CHASE AND JANET FISHER
INTRODUCTORY DATA
Chase Fisher (age 54) is a small business owner. He and his wife, Janet, (age 53) have the following assets:
|
His
|
|
Hers
|
|
|
Cash and Cash Equivalents
|
$500,000
|
Cash and Cash Equivalents
|
$200,000
|
|
Residence
|
$2,000,000
|
Retirement Plans
|
$1,000,000
|
|
Brokerage Account
|
$2,500,000
|
Brokerage Account
|
$1,000,000
|
|
Life Insurance (death benefit)
|
$4,000,000
|
Family Farm
|
$3,000,000
|
|
Retirement Account
|
$2,000,000
|
Miscellaneous Assets
|
$1,000,000
|
|
Business (90% Value)
|
$2,250,000
|
Business 10% Value
|
$250,000
|
|
Total
|
$13,250,000
|
Total
|
$6,450,000
|
The Fishers have determined that because of the uncertainty of Congress, they would like to freeze assets at $5.34 million x 2 = $10,680,000 and are concerned that lifetime estate and gift exemptions will be lowered.
The Fishers have three children (ages 34, 32, and 30) and nine grandchildren, 3 from each child varying in ages from I to 6 years old. The children are educated, healthy, happily married and are of moderate economic means.
The Fishers have done no estate planning and do not have any estate planning documents. FINANCIAL GOALS
Their primary goal, for this example, is to prepare a basic, but adequate estate plan. Their other goals and concerns are as follows:
- Retire at age 63 and maintain control of the company until retirement.
- Protect assets from future creditors.
- Avoid probate.
- Stretch retirement distributions.
- Minimize estate tax.
- Avoid costly involvement of courts.
- Provide for the educational of all grandchildren
- Benefit children
- Freeze their estate at $10.68 million.
Assets
- The residence is titled free simple.
- One brokerage account is in his name only. The other is in her name only.
- The life insurance is owned by Chase and is permanent policy with a cash value of zero. He just purchased the policy and the beneficiary is his estate.
- His retirement account (IRA) has no named beneficiary.
- His business is an LLC and he is the manager, member with a 90% interest. Janet has a 10% interest.
- Chase is the named beneficiary for janet's retirement plan.
- The family farm is owned fee simple by Janet.
- Her miscellaneous asset include art valued at $150,000.