Jeff and Theresa Anderson meet with Scott Hamilton to discuss estate planning strategies. Scott presents an analysis of their current plan versus a proposed plan involving several strategies. The proposed plan is projected to increase the amount passing to heirs from $58 million to over $110 million, reduce estate taxes from $31.9 million to $28.1 million, and provide increased liquidity and inheritance for their family over both the short and long-term. The core strategies in the proposed plan include creating a family limited partnership, grantor deemed owner trusts, and purchasing life insurance within the trusts.

1. Case Study Webinar
©2013. InKnowVision LLC. All rights reserved. www.inknowvision.com

2. FAMILY WEALTH GOAL ACHIEVER™ - INITIAL
PREPARED FOR:
JEFF AND THERESA ANDERSON
January 31, 2014
DRAFT FOR DISCUSSION PURPOSES ONLY
PRESENTED BY
Scott Hamilton
InKnowVision, LLC
715 Enterprise Dr.
Oak Brook, IL 60523
scott@ikvllc.com
(630) 596-5090
Copyright 2014 InKnowVision, LLC

3. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
JEFF AND THERESA ANDERSON
The highlighted tools are those we have determined are most suited to achieving your goals and objectives.
Charitable
Remainder UniTrust
412(e)
Family Limited
Partnership
Private Annuity
Family LLC
TCLAT
Qualified Personal
Residence Trust
Flip CRT
Grantor Retained
Annuity Trust
Charitable Lead
Annuity Trust
SCIN
Sale for Installment
Series Limited
GDOT Owned Life
Note
Liability Company
Insurance
Premium Finance
Beneficiary
Preferred Limited
Defective Inheritor's
partnership
Trust (BDIT)
529 Plans
Gifting
ILIT
Corporate
Recapitalization
Walton GRAT
Anderson Family
Charitable Life Estate
Foundation
NIMCRUT
Annuity
Withdrawal
Asset Protection
SPIA/Life Arbitrage
Revocable Living
Trusts, DPAs and
POAs
Crummey Powers
Dynasty Trust
International
VUL
GDOT
Charitable Bequest
SPIA/Life in a CLAT of $10M to Family
Foundation
Supporting
Organizations
IRA to Charity
Gift Annuity
Remainder Sales
Life Estates
International
Business Risk
Management
LLC/CRTs
Bargain Sales
Succession
Planning
Risk Management
Charitable
Remainder Annuity
Trust
ESOP Planning
Defined Benefit
Plans
Qualified Plan
Limited Partnership
Green equals a
new planning tool
for family
Blue equals a social
capital or
charitable tool
Yellow equals an
existing planning
tool
Page 2

4. JEFF AND THERESA ANDERSON
LIFETIME SPENDING
AND LIQUIDITY
Page 3

5. PERSONAL LIVING EXPENSES vs. AVAILABLE CASH FLOW
JEFF AND THERESA ANDERSON
$6,000,000
$5,000,000
$4,000,000
Deferred Comp payments
end in 2018
-
$3,000,000
$2,000,000
$1,000,000
$-
Proposed Living Expenses
Proposed Annual Cash Flow
Illustration compares your living expenses under the proposed plan as against your annual cash flow available.
Page 4

6. YOUR LIQUID ASSETS - CURRENT PLAN VS. PROPOSED PLAN
JEFF AND THERESA ANDERSON
$220,000,000
$200,000,000
$180,000,000
$160,000,000
The liquidity gap is created through
valuation adjustments and a freeze
on the value of assets inside of your
estate with the notes from sale
$140,000,000
$120,000,000
-
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$-
Readily Liquid Assets - Proposed
Liquidity Available from GDOT Notes - Proposed
Current Liquid Assets
This illustration reflects the amount of liquid assets available to you during life under the current plan assumptions as against the proposed plan
assumptions. Liquid assets include cash, securities, bonds (corporate and municipal), annuities and retirement funds. Due to the nature of the assets
involved in the Trust transaction there is liquidity available during life from the Trust notes.
Page 5

7. JEFF AND THERESA ANDERSON
INCREASE INHERITANCE
AND REDUCE ESTATE TAX
Page 6

8. COMPARISON OF PLAN RESULTS - PLAN YEAR 2014
JEFF AND THERESA ANDERSON
Existing Plan
Proposed Plan
Advantage
Estate Value
$
96,726,766
$
80,677,119
Total Benefits to Family
$
58,079,705
$
110,849,083
$
Family Charity
$
15,687,087
$
15,687,087
$
Estate and Income Tax
$
31,886,664
$
28,138,450
$
52,769,378
-
3,748,214
This chart assumes that you both die this year and compares the results of the current plan with the proposed plan.
Page 7

9. COMPARISON OF PLAN RESULTS - PLAN YEAR 2033
JEFF AND THERESA ANDERSON
Existing Plan
Proposed Plan
Advantage
Estate Value
$
236,958,860
$
133,754,087
Total Benefits to Family
$
144,388,657
$
192,631,030
$
Family Charity
$
19,816,617
$
19,816,617
$
Estate and Income Tax
$
86,971,644
$
47,511,445
$
Present Value of total to Heirs
Discount rate for PV calculation
$82,342,834
48,242,373
-
39,460,199
$109,854,785
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 8

10. ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED
JEFF AND THERESA ANDERSON
$220,000,000
$200,000,000
$180,000,000
$160,000,000
$140,000,000
-
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
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 9

11. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
JEFF AND THERESA ANDERSON
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 10

12. CREATE AND FUND A FAMILY LIMITED PARTNERSHIP
JEFF AND THERESA ANDERSON
Jeff and Theresa 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.
Page 11

13. CREATE AND FUND A FAMILY LIMITED PARTNERSHIP
JEFF AND THERESA ANDERSON
Jeff and Theresa transfer $37,622,700 of assets to the limited partnership.
$37,622,700
Detail of Assets Transferred
Securities Acct.
Corp Sale Note (50%)
Energy Investment
Total Assets Contributed
34,282,700
3,240,000
100,000
37,622,700
Page 12

14. HAVE THE LIMITED PARTNERSHIP SHARES APPRAISED
JEFF AND THERESA ANDERSON
Jeff and Theresa 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
Appraisal
Valuation adjustment
assumed to be 20%
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 13

15. BUSINESS PURPOSE
JEFF AND THERESA ANDERSON
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 14

16. CREATE GRANTOR DEEMED OWNER TRUSTS
JEFF AND THERESA ANDERSON
Jeff and Theresa create individual grantor deemed owner trusts (GDOT).
The Trusts can be drafted to provide asset protection and long term estate tax savings through the use of dynasty trust provisions.
Note: Jeff may also be a discretionary beneficiary of Theresa's trust. Attention should be paid to avoid reciprocal trust doctrine.
Page 15

17. GIFT TO GRANTOR DEEMED OWNER TRUST
JEFF AND THERESA ANDERSON
Jeff and Theresa each make a gift of $3,250,000 in cash/securities to their individual GDOT. This gift is designed to give each trust
economic substance and maximize their available lifetime exemption.
$3,250,000
$3,250,000
Page 16

18. SELL PARTNERSHIP SHARES TO EACH GDOT
JEFF AND THERESA ANDERSON
Jeff and Theresa sell their limited partnership shares to their individual GDOTs for an installment note.
Sell their combined limited
partnership shares worth
$30,098,160
Installment note with a value
of $30,098,160 that provides
annual payments of $791,582
The sale price is based on the assumed value of the assets
sold.
*Note payments are assumed to be interest only at the
Jan. long term AFR of 2.63%.
** The note can be re-financed or paid off during the term of the note.
Page 17

19. PURCHASE LIFE INSURANCE IN THE GDOT
JEFF AND THERESA ANDERSON
The GDOT Trustees purchase second-to-die life insurance with the assets of the two GDOTs.
Premium in the amount of
$1,175,000 is scheduled to be
paid for all years with assets of
the GDOTs.
Policy Benefits:
- Used as wealth replacement, it can allow increased charitable giving that reduces or eliminates
estate taxes but ensures a significant inheritance for your heirs
- Policy has a good tax-free return on investment (see IRR page)
- Increased inheritance in trust for heirs
- Over time, annual premiums paid into this vehicle (which is income and estate tax free) will
reduce the income taxes from other investment assets subject to income taxes
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 18

20. INTERNAL RATE OF RETURN ON LIFE INSURANCE
JEFF AND THERESA ANDERSON
JEFF'S AGE
THERESA'S AGE
YEAR
PREMIUM
DEATH BENEFIT
IRR
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
4155.32%
504.24%
210.14%
122.27%
82.48%
60.39%
46.55%
37.16%
30.44%
25.41%
21.52%
18.45%
15.96%
13.92%
12.21%
10.77%
9.54%
8.48%
7.55%
6.74%
6.03%
5.40%
4.84%
4.33%
Page 19

21. COMPARISON OF POTENTIAL PLAN RESULTS - PLAN YEAR 2024
JEFF AND THERESA ANDERSON
Existing Plan
94,127,380
Proposed Plan A
$
115,867,575
$
87,409,391
$
14,687,733
$
29,375,467
$
Deferred Inheritance**
$
Total Benefits to Family
$
94,127,380
$
145,451,064
$
130,555,309
$
116,784,858
Family Charity
$
17,571,894
$
17,571,894
$
66,756,809
$
111,544,061
Estate and Income Tax
$
53,787,013
$
35,931,394
$
16,329,068
$
$
145,451,064
Proposed Plan C**
Heirs Receive Immediately
-
$
Proposed Plan B **
-
-
** Plans B & C use charitable techniques at death that decrease estate taxes and could provide a deferred inheritance.
This chart assumes that you both die in 2024 and compares the results of the current plan with the proposed plan(s).
Page 20

22. DETAILED FINANCIAL ANALYSIS
JEFF AND THERESA ANDERSON
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 21

23. DETAILED FINANCIAL ANALYSIS
JEFF AND THERESA ANDERSON
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 22

24. CURRENT NET WORTH STATEMENT
JEFF AND THERESA ANDERSON
JEFF
THERESA
JOINT
TOTAL
YIELD
GROWTH
CASH AND EQUIVALENTS
Cash Acct
250,000
250,000
-
500,000
0.0%
0.0%
Cash Acct
100,000
100,000
-
200,000
0.0%
0.0%
Cash Acct
464,000
464,000
-
928,000
0.0%
0.0%
Cash Acct
400,000
400,000
-
800,000
0.0%
0.0%
1,214,000
1,214,000
-
2,428,000
0.0%
0.0%
Securities Acct.
9,442,850
9,442,850
-
18,885,700
3.0%
4.0%
Securities Acct.
1,004,550
1,004,550
-
2,009,100
0.0%
5.0%
Securities Acct.
516,150
516,150
-
1,032,300
0.0%
5.0%
1,010,000
-
1,010,000
0.0%
5.0%
Total of Cash and Equivalents
INVESTMENT ASSETS
Securities Acct.
-
Securities Acct.
505,500
505,500
-
1,011,000
0.0%
5.0%
Securities Acct.
28,172
28,172
-
56,343
0.0%
5.0%
Securities Acct.
17,141,350
17,141,350
-
34,282,700
3.0%
4.0%
Securities Acct.
2,448,050
2,448,050
-
4,896,100
3.0%
4.0%
31,086,622
32,096,622
-
63,183,243
2.8%
4.1%
Total of Investment Assets
Page 23

25. CURRENT NET WORTH STATEMENT (Page 2)
JEFF AND THERESA ANDERSON
JEFF
THERESA
JOINT
TOTAL
YIELD
GROWTH
OTHER INVESTMENTS
Corp Sale Note (50%) **
3,240,000
-
-
3,240,000
0.0%
0.0%
LLC Investment 1
1,824,000
-
-
1,824,000
0.0%
3.0%
LLC Investment 2
1,126,000
-
-
1,126,000
0.0%
3.0%
LLC Investment 2
1,051,000
-
-
1,051,000
0.0%
3.0%
LLC Investment 3
750,000
-
-
750,000
0.0%
3.0%
LLC Investment 4
640,000
-
-
640,000
0.0%
3.0%
LLC Investment 5
633,000
-
-
633,000
0.0%
3.0%
Oil & Gas Ventures
300,000
-
-
300,000
0.0%
3.0%
LLC Investment 6
270,000
-
-
270,000
0.0%
3.0%
LLC Investment 7
225,000
-
-
225,000
0.0%
3.0%
LLC Investment 8
210,000
-
-
210,000
0.0%
3.0%
LLC Investment 9
200,000
-
-
200,000
0.0%
3.0%
LLC Investment 10
50,000
-
-
50,000
0.0%
3.0%
100,000
-
-
100,000
120.0%
0.0%
10,619,000
-
-
10,619,000
1.1%
2.1%
Energy Investment
Total of Other Investments
** Value reflects the remaining 9 years of payments due from buyout.
EMPLOYEE BENEFITS
Corp Outstanding Stock Options
353,300
-
-
353,300
0.0%
5.0%
Other Stock Options
Total Employee Benefits
260,200
-
-
260,200
0.0%
5.0%
613,500
-
-
613,500
0.0%
5.0%
Page 24

26. CURRENT NET WORTH STATEMENT (Page 3)
JEFF AND THERESA ANDERSON
JEFF
THERESA
JOINT
TOTAL
YIELD
GROWTH
54,400
0.0%
5.0%
25,000
0.0%
5.0%
4,555,000
0.0%
5.0%
4,634,400
0.0%
5.0%
RETIREMENT PLANS/IRAs
SEP/IRA
IRA
401(k)
Total Retirement Plans
54,400
4,555,000
25,000
-
4,609,400
25,000
123 Main St.
2,387,500
2,387,500
-
4,775,000
0.0%
0.0%
2nd Residence (QPRT)
1,000,000
1,000,000
-
2,000,000
0.0%
2.0%
Vacation Homes
1,000,000
1,000,000
-
2,000,000
0.0%
2.0%
500,000
500,000
-
1,000,000
0.0%
2.0%
32,500
32,500
-
65,000
0.0%
2.0%
4,920,000
4,920,000
-
9,840,000
0.0%
1.0%
250,000
250,000
-
500,000
0.0%
0.0%
50,000
50,000
-
100,000
0.0%
0.0%
200,000
200,000
-
400,000
0.0%
0.0%
500,000
500,000
-
1,000,000
0.0%
0.0%
53,562,522
38,755,622
-
92,318,143
RESIDENTIAL REAL ESTATE
Europe Home
Lake Home
Total of Personal Residences
PERSONAL PROPERTY
Collections/Art/Jewelry
Autos
Furnishings
Total of Personal Property
TOTAL ASSETS
TOTAL LIABILITIES
NET WORTH
-
53,562,522
-
38,755,622
-
-
-
92,318,143
Page 25

27. SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN
JEFF AND THERESA ANDERSON
COMPANY
INSURED
POLICY #
BENEFICIARY
2nd to die
#
Children
PREMIUM
CASH VALUE
DEATH BENEFIT
Policies owned by Jeff
UL Policy
41,806
-
2,064,053
41,806
Totals
-
2,064,053
48,850
-
3,005,028
48,850
-
3,005,028
Policies owned by ILIT
UL Policy
Totals
2nd to die
#
ILIT
Page 26

28. FINANCIAL ANALYSIS - EXISTING PLAN
ASSET VALUE PROJECTIONS - EXISTING PLAN
613,500
613,500
2,000,000 2,036,572
YEAR
Current
644,175
2,077,303
2014
676,384
2,118,849
2015
710,203
2,161,226
2016
745,713
2,204,451
2017
1,049,293
2,532,221
2018
2025
2033
Asset Values
Cash and cash equivalents
2,428,000
2,428,000
2,428,000
2,428,000
2,428,000
2,428,000
2,428,000
2,428,000
Investment Assets
63,183,243
67,650,223
72,696,047
78,139,838
84,013,492
90,350,008
133,034,123
207,983,467
Other investments
10,619,000
10,458,650
10,313,723
10,165,815
10,014,866
9,860,812
9,792,353
11,524,160
Employee Benefits
613,500
613,500
644,175
676,384
710,203
745,713
1,049,293
1,550,284
4,634,400
4,643,737
4,664,970
4,678,304
4,681,904
4,676,051
4,305,899
3,077,245
Personal residences 1
9,840,000
9,932,656
10,034,910
10,138,216
10,242,587
10,348,031
8,656,547
9,395,704
Personal property
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
92,318,143
96,726,766
101,781,824
107,226,557
113,091,051
119,408,616
160,266,214
236,958,860
96,726,766
$ 101,781,824
$ 107,226,557
$ 113,091,051
$ 119,408,616
$ 160,266,214
$ 236,958,860
Retirement plans/IRAs
Total assets in estate
Combined net worth
1
$
92,318,143
$
Assumes the 2nd residence was put in a 15 yr. QPRT in 2006. Beginning in 2022, the residence is outside of Jeff & Theresa's estate.
In the event that there is a cash flow surplus, the surplus is added to the investment assets 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 investment assets.
Page 27

29. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Sources of taxable income
Investment Assets
1,741,935
1,865,088
2,004,199
2,154,282
2,316,216
3,471,757
5,419,088
Other investments
120,000
120,000
120,000
120,000
120,000
120,000
120,000
311,647
359,295
Retirement plans/IRAs
Deferred Compensation
Corp Buyout
202,260
Social security income
Gross income
1
230,315
239,947
2,277,342
2,436,756
2,607,329
-
-
360,000
360,000
360,000
360,000
-
-
35,431
$
4,448,745
35,431
$
4,719,829
35,431
$
5,016,886
35,431
$
5,336,784
35,431
$
5,678,923
35,431
$
3,938,834
35,431
$
5,933,813
Deferred compensation payments are made until 2018.
2
219,915
2,128,357
360,000
2
210,954
1,989,119
1
$30,000/month payments over the next 9 years.
Page 28

30. INCOME TAX PROJECTIONS - EXISTING PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Income tax Estimation
Adjusted gross income:
Dividend income (marketable sec.)
1,741,935
1,865,088
2,004,199
2,154,282
2,316,216
Earned and other income
2,706,810
2,854,741
3,012,687
3,182,502
3,362,707
467,078
514,725
4,448,745
4,719,829
5,016,886
5,336,784
5,678,923
3,938,834
5,933,813
Adjusted gross income
3,471,757
5,419,088
Deductions
Real estate tax
92,000
92,000
93,840
95,717
97,631
99,584
114,390
134,027
Charitable gifts to Family Foundation
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
Charitable Deduction available
10,000
10,000
10,000
10,000
10,000
10,000
10,000
Charitable Deduction allowed
10,000
10,000
10,000
10,000
10,000
10,000
10,000
Total deductions
102,000
103,840
105,717
107,631
109,584
124,390
144,027
Reductions
(81,600)
(83,072)
(84,573)
(86,105)
(87,667)
(99,512)
(115,221)
20,400
20,768
21,143
21,526
21,917
24,878
28,805
Deductions allowed
Taxable income
Federal income tax
4,428,345
$
1,359,851
4,699,061
$
1,442,917
4,995,743
$
1,533,137
5,315,257
$
1,630,249
5,657,006
$
1,733,842
3,913,956
$
817,077
5,905,008
$
1,223,888
Page 29

31. CASH FLOW PROJECTIONS - EXISTING PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Sources of income for Lifestyle
Non-taxable Social Security Income
6,252
6,252
6,252
6,252
6,252
6,252
6,252
Consumable income (taxable)
4,448,745
4,719,829
5,016,886
5,336,784
5,678,923
3,938,834
5,933,813
Total income available for lifestyle
4,454,997
4,726,082
5,023,139
5,343,036
5,685,176
3,945,087
5,940,066
725,000
739,500
754,290
769,376
784,763
901,446
1,056,188
Uses of Cash
Living expenses
Income tax
1,359,851
1,442,917
1,533,137
1,630,249
1,733,842
817,077
1,223,888
Personally held insurance premiums
41,806
41,806
41,806
41,806
41,806
41,806
41,806
Cash gifts to ILIT
48,850
48,850
48,850
48,850
48,850
48,850
48,850
158,000
158,000
158,000
158,000
158,000
158,000
158,000
Cash gifts to family
Cash gifts to Family Foundation
10,000
Surplus
$
10,000
10,000
10,000
10,000
10,000
10,000
2,343,507
Total uses of cash
2,441,073
2,546,083
2,658,280
2,777,261
1,977,179
2,538,732
2,111,490
$
2,285,009
$
2,477,056
$
2,684,756
$
2,907,914
$
1,967,907
$
3,401,334
In the event that there is a cash flow surplus, the surplus is added to the investment assets row on the "Asset Value Projections" 3 pages earlier.
If there is a cash flow shortage (spending or gifting capital) then the shortage is treated as a reduction in marketable
securities row on the "Asset Value Projections" 3 pages earlier.
Page 30

32. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Tax calculation on Jeff's death
Combined net worth
92,318,143
96,726,766
101,781,824
107,226,557
113,091,051
119,408,616
160,266,214
236,958,860
Jeff's estimated estate
53,562,522
56,120,382
59,053,302
62,212,308
65,614,858
69,280,278
92,985,650
137,482,337
Death benefit exceeding CV
2,064,053
Settlement expenses
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
55,626,575
Total gross estate
58,184,435
61,117,355
64,276,361
67,678,911
71,344,331
95,049,703
139,546,390
(303,133)
(315,922)
(330,587)
(346,382)
(363,395)
(381,722)
(500,249)
(722,732)
(5,109,400)
Joint, personal and IRA to Theresa
(5,118,687)
(5,139,805)
(5,153,067)
(5,156,647)
(5,150,827)
(4,782,671)
(3,560,645)
Insurance passing to Theresa
(2,064,053)
(2,064,053)
(2,064,053)
(2,064,053)
(2,064,053)
(2,064,053)
(2,064,053)
(2,064,053)
Outright or in trust to Theresa
(44,530,726)
(47,066,511)
(49,963,647)
(53,093,597)
(56,475,553)
(60,128,466)
(84,083,468)
(129,579,697)
Taxable estate
3,619,263
3,619,263
3,619,263
3,619,263
3,619,263
3,619,263
3,619,263
3,619,263
Plus Jeff's lifetime taxable gifts
1,720,737
1,720,737
1,720,737
1,720,737
1,720,737
1,720,737
1,720,737
1,720,737
Tax base
5,340,000
5,340,000
5,340,000
5,340,000
5,340,000
5,340,000
5,340,000
5,340,000
-
Federal Estate Tax
-
-
-
-
-
-
-
Distribution of Jeff's estate
Settlement expenses
303,133
315,922
330,587
346,382
363,395
381,722
500,249
722,732
To family trust
3,619,263
3,619,263
3,619,263
3,619,263
3,619,263
3,619,263
3,619,263
3,619,263
Joint, personal and IRA to Theresa
5,109,400
5,118,687
5,139,805
5,153,067
5,156,647
5,150,827
4,782,671
3,560,645
Insurance passing to Theresa
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
Outright or in trust to Theresa
44,530,726
47,066,511
49,963,647
53,093,597
56,475,553
60,128,466
84,083,468
129,579,697
95,049,703
$ 139,546,390
Total
$
55,626,575
$
58,184,435
$
61,117,355
$
64,276,361
$
67,678,911
$
71,344,331
$
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of First Estate" include estate and income taxes.
Page 31

33. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Tax Calculation on Theresa's death
Theresa's assets
38,755,622
40,606,384
42,728,523
45,014,249
47,476,193
50,128,339
67,280,564
99,476,523
Plus assets from Jeff's estate
51,704,179
54,249,250
57,167,505
60,310,716
63,696,253
67,343,346
90,930,191
135,204,395
Theresa's estimated estate
90,459,800
Theresa's taxable estate
99,896,028
105,324,965
111,172,446
117,471,685
158,210,755
234,680,918
(10,540,000)
(10,540,000)
(10,540,000)
(10,540,000)
(10,540,000)
(10,540,000)
(10,540,000)
(929,598)
Settlement expenses
94,855,634
(10,540,000)
Charitable Bequest
(973,556)
(1,023,960)
(1,078,250)
(1,136,724)
(1,199,717)
(1,607,108)
88,332,067
93,706,716
99,495,722
78,990,202
Plus Theresa's lifetime taxable gifts
83,342,078
105,731,968
146,063,648
(2,371,809)
221,769,109
1,714,582
1,714,582
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
Tax base
80,704,784
85,056,660
89,332,067
94,706,716
100,495,722
106,731,968
147,063,648
222,769,109
Federal Estate Tax
30,145,914
31,886,664
33,596,827
35,746,686
38,062,289
40,556,787
56,689,459
86,971,644
Total Estate Tax Due
30,145,914
31,886,664
33,596,827
35,746,686
38,062,289
40,556,787
56,689,459
86,971,644
Distribution of Theresa's estate
Settlement expenses
929,598
Qualified plan to heirs
1,023,960
1,078,250
1,136,724
1,199,717
1,607,108
2,371,809
31,886,664
33,596,827
35,746,686
38,062,289
40,556,787
56,689,459
86,971,644
4,634,400
Residual estate to heirs
4,643,737
4,664,970
4,678,304
4,681,904
4,676,051
4,305,899
3,077,245
10,540,000
Charitable Bequest
Total
973,556
30,145,914
Taxes
10,540,000
10,540,000
10,540,000
10,540,000
10,540,000
10,540,000
10,540,000
44,209,888
$
90,459,800
46,811,677
$
94,855,634
50,070,270
$
53,281,726
56,751,529
60,499,129
85,068,290
131,720,220
99,896,028
$ 105,324,965
$ 111,172,446
$ 117,471,685
$ 158,210,755
$ 234,680,918
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of Second Estate" include estate and income taxes.
Page 32

34. SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Benefits to Family
Family trust
3,619,263
QPRT - 2nd Residence 1
3,619,263
3,619,263
3,619,263
3,619,263
3,619,263
3,619,263
46,811,677
50,070,270
53,281,726
56,751,529
60,499,129
85,068,290
131,720,220
4,634,400
Qualified plan assets
3,619,263
44,209,888
Residual estate
4,643,737
4,664,970
4,678,304
4,681,904
4,676,051
-
Proceeds from ILIT
3,005,028
-
3,005,028
-
3,005,028
4,305,899
3,005,028
3,005,028
3,077,245
2,532,221
-
2,966,901
3,005,028
3,005,028
Total assets to heirs
$
55,468,579
$
58,079,705
$
61,359,531
$
64,584,320
$
68,057,724
$
71,799,472
$
98,530,701
$ 144,388,657
Estate Taxes
$
30,145,914
$
31,886,664
$
33,596,827
$
35,746,686
$
38,062,289
$
40,556,787
$
56,689,459
$
1
3,005,028
-
86,971,644
Assumes the 2nd residence was put in a 15 yr. QPRT in 2006. Beginning in 2022, the residence is outside of Jeff & Theresa's estate.
Page 33

35. ANDERSON FAMILY FOUNDATION DETAILS - EXISTING PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Anderson Family Foundation
Beginning of Year Foundation Value
5,000,000
5,137,087
5,301,500
5,470,845
5,645,270
5,824,928
7,242,851
9,266,617
10,000
10,000
10,000
10,000
10,000
10,000
10,000
5,000,000
5,147,087
5,311,500
5,480,845
5,655,270
5,834,928
7,252,851
9,276,617
Charitable Bequest**
10,540,000
10,540,000
10,540,000
10,540,000
10,540,000
10,540,000
10,540,000
10,540,000
Total to Charity
15,540,000
15,687,087
15,851,500
16,020,845
16,195,270
16,374,928
17,792,851
19,816,617
Annual Contributions
Amount passing to charity (EOY)
** The Charitable Bequest includes $540,000 in bequests to various charitable organizations and $10,000,000 to the Anderson Family Foundation.
Page 34

36. DETAILS OF JEFF'S QUALIFIED PLAN - EXISTING PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Jeff's Qualified Plans
Jeff's Age
75
76
77
78
79
86
94
Theresa's Age
72
73
74
75
76
83
91
22.9
22.0
21.2
20.3
19.5
14.1
9.1
-
-
-
-
-
-
Minimum distribution factor
Plan contributions
Plan balance
Minimum distribution
Preferred distribution
Actual distribution
4,609,400
-
4,618,572
4,639,566
4,652,696
4,656,134
4,650,165
4,280,702
3,057,094
201,284
209,935
218,847
229,197
238,776
310,083
357,346
201,284
209,935
218,847
229,197
238,776
310,083
357,346
Page 35

37. DETAILS OF THERESA'S QUALIFIED PLAN - EXISTING PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Theresa's Qualified Plans
Theresa's Age
72
73
74
75
76
83
91
Jeff's Age
75
76
77
78
79
86
94
25.6
24.7
23.8
22.9
22.0
16.3
10.8
-
-
-
-
-
-
Minimum distribution factor
Plan contributions
Plan balance
Minimum distribution
Preferred distribution
Actual distribution
25,000
-
25,165
25,404
25,607
25,769
25,886
25,196
20,151
977
1,019
1,067
1,118
1,171
1,564
1,949
977
-
-
-
-
-
-
1,019
1,067
1,118
1,171
1,564
1,949
Page 36

38. DETAILED FINANCIAL ANALYSIS
JEFF AND THERESA ANDERSON
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 37

39. NET WORTH STATEMENT AFTER PLAN IMPLEMENTATION
JEFF AND THERESA ANDERSON
JEFF
THERESA
JOINT
TOTAL
YIELD
GROWTH
CASH AND EQUIVALENTS
Cash Acct
250,000
250,000
-
500,000
0.0%
0.0%
Cash Acct
100,000
100,000
-
200,000
0.0%
0.0%
Cash Acct
464,000
464,000
-
928,000
0.0%
0.0%
Cash Acct
400,000
400,000
-
800,000
0.0%
0.0%
1,214,000
1,214,000
-
2,428,000
0.0%
0.0%
Securities Acct.
9,442,850
9,442,850
-
18,885,700
3.0%
4.0%
Securities Acct.
1,004,550
1,004,550
-
2,009,100
0.0%
5.0%
Securities Acct.
516,150
516,150
-
1,032,300
0.0%
5.0%
1,010,000
-
1,010,000
0.0%
5.0%
Total of Cash and Equivalents
INVESTMENT ASSETS
Securities Acct.
-
Securities Acct.
505,500
505,500
-
1,011,000
0.0%
5.0%
Securities Acct.
28,172
28,172
-
56,343
0.0%
5.0%
Securities Acct.
Total of Investment Assets
2,448,050
2,448,050
-
4,896,100
3.0%
4.0%
13,945,272
14,955,272
-
28,900,543
2.5%
4.2%
Page 38

40. REVISED NET WORTH STATEMENT (Page 2)
JEFF AND THERESA ANDERSON
JEFF
THERESA
JOINT
TOTAL
YIELD
GROWTH
OTHER INVESTMENTS
LLC Investment 1
1,824,000
-
-
1,824,000
0.0%
3.0%
LLC Investment 2
1,126,000
-
-
1,126,000
0.0%
3.0%
LLC Investment 2
1,051,000
-
-
1,051,000
0.0%
3.0%
LLC Investment 3
750,000
-
-
750,000
0.0%
3.0%
LLC Investment 4
640,000
-
-
640,000
0.0%
3.0%
LLC Investment 5
633,000
-
-
633,000
0.0%
3.0%
Oil & Gas Ventures
300,000
-
-
300,000
0.0%
3.0%
LLC Investment 6
270,000
-
-
270,000
0.0%
3.0%
LLC Investment 7
225,000
-
-
225,000
0.0%
3.0%
LLC Investment 8
210,000
-
-
210,000
0.0%
3.0%
LLC Investment 9
200,000
-
-
200,000
0.0%
3.0%
50,000
-
-
50,000
0.0%
3.0%
7,279,000
-
-
7,279,000
0.0%
3.0%
Corp Outstanding Stock Options
353,300
-
-
353,300
0.0%
5.0%
Other Stock Options
Total Employee Benefits
260,200
-
-
260,200
0.0%
5.0%
613,500
-
-
613,500
0.0%
5.0%
54,400
-
54,400
0.0%
5.0%
-
25,000
25,000
0.0%
5.0%
LLC Investment 10
Total of Other Investments
EMPLOYEE BENEFITS
RETIREMENT PLANS/IRAs
SEP/IRA
IRA
401(k)
Total Retirement Plans
4,555,000
-
4,555,000
0.0%
5.0%
4,609,400
25,000
4,634,400
0.0%
5.0%
Page 39

41. REVISED NET WORTH STATEMENT (Page 3)
JEFF AND THERESA ANDERSON
JEFF
THERESA
JOINT
TOTAL
YIELD
GROWTH
RESIDENTIAL REAL ESTATE
123 Main St.
2,387,500
2,387,500
-
4,775,000
0.0%
0.0%
2nd Residence (QPRT)
1,000,000
1,000,000
-
2,000,000
0.0%
2.0%
Vacation Homes
1,000,000
1,000,000
-
2,000,000
0.0%
2.0%
500,000
500,000
-
1,000,000
0.0%
2.0%
32,500
32,500
-
65,000
0.0%
2.0%
4,920,000
4,920,000
-
9,840,000
0.0%
1.0%
250,000
250,000
-
500,000
0.0%
0.0%
50,000
50,000
-
100,000
0.0%
0.0%
200,000
200,000
-
400,000
0.0%
0.0%
500,000
500,000
-
1,000,000
0.0%
0.0%
GDOT Note
15,049,080
15,049,080
-
30,098,160
2.63%
Total of Other Strategy Assets
15,049,080
15,049,080
-
30,098,160
2.63%
48,130,252
36,663,352
-
84,793,603
Europe Home
Lake Home
Total of Personal Residences
PERSONAL PROPERTY
Collections/Art/Jewelry
Autos
Furnishings
Total of Personal Property
OTHER STRATEGY ASSETS
TOTAL ASSETS
TOTAL LIABILITIES
NET WORTH
-
48,130,252
-
36,663,352
-
-
-
84,793,603
Page 40

42. ASSET VALUE PROJECTIONS - PROPOSED PLAN
FINANCIAL ANALYSIS - PROPOSED PLAN
613,500
YEAR
613,500
644,175
676,384
710,203
745,713
1,049,293
2,000,000
2,036,572
2,077,303
2,118,849
2,161,226
2,204,451
2,532,221
Current
2014
2015
2016
2017
2018
2025
2033
Asset Values
Cash and cash equivalents
2,428,000
2,428,000
2,428,000
2,428,000
2,428,000
2,428,000
2,428,000
2,428,000
Investment assets**
22,400,543
24,482,494
26,841,127
29,416,898
32,229,429
35,298,610
49,266,477
73,090,974
Other investments
7,279,000
7,478,572
7,702,929
7,934,017
8,172,037
8,417,198
10,352,092
13,113,721
Employee Benefits
613,500
613,500
644,175
676,384
710,203
745,713
1,049,293
1,550,284
Retirement plans/IRAs
4,634,400
4,643,737
4,664,970
4,678,304
4,681,904
4,676,051
4,305,899
3,077,245
Personal residences 1
9,840,000
9,932,656
10,034,910
10,138,216
10,242,587
10,348,031
8,656,547
9,395,704
Personal property
1,000,000
Total assets in estate
Combined net worth
1
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
30,098,160
Note from children's GDOT
30,098,160
30,098,160
30,098,160
30,098,160
30,098,160
30,098,160
30,098,160
78,293,603
$
78,293,603
80,677,119
$
80,677,119
83,414,271
$
83,414,271
86,369,978
$
86,369,978
89,562,319
$
89,562,319
93,011,764
$
107,156,468
133,754,087
93,011,764
$ 107,156,468
$ 133,754,087
Assumes the 2nd residence was put in a 15 yr. QPRT in 2006. Beginning in 2022, the residence is outside of Jeff & Theresa's estate.
** Reduced by Seed Gift to GDOT
In the event that there is a cash flow surplus, the surplus is added to the investment assets 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 investment assets.
Page 41

43. TAXABLE INCOME PROJECTIONS - PROPOSED PLAN
YEAR
Current
2014
Investment assets
2015
552,992
2016
604,388
2017
662,614
2018
726,201
2025
2033
795,633
1,157,458
1,717,958
1,840,658
2,594,227
Investment assets - GDOT
1,223,481
1,260,296
1,303,919
1,350,596
1,400,540
Deferred Compensation 1
1,989,119
2,128,357
2,277,342
2,436,756
2,607,329
Retirement plans/IRAs
202,260
210,954
219,915
230,315
239,947
311,647
359,295
Other taxable earnings - GDOT
480,000
480,000
480,000
480,000
480,000
120,000
120,000
Social security income
Gross income
1
35,431
$
4,483,283
35,431
$
4,719,425
35,431
$
4,979,221
35,431
$
5,259,299
-
35,431
$
5,558,880
-
35,431
$
3,465,194
35,431
$
4,826,910
Deferred compensation payments are made until 2018.
Page 42

44. INCOME TAX PROJECTIONS - PROPOSED PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Income Tax Estimation
Adjusted gross income:
Dividend income (Marketable Sec.)
1,776,473
1,864,683
1,966,533
2,076,797
2,196,173
2,998,117
Earned and other income
2,706,810
2,854,741
3,012,687
3,182,502
3,362,707
467,078
4,312,184
514,725
Adjusted gross income
4,483,283
4,719,425
4,979,221
5,259,299
5,558,880
3,465,194
4,826,910
Real Estate Tax
92,000
93,840
95,717
97,631
99,584
114,390
134,027
Cash charitable gifts
10,000
10,000
10,000
10,000
10,000
10,000
10,000
Charitable Deduction available
10,000
10,000
10,000
10,000
10,000
10,000
10,000
Charitable Deduction allowed
10,000
10,000
10,000
10,000
10,000
10,000
10,000
Total deductions
102,000
103,840
105,717
107,631
109,584
124,390
144,027
Reductions
(81,600)
(83,072)
(84,573)
(86,105)
(87,667)
(94,956)
(115,221)
20,400
20,768
21,143
21,526
21,917
29,435
28,805
4,462,883
4,698,657
4,958,077
5,237,772
5,536,963
3,435,760
4,798,104
Deductions
Deductions allowed
Taxable income
Federal income tax
$
1,366,759
$
1,442,836
$
1,525,604
$
1,614,752
$
1,709,833
$
720,527
$
1,002,507
Page 43

45. CASH FLOW PROJECTIONS - PROPOSED PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Sources of Income for Lifestyle
Consumable income (taxable)
2,779,802
3,428,703
3,678,340
1,504,536
6,252
6,252
6,252
6,252
6,252
791,582
791,582
791,582
791,582
791,582
791,582
3,577,636
Total income available for lifestyle
3,195,302
6,252
791,582
Note Payment from GDOT
2,979,129
6,252
Non-taxable Social Security Income
2,112,683
3,776,963
3,993,136
4,226,537
4,476,174
2,302,370
2,910,517
Uses of Cash
Living expenses
725,000
739,500
754,290
769,376
784,763
901,446
1,056,188
1,366,759
1,442,836
1,525,604
1,614,752
1,709,833
720,527
1,002,507
Personally held insurance premiums
41,806
41,806
41,806
41,806
41,806
41,806
41,806
Cash gifts to ILIT
48,850
48,850
48,850
48,850
48,850
48,850
48,850
158,000
158,000
158,000
158,000
158,000
158,000
158,000
Income tax
Cash gifts to family
Cash gifts to charity
10,000
Surplus
$
10,000
10,000
10,000
10,000
10,000
10,000
2,350,415
Total uses of cash
2,440,992
2,538,550
2,642,783
2,753,253
1,880,629
2,317,351
1,227,221
$
1,335,971
$
1,454,586
$
1,583,753
$
1,722,921
$
421,741
$
593,166
In the event that there is a cash flow surplus, the surplus is added to the investment assets row on the "Asset Value Projections" 3 pages earlier.
Page 44

46. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Tax calculation on Jeff's death
Combined Net Worth
78,293,603
80,677,119
83,414,271
86,369,978
89,562,319
93,011,764
107,156,468
133,754,087
Jeff's estimated estate
44,440,744
45,793,667
47,347,320
49,025,028
50,837,054
52,795,016
60,823,783
75,921,032
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
46,504,797
47,857,720
49,411,373
51,089,081
52,901,107
54,859,069
62,887,836
77,985,085
Death benefit exceeding CV
Total gross estate
Settlement expenses
(257,524)
Insurance passing to Theresa
(264,289)
(272,057)
(280,445)
(289,506)
(299,295)
(339,439)
(414,925)
(5,109,400)
Joint, personal and IRA to Theresa
(5,118,687)
(5,139,805)
(5,153,067)
(5,156,647)
(5,150,827)
(4,782,671)
(3,560,645)
(2,064,053)
Taxable estate
(2,064,053)
(2,064,053)
(2,064,053)
(2,064,053)
(2,064,053)
(2,064,053)
(2,064,053)
(38,704,557)
Outright or in trust to Theresa
(40,041,429)
(41,566,195)
(43,222,253)
(45,021,638)
(46,975,631)
(55,332,410)
(71,576,199)
369,263
369,263
369,263
369,263
369,263
369,263
369,263
369,263
Plus Jeff's lifetime taxable gifts
4,970,737
4,970,737
4,970,737
4,970,737
4,970,737
4,970,737
4,970,737
4,970,737
Tax base
5,340,000
5,340,000
5,340,000
5,340,000
5,340,000
5,340,000
5,340,000
5,340,000
Tentative Federal Estate Tax
-
-
-
-
-
-
-
-
Distribution of First Estate
Settlement expenses
257,524
To family trust
272,057
280,445
289,506
299,295
339,439
414,925
369,263
Insurance passing to Theresa
369,263
369,263
369,263
369,263
369,263
369,263
369,263
5,109,400
Joint, personal and IRA to Theresa
5,118,687
5,139,805
5,153,067
5,156,647
5,150,827
4,782,671
3,560,645
2,064,053
$
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
2,064,053
38,704,557
Outright or in trust to Theresa
Total
264,289
40,041,429
41,566,195
43,222,253
45,021,638
46,975,631
55,332,410
71,576,199
46,504,797
$
47,857,720
$
49,411,373
$
51,089,081
$
52,901,107
$
54,859,069
$
62,887,836
$
77,985,085
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of First Estate" include estate and income taxes, if any.
Page 45

47. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Tax Calculation on Theresa's death
Theresa's assets
33,852,859
34,883,452
36,066,951
37,344,950
38,725,265
40,216,748
46,332,684
Plus assets from Jeff's estate
45,878,010
47,224,168
48,770,053
50,439,373
52,242,338
54,190,510
62,179,134
77,200,897
Theresa's estimated estate
79,730,869
82,107,620
84,837,004
87,784,323
90,967,603
94,407,259
108,511,819
135,033,952
Settlement expenses
57,833,055
(822,309)
Plus Theresa's lifetime taxable gifts
(902,843)
(934,676)
(969,073)
(1,110,118)
(10,540,000)
(10,540,000)
(10,540,000)
(10,540,000)
(10,540,000)
(10,540,000)
(10,540,000)
68,368,560
Taxable estate
(873,370)
(10,540,000)
Existing Charitable Bequest
(846,076)
(1,375,340)
70,721,544
73,423,634
76,341,479
79,492,927
82,898,186
96,861,700
123,118,612
4,964,582
4,964,582
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
Tax base
73,333,142
75,686,126
74,423,634
77,341,479
80,492,927
83,898,186
97,861,700
124,118,612
Federal Estate Tax
27,197,257
28,138,450
27,633,454
28,800,592
30,061,171
31,423,274
37,008,680
47,511,445
Distribution of Second Estate
Settlement expenses
822,309
846,076
873,370
902,843
934,676
969,073
1,110,118
1,375,340
27,197,257
Taxes
28,138,450
27,633,454
28,800,592
30,061,171
31,423,274
37,008,680
47,511,445
Qualified plan to heirs
4,634,400
4,643,737
4,664,970
4,678,304
4,681,904
4,676,051
4,305,899
3,077,245
Other gifts to charity
10,540,000
10,540,000
10,540,000
10,540,000
10,540,000
10,540,000
10,540,000
10,540,000
Residual estate to heirs
Total
36,536,903
$
79,730,869
37,939,356
$
82,107,620
41,125,210
$
84,837,004
42,862,584
$
87,784,323
44,749,853
$
90,967,603
46,798,860
$
55,547,122
72,529,922
94,407,259
$ 108,511,819
$ 135,033,952
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of Second Estate" include estate and income taxes, if any.
Page 46

48. SUMMARY OF BENEFITS TO FAMILY - PROPOSED PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Benefits to Family
Residual estate
36,536,903
37,939,356
41,125,210
42,862,584
44,749,853
46,798,860
55,547,122
369,263
369,263
369,263
369,263
369,263
369,263
369,263
369,263
Excess FLP value
7,524,540
7,650,468
7,815,389
7,998,512
8,201,176
8,424,814
10,646,221
14,562,718
Qualified plan assets
4,634,400
4,643,737
4,664,970
4,678,304
4,681,904
4,676,051
4,305,899
3,077,245
Family trust
Value of GDOT
Life insurance proceeds GDOT
Existing QPRT - 2nd Residence 1
Proceeds from ILIT
Total assets to heirs
1
72,529,922
6,500,000
7,241,230
8,170,417
9,183,190
10,285,336
11,483,043
23,159,179
46,119,953
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
2,532,221
2,966,901
-
-
-
-
-
-
3,005,028
3,005,028
3,005,028
3,005,028
3,005,028
3,005,028
3,005,028
3,005,028
$ 108,570,134
$ 110,849,083
$ 115,150,278
$ 118,096,881
$ 121,292,559
$ 124,757,060
$ 149,564,932
$ 192,631,030
Assumes the 2nd residence was put in a 15 yr. QPRT in 2006. Beginning in 2022, the residence is outside of Jeff & Theresa's estate.
Page 47

49. FAMILY LIMITED PARTNERSHIP DETAILS - PROPOSED PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Balance Sheet
LP Assets
Investment Assets
34,282,700
35,272,339
36,456,947
37,732,562
39,105,879
40,584,072
53,131,107
Other Investments
3,340,000
2,980,000
2,620,000
2,260,000
1,900,000
1,540,000
100,000
100,000
37,622,700
38,252,339
39,076,947
39,992,562
41,005,879
42,124,072
53,231,107
72,813,589
Total
Assets in FLP
Discounted value of FLP interests
$
37,622,700
$
38,252,339
$
39,076,947
$
39,992,562
$
41,005,879
$
42,124,072
$
53,231,107
72,713,589
$
72,813,589
30,098,160
30,601,871
31,261,557
31,994,049
32,804,703
33,699,258
42,584,886
58,250,871
7,524,540
7,650,468
7,815,389
7,998,512
8,201,176
8,424,814
10,646,221
14,562,718
Difference between FLP asset value
and discounted LP value
Page 48

50. FAMILY LIMITED PARTNERSHIP DETAILS - PROPOSED PLAN
(Continued)
Partnership Cash Flow
Current
2014
2015
2016
2017
2018
2025
2033
Income
Investment Assets
1,028,481
1,058,170
1,093,708
1,131,977
1,173,176
Corp Buyout Note Payments 1
360,000
360,000
360,000
360,000
360,000
Other Investments
120,000
120,000
120,000
120,000
120,000
120,000
120,000
1,508,481
1,538,170
1,573,708
1,611,977
1,653,176
1,652,799
2,217,507
1,508,481
1,538,170
1,573,708
1,611,977
1,653,176
1,652,799
2,217,507
263,101
226,286
182,663
135,986
86,041
5,923
Total Income
1,532,799
-
2,097,507
-
Expenses
Net Income to Distribute
LP Capital Distributed*
-
* Note: Capital distributions, if any, are subtracted from the investment assets row on the prior page.
Taxable Income
Dividend income (Investment assets)
Other Investments
Taxable Income
Current
2014
1,028,481
2015
1,058,170
2016
1,093,708
2017
1,131,977
2018
1,173,176
2025
1,532,799
2033
2,097,507
480,000
480,000
480,000
480,000
480,000
120,000
120,000
1,508,481
1,538,170
1,573,708
1,611,977
1,653,176
1,652,799
2,217,507
Page 49

51. GRANTOR DEEMED OWNER TRUST DETAILS - PROPOSED PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
GDOT Balance Sheet
LP Units
30,098,160
30,601,871
31,261,557
31,994,049
32,804,703
33,699,258
42,584,886
58,250,871
Seed Gift
6,500,000
6,737,519
7,007,020
7,287,301
7,578,793
7,881,945
10,372,102
14,194,937
Reinvested excess cash flow
-
Note payable to Jeff and Theresa
Net equity
-
(30,098,160)
$
6,500,000
-
(30,098,160)
$
7,241,230
-
(30,098,160)
$
8,170,417
-
(30,098,160)
$
9,183,190
-
(30,098,160)
$
10,285,336
300,351
(30,098,160)
$
11,483,043
3,772,305
(30,098,160)
$
23,159,179
(30,098,160)
$
46,119,953
GDOT Income Tax Estimation
Taxable dividends from FLP
1,028,481
Earnings from reinvestment acct./Seed Gift
1,058,170
1,093,708
1,131,977
1,173,176
1,532,799
2,097,507
480,000
Other Investments
480,000
480,000
480,000
480,000
120,000
120,000
195,000
202,126
210,211
218,619
227,364
307,859
496,719
1,703,481
Total earnings
1,740,296
1,783,919
1,830,596
1,880,540
1,960,658
2,714,227
GDOT Cash Flow
Capital Distribution from LP
263,101
Installment Note payments to Jeff and Theresa
182,663
135,986
86,041
5,923
1,538,170
1,573,708
1,611,977
1,653,176
1,652,799
2,217,507
195,000
Cash flow from reinvestment acct./Seed Gift
226,286
1,508,481
Cash flow from LP units
-
202,126
210,211
218,619
227,364
307,859
496,719
(791,582)
Cash flow to reinvest
(791,582)
(791,582)
(791,582)
(791,582)
(791,582)
(791,582)
(1,175,000)
Insurance Premium
(1,175,000)
(1,175,000)
(1,175,000)
(1,175,000)
(1,175,000)
(1,175,000)
-
-
-
-
-
-
747,645
Note: Capital distributions, if any, are subtracted from the marketable securities row on the FLP balance sheet.
GDOT Insurance
Net death benefit
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
50,000,000
1,175,000
Premium
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
1,175,000
30,098,160
30,098,160
30,098,160
30,098,160
30,098,160
30,098,160
30,098,160
791,582
791,582
791,582
791,582
791,582
791,582
791,582
GDOT Note
Outstanding note balance
Interest payment
30,098,160
Page 50

52. IRREVOCABLE LIFE INSURANCE TRUST DETAILS - PROPOSED PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Cash gift to current ILIT
48,850
48,850
48,850
48,850
48,850
48,850
48,850
48,850
Total outlay to ILITs
48,850
48,850
48,850
48,850
48,850
48,850
48,850
48,850
3,005,028
3,005,028
3,005,028
3,005,028
3,005,028
3,005,028
3,005,028
3,005,028
Death benefit from current ILIT
Total potential death benefit
$
3,005,028
$
3,005,028
$
3,005,028
$
3,005,028
$
3,005,028
$
3,005,028
$
3,005,028
$
3,005,028
Page 51

53. ANDERSON FAMILY FOUNDATION DETAILS - EXISTING PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Anderson Family Foundation
Beginning of Year Foundation Value
5,000,000
Amount passing to charity (EOY)
5,000,000
5,137,087
5,301,500
5,470,845
5,645,270
5,824,928
7,242,851
10,000
Annual Contributions
10,000
10,000
10,000
10,000
10,000
9,266,617
10,000
5,147,087
5,311,500
5,480,845
5,655,270
5,834,928
7,252,851
9,276,617
Page 52

54. BENEFITS TO ANDERSON FAMILY CHARITY - PROPOSED PLAN
YEAR
Current
Anderson Family Foundation - Existing
Existing Charitable Bequest**
Total benefits to family charity
2014
5,000,000
10,540,000
$
15,540,000
2015
5,147,087
10,540,000
$
15,687,087
2016
5,311,500
10,540,000
$
15,851,500
2017
5,480,845
10,540,000
$
16,020,845
2018
5,655,270
10,540,000
$
16,195,270
2025
5,834,928
10,540,000
$
16,374,928
2033
7,252,851
9,276,617
10,540,000
$
17,792,851
10,540,000
$
19,816,617
** The Charitable Bequest includes $540,000 in bequests to various charitable organizations and $10,000,000 to the Anderson Family Foundation.
Page 53

55. DETAILS OF JEFF'S QUALIFIED PLAN - PROPOSED PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Jeff's Qualified Plans
Jeff's age
75
76
77
78
79
86
Theresa's age
72
73
74
75
76
83
91
22.9
22.0
21.2
20.3
19.5
14.1
9.1
Minimum distribution factor
94
Securities in plans
4,609,400
4,618,572
4,639,566
4,652,696
4,656,134
4,650,165
4,280,702
3,057,094
Plan balance during life
4,609,400
4,618,572
4,639,566
4,652,696
4,656,134
4,650,165
4,280,702
3,057,094
Plan balance at death of survivor
4,609,400
4,618,572
4,639,566
4,652,696
4,656,134
4,650,165
4,280,702
3,057,094
Minimum distribution
201,284
209,935
218,847
229,197
238,776
310,083
357,346
Actual distribution
201,284
209,935
218,847
229,197
238,776
310,083
357,346
Page 54

56. DETAILS OF THERESA'S QUALIFIED PLAN - PROPOSED PLAN
YEAR
Current
2014
2015
2016
2017
2018
2025
2033
Theresa's Qualified Plans
Theresa's age
72
73
74
75
76
83
Jeff's age
75
76
77
78
79
86
94
25.6
24.7
23.8
22.9
22.0
16.3
10.8
25,000
25,165
25,404
25,607
25,769
25,886
25,196
20,151
-
-
-
-
-
-
-
Plan balance during life
25,000
25,165
25,404
25,607
25,769
25,886
25,196
20,151
Plan balance at death of survivor
25,000
25,165
25,404
25,607
25,769
25,886
25,196
20,151
977
1,019
1,067
1,118
1,171
1,564
1,949
Minimum distribution factor
Securities in plans
Plan contributions
Minimum distribution
Preferred distribution
Actual distribution
977
91
-
-
-
-
-
-
1,019
1,067
1,118
1,171
1,564
1,949
Page 55

57. FAMILY INFORMATION
JEFF AND THERESA ANDERSON
CLIENTS
Jeff Anderson
Theresa Anderson
123 Main St.
Date of Birth
Date of Birth
March 8, 1939
February 5, 1942
CHILDREN
CHILD'S NAME
George Anderson
Alyssa Anderson
Jack Anderson
GRANDCHILDREN
NAME
William Anderson
Jackie Anderson
Jeffrey Anderson
Ashley Anderson
Gloria Anderson
Page 56

58. PLAN ASSUMPTIONS
JEFF AND THERESA ANDERSON
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
State Inheritance - Estate Tax
No state income 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
Current rate
Lowest rate
1.5%
1.4%
1.4%
December, 2013
January, 2014
January, 2014
Long Term AFR Rate
2.6%
January, 2014
Lifestyle Need Assumptions
Net annual outlay for Jeff and Theresa's lifestyle needs, not including gifts or income taxes
Annual cost of living increase used in the plan
Settlement and Administrative Expenses
Fixed estate settlement costs
Variable estate settlement costs, 1st death
Variable estate settlement costs, 2nd death
$725,000
2%
$25,000
0.50% (of assets)
1.00% (of assets)
Page 57

59. DISCLAIMER AND DISCLOSURE
JEFF AND THERESA ANDERSON
InKnowVision, LLC does not give accounting or investment 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 accounting and investment implications of the 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 58