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
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
Taylor Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Donfrio Family Wealth Goal Achiever- InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
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 - 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
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.
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
Taylor Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Donfrio Family Wealth Goal Achiever- InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
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 - 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
Jackson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth.
As part of Chris’ retirement package, he has an annual pension payment of approximately $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000.
As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The primary planning goals were to:
Make sure that they have sufficient funds to live on for the rest of their lives (approximately $230,000 after taxes and gifts).
Provide for the financial security of the surviving spouse.
Create an inheritance for their children which protects them from any potential future creditors and/or predators.
Provide a charitable gift at death as long as it doesn’t greatly diminish the amount they pass to their heirs.
Eliminate or reduce estate taxes.
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
The primary planning goals are to:
Provide for the financial security of the surviving spouse.
Maintain Carter Manufacturing as a viable company in their hometown after they exit the business.Maintain their customary lifestyle and gifting. This should take approx. $650,000 annually after taxes.
Eliminate or reduce estate taxes.
Maintain adequate gifting to their children and grandchildren. Their main priority is providing funds for their grandchildren’s educations.
Maximize the inheritance they leave to their children and grandchildren.
Establish a family foundation for lifetime and future family charitable giving.
Learn more at www.inknowvision.com
Planning Process. This presentation outlines how we get results for you and your family. If you are tired of having more questions than answers, give me a call. 403 220-9654.
John is 48 and recently divorced with two young children. He currently spends about $200,000 a year after taxes. John owns and operates a trucking company which creates significant taxable income each year in excess of $2M. This income is somewhat deceiving because it’s not really free cash to John. Instead, he uses the profits to plow back into his business so that he can purchase and transport more product. In this planning scenario, it is essential that John have the ability to push all of his company profits each month back into the business to build and grow value for future sale.
Learn more at www.inknowvision.com
Thomason Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Bueller Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Advanced Planning For the Ultra High Net Worth.The recordings for this program can be found at http://tinyurl.com/6yojnrt.
Learn more at www.inknowvision.com
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
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 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
Planning Process. This presentation outlines how we get results for you and your family. If you are tired of having more questions than answers, give me a call. 403 220-9654.
John is 48 and recently divorced with two young children. He currently spends about $200,000 a year after taxes. John owns and operates a trucking company which creates significant taxable income each year in excess of $2M. This income is somewhat deceiving because it’s not really free cash to John. Instead, he uses the profits to plow back into his business so that he can purchase and transport more product. In this planning scenario, it is essential that John have the ability to push all of his company profits each month back into the business to build and grow value for future sale.
Learn more at www.inknowvision.com
Thomason Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Bueller Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Advanced Planning For the Ultra High Net Worth.The recordings for this program can be found at http://tinyurl.com/6yojnrt.
Learn more at www.inknowvision.com
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
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
Myer Family Wealth Goal Achiever- InKnowVision Advanced Estate PlanningInKnowVision
James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
Learn more at www.inknowvision.com
Myer Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
The primary planning goals are to:
Make sure that he has sufficient funds to live on for the rest of his life (approx. $600,000/yr., including alimony, after taxes and gifts).
Reduce income taxes.
Maximize the inheritance that he leaves to his children and grandchildren. Consider passing his business interests to his children involved in the industry while providing an equal inheritance of non-business interests to those that are uninterested.
Assure that he has sufficient liquid assets available at his death to eliminate the forced liquidation of his business assets.
Eliminate or reduce estate taxes.
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
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
Our ENTIRE magazine for FREE!!!! Why? Because it's our mission to help you GROW your wealth with real estate, just as we have. Our magazine was created by investors for investors, come learn from the best investors in the industry!
Newmark Knight Frank’s team includes more than 30 advisory professionals with expertise in office and industrial tenant representation, investment sales, portfolio management and strategic planning services. Combined, our principals have more than 90 years of experience negotiating complex transactions on behalf of clients in nearly every industry.
For any assignment, including lease restructures, headquarters relocations, build-to-suit development and sale/leasebacks, our advisory team provides best-in-class services, resources and strategic advice that enable our clients to make informed real estate decisions. We analyze each client’s financial, cultural, operational and strategic goals to determine the ideal real estate environment with minimal real estate costs. We also provide value-added, in-house capabilities, such as legal review, financial analysis, market research and demographic analysis.
The monthly newsletter for Mid-America Association of Real Estate Investors. A Real Estate Investing Trade Association based in the Kansas City Metro Area. Find us online at www.MAREInet.com.
InKnowVision October 2013 Case Study - Lewis FWGAInKnowVision
Duncan and Tina are both 65. They live a comfortable lifestyle, spending about $1,600,000 a year after taxes and gifting about $2,000,000 a year to their family foundation. With assets worth approximately $62M and annual income of over $7M, they currently pay just over $2M a year in income taxes and have an increasing estate tax and ongoing income tax exposure.
The primary planning goals are to:
-Make sure that they have sufficient funds to live on for the rest of their lives (approx. $1,600,000/yr. after taxes and gifts).
-Assure that Duncan's, Inc. does not have to be liquidated as a result of their death.
-Provide a successful transition of the business to their son, Jason, while ensuring an equal inheritance for their son, Jeremy. They would like to leave 50% of their estate to Jason & Jeremy and another 25% to their grandchildren and other family members.
-They wish to continue annual giving to their family foundation and ultimately leave 25% of their estate to the foundation at death.
-Make sure the company buy/sell agreement accurately reflects the wishes of the family owners in the most tax efficient manner possible.
-Eliminate or reduce estate taxes.
InKnowVision July 2014 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Review the recording as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
InKnowVision June 2014 HNW Case Study - Martin FWGAInKnowVision
Jim and Jan are 60 and 52 respectively. Several years ago they started up a national sales and education business. After a few years getting the business off the ground and building their intellectual property, the capture of new markets and increased margins are generating rapidly increasing revenues and profits. As a result, they have recently been approached by a 3rd party buyer and it has motivated them to begin thinking about their business succession plan. Their eldest son has become very involved in the business, playing an ever increasing role in day to day operations, and would like to take the business over at some point.
Their current net worth is approx. $22M with $20M tied up in the business. Until now, all of the profits were reinvested into the business to help generate their rapid growth. Jim and Jan feel they can finally afford to distribute some of the excess profits and begin to plan for their future retirement.
The primary planning goals are to:
- Build personal wealth outside of the business.
- Create a business succession/transition plan.
- Equalize the inheritances for their children.
- Provide pathways into the business should their other 3 sons decide to participate.
- Support their church and other community causes through charitable planning.
- Protect the business and family wealth from estate taxes
InKnowVision March 2014 Buy-Sell Problem Solver Case StudyInKnowVision
Last month we unveiled our Buy-Sell Problem Solver™ client engagement tool which includes:
- Legal Audit
- Tax Minimizer
- Value Identifier
- Funding Review
This new tool is specifically designed to help advisors quickly engage new business clients and uncover advanced planning opportunities.
View the recording for a case study showing how InKnowVision’s Buy-Sell Problem Solver™ led to a comprehensive planning engagement with a family business worth over $100M.
The owners of this successful family business thought they were doing everything right:
- They had a buy-sell agreement in place
- Their agreement was fully funded with insurance
- They continually updated their insurance to keep pace with the growing company value
Unfortunately, the agreement they had in place was going to cost the family millions of dollars in unnecessary taxes when it was triggered. Join us to learn how we helped this family solve a significant problem they didn’t know they had.
Who should attend:
- Investment Advisors
- CPAs
- Attorneys
- Insurance Professionals
InKnowVision February 2014 Case Study - Anderson FWGAInKnowVision
Jeff is 75 and Theresa is 72. Jeff recently retired from an executive position in a public company. As a result of his retirement he exercised over $45M in stock options and has 5 more years of deferred compensation payments. Jeff has also sold his 50% interest in his Corporation and the note payments are providing significant income for the next 9 years.
Jeff and Theresa have annual living expense desires of $725,000, with the available income to more than meet this need. Jeff’s deferred compensation payments average more than $2M/yr. for the next 5 years; his annual pension payments are $660k/yr. (inflating); and he also has note payments totaling $360k/yr. for the next 9 years from the buyout of his Corporation interests. These sources of income are in addition to an investment portfolio in excess of $60M that comprises a large portion of their $90M net worth.
The primary planning goals are to:
- Provide an inheritance to their children in a manner which will enable them to create opportunities for themselves but not encourage them to be unproductive.
- Provide for a charitable gift at death to their family foundation as long as it doesn’t greatly diminish the amount they pass to their heirs.
- Eliminate or reduce estate taxes.
InKnowVision December 2013 Case Study - Watson FWGAInKnowVision
Ben and Sara Watson are 55 and 54 respectively. They own and operate a very profitable well drilling and maintenance business that has allowed them to acquire and accumulate oil and gas rights totaling $30M over the last 5 years. These oil and gas rights are generating in excess of $1.5M a year on top of the $925k of income from their separate drilling and maintenance business. Ben and Sara have 3 daughters. Their youngest daughter, Katie, and her husband have played key roles in growing Watson Drilling. Ben would like to begin transitioning the business to them and ultimately leave them with the benefit of the business. With the business going to just one of the daughters, Ben and Sara want to equalize the inheritance to their other two daughters. For this, they have already purchased four whole life insurance policies. Two of these policies have significant loans against them and very little cash surrender value. With premiums totaling $400k for the four policies, all owned inside their estate, and insufficient death benefit to cover potential estate taxes and equalize the daughters’ inheritances, these policies may not meet the family’s needs.
The primary planning goals are to:
-Maintain their customary base lifestyle need of $250,000, with approximately another $750,000 for discretionary and other expenses.
-Provide for the financial security of the surviving spouse.
Provide a succession plan that will allow for a smooth transition of Watson Drilling to their daughter, Katie.
-Assure they have sufficient liquid assets available at their deaths to eliminate the forced liquidation of business or real estate assets.
-Maximize the inheritance that they leave for their children and grandchildren.
InKnowVision November 2013 HNW Technical PPT - Liquidity PlanningInKnowVision
In this presentation we looked at the problem seen in many large estates - the lack of liquidity to deal with estate equalization, estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
View this recording to see various designs for creating liquidity.
InKnowVision September 2013 Captive Insurance PowerpointInKnowVision
After completing this course, you will be able to:
- Identify the benefits of Captive Insurance companies
- Differentiate which clients would be ideal for a Captive
- List the necessary steps to form a Captive
- Define and address Captive tax issues
- Apply all of the processes to form a successful Captive Insurance company
InKnowVision August 2013 HNW Technical PPT - Family BanksInKnowVision
One of the common themes that we continue to see among our clients is the idea that leaving too much money to children will spoil them. InKnowVision often employs the family bank concept to help people understand how they can re-gain control in this complex area.
Join us as we look at this interesting concept and understand how to present it to clients, how to determine the client profile for this strategy and how to implement this type of planning.
InKnowVision July 2013 HNW Marketing PPTInKnowVision
Using HNW Content on LinkedIn to Market Your Firm
In this high net worth marketing webinar, we will focus on using HNW content on LinkedIn.
You will learn:
- How using HNW content on LinkedIn attracts your ideal client, referral sources and more
- Why regular updates to your LinkedIn profile using HNW content matters
- Which types of content posted on LinkedIn actually make a difference
Join us for the fourth part of our HNW Content Marketing Series. We will also be featuring a short Q&A with a current Educate2Motivate customer who will describe how content marketing has helped him reach his target market.
InKnowVision July 2013 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Join us as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
InKnowVision June 2013 HNW Marketing PPTInKnowVision
5 HNW Content Strategies You Won't Want To Miss
Recently we’ve shared with you why you need to use high net worth content and how to find it. Now it’s time to learn how to deploy high net worth content and start measuring your results.
In this high net worth marketing webinar, we will show you:
-What top 5 strategies are most important in reaching the high net worth
-How these top 5 strategies are used to deploy high net worth content
-Why they have the most impact on your high net worth audience
-Who will benefit most using these 5 top strategies
InKnowVision June 2013 HNW Technical PPT - Buy Sell PlanningInKnowVision
"Buy Sell Planning"
Redemption, cross purchase, hybrid or entity. Which is the best way to approach a buy sell for your clients? How best to fund the buy sells? And should you be using these agreements at all? Each of these will be on the table for discussion during this engaging session.
InKnowVision May 2013 HNW Marketing PPT - Content Marketing Part IIInKnowVision
In this session, we’ll discuss how HNW content marketing is measured and what return on investment you can expect when implementing even the simplest content marketing strategies.
Content marketing is a multiplier strategy, meaning that you can leverage one piece of content up to 10 different ways. Talk about a return on your investment!
The key however is to deliver exceptional content on a consistent basis. When it comes to the high net worth, content marketing will make the largest impact in creating “online” trust and lead nurturing hands down.
This will be 25 minutes of jam packed content marketing information you won’t want to miss.
InKnowVision March 2013 HNW Technical PPT - Liquidity Needs in Estate PlanningInKnowVision
In this presentation we’ll be looking at the problem seen in many large estates - The lack of liquidity to deal with estate equalization and liquidity for areas such as estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
In this session we will look at various designs for creating liquidity.
InKnowVision February 2013 HNW Marketing PPTInKnowVision
In this 25 minute HNW marketing webinar you will learn:
What current trends are driving HNW planning
How successful HNW Marketing retooling can bring new opportunities
Why Content Marketing is the #1 strategy in the search for top HNW advisors
When your existing book of business is your best HNW lead source
InKnowVision strives to bring you the most current marketing strategies to stay on top of your HNW prospect and client opportunities. We hope you will join us for this informative live HNW marketing webinar.
InKnowVision February 2013 HNW Technical PPT - Captive InsuranceInKnowVision
Scott Hamilton, CEO of InKnowVision, will discuss the use of captive insurance companies for estate planning, business tax planning, risk management and income tax benefits. All of these benefits can be substantial for the right company. As a CPA, attorney or financial advisor you will want to learn about captive insurance planning to help your clients reduce their tax liability, transfer more wealth out of their estate, manage risk, and much more.
This program is ideal for those who wish to reach the HNW market and those who have business clients with gross revenues of $10M and higher.
InKnowVision January 2013 HNW Marketing PPTInKnowVision
In this 30 minute webinar, you will learn:
Why $30M-$49M in net worth is the fastest growing segment
How you can attract these HNW clients
What three new marketing messages you must use in 2013
Why you need to prepare your marketing plan now
Learn more at www.inknowvision.com
InKnowVision November 2012 HNW Marketing PPTInKnowVision
2013 is Poised to be a Banner Year for HNW Planners:
Will you be one of them?
In this 25 minute HNW marketing webinar you will learn:
Why $30M-$49M in net worth is the fastest growing segment
How you can attract these HNW clients
What three new marketing messages you must use in 2013
Why you need to prepare your marketing plan now
InKnowVision November 2012 Special HNW Marketing Webinar - Tom KaszaInKnowVision
Our guest speaker Tom Kasza of Hillard Heintze will educate us on why HNW clients need a security strategy today. By designing and implementing security strategies your HNW client can be prepared for managing unforeseen personal security risks.
You will learn:
How to introduce this service to your HNW clients
How it will elevate you in your HNW market place
How to identify potential risks to your HNW clients
InKnowVision October 2012 HNW Technical Webinar w/ Guest Presenter Bob ScarlataInKnowVision
As an investment banker for some 26 years who has sold dozens of middle market privately held companies to private equity groups throughout the U.S. and Canada, Bob Scarlata will describe for us how private equity groups make their money and how private business owners can benefit and profit from their professional management strategies.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
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
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
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.
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 swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
How to 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.
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
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
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
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
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:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
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.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
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.
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
2. ESTATE AND FINANCIAL PLAN DESIGN
PREPARED FOR:
BEN AND AMANDA MORGAN
January 17, 2012
PRESENTED BY
Scott Hamilton
InKnowVision, LLC
715 Enterprise Dr.
Oak Brook, IL 60523
scott@ikvllc.com
Phone: (630) 596-5090
Copyright 2012 InKnowVision, LLC - Family Wealth Goal Achiever™
3. YOUR GOALS AND OBJECTIVES
BEN AND AMANDA MORGAN
Maintain our customary lifestyle. This should take about $641,000 annually after taxes and gifts.
Provide for the financial security of the surviving spouse.
Explore options for a business succession plan that maximizes the after-tax proceeds from the sale of the
business.
Create sufficient funds for retirement.
We wish to continue giving charitably during our lives and wish to create a significant charitable gift upon
death in order to leave a family legacy.
We would like to leave our children and grandchildren an inheritance in an amount that leaves them
comfortable, but not in a manner that they become non-productive members of society.
Reduce income taxes if possible.
Implement an asset protection structure that protects our assets and the assets our children & grandchildren
will inherit.
Eliminate or reduce estate taxes.
Assure we have sufficient liquid assets available at our deaths to avoid a forced liquidation of our business and
real estate assets.
Page 2
4. FAMILY INFORMATION
BEN AND AMANDA MORGAN
CLIENTS
Ben Morgan Date of Birth February 24, 1949
Amanda Morgan Date of Birth April 8, 1952
123 Main St.
CHILDREN
CHILD'S NAME DATE OF BIRTH
Rena Morgan November 9, 1976
Beth Morgan August 17, 1978
Ann Morgan February 6, 1981
Gloria Morgan March 21, 1984
GRANDCHILDREN
NAME DATE OF BIRTH
Tim Morgan April 4, 2010
Amy Morgan September 6, 2007
Susan Morgan March 5, 2011
Page 3
5. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - POTENTIAL
The highlighted tools are the POTENTIAL strategies that were discussed during our initial comprehensive diagnositc report that could be
utilized by your family in order to enhance your wealth transfer and management planning.
Charitable
Family Limited Grantor Retained Charitable Lead
Remainder Uni- 412(e) Private Annuity SCIN
Partnership Annuity Trust Annuity Trust
Trust
Qualified Personal Sale for Installment Limited Liability
Family LLC TCLAT Flip CRT Life Insurance
Residence Trust Note Companies
Preferred Limited Corporate
Premium Finance Family Charity Plan 529 Plans Gifting ILIT
partnership Recapitalization
Annuity
Walton GRAT Family Foundation Charitable Life Estate NIMCRUT Asset Protection SPIA/Life Arbitrage
Withdrawal
Principal Protected Wills, DPAs and International
SPIA/Life in a CLAT Crummey Powers Dynasty Trust GDOT
Notes POAs VUL
Employee Stock International
Supporting Qualified Plan to
Gift Annuity Ownership Plan Life Estates Business Risk LLC/CRTs
Organizations Charity
(ESOP) Management
Charitable
Updated Buy/Sell Defined Benefit Qualified Plan
Bargain Sales Risk Management Remainder Annuity Management LLC
Agreements Plans Limited Partnership
Trust
Green equals a Blue equals a social Yellow equals an
planning tool for capital or existing planning
family charitable tool tool
6. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
BEN AND AMANDA MORGAN
The highlighted tools are those we have determined are most suited to achieving your goals and objectives.
Charitable
Family Limited Grantor Retained Charitable Lead
Remainder Uni- 412(e) Private Annuity SCIN
Partnership Annuity Trust Annuity Trust
Trust
Qualified Personal Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Flip CRT
Residence Trust Note Liability Company Insurance
Beneficiary
Preferred Limited Corporate
Premium Finance Defective Inheritor's 529 Plans Gifting ILIT
partnership Recapitalization
Trust (BDIT)
Annuity
Walton GRAT Family Foundation Charitable Life Estate NIMCRUT Asset Protection SPIA/Life Arbitrage
Withdrawal
Principal Protected Wills, DPAs and International
SPIA/Life in a CLAT Crummey Powers Dynasty Trust GDOT
Notes POAs VUL
Supporting Revocable Living Captive Insurance
IRA to Charity Gift Annuity Life Estates LLC/CRTs
Organizations Trusts Company
Charitable
Succession Defined Benefit Qualified Plan
Bargain Sales Risk Management Remainder Annuity ESOP Planning
Planning Plans Limited Partnership
Trust
Green equals a new Blue equals a social Yellow equals an
planning tool for capital or existing planning
family charitable tool tool
Page 5
7. YOUR GOALS AND OBJECTIVES - ACCOMPLISHED
BEN AND AMANDA MORGAN
Cash Flow - The plan provides cash flow to maintain your lifestyle at $641,000 increasing annually at 3% after
taxes and gifts
Business Continuation - The plan lays a foundation for business succession, while leaving control with you.
Income tax deferral - Over the next 5 years income taxes could be reduced by as much as $2,600,000
Inheritance Planning - The proposed plan provides for an inheritance to your children and executive team of at
least 75% of your estate and manages your children's inheritance in a way that provides them with
opportunities, while limiting the dangers associated with receiving too much, too soon.
Charitable Giving - Your family foundation could expect future gifts of more than $35,000,000
Estate Tax Elimination - Under your current plan, assuming current law, your estate taxes would be in excess of
$392,696,058 at life expectancy. The plan eliminates those estate taxes entirely.
Liquidity - The continued investment of company profit back into the company creates a need for liquidity. The
plan helps this problem.
Page 6
8. PLAN ASSUMPTIONS
BEN AND AMANDA MORGAN
The plan is based on numerous assumptions. Important among these are the yield and growth assumptions
contained on the balance sheet in the Financial Analysis section. Other important assumptions are contained on
this Plan Assumptions page.
Tax Rate Assumptions
State Income Tax Rate 9%
State Inheritance - Estate Tax No state estate tax
Tax on IRD
Unless a qualified plan is given to charity, we assume the beneficiary designations are changed to provide for a
stretch out distribution.
7520 Rates
Highest rate 3.0% March, 2011
Current rate 3.0% April, 2011
Lowest rate 2.8% January, 2011
Long Term AFR Rate 4.3% April, 2011
Annual increase in Ben's earned income 2%
Number of years Ben's income is expected to continue 4
Lifestyle Need Assumptions
Net annual outlay for Ben and Amanda's lifestyle needs, not including gifts or income taxes $641,000
Annual cost of living increase used in the plan 3%
Settlement and Administrative Expenses
Fixed estate settlement costs $25,000
Variable estate settlement costs, 1st death 0.50% (of assets)
Variable estate settlement costs, 2nd death 1.00% (of assets)
Page 7
9. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
BEN AND AMANDA MORGAN
The following section of the plan contains a step by step roadmap for each of the strategies that we are recommending.
You will notice that the strategies are often interdependent; that is, in order for one strategy to be successful, you must
complete another strategy as well. It is the integration of each of these strategies that allows you to most efficiently
accomplish your goals.
Also keep in mind that there is often more than one way to get from point A to point B. This is true in wealth transfer
planning. If a particular strategy or combination of strategies is not acceptable to you, we may be able to reach the desired
result in a less efficient but perhaps more acceptable way.
The following pages are a conceptual road map only, there are numerous details contained in each strategy that are not
detailed in the overall plan that follows.
Page 8
10. CREATE AND FUND A FAMILY LIMITED PARTNERSHIP
BEN AND AMANDA MORGAN
Ben and Amanda create a limited partnership and a management LLC. They receive limited partnership
shares and LLC receives GP shares. The new entity is organized to develop new investments, protect family
members, streamline business succession planning, create a gifting mechanism and provide centralized
management of investments.
BEN & AMANDA FAMILY LIMITED PARTNERSHIP
LP & LLC interests are split between Ben &
Amanda
LLC GP SHARES LP SHARES
1% 99%
Planning Goals Accomplished:
- Sets up a vehicle for business transition, with the potential to pass management of these assets to professional trustees and have
the children benefit from their operation.
- Controls assets so inheritance provides opportunities while minimizing problems for children and grandchildren.
- Reduces estate taxes.
- Provides a vehicle to enhance asset protection.
- Helps to avoid liquidation of real estate and business assets at your death.
Financials found on pgs. 72, 73 Page 9
11. CREATE AND FUND A FAMILY LIMITED PARTNERSHIP
BEN AND AMANDA MORGAN
Ben and Amanda transfer $6,112,095 of assets to the limited partnership.
BEN & AMANDA FAMILY LIMITED PARTNERSHIP
$6,112,095
Detail of Assets Transferred
Morgan Enterprises, LLC
1 Main St. 500,000
Loan - Mortgage - 1 Main St. (172,928)
12 Main St. 5,000,000
Loan - Mortgage - 12 Main St. (3,850,000)
123 Main St. 825,000
54 Main St. LLC 12,500
55 Main St. Office Building 2,650,000
Loan - Mortgage - 55 Main St. (2,576,000)
Open Land, LLC 1,000,000
Loan - Mortgage - Open Land, LLC (339,627)
Community, LLC 60,000
Cash 138,150
Technology, LLC (100%) 1,000,000
Note from ABC Corp - 8.59% 1,865,000
Total Assets Contributed 6,112,095
NOTE: Transfer of assets may require approval of your lender.
Financials found on pgs. 72, 73 Page 10
12. HAVE THE LIMITED PARTNERSHIP SHARES APPRAISED
BEN AND AMANDA MORGAN
Ben and Amanda hire an appraiser to value the limited partnership shares that they own. The appraiser will value the shares taking
all of the following into account:
▪ Liquidity of the shares
▪ Transferability of the shares
▪ Degree of control that accompanies ownership of the shares
▪ The assets owned by the partnership
BEN & AMANDA Appraisal FAMILY LIMITED PARTNERSHIP
Valuation adjustment
Appraised value of LP shares is $3,972,862 assumed to be 35% Inside value of assets is $6,112,095
The appraisal value of the LP units is assumed for illustration purposes only.
Note: Business appraisal is not an exact science. The IRS does not like valuation adjustments.
A well regarded appraiser should be retained to value the interests being sold.
Page 11
13. BUSINESS PURPOSE
BEN AND AMANDA MORGAN
The Family entity must have a legitimate business purpose for being organized and these purposes should be well documented. Legitimate business purposes examples are as
follows:
a. To Make a Profit – The primary reason for creating this Entity is to make a profit.
b. To Increase Wealth – This Entity will provide an effective legal vehicle to increase the wealth of the Members and their families.
c. To Provide Centralized Management of Investments – This Entity is designed to hold investment assets and allow for centralized management of those assets.
d. To Manage and Develop Real Estate – This Entity will provide the legal vehicle to effectively manage and/or develop any real estate owned or acquired by the Company.
e. To Avoid Two Layers of Taxation on Profits – This Entity provides flexibility in business planning not available to the Members through trusts, corporations, or other business
entities.
f. To Make Gifts Without Fractionalizing Assets – This Entity establishes a method by which annual gifts may be made without fractionalizing family assets.
g. To Make Gifts Without Causing a Loss of Incentive – This Entity provides a method of ownership which allows gifts to be made to children and other beneficiaries without
causing a loss of productivity or the incentive to strive to do well.
h. To Control Cash Flow to Members – This Entity provides a structure by which the Manager can control the assets and the cash flow to Members to achieve the legitimate
purposes of the Company.
i. To Provide a Buy-Sell Arrangement – This Entity provides an orderly buy-sell arrangement between the members of the families that own membership interests to keep the
ownership of Company assets in those families.
j. To Resolve Disputes Privately – This Entity provides for mediation and binding arbitration in disputes by Members that is intended to prevent expensive and embarrassing public
litigation of private family business matters.
k. To Require the Losers of Disputes to Pay the Dispute Costs – This Entity requires the loser in any dispute to pay for the costs of the dispute.
l. To Restrict the Right of Non-Members to Acquire Interests – This Entity restricts the right of non-Members to acquire interests in Company assets.
m. To Prevent Transfers of Membership Interests Because of Failed Marriages – This Entity prevents the transfer of a family member’s interest in the Company because of a failed
marriage.
n. To Prevent Commingling of the Assets of Gift Recipients – This Entity creates a method of ownership that will prevent gifts made to family members from being commingled
with assets owned by others.
o. To Make it Difficult to Withdraw – The restrictions in this Operating Agreement make it difficult for any of the parties to withdraw from the Company once they become a
Member.
p. To Protect Members from the Company’s Creditor Claims – This Entity limits the liability of Members from the Company’s creditors and further limits the liability of Members
holding particular Series of the Company from liability associated with other Series of the Company.
q. To Provide Asset Protection for Members – This Entity protects the family resource base from the claims of future creditors of Members.
The entity may conduct any lawful business and investment activity permitted under the laws of the State and/or country of organization in which it may have a business or
investment interest.
The entity may own, acquire, manage, develop, operate, sell, exchange, finance, refinance, lease and otherwise deal with real estate, personal property and any type of business as
the Manager may from time to time deem to be in the best interest of the entity.
The entity may engage in any other activities that are related or incidental to the foregoing purposes.
Page 12
14. CORPORATE RE-CAPITALIZATION OF BEN, INC
BEN AND AMANDA MORGAN
Ben and Amanda recapitalize the existing corporate shares of Ben, Inc into voting and non-voting shares.
BEN AND AMANDA MORGAN BEN, INC
VOTING NON-VOTING
1% 99%
Business To Be Recapitalized
Ben, Inc (50% S Corp)
Sub-Division Assets 7,000,000
Loan - Mortgage - Sub-division (859,885)
55 Land St., LLC 900,000
55 Land St., LLC (775,434)
Total 6,264,681
NOTE: Transfer of assets with liabilities may require lender approval.
Planning Goals Accomplished:
- Sets up a vehicle for business transition, with the potential to pass management of these assets to professional trustees and have the
children benefit from their operation.
- Controls assets so inheritance provides opportunities while minimizing problems for children and grandchildren.
- Reduces estate taxes.
- Provides a vehicle to enhance asset protection.
- Helps to avoid liquidation of real estate and business assets at your death.
Financials found on pg. 74 Page 13
15. HAVE THE NON-VOTING SHARES APPRAISED
BEN AND AMANDA MORGAN
Ben and Amanda hire an appraiser to value the non-voting shares. The appraiser will value the shares taking all of the following into
account:
▪ Liquidity of the shares
▪ Transferability of the shares
▪ Degree of control that accompanies ownership of the shares
▪ The assets owned by the corporation
BEN AND AMANDA MORGAN Appraisal BEN, INC
Adjusted value of non-voting shares is Valuation adjustment
assumed to be 35% Inside value of assets is $6,264,681
$4,072,043
The assumed value of the non-voting stock is for illustration purposes only.
Note: Business appraisal is not an exact science. The IRS does not like valuation adjustments.
A well regarded appraiser should be retained to value the interests being sold.
Page 14
16. CREATE GRANTOR DEEMED OWNER TRUSTS
BEN AND AMANDA MORGAN
Ben and Amanda create individual grantor deemed owner trusts (GDOT).
The GDOTs can be drafted to provide asset protection and long term estate tax savings through the use of dynasty trust provisions.
BEN BEN's GDOT
AMANDA AMANDA's GDOT
HEIRS
Planning Goals Accomplished:
- Controls assets so inheritance provides opportunities while minimizing problems for children, grandchildren and future generations.
- Reduces estate taxes on appreciating assets
- Provides enhanced asset protection
- Helps to avoid forced liquidation of real estate and business assets
- Flexibility of the trusts allows for transfer of ABC Corp interests to key executives when the appropriate time is determined
- Heirs can have access to income generated from assets in the trust, while not being burdened with asset management decisions Page 15
17. GIFT TO GRANTOR DEEMED OWNER TRUST
BEN AND AMANDA MORGAN
Ben and Amanda each make a gift of $1,163,750 to their individual GDOT. This gift is designed to give each trust economic substance.
BEN BEN's GDOT
$1,163,750
AMANDA $1,163,750 AMANDA's GDOT
Illustration assumes that initial gifts to the GDOTs would represent 7% of your interests in ABC Corp.
Page 16
18. SELL PARTNERSHIP AND CORPORATE SHARES TO EACH GDOT
BEN AND AMANDA MORGAN
Ben and Amanda sell their family family limited partnership shares, non-voting shares of Ben, Inc and 43% of their shares of ABC
Corp to their individual GDOTs for an installment note.
Sell their combined family limited
partnership shares, non-voting
shares of Ben, Inc and 43% of
their shares of ABC Corp worth
BEN & AMANDA $22,342,404 GDOTs
Ben and Amanda own an installment note The GDOTs own LP shares worth $3,972,862,
after the sale Receive an installment note non-voting shares of Ben, Inc worth
worth $22,342,404 that $4,072,043 and shares in ABC Corp worth
provides annual interest $16,625,000 after the sale
payments of $949,552
The sale price is based on the assumed value of the assets
sold.
* The interest rate used in calculating note payments is the long term HEIRS
AFR for April 2011 of 4.25%. Note payments also consist of annual
principal payments which continue until the note is paid off in 2027. Receive assets in the future according to
We make the assumption that in 2019, grantor status is revoked. terms of the trust
Since it is no longer a grantor trust, the trust will be responsible for
paying it's own income tax at that point.
Further detailed information regarding Sales to Grantor Deemed Owner Trusts can be found behind the
appendix of this plan.
Financials found on pg. 75 Page 17
19. ACHIEVING INHERITANCE GOALS AND LIQUIDITY NEEDS
BEN AND AMANDA MORGAN
The GDOT Trustees purchase second-to-die life insurance with the assets of the two GDOTs. This policy will have minimum
premium payments to keep the policy in place for 15 years. At the end of 15 years, the policy is assumed to be surrendered, and the
total premiums paid over 15 years would be refunded. This policy will have the effect of maintaining your goal of passing 75% of
your estate as it's currently valued over the next 15 years to your children and executive team.
GDOTs LIFE INSURANCE
Own Life Insurance $30,000,000
Premium Payment Details
Premiums in the amount of $246,000 are paid for the first 5 years. Beginning in
year 6, premiums in the amount of $63,000 are paid for 10 years. At the end of
year 15, if the policy is surrended, all premium payments totaling $1,860,000
would be refunded.
The premium is based on certain assumptions. This is for illustration purposes only. Actual insurance numbers can only be
determined by applying for insurance.
Financials found on pg. 27, 75 Page 18
20. CREATE A CAPTIVE INSURANCE COMPANY
BEN AND AMANDA MORGAN
GDOT Trustees create a captive insurance company.
The captive is formed to insure currently insured and uninsured risks of ABC CORP.
ABC CORP Premium CAPTIVE INSURANCE COMPANY
Risk Coverage
GDOTs
The captive could be a pure captive and owned by a trust for your
benefit or for the benefit of your heirs (or both). The decision as to
which direction to follow can be made during the feasibility phase. Asset protected and tax favorable trusts could
Prior to forming a captive insurance company, there must be a own the non-voting shares of the captive and
feasibility study to determine insurable risks. receive underwriting profits
Planning Goals Accomplished:
- Asset protection
- Creates a pool of liquidity in trust
- Effective tool for passing a tax advantaged inheritance
- Creates income tax deferral for the company
Financials found on pgs. 70, 71 Page 19
21. COMPANY INSURES RISKS
BEN AND AMANDA MORGAN
The Captive Insurance Company insures various risks of loss.
Pay maximum annual premiums
of $1,200,000 to cover risk of
loss. Premiums for insurance are
deductible if they're ordinary
ABC CORP CAPTIVE INSURANCE COMPANY
and necessary business expenses
Risk Coverage
UNDERWRITING PROFITS
Net premium of up to $1.2M is excludable from captive company
income if proper tax election is made.
Underwriting profits of the captive will
ultimately be distributed out to the owner of
the captive
Further detailed information regarding Captive Insurance Companies can be found behind the
appendix of this plan.
Page 20
22. POTENTIAL INSURABLE RISKS
BEN AND AMANDA MORGAN
The Captive Insurance Company must have legitimate business risks to insure and should be well documented.
Examples of legitimate insurable risks are as follows:
a. Employee Benefits
b. Legal expense reimbursement (plaintiff and defense)
c. Loss of key client/account
d. Administrative action
e. Business interruption
f. Intellectual property
g. Political risk
h. Patent infringement
i. Employment practices
j. Reputation
k. Supply chain risks
l. Service obligations
m. Long term liabilities
Page 21
23. LEAVE YOUR IRA TO CHARITY
BEN AND AMANDA MORGAN
At the 2nd death, leave your IRA and qualified plans to charity.
IRA $297,222
MORGAN FAMILY FOUNDATION
Advantages
No estate tax
No income in respect of a decedent tax
If you are interested in leaving money to charity, IRA's and Qualified Plans are the
best choice due to the heavy taxes on them when left to heirs
Page 22
24. TESTAM TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part I)
BEN AND AMANDA MORGAN
Include language in your trust or will that creates a testamentary charitable lead trust (TCLAT) at the second death.
Alternatively, you could make an outright bequest of your taxable estate to charity.
BEN & AMANDA TCLAT
At death $34,704,265 of the assets taxable
TCLAT owns assets with a value of
in your estate will pass to the TCLAT. This
$34,704,265 after your death.
should bring your estate tax to $0.
MORGAN FAMILY FOUNDATION
TCLAT Assumptions The charity will receive payments of
Asset growth rate 5.00% $1,948,846 each year for a period of 25 years
TCLAT payout rate 5.62% totaling $48,721,143.
Present value discount rate 5.00%
Assumed date of death 2012
Financials found on pg. 77 Page 23
25. TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part II)
BEN AND AMANDA MORGAN
At the end of the TCLAT term, your heirs will receive all of the assets remaining in the trust.
TCLAT HEIRS
Based on the plan assumptions, your heirs
could expect to inherit $7,237,342 from the
At the end of the 25 year term, the TCLAT
TCLAT. The amount passing to heirs is a
assets will be distributed to your heirs.
present value number using a discount rate of
5%.
Note: The amount passing to beneficiaries is entirely dependent on the rate of return of the assets in the trust. A
higher rate of return means more passing to heirs and a lower rate of return could mean that nothing passes to
heirs.
Financials found on pg. 77 Page 24
26. ESTATE PLAN OVERVIEW AND ESTATE DISTRIBUTION - 2012
BEN AND AMANDA MORGAN
Gift IRA to Charity at the 2nd death Gifts to existing ILIT
NET WORTH
Corporate Transfer Property
IRA TO CHARITY BEN, INC shares 42,477,862 FLP ILIT
Ownership Units
297,222 6,264,681 6,112,095 1,500,000
Receive voting and non- Sell FLP units, non-voting shares
voting shares back of Ben, Inc and shares of ABC GDOT purchases life insurance
Corp to GDOT
GDOT
Installment Note Owns FLP units and
corporate shares LIFE INSURANCE
Seed Gift
30,000,000
First Death
ADMIN
Amanda also owns
FAMILY TRUST / AMANDA MARITAL TRUST / AMANDA AMANDA
a note from her
3,836,250 179,253 GDOT worth
24,984,765 1,050,390
$11,171,202
Second Death
ADMIN
TCLAT HEIRS
34,704,265 417,553
56,480,890
Heirs From
TCLAT
Residual estate $3,836,250
Family trust $3,836,250
FAMILY CHARITY Excess FLP value $2,235,389
Excess S Corp value $2,255,493
35,001,488 Value of GDOT $4,180,167
Life insurance proceeds GDOT $30,000,000
Captive Insurance Company in Trust $1,400,000
Proceeds from ILIT $1,500,000
Potential Future Inheritances: Page25
NPV of TCLAT benefits to children $7,237,342
27. BEN AND AMANDA MORGAN
MEETING INHERITANCE
OBJECTIVES
Page 26
28. MEETING YOUR INHERITANCE GOALS
BEN AND AMANDA MORGAN
$300,000,000
$250,000,000
$200,000,000
$150,000,000
-
$100,000,000
$50,000,000
$-
nt
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Inheritance Goal - 75% of Estate Proposed Plan Proposed Plan - No Insurance
This chart shows how the recommended strategies coupled with carefully managed amounts of life insurance will help you to meet your inheritance
goals.
Page 27
29. MEETING YOUR INHERITANCE AND CHARITABLE OBJECTIVES
BEN AND AMANDA MORGAN
Your Current Plan
GROSS ESTATE TODAY
$52,363,741
Existing plan distribution of estate to
charity, heirs and taxes.
MORGAN FAMILY
HEIRS TAXES
FOUNDATION
Children receive $39,043,892
$0 outright. No provision is made for $14,831,327
your senior execs.
EXECUTIVE TEAM
Inherit $0 under the existing plan.
Page 28
30. MEETING YOUR INHERITANCE AND CHARITABLE OBJECTIVES
BEN AND AMANDA MORGAN
Distribution Under the Proposed Plan
GROSS ESTATE TODAY
$52,363,741
Proposed plan distribution of estate to charity,
heirs, execs and taxes.
MORGAN FAMILY
HEIRS/EXECUTIVE TEAM TAXES
FOUNDATION
Executive team and children receive
$35,001,488 $49,243,549, which is approx. 94% $0,000
of today's gross estate
EXECUTIVE TEAM DYNASTY TRUST/FAMILY BANK
Inherits $16,414,516 under the proposed Inherits $32,829,032 under the proposed
plan, which is approx. 31% of today's gross plan, which is approx. 63% of today's gross
estate estate
Page 29
31. DYNASTY TRUST/FAMILY BANK TO HOLD INHERITANCES
BEN AND AMANDA MORGAN
The GDOTs should be set-up as Dynasty Trusts. These trusts would hold the inheritances for children, grandchildren and future
generations in asset protected and tax advantaged trusts, while protecting heirs from frivolous spending. Heirs would receive annual
income from the trust. The example on this page assumes annual distributions of 3% of the total. This payout could be higher or
lower. In addition, payments of principal could be made for health, education, maintenance, support or other items you feel would
be appropriate to allow.
DYNASTY TRUST/FAMILY BANK FOR CHILDREN
$32,829,032
Trust distributes 3% of
trust principal
annually
RENA BETH ANN GLORIA
$250,000 $250,000 $250,000 $250,000
Page 30
32. BEN AND AMANDA MORGAN
LIFETIME SPENDING
AND LIQUIDITY
Page 31
33. YOUR LIQUID ASSETS - CURRENT PLAN VS. PROPOSED PLAN
BEN AND AMANDA MORGAN
$1,000,000
$900,000
$800,000
$700,000
$600,000
$500,000 -
$400,000
$300,000
$200,000
$100,000
$-
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Liquid Assets Proposed Liquid Assets Current
While your stated liquidity goal is at least $1,000,000 of cash/securities, your current business strategy of putting all of your excess cash flow back into
the business does not allow for a build up of liquid assets. We have illustrated your proposed and current liquid assets over time. You could increase
these by decreasing your reinvestments back into the company.
Page 32
34. SPENDING VS. INCOME - PROPOSED PLAN
BEN AND AMANDA MORGAN
$30,000,000
$25,000,000
$20,000,000
GDOT
promissory note
$15,000,000 ends -
$10,000,000
$5,000,000
GDOT ceases to be a grantor
trust and takes over income
tax obligations
$-
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Annual Cash Flow Income Total Living Expenses
This chart compares cash flow income to cash flow expense under the proposed plan year by year to life expectancy.
Page 33
36. COMPARISON OF INCOME TAX RESULTS - PLAN YEAR 2012
BEN AND AMANDA MORGAN
Existing Plan Proposed Plan Income Tax Deferred
2012 Estimated Income Tax $ 2,700,000 $ 2,200,000 $ 500,000
2013 Estimated Income Tax $ 5,100,000 $ 4,500,000 $ 600,000
2014 Estimated Income Tax $ 7,800,000 $ 7,300,000 $ 500,000
2015 Estimated Income Tax $ 11,100,000 $ 10,600,000 $ 500,000
2016 Estimated Income Tax $ 15,500,000 $ 15,000,000 $ 500,000
5 Year Estimated Income Tax Deferred $ 2,600,000
Page 35
37. BEN AND AMANDA MORGAN
INCREASE INHERITANCE
AND REDUCE ESTATE TAX
Page 36
38. COMPARISON OF PLAN RESULTS - PLAN YEAR 2012
BEN AND AMANDA MORGAN
Existing Plan Proposed Plan Advantage
Estate Value $ 52,363,741 $ 42,477,862
Heirs/Execs Receive Immediately $ 39,043,892 $ 49,243,549 $ 10,199,656
Heirs Receive from Deferred Inheritance $ - $ 7,237,342 $ 7,237,342
Total Benefits to Family & Executives $ 39,043,892 $ 56,480,890 $ 17,436,998
Family Charity $ - $ 35,001,488 $ 35,001,488
Estate and Income Tax $ 14,831,327 $ - $ 14,831,327
This chart assumes that you both die this year and compares the results of the current plan with the proposed plan.
Deferred Inheritance is a general approximation based on the long term performance of the TCLAT.
Page 37
39. COMPARISON OF PLAN RESULTS - PLAN YEAR 2038
BEN AND AMANDA MORGAN
Existing Plan Proposed Plan Advantage
Estate Value $ 725,547,201 $ 312,684,622
Heirs/Execs Receive Immediately $ 324,425,502 $ 475,598,938 $ 151,173,436
Heirs Receive from Deferred Inheritance $ - $ 64,351,036 $ 64,351,036
Total Benefits to Family & Executives $ 324,425,502 $ 539,949,975 $ 215,524,472
Family Charity $ - $ 309,193,873 $ 309,193,873
Estate and Income Tax $ 392,696,058 $ - $ 392,696,058
Present Value of total to Heirs & Executives $91,241,667 $151,855,928
Discount rate for PV calculation 5.00%
This chart assumes that you both die at life expectancy and compares the results of the current plan with the proposed plan.
Deferred Inheritance is a general approximation based on the long term performance of the TCLAT.
Page 38
40. ASSETS PASSING TO YOUR FAMILY & EXECUTIVES- CURRENT VS. PROPOSED
BEN AND AMANDA MORGAN
$500,000,000
$450,000,000
$400,000,000
$350,000,000
$300,000,000
$250,000,000
-
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$-
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Current Plan Proposed Plan
This chart compares the amount of your assets that will pass to heirs and execs after estate taxes and costs of implementation in the current plan as
against the proposed plan. There may be additional funds available to heirs. We have not included them here because of the speculative nature of the
inheritance from a TCLAT remainder.
Page 39
41. BEN AND AMANDA MORGAN
INCREASE IN
CHARITABLE GIVING
Page 40
42. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2012
BEN AND AMANDA MORGAN
Existing Plan Proposed Plan Increase in Charity
Charity Receives from TCLAT $ - $ 34,700,000 $ 34,700,000
Charitable gift of IRA assets $ - $ 300,000 $ 300,000
Family Charity $ - $ 35,000,000 $ 35,000,000
Note: An outright bequest to charity would yield a gift of $34,700,000, but your foundation would receive the money all at once.
Page 41
43. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2038
BEN AND AMANDA MORGAN
Existing Plan Proposed Plan Increase in Charity
Charity Receives from TCLAT $ - $ 308,600,000 $ 308,600,000
Charitable gift of IRA assets $ - $ 600,000 $ 600,000
Family Charity $ - $ 309,200,000 $ 309,200,000
Present Value of total to Charity $0 $86,959,635
Discount rate for PV calculation 5.00%
Note: An outright bequest to charity would yield a gift of $308,600,000, but your foundation would receive the money all at once.
Page 42
44. COST BENEFIT ANALYSIS
BEN AND AMANDA MORGAN
All strategies have an element of risk; a chance that the program adopted does not work as planned. Estate planning strategies carry an element of
risk as well. Many advisors warn their clients of risk but do not make an effort to quantify those risks. We have taken the position in our planning
that if a risk is quantifiable, it should be identified as such and the cost of the risk should be disclosed to our client. When the risk is not
quantifiable, this should also be disclosed.
Any risk analysis begins with two questions:
What is the reward to be gained by taking the risk?
What is the cost of the potential loss if the plan fails totally?
If you are satisfied that the reward is worth the risk and that the risk of loss is acceptable, it would then make sense to pursue the strategy. If
the risk is such that you could not comfortably accept the loss, then the risk should not be taken.
Is the reward worth the risk?
The reward of the proposed plan results in an advantage to your heirs today of $17,436,998 over your existing plan.
The reward of the proposed plan results in an advantage to your heirs at life expectancy of $215,524,472 over your existing plan.
What if the Plan fails totally?
There are 4 basic areas of potential risk involved in this comprehensive plan. We assume total failure of all planning techniques in order to
provide a worst case analysis.
Transaction costs
Planning Fees -
Attorneys Fees -
Valuation Fees -
Total $ -
Annual Maintenance Fee $ -
Taxes
This represents the taxes that will have to be paid if the plan fails entirely. Note that this is the same amount that would be paid without the
planning.
Total additional tax over current plan = $0
Page 43
45. COST BENEFIT ANALYSIS (Continued)
BEN AND AMANDA MORGAN
Interest (cost of money)
Interest is charged on late tax payments by the IRS at the rate of the applicable federal rate plus 3%. You must invest at a rate less than this rate
to lose money. Assuming that assets earn in excess of that rate, there should be no risk of loss due to cost of money.
Nonetheless, we assume that assets actually earn 2% less than the IRS interest rates, and the risk of loss would be $262,551.
Penalties
Assuming the plan is implemented with the help of knowledgeable advisors, the only potential penalty is for substantial undervaluation. The
penalty comes into play in the case of a challenge to asset valuation. If the value reported for a transaction is less than 65% of the value as
finally determined for tax purposes (by the IRS or the courts) then there is a 25% substantial undervaluation penalty.
The valuation adjustment assumed in this plan is 35.00%. Therefore, an adjustment should not result in a substantial valuation
penalty.
Risk Analysis
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$-
Benefit to Heirs 2012 Benefit to Heirs 2038 Potential Loss (Total Failure)
Page 44
46. DETAILED FINANCIAL ANALYSIS
BEN AND AMANDA MORGAN
INTRODUCTION
The following section of the plan contains all of the financial analysis used to show you where you
stand with your current plan and what is possible with the proposed plan.
All of the numbers are based on information provided by you or gleaned from statements and tax
returns. If numbers do not look correct, please let us know so that we can make appropriate
changes.
Assumed growth and yield numbers are all listed on the Net Worth pages contained in these sections.
Page 45
47. DETAILED FINANCIAL ANALYSIS
BEN AND AMANDA MORGAN
CURRENT PLAN FINANCIALS
In the Current Plan Section you will find a Net Worth Statement and a detailed cash flow and asset
value projection analysis.
Page 46
48. CURRENT NET WORTH STATEMENT
BEN AND AMANDA MORGAN
BEN AMANDA JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Cash - - 29,579 29,579 0.0% 0.0%
Savings 9,877 - - 9,877 0.0% 0.0%
MM 30,362 - - 30,362 0.0% 0.0%
Cash Value of Life Insurance 7,068 - 7,068 0.0% 0.0%
Total of Cash and Equivalents 47,307 - 29,579 76,886 0.0% 0.0%
MARKETABLE SECURITIES - EQUITIES
Securities Account - - 15,976 15,976 2.0% 5.0%
Total of Equities - - 15,976 15,976 2.0% 5.0%
Page 47
49. CURRENT NET WORTH STATEMENT (Page 2)
BEN AND AMANDA MORGAN
93,250 373,881 8,694,904 13,376,776
BEN AMANDA JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
Morgan Enterprises, LLC - - - - 0.0% 3.0%
1 Main St. 250,000 250,000 - 500,000 0.0% 3.0%
Loan - Mortgage - 1 Main St. (86,464) (86,464) - (172,928) 0.0% 3.0%
12 Main St. 2,500,000 2,500,000 - 5,000,000 0.0% 3.0%
Loan - Mortgage - 12 Main St. (1,925,000) (1,925,000) - (3,850,000) 0.0% 3.0%
123 Main St. 412,500 412,500 - 825,000 0.0% 3.0%
54 Main St. LLC 6,250 6,250 - 12,500 0.0% 3.0%
55 Main St. Office Building 1,325,000 1,325,000 - 2,650,000 0.0% 3.0%
Loan - Mortgage - 55 Main St. (1,288,000) (1,288,000) - (2,576,000) 0.0% 3.0%
Open Land, LLC 500,000 500,000 - 1,000,000 0.0% 3.0%
Loan - Mortgage - Open Land, LLC (174,786) (164,841) - (339,627) 0.0% 3.0%
Community, LLC 30,000 30,000 - 60,000 0.0% 3.0%
Cash 69,075 69,075 - 138,150 0.0% 3.0%
Technology, LLC (100%) 1,000,000 - - 1,000,000 0.0% 3.0%
Note from ABC Corp - 8.59% 1,865,000 - - 1,865,000 0.0% 8.6%
Sub-Division, LLC (100%) 1 - - 1 0.0% 3.0%
Total of Other Investments 4,483,576 1,628,520 - 6,112,096 0.0% 4.7%
3,247,095 (8,228,018)
CLOSELY HELD BUSINESS 6,264,681 (6,592,699)
Ben, Inc (50% S Corp) - - - - 0.0% 3.0%
Sub-Division Assets 7,000,000 - - 7,000,000 0.0% 3.0%
Loan - Mortgage - Sub-division (859,885) - - (859,885) 0.0% 3.0%
55 Land St., LLC 900,000 - - 900,000 0.0% 3.0%
55 Land St., LLC (775,434) - - (775,434) 0.0% 3.0%
ABC Corp, Inc (95% S Corp) 33,250,000 - - 33,250,000 19.4% 3.0%
Total Closely Held Business 39,514,681 - - 39,514,681 16.3% 3.0%
Page 48
50. CURRENT NET WORTH STATEMENT (Page 3)
BEN AND AMANDA MORGAN
BEN AMANDA JOINT TOTAL YIELD GROWTH
RETIREMENT PLANS/IRAs
ABC Corp 401(k) 278,603 - 278,603 0.0% 7.0%
Total Retirement Plans 278,603 - 278,603 0.0% 7.0%
RESIDENTIAL REAL ESTATE
123 Main St. - - 1,200,000 1,200,000 0.0% 3.0%
Total of Personal Residences - - 1,200,000 1,200,000 0.0% 3.0%
PERSONAL PROPERTY
Autos - 25,000 - 25,000 0.0% 0.0%
Personal Property - - 200,000 200,000 0.0% 0.0%
Total of Personal Property - 25,000 200,000 225,000 0.0% 0.0%
TOTAL ASSETS 44,324,167 1,653,520 1,445,555 47,423,242
TOTAL LIABILITIES - - - -
NET WORTH 44,324,167 1,653,520 1,445,555 47,423,242
Page 49
51. SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN
BEN AND AMANDA MORGAN
COMPANY INSURED POLICY # BENEFICIARY PREMIUM CASH VALUE DEATH BENEFIT
Policies owned by Ben
UL Contract Ben # Amanda 7,398 7,068 800,000
Totals 7,398 7,068 800,000
Other Policies
ABC Corp Ben # Amanda - - 150,000
Totals - - 150,000
Policies owned by ILIT
Whole Contract 2nd to Die # ILIT 15,692 316,275 1,500,000
Totals 15,692 316,275 1,500,000
Page 50
52. FINANCIAL ANALYSIS - EXISTING PLAN ASSET VALUE PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2018 2019 2028 2038
Asset Values
Cash and cash equivalents 76,886 76,886 76,886 76,886 76,886 76,886 76,886 76,886 76,886
Marketable securities - Equities 15,976 16,739 17,576 18,455 19,377 22,432 23,553 36,539 59,518
Other investments 6,112,096 6,386,825 6,687,370 7,002,057 7,331,552 8,416,020 8,812,052 13,329,372 21,111,183
Closely held business 6,264,681 6,444,266 6,637,594 6,836,722 7,041,823 7,694,791 7,925,634 10,341,155 13,897,648
ABC Corp 33,250,000 37,682,403 44,054,582 53,775,403 67,635,023 127,350,089 148,412,985 367,617,412 686,894,999
Retirement plans/IRAs 278,603 297,222 318,028 340,290 364,110 446,051 477,274 601,175 619,873
Personal residences 1,200,000 1,234,400 1,271,432 1,309,574 1,348,862 1,473,938 1,518,156 1,980,849 2,662,095
Personal property 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000
Total assets in estate 47,423,242 52,363,741 59,288,467 69,584,387 84,042,633 145,705,206 167,471,541 394,208,387 725,547,201
Combined net worth $ 47,423,242 $ 52,363,741 $ 59,288,467 $ 69,584,387 $ 84,042,633 $ 145,705,206 $ 167,471,541 $ 394,208,387 $ 725,547,201
In the event that there is a cash flow surplus, the surplus is added to the ABC Corp row by default.
Page 51