183,000 81,301,583 84,553,647 87,935,793 91,453,224 106,987,337 130,166,454 146,419,559
Personal residences 3,500,000 3,604,708 3,712,849 3,824,235 3,938,962 4,433,336 5,139,452 5,616,018
Residences in charitable life estate 3,500,000 3,604,708 3,712,849 3,824,235 3,938,962 4,433,336 5,139,452 5,616,018
Personal property 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Note from children's GDOT 42,165,000 42,165,000 42,165,000 42,165,000 42,165,000 42,165,000 37,165,000 37,165,000
Total assets in estate 183,251,806 190,383,603 197,416,536 203,978,285 210,773,916 240,550,077 284,232,002 315,164,368
Less estimated liabilities (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145)
Combined net worth $ 129,801,661 $ 136,933,458 $ 143,966,391 $ 150,528,140 $ 157,323,771 $ 187,099,932 $ 230,781,857 $ 261,714,223
1
We're assuming the note will not be paid off, and it will continue accruing at 10%. Our assumption is that the 10% interest is taxable.
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 56
58. TAXABLE INCOME PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Sources of Taxable Income
Cash and cash equivalents 621,029 754,849 875,446 965,379 1,885,341 2,436,646 3,052,715
Other investments 52,950 55,590 58,370 61,288 74,496 95,078 110,065
Closely held business 3,654,300 3,763,624 3,876,533 3,992,829 4,493,964 5,209,736 5,692,819
Investment real estate 2,692,896 2,800,311 2,912,323 3,028,816 3,543,287 4,310,950 4,849,232
Other taxable earnings-GDOT 5,481,450 5,670,718 5,902,963 6,148,077 7,040,483 8,410,579 8,940,761
Social security income 17,856 18,213 18,577 18,949 20,511 22,646 24,032
Pension income 48,000 48,000 48,000 48,000 48,000 48,000 48,000
Gross income $ 12,568,481 $ 13,111,305 $ 13,692,212 $ 14,263,338 $ 17,106,082 $ 20,533,634 $ 22,717,624
Page 57
59. INCOME TAX PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Income Tax Estimation
Adjusted gross income:
Earned and other income 12,568,481 13,111,305 13,692,212 14,263,338 17,106,082 20,533,634 22,717,624
Adjusted gross income 12,568,481 13,111,305 13,692,212 14,263,338 17,106,082 20,533,634 22,717,624
Deductions
Real Estate Tax 50,956 51,975 53,015 54,075 58,532 64,625 68,580
Interest 25,000 25,500 26,010 26,530 28,717 31,706 33,647
Cash charitable gifts 657,250 658,395 659,563 660,754 665,762 672,607 677,051
LTCapGains property charitable gifts 1,977,402 - - - - - -
Charitable Deduction available 2,634,652 658,395 659,563 660,754 665,762 672,607 677,051
Charitable Deduction allowed 2,634,652 658,395 659,563 660,754 665,762 672,607 677,051
Total deductions 2,710,608 735,870 738,588 741,359 753,012 768,937 779,278
Reductions - - (405,762) (422,896) (508,178) (611,005) (623,422)
Deductions allowed 2,710,608 735,870 332,825 318,463 244,833 157,932 155,856
Taxable income 9,857,873 12,375,435 13,359,387 13,944,875 16,861,248 20,375,702 22,561,769
Federal and State income tax $ 3,420,127 $ 4,301,274 $ 5,254,384 $ 5,486,238 $ 6,641,121 $ 8,032,845 $ 8,898,527
Page 58
60. CASH FLOW PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Sources of Income for Lifestyle
Consumable income (taxable) 7,087,031 7,440,587 7,789,249 8,115,261 10,065,599 12,123,055 13,776,863
Payment from GDOT (Initial Loan) 360,000 360,000 360,000 360,000 - - -
Depreciation Add Back 52,000 52,000 52,000 52,000 52,000 52,000 -
Payment from GDOT 1,880,559 1,880,559 1,880,559 1,880,559 1,880,559 6,657,559 1,657,559
Total income available for lifestyle 9,379,590 9,733,146 10,081,808 10,407,820 11,998,158 18,832,614 15,434,422
Uses of Cash
Living expenses 2,000,000 2,040,000 2,080,800 2,122,416 2,297,371 2,536,484 2,691,737
Income tax 3,420,127 4,301,274 5,254,384 5,486,238 6,641,121 8,032,845 8,898,527
Cash gifts to ILIT 20,251 20,251 20,251 20,251 20,251 20,251 20,251
Cash gifts to family 156,000 156,000 156,000 156,000 156,000 156,000 156,000
Planning and maintenance Fees 305,000 15,000 15,000 15,000 15,000 15,000 15,000
Cash gifts to charity 57,250 58,395 59,563 60,754 65,762 72,607 77,051
New Cash gifts to charity 600,000 600,000 600,000 600,000 600,000 600,000 600,000
Total uses of cash 6,558,628 7,190,920 8,185,998 8,460,659 9,795,506 11,433,186 12,458,566
Surplus $ 2,820,962 $ 2,542,226 $ 1,895,810 $ 1,947,161 $ 2,202,652 $ 7,399,428 $ 2,975,856
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row on the "Asset Value Projections" 3 pages earlier.
Page 59
61. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Tax calculation on Jonathan's death
Combined Net Worth 129,801,661 136,933,458 143,966,391 150,528,140 157,323,771 187,099,932 230,781,857 261,714,223
Jonathan's estimated estate 125,369,684 132,257,971 139,050,771 145,388,474 151,952,074 180,711,551 222,901,990 252,778,194
Total gross estate 125,369,684 132,257,971 139,050,771 145,388,474 151,952,074 180,711,551 222,901,990 252,778,194
Settlement expenses (651,848) (686,290) (720,254) (751,942) (784,760) (928,558) (1,139,510) (1,288,891)
Joint, personal and IRA to Susan (745,348) (786,300) (826,684) (864,363) (903,385) (1,074,366) (1,325,197) (1,502,817)
Outright or in trust to Susan (119,736,945) (126,549,838) (133,268,290) (143,536,625) (150,028,385) (178,473,084) (220,201,740) (249,750,943)
Taxable estate 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Plus Jonathan's lifetime taxable gifts 764,457 764,457 764,457 764,457 764,457 764,457 764,457 764,457
Tax base 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Tentative estate tax - - - - - - - -
Distribution of First Estate
Settlement expenses 651,848 686,290 720,254 751,942 784,760 928,558 1,139,510 1,288,891
To family trust 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Joint, personal and IRA to Susan 745,348 786,300 826,684 864,363 903,385 1,074,366 1,325,197 1,502,817
Outright or in trust to Susan 119,736,945 126,549,838 133,268,290 143,536,625 150,028,385 178,473,084 220,201,740 249,750,943
Total $ 125,369,684 $ 132,257,971 $ 139,050,771 $ 145,388,474 $ 151,952,074 $ 180,711,551 $ 222,901,990 $ 252,778,194
Assumptions
We assume that Jonathan dies first, followed immediately by Susan.
Taxes under "Distribution of First Estate" include estate and income taxes, if any.
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62. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Tax Calculation on Susan's death
Susan's assets 4,431,977 4,675,486 4,915,620 5,139,666 5,371,698 6,388,382 7,879,867 8,936,029
Plus assets from Jonathan's estate 120,482,293 127,336,138 134,094,974 144,400,988 150,931,770 179,547,450 221,526,937 251,253,760
Susan's estimated estate 124,914,270 132,011,625 139,010,595 149,540,655 156,303,468 185,935,831 229,406,804 260,189,789
Settlement expenses (1,274,143) (1,345,116) (1,415,106) (1,520,407) (1,588,035) (1,884,358) (2,319,068) (2,626,898)
Charitable life estate transfer of home (3,500,000) (3,604,708) (3,712,849) (3,824,235) (3,938,962) (4,433,336) (5,139,452) (5,616,018)
Charitable deduction from TCLAT (115,904,584) (122,826,257) (129,647,096) (143,960,470) (150,540,929) (179,382,594) (221,712,741) (251,711,330)
Taxable estate 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Plus Susan's lifetime taxable gifts 764,457 764,457 764,457 764,457 764,457 764,457 764,457 764,457
Tax base 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Federal Estate Tax - - 0 - - - 0 -
Distribution of Second Estate
Settlement expenses 1,274,143 1,345,116 1,415,106 1,520,407 1,588,035 1,884,358 2,319,068 2,626,898
Taxes - - 0 - - - 0 -
Residual estate to heirs 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Charitable Life Estate Gift 3,500,000 3,604,708 3,712,849 3,824,235 3,938,962 4,433,336 5,139,452 5,616,018
Contribution to TCLAT 115,904,584 122,826,257 129,647,096 143,960,470 150,540,929 179,382,594 221,712,741 251,711,330
Total $ 124,914,270 $ 132,011,625 $ 139,010,595 $ 149,540,655 $ 156,303,468 $ 185,935,831 $ 229,406,804 $ 260,189,789
Assumptions
We assume that Jonathan dies first, followed immediately by Susan.
Taxes under "Distribution of Second Estate" include estate and income taxes, if any.
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63. SUMMARY OF BENEFITS TO FAMILY - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Benefits to Family
Residual estate 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Family trust 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Value of GDOT (1,560,041) (10,334,436) (5,939,096) (1,116,873) 4,165,695 29,773,231 45,730,433 46,560,806
Life insurance proceeds GDOT 120,000,000 120,000,000 120,000,000 120,000,000 120,000,000 120,000,000 120,000,000 120,000,000
Grandchildren's Trust 378,010 396,857 416,700 437,535 459,412 558,418 712,699 825,038
LLC 1 (Insurance Policies) 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000
LLC (Other and loan from GDOT) 5,009,948 5,197,865 5,392,900 5,595,324 5,805,420 6,728,556 8,093,830 9,043,937
Proceeds from ILIT 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324
NPV of TCLAT benefits to children 70,403,633 74,608,048 78,751,213 87,445,550 91,442,701 108,961,922 134,674,418 152,896,387
Total assets to heirs $ 218,757,960 $ 214,394,745 $ 223,148,127 $ 228,887,947 $ 238,399,639 $ 282,548,538 $ 325,737,790 $ 345,852,577
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64. CORPORATE RECAPITALIZATION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Balance sheet
Re-capitalized closely held business 42,165,000 43,426,433 44,729,226 46,071,103 47,453,236 53,409,035 61,915,710 67,656,968
Total Value $ 42,165,000 $ 43,426,433 $ 44,729,226 $ 46,071,103 $ 47,453,236 $ 53,409,035 $ 61,915,710 $ 67,656,968
Adjusted value of shares 42,165,000 43,426,433 44,729,226 46,071,103 47,453,236 53,409,035 61,915,710 67,656,968
Taxable Income
Re-capitalized closely held business 5,481,450 5,645,436 5,814,799 5,989,243 6,740,946 7,814,604 8,539,229
Taxable income 5,481,450 5,645,436 5,814,799 5,989,243 6,740,946 7,814,604 8,539,229
Total distribution to shareholders $ 5,481,450 $ 5,645,436 $ 5,814,799 $ 5,989,243 $ 6,740,946 $ 7,814,604 $ 8,539,229
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