This document outlines a detailed financial and estate planning strategy for Mark and Jackie Taylor, focusing on maintaining their lifestyle, ensuring financial security for the surviving spouse, and providing for their children's inheritance. It includes creating a family limited partnership, appraising shares, establishing trusts, and converting insurance policies to maximize tax exemptions and asset protection. The plan addresses multiple strategies and tools available to achieve their wealth management and transfer goals effectively.

1. InKnowVision’s Monthly
HNW Webinar Series
Case Study Webinar
©2012. InKnowVision LLC. All rights reserved. www.inknowvision.com

2. FAMILY WEALTH GOAL ACHIEVER™ - INITIAL
PREPARED FOR:
MARK AND JACKIE TAYLOR
August 2, 2011
DRAFT FOR DISCUSSION PURPOSES ONLY
PRESENTED BY
Scott Hamilton
InKnowVision, LLC
715 Enterprise Drive
Oak Brook, IL
scott@ikvllc.com
Phone: 630-596-5090
Copyright 2011 InKnowVision, LLC

3. YOUR GOALS AND OBJECTIVES
MARK AND JACKIE TAYLOR
Maintain our customary lifestyle. This should take about $250,000 annually after taxes and gifts.
Provide for the financial security of the surviving spouse.
Maintain adequate liquidity for emergencies and investment opportunities.
Provide an inheritance to our children in a manner which will enable them to create opportunities for
themselves but not encourage them to be unproductive.
Reduce income taxes to the extent possible.
Eliminate or reduce estate taxes.
Page 2

4. FAMILY INFORMATION
MARK AND JACKIE TAYLOR
CLIENTS
Mark Taylor Date of Birth January 5, 1950
Jackie Taylor Date of Birth February 7, 1951
1234 Main Street
Chicago, IL 60606
CHILDREN
CHILD'S NAME DATE OF BIRTH
Mark Taylor July 12, 1984
Debbie Taylor February 22, 1988
Page 3

5. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - CONSIDERED
MARK AND JACKIE TAYLOR
In our planning process, we start with the universe of available planning tools. While this universe is constantly changing, the following chart
outlines many of the available tools. We examine each of these strategies and discard those that are not suitable for meeting your goals and
objectives.
Charitable
Family Limited Grantor Retained Charitable Lead
Remainder Uni- 412(e) Private Annuity SCIN
Partnership Annuity Trust Annuity Trust
Trust
Term Life
Qualified Personal Sale for Installment Limited Liability GDOT Owned Life
Family LLC TCLAT Insurance
Residence Trust Note Companies Insurance
Conversion
Beneficiary
Preferred Limited Defective Maximize available ILIT for Jackie & Corporate
Premium Finance 529 Plans
partnership Inheritor's Trust gifting ILIT for children Recapitalization
(BDIT)
Charitable Life Retirement Plan Transfer Converted
Walton GRAT Private Foundations NIMCRUT Asset Protection
Estate Rollover to Roth Policies to ILITs
Revocable Living
Principal Protected Dynasty Trust International
SPIA/Life in a CLAT Trusts, DPAs and Crummey Powers GDOT
Notes Provisions VUL
POAs
Supporting Captive Insurance
IRA to Charity Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations Company
Charitable
Succession Defined Benefit Qualified Plan
Bargain Sales Risk Management Remainder Annuity ESOP Planning
Planning Plans Limited Partnership
Trust
Page 4

6. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
MARK AND JACKIE TAYLOR
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 5

7. CREATE AND FUND A FAMILY LIMITED PARTNERSHIP
MARK AND JACKIE TAYLOR
Mark creates a limited partnership and a management LLC. He receives 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.
MARK FAMILY LIMITED PARTNERSHIP
Receives LP & LLC interests. LLC interests
could be split between Mark & Jackie.
LLC GP SHARES LP SHARES
1% 99%
Page 6

8. CREATE AND FUND A FAMILY LIMITED PARTNERSHIP
MARK AND JACKIE TAYLOR
Mark transfers $5,600,000 of assets to the limited partnership.
MARK FAMILY LIMITED PARTNERSHIP
$5,600,000
Detail of Assets Transferred
Bank 1,000,000
Bank 250,000
Bank 250,000
LLC 1 1,500,000
LLC 2 1,600,000
LLC 3 1,000,000
Total Assets Contributed 5,600,000
Note: Check on potential penalties that could be incurred from the early withdraw of the CD and whether they can be
waived.
Page 7

9. HAVE THE LIMITED PARTNERSHIP SHARES APPRAISED
MARK AND JACKIE TAYLOR
Mark hires an appraiser to value the limited partnership shares that he owns. 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
MARK Appraisal FAMILY LIMITED PARTNERSHIP
Valuation adjustment
Appraised value of LP shares is $3,640,000 assumed to be 35% Inside value of assets is $5,600,000
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 8

10. BUSINESS PURPOSE
MARK AND JACKIE TAYLOR
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 9

11. CORPORATE RE-CAPITALIZATION
MARK AND JACKIE TAYLOR
Mark recapitalizes the existing corporate shares into voting and non-voting shares.
MARK C CORPORATION
VOTING NON-VOTING
1% 99%
Businesses To Be Recapitalized
Taylor Services (100% equity) 2,000,000
Total 2,000,000
Page 10

12. HAVE THE NON-VOTING SHARES APPRAISED
MARK AND JACKIE TAYLOR
Mark hires an appraiser to value the non-voting shares. The appraiser will value the shares taking all of the following into account:
▪ Liquidity of the shares
▪ Transferability of the shares
▪ Degree of control that accompanies ownership of the shares
▪ The assets owned by the corporations
MARK Appraisal C CORPORATION
Adjusted value of non-voting shares is Valuation adjustment
assumed to be 35% Inside value of assets is $2,000,000
$1,300,000
The assumed value of the non-voting stock is for illustration purposes only.
Note: Business appraisal is not an exact science. The IRS does not like valuation adjustments.
A well regarded appraiser should be retained to value the interests being sold.
Page 11

13. CREATE GRANTOR DEEMED OWNER TRUST
MARK AND JACKIE TAYLOR
Mark creates a grantor deemed owner trust (GDOT).
MARK MARK's GDOT
HEIRS
Beneficiaries include Jackie and children
Page 12

14. GIFT TO GRANTOR DEEMED OWNER TRUST
MARK AND JACKIE TAYLOR
Mark makes a gift of $3,640,000 to his GDOT. This gift is designed to maximize his available gifting exemption.
MARK Gift of the limited partnership MARK's GDOT
shares worth $3,640,000
Owns LP shares worth $3,640,000
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
- Heirs can have access to income generated from assets in the trust, while not being burdened with asset management decisions
- Maximizes use of available exemption
Page 13

15. CREATE IRREVOCABLE LIFE INSURANCE TRUST
MARK AND JACKIE TAYLOR
Mark & Jackie create a new Irrevocable Life Insurance Trust (ILIT). This trust is established to keep insurance proceeds and other
assets in a tax favored and asset protected structure for the benefit of your children.
MARK & JACKIE ILIT FOR CHILDREN
HEIRS
Page 14

16. GIFT TO IRREVOCABLE LIFE INSURANCE TRUST
MARK AND JACKIE TAYLOR
Jackie makes a gift of $1,300,000 to the children's ILIT. This gift is designed to maximize her available gifting exemption.
Gift of non-voting stock in
JACKIE Taylor Services worth ILIT FOR CHILDREN
$1,300,000
Owns non-voting stock in Taylor Services
worth $1,300,000
Note: Mark must gift stock of Taylor Services to Jackie prior to transferring these interests to the ILIT.
Planning Goals Accomplished:
- Controls assets so inheritance provides opportunities while minimizing problems for children, grandchildren and future generations.
- Provides enhanced asset protection
- Heirs can have access to income generated from assets in the trust, while not being burdened with asset management decisions
- Maximizes use of available exemption
Page 15

17. CONVERT EXISTING TERM INSURANCE POLICIES
MARK AND JACKIE TAYLOR
MARK
Owns a term policy on his life with annual
premiums of $4,910 and a death benefit of
$1,000,000. Policy expires in 2027.
Convert two term
MARK AND JACKIE
policies to one
survivorship UL policy
Own a survivorship policy for life with annual
premiums of $17,338 and a death benefit of
$2,000,000
JACKIE
Owns a term policy on her life with annual
premiums of $2,259 and a death benefit of
$1,000,000. Policy expires in 2027.
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 16

18. CONVERT EXISTING TERM INSURANCE POLICY
MARK AND JACKIE TAYLOR
MARK AND JACKIE
Own a survivorship policy for life with annual
premiums of $19,521 and a death benefit of
Convert term policy $2,000,000. Policy's primary beneficiaries are
into a UL for the your children.
benefit of Jackie and a
MARK Survivorship UL for the
benefit of the children
Owns a term policy on his life with annual
premiums of $32,585 and a death benefit of
$5,000,000. Policy expires in 2029.
MARK
Owns a UL policy on his life with annual
premiums of $58,675 and a death benefit of
$3,000,000. Policy's primary beneficiary is
Jackie.
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 17

19. INTERNAL RATE OF RETURN ON LIFE INSURANCE
MARK AND JACKIE TAYLOR
MARK'S AGE JACKIE'S AGE YEAR PREMIUM DEATH BENEFIT IRR
62 60 2011 17,338 2,000,000 11435.36%
63 61 2012 17,338 2,000,000 925.19%
64 62 2013 17,338 2,000,000 349.26%
65 63 2014 17,338 2,000,000 196.68%
66 64 2015 17,338 2,000,000 131.53%
67 65 2016 17,338 2,000,000 96.56%
68 66 2017 17,338 2,000,000 75.11%
69 67 2018 17,338 2,000,000 60.75%
70 68 2019 17,338 2,000,000 50.55%
71 69 2020 17,338 2,000,000 42.96%
72 70 2021 17,338 2,000,000 37.12%
73 71 2022 17,338 2,000,000 32.51%
74 72 2023 17,338 2,000,000 28.77%
75 73 2024 17,338 2,000,000 25.70%
76 74 2025 17,338 2,000,000 23.13%
77 75 2026 17,338 2,000,000 20.95%
78 76 2027 17,338 2,000,000 19.09%
79 77 2028 17,338 2,000,000 17.48%
80 78 2029 17,338 2,000,000 16.07%
81 79 2030 17,338 2,000,000 14.83%
82 80 2031 17,338 2,000,000 13.74%
83 81 2032 17,338 2,000,000 12.77%
84 82 2033 17,338 2,000,000 11.89%
85 83 2034 17,338 2,000,000 11.11%
86 84 2035 17,338 2,000,000 10.40%
87 85 2036 17,338 2,000,000 9.76%
88 86 2037 17,338 2,000,000 9.17%
89 87 2038 17,338 2,000,000 8.64%
90 88 2039 17,338 2,000,000 8.15%
91 89 2040 17,338 2,000,000 7.69%
92 90 2041 17,338 2,000,000 7.28%
93 91 2042 17,338 2,000,000 6.89%
Converted Survivorship UL. Assumes joint life expectancy of 2037.
Page 18

20. INTERNAL RATE OF RETURN ON LIFE INSURANCE
MARK AND JACKIE TAYLOR
MARK'S AGE JACKIE'S AGE YEAR PREMIUM DEATH BENEFIT IRR
62 60 2011 19,521 2,000,000 10145.38%
63 61 2012 19,521 2,000,000 863.43%
64 62 2013 19,521 2,000,000 330.24%
65 63 2014 19,521 2,000,000 186.89%
66 64 2015 19,521 2,000,000 125.23%
67 65 2016 19,521 2,000,000 92.00%
68 66 2017 19,521 2,000,000 71.55%
69 67 2018 19,521 2,000,000 57.85%
70 68 2019 19,521 2,000,000 48.10%
71 69 2020 19,521 2,000,000 40.84%
72 70 2021 19,521 2,000,000 35.25%
73 71 2022 19,521 2,000,000 30.83%
74 72 2023 19,521 2,000,000 27.25%
75 73 2024 19,521 2,000,000 24.31%
76 74 2025 19,521 2,000,000 21.84%
77 75 2026 19,521 2,000,000 19.76%
78 76 2027 19,521 2,000,000 17.97%
79 77 2028 19,521 2,000,000 16.43%
80 78 2029 19,521 2,000,000 15.08%
81 79 2030 19,521 2,000,000 13.90%
82 80 2031 19,521 2,000,000 12.85%
83 81 2032 19,521 2,000,000 11.92%
84 82 2033 19,521 2,000,000 11.09%
85 83 2034 19,521 2,000,000 10.34%
86 84 2035 19,521 2,000,000 9.66%
87 85 2036 19,521 2,000,000 9.04%
88 86 2037 19,521 2,000,000 8.48%
89 87 2038 19,521 2,000,000 7.97%
90 88 2039 19,521 2,000,000 7.50%
91 89 2040 19,521 2,000,000 7.07%
92 90 2041 19,521 2,000,000 6.67%
93 91 2042 19,521 2,000,000 6.31%
Converted Survivorship UL. Assumes joint life expectancy of 2037.
Page 19

21. INTERNAL RATE OF RETURN ON LIFE INSURANCE
MARK AND JACKIE TAYLOR
MARK'S AGE YEAR PREMIUM DEATH BENEFIT IRR
62 2011 58,675 3,000,000 5012.91%
63 2012 58,675 3,000,000 566.79%
64 2013 58,675 3,000,000 232.47%
65 2014 58,675 3,000,000 134.70%
66 2015 58,675 3,000,000 90.89%
67 2016 58,675 3,000,000 66.70%
68 2017 58,675 3,000,000 51.60%
69 2018 58,675 3,000,000 41.38%
70 2019 58,675 3,000,000 34.07%
71 2020 58,675 3,000,000 28.60%
72 2021 58,675 3,000,000 24.38%
73 2022 58,675 3,000,000 21.04%
74 2023 58,675 3,000,000 18.33%
75 2024 58,675 3,000,000 16.11%
76 2025 58,675 3,000,000 14.25%
77 2026 58,675 3,000,000 12.68%
78 2027 58,675 3,000,000 11.34%
79 2028 58,675 3,000,000 10.18%
80 2029 58,675 3,000,000 9.17%
81 2030 58,675 3,000,000 8.28%
82 2031 58,675 3,000,000 7.50%
83 2032 58,675 3,000,000 6.81%
84 2033 58,675 3,000,000 6.19%
85 2034 58,675 3,000,000 5.64%
86 2035 58,675 3,000,000 5.14%
87 2036 58,675 3,000,000 4.68%
Converted UL on Mark. Assumes Mark's life expectancy of 2031. Page 20

22. TRANSFER CONVERTED INSURANCE TO NEW ILIT
MARK AND JACKIE TAYLOR
Mark creates a new Irrevocable Life Insurance Trust (ILIT). This trust will be set-up for Jackie to be the primary
beneficiary and will keep insurance proceeds in a tax favored and asset protected structure.
MARK Gift existing policy to ILIT. ILIT FOR JACKIE
Owns life insurance personally with annual Make annual gifts of $13,000
to make premium payments.* Owns life insurance with a death benefit of
premiums of $58,675 and a death benefit of
$3,000,000
$3,000,000
Policy proceeds will be included in the
taxable estate if Mark dies within three
years of the date of the gift.
HEIRS
Estate tax savings from transfer of this policy could be as much as
$1,500,000
* Additional funds for premium payments may come as Jackie will be the primary beneficiary
discretionary distributions from cash inside of the GDOT.
** Gift of the policy is a use of Mark's lifetime gift exclusion. We
assume a gift value of the first year's premium of $58,675 for this
illustration.
*** Transfer may occur prior to policy conversion.
Page 21

23. TRANSFER CONVERTED INSURANCE TO NEW ILIT
MARK AND JACKIE TAYLOR
Mark & Jackie gift the survivorship policies to the ILIT for their children. This trust will hold insurance proceeds in a tax
favored and asset protected structure for the benefit of your children.
MARK AND JACKIE Gift existing policies to ILIT ILIT FOR CHILDREN
Own survivorship life insurance policies personally
Make annual gifts of $36,859
to make premium payments Owns life insurance with a death benefit of
with annual premiums of $19,521 and $17,338
$4,000,000
with a combined death benefit of $4,000,000
Policy proceeds will be included in the
taxable estate if death occurs within three
years of the date of the gift.
HEIRS
Estate tax savings from transfer of this policy could be as much as
$2,000,000
Children and future generations
** Gift of the policy is a use of Mark & Jackie's lifetime gift
exclusion. We assume a total gift value of the first year's premium
of $36,859 for this illustration.
*** Transfer may occur prior to policy conversion.
Page 22

24. INSURANCE BENEFITS - CURRENT VS. PROPOSED
MARK AND JACKIE TAYLOR
$8,000,000
$7,000,000
$6,000,000
Gifted insurance policies
not subject to estate tax
$5,000,000
$4,000,000
-
Term policy
$3,000,000
expirations
$2,000,000
$1,000,000
$-
nt
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
re
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
ur
C
Current Plan Proposed Plan
This chart compares the net after-tax benefit of insurance proceeds of the existing term policies as against the converted and transferred
policies under the proposed plan.
Page 23

25. RETIREMENT PLAN ROLLOVER
MARK AND JACKIE TAYLOR
Rollover $1,000,000 from your existing retirement plans into a Roth IRA.
EXISTING RETIREMENT PLAN $1,000,000
ROTH IRA
Note: To the extent that real estate losses continue, use operating losses to shelter distributions from defined benefits if possible.
Advantages
No income tax on future Roth IRA growth or plan distributions
Locks in the tax savings from the Net Operating Losses against potential changes in future tax law
No income in respect of a decedent tax
Estimated tax savings at 35% = $350,000 today
Note: Need to consult with current defined benefit actuary to determine feasibility.
Page 24

26. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
MARK AND JACKIE TAYLOR
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
Term Life
Qualified Personal Sale for Installment Limited Liability GDOT Owned Life
Family LLC TCLAT Insurance
Residence Trust Note Companies Insurance
Conversion
Beneficiary
Preferred Limited Maximize available ILIT for Jackie & Corporate
Premium Finance Defective Inheritor's 529 Plans
partnership gifting ILIT for children Recapitalization
Trust (BDIT)
Retirement Plan Transfer Converted
Walton GRAT Private Foundations Charitable Life Estate NIMCRUT Asset Protection
Rollover to Roth Policies to ILITs
Revocable Living
Principal Protected Dynasty Trust International
SPIA/Life in a CLAT Trusts, DPAs and Crummey Powers GDOT
Notes Provisions VUL
POAs
Supporting Captive Insurance
IRA to Charity Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations 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 25

27. MARK AND JACKIE TAYLOR
LIFETIME SPENDING
AND LIQUIDITY
Page 26

28. PERSONAL SPENDING VS. INCOME - PROPOSED PLAN
MARK AND JACKIE TAYLOR
$600,000
$550,000
Begin date for required
$500,000
retirement plan distributions
$450,000
$400,000 -
$350,000
$300,000
$250,000
Living expenses
reduced to $200,000
$200,000
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Annual Cash Flow Income Total Living Expenses
This chart compares your personal cash flow income to cash flow expense under the proposed plan year by year.
Page 27

29. YOUR LIQUID ASSETS - PROPOSED PLAN
MARK AND JACKIE TAYLOR
$9,000,000
$8,000,000
$7,000,000
$6,000,000
-
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Liquid Assets - Proposed Plan
Most of our clients want to know that they have sufficient income and liquid assets to pay their living expenses for the rest of their lives. This chart
shows your liquid assets over your life expectancy in the proposed plan. 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 28

30. MARK AND JACKIE TAYLOR
INCREASE INHERITANCE
AND REDUCE ESTATE TAX
Page 29

31. COMPARISON OF PLAN RESULTS - PLAN YEAR 2011
MARK AND JACKIE TAYLOR
Existing Plan Proposed Plan Advantage
Estate Value $ 11,575,522 $ 3,877,719
Heirs Receive Immediately $ 15,404,330 $ 16,179,263 $ 774,933
Total Benefits to Family $ 15,404,330 $ 16,179,263 $ 774,933
Estate and Income Tax $ 2,910,024 $ 2,140,183 $ 769,841
This chart assumes that you both die this year and compares the results of the current plan with the proposed plan.
Page 30

32. COMPARISON OF PLAN RESULTS - PLAN YEAR 2014
MARK AND JACKIE TAYLOR
Existing Plan Proposed Plan Advantage
Estate Value $ 12,946,363 $ 4,524,488
Heirs Receive Immediately $ 9,727,520 $ 17,344,675 $ 7,617,155
Total Benefits to Family $ 9,727,520 $ 17,344,675 $ 7,617,155
Estate and Income Tax $ 9,898,524 $ 2,270,038 $ 7,628,486
This chart assumes that you both die in 2014, and reflects the benefit of having the life insurance proceeds outside of
the taxable estate after 3 years.
Page 31

33. COMPARISON OF PLAN RESULTS - PLAN YEAR 2037
MARK AND JACKIE TAYLOR
Existing Plan Proposed Plan Advantage
Estate Value $ 27,627,337 $ 10,096,308
Heirs Receive Immediately $ 13,136,527 $ 28,955,443 $ 15,818,917
Total Benefits to Family $ 13,136,527 $ 28,955,443 $ 15,818,917
Estate and Income Tax $ 14,065,088 $ 5,335,132 $ 8,729,956
Present Value of total to Heirs $6,091,338 $13,426,486
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 32

34. COMPARISON OF PLAN RESULTS - PLAN YEAR 2037
MARK AND JACKIE TAYLOR
Existing Plan Proposed Plan - TCLAT Advantage
Estate Value $ 27,627,337 $ 10,096,308
Heirs Receive Immediately $ 13,136,527 $ 24,390,355 $ 11,253,828
Heirs Receive from Deferred Inheritance $ - $ 1,892,475 $ 1,892,475
Total Benefits to Family $ 13,136,527 $ 26,282,830 $ 13,146,304
Family Charity $ - $ 9,900,221 $ 9,900,221
Estate and Income Tax $ 14,065,088 $ - $ 14,065,088
Present Value of total to Heirs $6,091,338 $12,187,210
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.
Taxes are eliminated by giving the retirement funds to charity at the 2nd death and funding a Testamentary Charitable Lead Annuity Trust
(TCLAT) at the 2nd death with any other assets subject to estate taxes.
Deferred Inheritance is a general approximation based on the long term performance of the TCLAT.
Page 33

35. ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED
MARK AND JACKIE TAYLOR
$32,000,000
$28,000,000
$24,000,000
Gifted insurance policies no
longer subject to estate tax
$20,000,000
-
Term insurance
policy expirations
$16,000,000
$12,000,000
$8,000,000
nt
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
re
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
ur
C
Current Plan Proposed Plan
This chart compares the amount of your assets that will pass to heirs after estate taxes and costs of implementation in the current plan as against the
proposed plan.
Page 34

36. DETAILED FINANCIAL ANALYSIS
MARK AND JACKIE TAYLOR
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 35

37. DETAILED FINANCIAL ANALYSIS
MARK AND JACKIE TAYLOR
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 36

38. CURRENT NET WORTH STATEMENT
MARK AND JACKIE TAYLOR
MARK JACKIE JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Bank - 1,200,000 - 1,200,000 1.0% 0.0%
Bank 200,000 250,000 - 450,000 1.0% 0.0%
Bank - 250,000 - 250,000 1.0% 0.0%
Bank 95,000 - - 95,000 1.0% 0.0%
Bank 40,000 - - 40,000 1.0% 0.0%
Bank 73,000 - - 73,000 1.0% 0.0%
Bank 160,000 - - 160,000 1.0% 0.0%
Total of Cash and Equivalents 568,000 1,700,000 - 2,268,000 1.0% 0.0%
Page 37

39. CURRENT NET WORTH STATEMENT (Page 2)
MARK AND JACKIE TAYLOR
MARK JACKIE JOINT TOTAL YIELD GROWTH
REAL ESTATE INVESTMENTS
LLC 1 1,500,000 - - 1,500,000 -11.5% 5.0%
LLC 2 1,200,000 400,000 - 1,600,000 -2.2% 5.0%
LLC 3 1,000,000 - - 1,000,000 -12.6% 5.0%
LLC 4 1,300,000 - - 1,300,000 -7.7% 0.0%
Total of Real Estate Investments 5,000,000 400,000 - 5,400,000 -8.0% 3.8%
CLOSELY HELD BUSINESS
Taylor Services (100% equity) 2,000,000 - - 2,000,000 0.0% 0.0%
Total Closely Held Business 2,000,000 - - 2,000,000 0.0% 0.0%
RETIREMENT PLANS/IRAs
Taylor Services DB 2,364,564 - 2,364,564 0.0% 3.0%
Taylor Services 401(k) 156,468 - 156,468 0.0% 3.0%
Taylor Services PSP 258,530 - 258,530 0.0% 3.0%
Taylor Services 401(k) - 145,145 145,145 0.0% 3.0%
Total Retirement Plans 2,779,562 145,145 2,924,707 0.0% 3.0%
Page 38

40. CURRENT NET WORTH STATEMENT (Page 3)
MARK AND JACKIE TAYLOR
MARK JACKIE JOINT TOTAL YIELD GROWTH
RESIDENTIAL REAL ESTATE
1234 Main Street 1,500,000 - - 1,500,000 0.0% 3.0%
Total of Personal Residences 1,500,000 - - 1,500,000 0.0% 3.0%
PERSONAL PROPERTY
Autos 255,000 - - 255,000 0.0% 0.0%
Jewelry & Watches 700,000 - - 700,000 0.0% 0.0%
Total of Personal Property 955,000 - - 955,000 0.0% 0.0%
TOTAL ASSETS 12,802,562 2,245,145 - 15,047,707
LIABILITIES
1234 Main Street 1,000,000 - - 1,000,000
Notes Payable - Bank (unsecured) 400,000 - - 400,000
Notes Payable - Bank (unsecured) 1,000,000 - - 1,000,000
Total Liabilities 2,400,000 - - 2,400,000
COMMERCIAL LIABILITIES
Notes Payable - LLC 4 1,300,000 - - 1,300,000
Total Commercial Liabilities 1,300,000 - - 1,300,000
TOTAL LIABILITIES 3,700,000 - - 3,700,000
NET WORTH 9,102,562 2,245,145 - 11,347,707
Page 39

41. SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN
MARK AND JACKIE TAYLOR
COMPANY INSURED POLICY # BENEFICIARY PREMIUM CASH VALUE DEATH BENEFIT
Policies owned by Mark
Company (term - 20yr) Mark # Jackie 32,585 - 5,000,000
Company (term - 20yr) Mark # Jackie 4,910 - 1,000,000
Totals 37,495 - 6,000,000
Policies owned by Jackie
Company (term - 20yr) Jackie # Mark 2,259 - 1,000,000
Totals 2,259 - 1,000,000
Page 40

42. FINANCIAL ANALYSIS - EXISTING PLAN ASSET VALUE PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Asset Values
Cash and cash equivalents 2,268,000 2,300,926 2,329,181 2,352,619 2,371,089 2,384,438 2,531,764 3,875,248 7,738,724
Real estate investments 5,400,000 5,472,698 5,680,458 5,896,105 6,119,939 6,352,270 7,653,114 9,220,352 14,418,822
Closely held business 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Retirement plans/IRAs 2,924,707 3,030,900 3,196,827 3,367,732 3,543,763 3,725,076 4,553,530 4,293,204 2,945,403
Personal residences 1,500,000 1,515,998 1,561,478 1,608,322 1,656,572 1,706,269 1,978,033 2,293,083 3,269,388
Personal property 955,000 955,000 955,000 955,000 955,000 955,000 955,000 955,000 955,000
Total assets in estate 15,047,707 15,275,522 15,722,944 16,179,778 16,646,363 17,123,053 19,671,442 22,636,886 31,327,337
Less estimated liabilities (3,700,000) (3,700,000) (3,700,000) (3,700,000) (3,700,000) (3,700,000) (3,700,000) (3,700,000) (3,700,000)
Combined net worth $ 11,347,707 $ 11,575,522 $ 12,022,944 $ 12,479,778 $ 12,946,363 $ 13,423,053 $ 15,971,442 $ 18,936,886 $ 27,627,337
In the event that there is a cash flow surplus, the surplus is added to the cash 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 cash.
No calculations are illustrated which:
- Reduce debt
- Account for depreciation of real estate
- Account for sale of real estate
Page 41

43. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Sources of taxable income
Cash and cash equivalents 22,680 23,009 23,292 23,526 23,711 23,834 35,980 73,967
Real estate investments (434,465) (434,465) (434,465) (434,465) (434,465) (434,465) (434,465) (434,465)
Retirement plans/IRAs - - - - - 163,040 197,519 242,582
Net Operating Loss Carryover (950,000) (950,000) (950,000) (950,000) (950,000) (950,000) (950,000) (950,000)
Client earned income 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
Spouse earned income 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
Gross taxable income $ (1,061,785) $ (1,061,456) $ (1,061,173) $ (1,060,939) $ (1,060,754) $ (897,591) $ (850,966) $ (767,916)
Page 42

44. INCOME TAX PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Income tax Estimation
Adjusted gross income:
Earned and other income (1,061,785) (1,061,456) (1,061,173) (1,060,939) (1,060,754) (897,591) (850,966) (767,916)
Adjusted gross income (1,061,785) (1,061,456) (1,061,173) (1,060,939) (1,060,754) (897,591) (850,966) (767,916)
Deductions
Real estate tax 21,692 21,692 22,126 22,568 23,020 23,480 25,924 28,622 36,300
Illinois state income taxes - - - - - - - -
Interest 3,279 3,279 3,345 3,411 3,480 3,549 3,919 4,327 5,487
Total deductions 24,971 25,470 25,980 26,499 27,029 29,843 32,949 41,787
Deductions allowed 24,971 25,470 25,980 26,499 27,029 29,843 32,949 41,787
Taxable income (1,086,756) (1,086,926) (1,087,153) (1,087,438) (1,087,784) (927,434) (883,915) (809,703)
Federal and State income tax $ - $ - $ - $ - $ - $ - $ - $ -
Page 43

45. CASH FLOW PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Sources of income for Lifestyle
Distribution from Cash - - - - - - - -
Cash and cash equivalents 22,680 23,009 23,292 23,526 23,711 23,834 35,980 73,967
Client earned income 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
Spouse earned income 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
Retirement plans/IRAs - - - - - 163,040 197,519 242,582
Total income available for lifestyle 322,680 323,009 323,292 323,526 323,711 486,874 533,499 616,549
Uses of Cash
Living expenses 1 250,000 255,000 260,100 265,302 270,608 298,773 216,486 274,557
Personally held insurance premiums 39,754 39,754 39,754 39,754 39,754 39,754 39,754 -
Total uses of cash 289,754 294,754 299,854 305,056 310,362 338,527 256,240 274,557
Surplus $ 32,926 $ 28,255 $ 23,438 $ 18,470 $ 13,349 $ 148,347 $ 277,258 $ 341,992
1
Assumes that in 2021, livings expenses decrease to $200,000.
In the event that there is a cash flow surplus, the surplus is added to the cash 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 cash on
the "Asset Value Projections" 3 pages earlier.
Page 44

46. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Tax calculation on Mark's death
Combined net worth 11,347,707 11,575,522 12,022,944 12,479,778 12,946,363 13,423,053 15,971,442 18,936,886 27,627,337
Mark's estimated estate 9,102,562 9,285,304 9,644,203 10,010,652 10,384,924 10,767,301 12,811,491 15,190,221 22,161,265
Death benefit exceeding CV 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 -
Total gross estate 15,102,562 15,285,304 15,644,203 16,010,652 16,384,924 16,767,301 18,811,491 21,190,221 22,161,265
Settlement expenses (100,513) (101,427) (103,221) (105,053) (106,925) (108,837) (119,057) (130,951) (135,806)
Joint, personal and IRA to Jackie (3,734,562) (3,835,485) (3,993,177) (4,155,600) (4,322,896) (4,495,211) (5,282,551) (5,035,144) (3,754,231)
Insurance passing to Jackie (6,000,000) (6,000,000) (6,000,000) (6,000,000) (6,000,000) (6,000,000) (6,000,000) (6,000,000) -
Outright or in trust to Jackie (267,487) (348,392) (547,805) (4,749,999) (4,955,103) (5,163,253) (6,409,882) (9,024,126) (17,271,228)
Taxable estate 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
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 1,000,000
Federal Estate Tax - - - - - - - - -
Distribution of Mark's estate
Settlement expenses 100,513 101,427 103,221 105,053 106,925 108,837 119,057 130,951 135,806
To family trust 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Joint, personal and IRA to Jackie 3,734,562 3,835,485 3,993,177 4,155,600 4,322,896 4,495,211 5,282,551 5,035,144 3,754,231
Insurance passing to Jackie 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 -
Outright or in trust to Jackie 267,487 348,392 547,805 4,749,999 4,955,103 5,163,253 6,409,882 9,024,126 17,271,228
Total $ 15,102,562 $ 15,285,304 $ 15,644,203 $ 16,010,652 $ 16,384,924 $ 16,767,301 $ 18,811,491 $ 21,190,221 $ 22,161,265
Assumptions
We assume that Mark dies first, followed immediately by Jackie.
Taxes under "Distribution of First Estate" include estate and income taxes.
Page 45

47. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Tax Calculation on Jackie's death
Jackie's assets 2,245,145 2,290,218 2,378,741 2,469,125 2,561,439 2,655,752 3,159,951 3,746,665 5,466,071
Death benefit exceeding CV 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 -
Plus assets from Mark's estate 10,002,049 10,183,877 10,540,982 14,905,599 15,277,999 15,658,464 17,692,433 20,059,270 21,025,459
Jackie's estimated estate 13,247,194 13,474,095 13,919,723 18,374,724 18,839,439 19,314,217 21,852,385 24,805,935 26,491,530
Settlement expenses (157,472) (159,741) (164,197) (208,747) (213,394) (218,142) (243,524) (273,059) (289,915)
Jackie's taxable estate 13,089,722 13,314,354 13,755,526 18,165,977 18,626,044 19,096,074 21,608,861 24,532,876 26,201,615
Tax base 13,089,722 13,314,354 13,755,526 18,165,977 18,626,044 19,096,074 21,608,861 24,532,876 26,201,615
Federal Estate Tax 2,831,403 2,910,024 3,064,434 9,645,487 9,898,524 10,157,041 11,539,073 13,147,282 14,065,088
Total Estate Tax Due 2,831,403 2,910,024 3,064,434 9,645,487 9,898,524 10,157,041 11,539,073 13,147,282 14,065,088
Distribution of Jackie's estate
Settlement expenses 157,472 159,741 164,197 208,747 213,394 218,142 243,524 273,059 289,915
Taxes 2,831,403 2,910,024 3,064,434 9,645,487 9,898,524 10,157,041 11,539,073 13,147,282 14,065,088
Qualified plan to heirs 2,924,707 3,030,900 3,196,827 3,367,732 3,543,763 3,725,076 4,553,530 4,293,204 2,945,403
Insurance passing to heirs 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 -
Residual estate to heirs 6,333,612 6,373,431 6,494,265 4,152,758 4,183,756 4,213,957 4,516,257 6,092,391 9,191,124
Total $ 13,247,194 $ 13,474,095 $ 13,919,723 $ 18,374,724 $ 18,839,439 $ 19,314,217 $ 21,852,385 $ 24,805,935 $ 26,491,530
Assumptions
We assume that Mark dies first, followed immediately by Jackie.
Taxes under "Distribution of Second Estate" include estate and income taxes.
Page 46

48. SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Benefits to Family
Family trust 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Residual estate 7,333,612 7,373,431 7,494,265 5,152,758 5,183,756 5,213,957 5,516,257 7,092,391 9,191,124
Qualified plan assets 2,924,707 3,030,900 3,196,827 3,367,732 3,543,763 3,725,076 4,553,530 4,293,204 2,945,403
Total assets to heirs $ 15,258,319 $ 15,404,330 $ 15,691,092 $ 9,520,490 $ 9,727,520 $ 9,939,033 $ 11,069,787 $ 12,385,594 $ 13,136,527
Page 47

49. DETAILS OF MARK'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Mark's Qualified Plans
Mark's Age 62 63 64 65 66 71 76 88
Jackie's Age 60 61 62 63 64 69 74 86
Minimum distribution factor 34.9 33.9 33.0 32.0 31.1 26.5 22.0 12.7
Plan contributions 75,000 75,000 75,000 75,000 75,000 75,000 - -
Plan balance 2,779,562 2,884,207 3,045,733 3,212,105 3,383,468 3,559,972 4,362,129 4,103,696 2,806,898
Minimum distribution - - - - - 163,040 189,460 232,340
Preferred distribution - - - - - - - -
Actual distribution - - - - - 163,040 189,460 232,340
Page 48

50. DETAILS OF JACKIE'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Jackie's Qualified Plans
Jackie's Age 60 61 62 63 64 69 74 86
Mark's Age 62 63 64 65 66 71 76 88
Minimum distribution factor 36.8 35.8 34.9 33.9 33.0 28.3 23.8 14.1
Plan contributions - - - - - - - -
Plan balance 145,145 146,693 151,094 155,627 160,295 165,104 191,401 189,508 138,505
Minimum distribution - - - - - - 8,059 10,242
Preferred distribution - - - - - - - -
Actual distribution - - - - - - 8,059 10,242
Page 49

51. DETAILED FINANCIAL ANALYSIS
MARK AND JACKIE TAYLOR
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 50

52. NET WORTH STATEMENT AFTER PLAN IMPLEMENTATION
MARK AND JACKIE TAYLOR
MARK JACKIE JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Bank - 200,000 - 200,000 1.0% 0.0%
Bank 200,000 - - 200,000 1.0% 0.0%
Bank 95,000 - - 95,000 1.0% 0.0%
Bank 40,000 - - 40,000 1.0% 0.0%
Bank 73,000 - - 73,000 1.0% 0.0%
Bank 160,000 - - 160,000 1.0% 0.0%
Total of Cash and Equivalents 568,000 200,000 - 768,000 1.0% 0.0%
REAL ESTATE INVESTMENTS
LLC 4 1,300,000 - - 1,300,000 -7.7% 0.0%
Total of Real Estate Investments 1,300,000 - - 1,300,000 -7.7% 0.0%
RETIREMENT PLANS/IRAs
Taylor Services DB 2,364,564 - 2,364,564 0.0% 3.0%
Taylor Services 401(k) 156,468 - 156,468 0.0% 3.0%
Taylor Services PSP 258,530 - 258,530 0.0% 3.0%
Taylor Services 401(k) - 145,145 145,145 0.0% 3.0%
Total Retirement Plans 2,779,562 145,145 2,924,707 0.0% 3.0%
Page 51

53. REVISED NET WORTH STATEMENT (Page 2)
MARK AND JACKIE TAYLOR
MARK JACKIE JOINT TOTAL YIELD GROWTH
RESIDENTIAL REAL ESTATE
1234 Main Street 1,500,000 - - 1,500,000 0.0% 3.0%
Total of Personal Residences 1,500,000 - - 1,500,000 0.0% 3.0%
PERSONAL PROPERTY
Autos 255,000 - - 255,000 0.0% 0.0%
Jewelry & Watches 700,000 - - 700,000 0.0% 0.0%
Total of Personal Property 955,000 - - 955,000 0.0% 0.0%
TOTAL ASSETS 7,102,562 345,145 - 7,447,707
LIABILITIES
1234 Main Street 1,000,000 - - 1,000,000
Notes Payable - Bank (unsecured) 400,000 - - 400,000
Notes Payable - Bank (unsecured) 1,000,000 - - 1,000,000
Total Liabilities 2,400,000 - - 2,400,000
COMMERCIAL LIABILITIES
Notes Payable - LLC 4 1,300,000 - - 1,300,000
Total Commercial Liabilities 1,300,000 - - 1,300,000
TOTAL LIABILITIES 3,700,000 - - 3,700,000
NET WORTH 3,402,562 345,145 - 3,747,707
Page 52

54. FINANCIAL ANALYSIS - PROPOSED PLAN ASSET VALUE PROJECTIONS - PROPOSED PLAN
3%
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Asset Values
Cash and cash equivalents 768,000 775,821 778,720 776,548 769,153 756,377 721,308 1,656,716 3,978,748
Roth IRA - 1,000,000 1,030,000 1,060,900 1,092,727 1,125,509 1,304,773 1,512,590 2,156,591
Real estate investments 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Retirement plans/IRAs 2,924,707 2,030,900 2,166,827 2,306,832 2,451,036 2,599,568 3,296,559 3,110,702 2,136,581
Personal residences 1,500,000 1,515,998 1,561,478 1,608,322 1,656,572 1,706,269 1,978,033 2,293,083 3,269,388
Personal property 955,000 955,000 955,000 955,000 955,000 955,000 955,000 955,000 955,000
Total assets in estate 7,447,707 7,577,719 7,792,025 8,007,602 8,224,488 8,442,723 9,555,674 10,828,090 13,796,308
Less estimated liabilities (3,700,000) (3,700,000) (3,700,000) (3,700,000) (3,700,000) (3,700,000) (3,700,000) (3,700,000) (3,700,000)
Combined net worth $ 3,747,707 $ 3,877,719 $ 4,092,025 $ 4,307,602 $ 4,524,488 $ 4,742,723 $ 5,855,674 $ 7,128,090 $ 10,096,308
In the event that there is a cash flow surplus, the surplus is added to the cash 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 cash.
No calculations are illustrated which:
- Reduce debt
- Account for depreciation of real estate
- Account for sale of real estate
Page 53

55. TAXABLE INCOME PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Sources of Taxable Income
Cash and cash equivalents 7,680 7,758 7,787 7,765 7,692 6,482 14,655 37,896
Cash - GDOT 15,000 14,693 14,383 14,071 13,754 12,126 10,415 5,943
Real estate investments (100,151) (100,151) (100,151) (100,151) (100,151) (100,151) (100,151) (100,151)
Net Operating Loss Carryover (950,000) - - - - - - -
Retirement plans/IRAs 1,000,000 - - - - 115,237 142,925 175,632
Other taxable earnings - GDOT (334,314) (340,220) (357,231) (375,092) (393,847) (502,659) (641,535) (1,152,105)
Client earned income 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
Spouse earned income 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
Gross income $ (61,785) $ (117,919) $ (135,211) $ (153,407) $ (172,552) $ (168,965) $ (273,691) $ (732,784)
Page 54

56. INCOME TAX PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Income Tax Estimation
Adjusted gross income:
Dividend/Interest income 15,000 14,693 14,383 14,071 13,754 12,126 10,415 5,943
Earned and other income (76,785) (132,613) (149,595) (167,478) (186,306) (181,091) (284,106) (738,727)
Adjusted gross income (61,785) (117,919) (135,211) (153,407) (172,552) (168,965) (273,691) (732,784)
Deductions
Real Estate Tax 21,692 22,126 22,568 23,020 23,480 25,924 28,622 36,300
Interest 3,279 3,345 3,411 3,480 3,549 3,919 4,327 5,487
Total deductions 24,971 25,470 25,980 26,499 27,029 29,843 32,949 41,787
Deductions allowed 24,971 25,470 25,980 26,499 27,029 29,843 32,949 41,787
Taxable income (86,756) (143,390) (161,191) (179,907) (199,581) (198,808) (306,640) (774,571)
Federal and State income tax $ - $ - $ - $ - $ - $ - $ - $ -
Page 55

57. CASH FLOW PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Sources of Income for Lifestyle
Cash and cash equivalents 7,680 7,758 7,787 7,765 7,692 6,482 14,655 37,896
Client earned income 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
Spouse earned income 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
Retirement plans/IRAs 1,000,000 - - - - 115,237 142,925 175,632
Distribution from Cash - - 2,172 7,396 12,776 - - -
Total income available for lifestyle 1,307,680 307,758 309,959 315,161 320,467 421,719 457,580 513,528
Uses of Cash
Living expenses 1 250,000 255,000 260,100 265,302 270,608 298,773 216,486 274,557
Cash gifts to new ILITs 2 49,859 49,859 49,859 49,859 49,859 49,859 49,859 49,859
Roth Rollover 3 1,000,000 - - - - - - -
Total uses of cash 1,299,859 304,859 309,959 315,161 320,467 348,632 266,345 324,416
Surplus $ 7,821 $ 2,899 $ - $ - $ - $ 73,087 $ 191,235 $ 189,112
1
Assumes that in 2021, livings expenses decrease to $200,000.
2
Includes gifts to ILIT for Jackie and gifts to ILIT for the children.
3
Rollover of distributed retirement plan assets into Roth IRA.
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 56

58. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Tax calculation on Mark's death
Combined Net Worth 3,747,707 3,877,719 4,092,025 4,307,602 4,524,488 4,742,723 5,855,674 7,128,090 10,096,308
Mark's estimated estate 3,402,562 3,520,600 3,715,170 3,910,894 4,107,806 4,305,942 5,316,396 6,471,629 9,166,489
1
Death benefit exceeding CV 6,000,000 6,000,000 6,000,000 6,000,000 - - - - -
Total gross estate 9,402,562 9,520,600 9,715,170 9,910,894 4,107,806 4,305,942 5,316,396 6,471,629 9,166,489
Settlement expenses (72,013) (72,603) (73,576) (74,554) (45,539) (46,530) (51,582) (57,358) (70,832)
Joint, personal and IRA to Jackie (3,734,562) (2,885,112) (3,014,293) (3,147,350) (3,284,398) (3,425,558) (4,087,960) (3,911,326) (2,985,548)
Insurance passing to Jackie 1 (6,000,000) (6,000,000) (6,000,000) (6,000,000) - - - - -
Outright or in trust to Jackie - - - (688,989) (777,868) (833,854) (1,176,853) (2,502,944) (6,110,108)
Taxable estate (404,013) 562,885 627,301 - - - - - -
Plus Mark's lifetime taxable gifts 3,717,105 3,717,105 3,717,105 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Tax base 3,313,092 4,279,990 4,344,405 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Tentative Federal Estate Tax - - - - - - - - -
Distribution of First Estate
Settlement expenses 72,013 72,603 73,576 74,554 45,539 46,530 51,582 57,358 70,832
To family trust (404,013) 562,885 627,301 - - - - - -
Joint, personal and IRA to Jackie 3,734,562 2,885,112 3,014,293 3,147,350 3,284,398 3,425,558 4,087,960 3,911,326 2,985,548
Insurance passing to Jackie 1 6,000,000 6,000,000 6,000,000 6,000,000 - - - - -
Outright or in trust to Jackie - - - 688,989 777,868 833,854 1,176,853 2,502,944 6,110,108
Total $ 9,402,562 $ 9,520,600 $ 9,715,170 $ 9,910,894 $ 4,107,806 $ 4,305,942 $ 5,316,396 $ 6,471,629 $ 9,166,489
Assumptions
1
Proceeds from policies transferred to ILITs remain inside the taxable estate if death occurs within the first 3 years. Beginning in year 4, proceeds are outside of the taxable estate.
We assume that Mark dies first, followed immediately by Jackie.
Taxes under "Distribution of First Estate" include estate and income taxes, if any.
Page 57

59. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Tax Calculation on Jackie's death
Jackie's assets 345,145 357,118 376,855 396,709 416,683 436,781 539,278 656,461 929,819
1
Death benefit exceeding CV 1,000,000 1,000,000 1,000,000 1,000,000 - - - - -
Plus assets from Mark's estate 9,734,562 8,885,112 9,014,293 9,836,339 4,062,266 4,259,412 5,264,814 6,414,271 9,095,656
Jackie's estimated estate 11,079,707 10,242,230 10,391,148 11,233,048 4,478,949 4,696,193 5,804,092 7,070,732 10,025,475
Settlement expenses (135,797) (127,422) (128,911) (137,330) (69,789) (71,962) (83,041) (95,707) (125,255)
Taxable estate 10,943,910 10,114,808 10,262,237 11,095,717 4,409,160 4,624,231 5,721,051 6,975,025 9,900,221
Plus Jackie's lifetime taxable gifts 1,318,430 1,318,430 1,318,430 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Tax base 12,262,339 11,433,237 11,580,666 12,095,717 5,409,160 5,624,231 6,721,051 7,975,025 10,900,221
Federal Estate Tax 2,430,368 2,140,183 2,303,233 6,052,430 2,270,038 2,388,327 2,991,578 3,681,264 5,335,132
Distribution of Second Estate
Settlement expenses 135,797 127,422 128,911 137,330 69,789 71,962 83,041 95,707 125,255
Taxes 2,430,368 2,140,183 2,303,233 6,052,430 2,270,038 2,388,327 2,991,578 3,681,264 5,335,132
Qualified plan to heirs 2,924,707 2,030,900 2,166,827 2,306,832 2,451,036 2,599,568 3,296,559 3,110,702 2,136,581
Insurance passing to heirs 1 1,000,000 1,000,000 1,000,000 1,000,000 - - - - -
Residual estate to heirs 4,588,834 4,943,725 4,792,177 1,736,455 (311,915) (363,664) (567,087) 183,059 2,428,508
Total $ 11,079,707 $ 10,242,230 $ 10,391,148 $ 11,233,048 $ 4,478,949 $ 4,696,193 $ 5,804,092 $ 7,070,732 $ 10,025,475
Assumptions
1
Proceeds from policies transferred to ILITs remain inside the taxable estate if death occurs within the first 3 years. Beginning in year 4, proceeds are outside of the taxable estate.
We assume that Mark dies first, followed immediately by Jackie.
Taxes under "Distribution of Second Estate" include estate and income taxes, if any.
Page 58

60. SUMMARY OF BENEFITS TO FAMILY - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Benefits to Family
Residual estate 5,588,834 5,943,725 5,792,177 2,736,455 (311,915) (363,664) (567,087) 183,059 2,428,508
Family trust (404,013) 562,885 627,301 - - - - - -
Excess FLP value 1,960,000 1,974,613 2,036,787 2,102,503 2,171,944 2,245,298 2,678,157 3,243,572 5,386,624
Excess S Corp value 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000
Qualified plan assets 2,924,707 2,030,900 2,166,827 2,306,832 2,451,036 2,599,568 3,296,559 3,110,702 2,136,581
Value of GDOT 3,640,000 3,667,139 3,782,605 3,904,649 4,033,610 4,169,840 4,973,719 6,023,777 10,003,731
Value of ILITs - Taylor Services & Insurance 1 - 1,300,000 1,300,000 1,300,000 8,300,000 8,300,000 8,300,000 8,300,000 8,300,000
Total assets to heirs $ 14,409,529 $ 16,179,263 $ 16,405,696 $ 13,050,440 $ 17,344,675 $ 17,651,042 $ 19,381,349 $ 21,561,110 $ 28,955,443
1
Proceeds from policies transferred to ILITs remain inside the taxable estate if death occurs within the first 3 years. Beginning in year 4, proceeds are outside of the taxable estate.
Page 59

61. FAMILY LIMITED PARTNERSHIP DETAILS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Balance Sheet
LP Assets
Cash 1,500,000 1,469,325 1,438,343 1,407,052 1,375,447 1,343,527 1,179,072 1,006,228 554,569
Other Investments 4,100,000 4,172,427 4,381,049 4,600,101 4,830,106 5,071,612 6,472,804 8,261,121 14,835,786
Total 5,600,000 5,641,752 5,819,392 6,007,153 6,205,553 6,415,138 7,651,876 9,267,348 15,390,355
Assets in FLP $ 5,600,000 $ 5,641,752 $ 5,819,392 $ 6,007,153 $ 6,205,553 $ 6,415,138 $ 7,651,876 $ 9,267,348 $ 15,390,355
Discounted value of FLP interests 3,640,000 3,667,139 3,782,605 3,904,649 4,033,610 4,169,840 4,973,719 6,023,777 10,003,731
Difference between FLP asset value
and discounted LP value 1,960,000 1,974,613 2,036,787 2,102,503 2,171,944 2,245,298 2,678,157 3,243,572 5,386,624
Page 60

62. FAMILY LIMITED PARTNERSHIP DETAILS - PROPOSED PLAN
(Continued)
Partnership Cash Flow Current 2011 2012 2013 2014 2015 2020 2025 2037
Income
Cash 15,000 14,693 14,383 14,071 13,754 12,126 10,415 5,943
Other Investments (334,314) (340,220) (357,231) (375,092) (393,847) (502,659) (641,535) (1,152,105)
Total Income (319,314) (325,526) (342,847) (361,022) (380,092) (490,533) (631,120) (1,146,162)
Expenses
Net Income to Distribute (319,314) (325,526) (342,847) (361,022) (380,092) (490,533) (631,120) (1,146,162)
LP Capital Distributed* 30,675 30,982 31,292 31,604 31,921 33,549 35,260 39,732
* Note: Capital distributions, if any, are subtracted from the cash row on the prior page.
Taxable Income Current 2011 2012 2013 2014 2015 2020 2025 2037
Cash 15,000 14,693 14,383 14,071 13,754 12,126 10,415 5,943
Other Investments (334,314) (340,220) (357,231) (375,092) (393,847) (502,659) (641,535) (1,152,105)
Taxable Income (319,314) (325,526) (342,847) (361,022) (380,092) (490,533) (631,120) (1,146,162)
Page 61

63. CORPORATE RECAPITALIZATION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Balance sheet
Re-capitalized closely held business 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Total Value $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000
Adjusted value of shares 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Difference 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000
Total distribution to shareholders $ - $ - $ - $ - $ - $ - $ - $ -
Page 62

64. GRANTOR DEEMED OWNER TRUST DETAILS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
GDOT Balance Sheet
LP Units 3,640,000 3,667,139 3,782,605 3,904,649 4,033,610 4,169,840 4,973,719 6,023,777 10,003,731
Net equity $ 3,640,000 $ 3,667,139 $ 3,782,605 $ 3,904,649 $ 4,033,610 $ 4,169,840 $ 4,973,719 $ 6,023,777 $ 10,003,731
GDOT Income Tax Estimation
Cash 15,000 14,693 14,383 14,071 13,754 12,126 10,415 5,943
Other Investments (334,314) (340,220) (357,231) (375,092) (393,847) (502,659) (641,535) (1,152,105)
Total earnings (319,314) (325,526) (342,847) (361,022) (380,092) (490,533) (631,120) (1,146,162)
GDOT Cash Flow
Capital Distribution from LP Cash 30,675 30,982 31,292 31,604 31,921 33,549 35,260 39,732
1
Insurance Premium Distribution to ILITs (45,675) (45,675) (45,675) (45,675) (45,675) (45,675) (45,675) (45,675)
Cash flow from LP units 15,000 14,693 14,383 14,071 13,754 12,126 10,415 5,943
Cash flow to reinvest - - - - - - - -
Note: Capital distributions, if any, are subtracted from the cash row on the FLP balance sheet.
1
Discretionary distributions can be made from the GDOT to the ILITs to fund premium payments that are in excess of the annual cash gifts being made by Mark & Jackie.
Page 63

65. IRREVOCABLE LIFE INSURANCE TRUST DETAILS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Distribution from GDOT for Jackie's ILIT 45,675 45,675 45,675 45,675 45,675 45,675 45,675 45,675
Cash gift to new ILITs 49,859 49,859 49,859 49,859 49,859 49,859 49,859 49,859
Total outlay to ILITs 95,534 95,534 95,534 95,534 95,534 95,534 95,534 95,534
Converted Policies (Survivorship UL)
Premium 17,338 17,338 17,338 17,338 17,338 17,338 17,338 17,338
Death Benefit 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Converted Policy (Survivorship UL)
Premium 19,521 19,521 19,521 19,521 19,521 19,521 19,521 19,521
Death Benefit 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Converted Policy (UL - Mark)
Premium 58,675 58,675 58,675 58,675 58,675 58,675 58,675 58,675
Death Benefit 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000
-
ILIT for Jackie - Assets
Taylor Services (100% equity) 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Total Assets in Trust 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Net death benefit from Converted Policies - - - - 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000
Total Value in Trusts $ - $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 8,300,000 $ 8,300,000 $ 8,300,000 $ 8,300,000 $ 8,300,000
Page 64

66. DETAILS OF MARK'S QUALIFIED PLAN - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Mark's Qualified Plans
Mark's age 62 63 64 65 66 71 76 88
Jackie's age 60 61 62 63 64 69 74 86
Minimum distribution factor 34.9 33.9 33.0 32.0 31.1 26.5 22.0 12.7
Securities in plans 2,779,562 1,809,207 1,940,733 2,076,205 2,215,741 2,359,463 3,030,158 2,921,194 1,998,076
Plan contributions 75,000 75,000 75,000 75,000 75,000 75,000 -
Plan balance during life 2,779,562 1,884,207 2,015,733 2,151,205 2,290,741 2,434,463 3,105,158 2,921,194 1,998,076
Plan balance at death of survivor 2,779,562 1,884,207 2,015,733 2,151,205 2,290,741 2,434,463 3,105,158 2,921,194 1,998,076
Minimum distribution - - - - - 115,237 134,866 165,390
Preferred distribution 1,000,000 - - - - - - -
Actual distribution 1,000,000 - - - - 115,237 134,866 165,390
Page 65

67. DETAILS OF JACKIE'S QUALIFIED PLAN - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2025 2037
Jackie's Qualified Plans
Jackie's age 60 61 62 63 64 69 74 86
Mark's age 62 63 64 65 66 71 76 88
Minimum distribution factor 36.8 35.8 34.9 33.9 33.0 28.3 23.8 14.1
Securities in plans 145,145 146,693 151,094 155,627 160,295 165,104 191,401 189,508 138,505
Plan contributions - - - - - - - -
Plan balance during life 145,145 146,693 151,094 155,627 160,295 165,104 191,401 189,508 138,505
Plan balance at death of survivor 145,145 146,693 151,094 155,627 160,295 165,104 191,401 189,508 138,505
Minimum distribution - - - - - - 8,059 10,242
Preferred distribution - - - - - - - -
Actual distribution - - - - - - 8,059 10,242
Page 66

68. DISCLAIMER AND DISCLOSURE
MARK AND JACKIE TAYLOR
InKnowVision, LLC does not give tax, accounting or legal advice to its clients. The effectiveness of any of the strategies described will
depend on your individual situation and on a number of complex factors.
You should consult with your other advisors on the tax, accounting, and legal implications of these proposed strategies before any strategy
is implemented.
Any discussion in this presentation relating to tax, accounting, investments, regulatory, or legal matters is based on our understanding as of
the date of this presentation. Rules in these areas are constantly changing and are open to varying interpretations.
Assumption Issues The plan involves numerous assumptions. While we believe that these assumptions are reasonable, it is important to
understand that it is a virtual certainty that the actual results will differ from those illustrated. Returns on investment and performance of
financial products can cause the results to vary. Changes in tax, trust or property laws can cause plan results to vary. Plan implementation
that differs from that described in the plan will cause the results to vary. Provision of state law may cause the plan results to vary.
Tax Opinions The IRS has recently issued new rules for tax practitioners regarding covered opinions, reliance opinions and marketed
opinions. While this is an arcane area, suffice it to say that these opinions are often obtained by taxpayers for purposes of avoiding
penalties. These opinions are obtained at substantial cost and after substantial legal analysis. If you believe that such an opinion would be
helpful to you prior to entering into any of the transactions outlined in this plan, you should feel free do so.
Be advised that nothing in this analysis should be construed by you, your advisors or any one else as a covered opinion, reliance opinion,
marketed opinion or any other type of opinion regarding any of the transactions or outcomes outlined in this plan.
Page 67