Tom is 83 and Jane is 76. They have two children who are both well employed and live productive and happy lives. Tom was an attorney who headed a large patent firm in Washington DC. Jane served as an expert in international trade for much of her professional life. During the latter part of his career, Tom agreed to do work for a start up company that became very successful. Today, Tom’s share of the company is valued at $3.2M but generates $1.4M-$1.5M per year in taxable distributions. Several years ago, the company spun out one of its divisions and took the new company public. It has seen massive growth; almost no dividends have been distributed, and the company has a value to Tom today of approximately $6.4M. Tom and Jane also have approximately $5.2M in cash, $3.2M in retirement funds, and real estate of $4M for a total net worth of about $22M. The primary planning goals are to: Make sure that they have sufficient funds to live on for the rest of their lives Maximize what they leave to their children and grandchildren Increase the amount of charitable giving that they are currently doing Equalize the financial positions of their son and daughter Make a substantial provision for charity in place of estate tax if possible

1. InKnowVision’s Monthly
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©2012. InKnowVision LLC. All rights reserved. www.inknowvision.com

2. FAMILY WEALTH GOAL ACHIEVER™ - INITIAL
PREPARED FOR:
THOMAS AND JANE BASIC
July 1, 2012
DRAFT FOR DISCUSSION PURPOSES ONLY
PRESENTED BY
Scott Hamilton
InKnowVision, LLC
715 Enterprise Dr.
Oak Brook, IL 60523
scott@ikvllc.com
Phone: (630) 596-5090
Copyright 2012 InKnowVision, LLC

3. YOUR GOALS AND OBJECTIVES
THOMAS AND JANE BASIC
Maintain our customary lifestyle. This should take about $375,000 annually after taxes and gifts.
Provide for the financial security of the surviving spouse.
Prepare for any potential long term care needs.
Maintain adequate liquidity for emergencies and investment opportunities. We prefer to keep at least
$1,000,000 in cash and readily marketable securities.
Provide an immediate financial benefit to Tim & Jeanne.
Maximize the inheritance we leave to Tim & Jeanne, while creating equal inheritances to the greatest extent
possible.
Provide for charitable giving during life and at death.
Protect our assets from any future potential creditors or predators.
Eliminate or reduce estate taxes.
Page 2

4. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
THOMAS AND JANE BASIC
The highlighted tools are those we have determined are most suited to achieving your goals and objectives.
Charitable
Family Limited Grantor Retained Charitable Lead
Remainder Uni- 412(e) Private Annuity SCIN
Partnership Annuity Trust Annuity Trust
Trust
Qualified Personal Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Flip CRT
Residence Trust Note Liability Company Insurance
Beneficiary
Preferred Limited Vacation Corporate
Premium Finance Defective Inheritor's 529 Plans Gifting
partnership Maintenance Trust Recapitalization
Trust (BDIT)
Annual
Long Term Care Annuity
Walton GRAT Distributions from Charitable Life Estate Asset Protection SPIA/Life Arbitrage
Insurance Withdrawal
IRA to DAF
Revocable Living
Principal Protected International
SPIA/Life in a CLAT Trusts, DPAs and Crummey Powers Dynasty Trust GDOT
Notes VUL
POAs
International
Supporting
IRA to Charity Gift Annuity Remainder Sales Life Estates Business Risk LLC/CRTs
Organizations
Management
Charitable
Succession Defined Benefit Qualified Plan
Bargain Sales Buy/Sell Agreements 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 3

5. THOMAS AND JANE BASIC
LIFETIME SPENDING
AND LIQUIDITY
Page 4

6. YOUR LIQUID ASSETS - PROPOSED PLAN
THOMAS AND JANE BASIC
$14,000,000
$12,000,000
$10,000,000
$8,000,000
-
$6,000,000
$4,000,000
$2,000,000
$-
12
13
14
15
16
17
18
19
20
21
22
23
20
20
20
20
20
20
20
20
20
20
20
20
Liquid Assets Proposed
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
assumes full implementation of the proposed plan and shows your liquid assets over your life expectancy. Liquid assets include cash, stocks, bonds,
annuities, qualified retirement accounts and the Investment 1 interests due to the buy out agreement in place for the interests.
Page 5

7. THOMAS AND JANE BASIC
INCREASE INHERITANCE
AND REDUCE ESTATE TAX
Page 6

8. COMPARISON OF PLAN RESULTS - PLAN YEAR 2012
THOMAS AND JANE BASIC
Existing Plan Proposed Plan Advantage
Estate Value $ 22,913,501 $ 22,448,884
Heirs Receive Immediately $ 18,408,313 $ 8,145,463 $ (10,262,850)
Heirs Receive from Deferred Inheritance $ - $ 11,661,957 $ 11,661,957
Total Benefits to Family $ 18,408,313 $ 19,807,421 $ 1,399,108
Family Charity $ - $ 16,665,706 $ 16,665,706
Estate and Income Tax $ 4,474,784 $ - $ 4,474,784
This chart assumes that you both die in 2012 and compares the results of the current plan with the proposed plan.
Page 7

9. COMPARISON OF PLAN RESULTS - PLAN YEAR 2023
THOMAS AND JANE BASIC
Existing Plan Proposed Plan Advantage
Estate Value $ 34,122,345 $ 15,801,875
Heirs Receive Immediately $ 16,743,315 $ 19,964,716 $ 3,221,401
Heirs Receive from Deferred Inheritance $ - $ 11,974,124 $ 11,974,124
Total Benefits to Family $ 16,743,315 $ 31,938,840 $ 15,195,525
Family Charity $ - $ 17,792,324 $ 17,792,324
Estate and Income Tax $ 17,827,407 $ - $ 17,827,407
Present Value of total to Heirs $12,095,727 $23,073,297
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 8

10. ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED
THOMAS AND JANE BASIC
$35,000,000
$30,000,000
$25,000,000
-
$20,000,000
$15,000,000
$10,000,000
nt
12
13
14
15
16
17
18
19
20
21
22
23
re
20
20
20
20
20
20
20
20
20
20
20
20
ur
C
Current Plan Proposed Plan Proposed Plan w/out Life Ins
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. THOMAS AND JANE BASIC
INCREASE IN
CHARITABLE GIVING
Page 10

12. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2023
THOMAS AND JANE BASIC
Existing Plan Proposed Plan Increase in Charity
Charity Receives from TCLAT $ - $ 13,800,000 $ 13,800,000
Charitable gift of IRA assets $ - $ 1,400,000 $ 1,400,000
Cumulative annual gifts to charity/DAF $ - $ 2,600,000 $ 2,600,000
Total to Family Charity $ - $ 17,800,000 $ 17,800,000
Page 11

13. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
THOMAS AND JANE BASIC
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 12

14. GRANTOR RETAINED ANNUITY TRUST
THOMAS AND JANE BASIC
Thomas transfers all of his interests in Investment 2 & 90% of his interests in Investment 1 to his GRAT with a term of 7 years.
Transfer interests worth
THOMAS $9,280,000 GRAT
Thomas receives quarterly payments for 7 The GRAT owns interests in Investment 1 and
years Provides quarterly payments 2 worth $9,280,000 after the transfer
of $360,037 totaling
$1,440,149/yr for 7 years.
Payments consist of cash and
interests in Investment 1
The transfer value is based on the assumed value of the
assets transferred.
HEIRS
Receive balance of GRAT at the end of the 7
year term
Page 13

15. VACATION HOUSE MAINTENANCE TRUST
THOMAS AND JANE BASIC
Gift $77,653 each year to your VACATION HOUSE
JANE Trust MAINTENANCE TRUST
Owns life insurance with a death benefit of
$2,000,000
HEIRS
Premium Payment Details
Premiums in the amount of $77,653 are paid annually by
the Trust. Premiums are scheduled to be paid for all years. $2,000,000 in assets are distributed according
to the terms of the Trust.
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 14

16. INTERNAL RATE OF RETURN ON LIFE INSURANCE
THOMAS AND JANE BASIC
JANE'S AGE YEAR PREMIUM DEATH BENEFIT IRR
78 2012 77,653 2,000,000 2475.56%
79 2013 77,653 2,000,000 359.96%
80 2014 77,653 2,000,000 155.47%
81 2015 77,653 2,000,000 90.82%
82 2016 77,653 2,000,000 60.75%
83 2017 77,653 2,000,000 43.81%
84 2018 77,653 2,000,000 33.12%
85 2019 77,653 2,000,000 25.84%
86 2020 77,653 2,000,000 20.61%
87 2021 77,653 2,000,000 16.70%
88 2022 77,653 2,000,000 13.69%
89 2023 77,653 2,000,000 11.31%
90 2024 77,653 2,000,000 9.39%
91 2025 77,653 2,000,000 7.81%
92 2026 77,653 2,000,000 6.50%
93 2027 77,653 2,000,000 5.40%
94 2028 77,653 2,000,000 4.46%
95 2029 77,653 2,000,000 3.65%
Page 15

17. CREATE AND FUND A QUALIFIED PERSONAL RESIDENCE TRUST
THOMAS AND JANE BASIC
Thomas and Jane each create a qualified personal residence trust (QPRT) with a term of 2 years. Then each
transfer fractional interests in the homes listed below to the trusts.
THOMAS Deed THOMAS's QPRT
JANE JANE's QPRT
Deed
Thomas gifts a 1/2 undivided interest in property Jane gifts a 1/2 undivided interest in property
Vacation House 825,000 Vacation House 825,000
Sub Total 825,000 Sub Total 825,000
Note: If you die before the QPRT term ends, the property is back in your estate.
Page 16

18. QPRT APPRAISAL - GIFT OF REAL ESTATE
THOMAS AND JANE BASIC
Thomas and Jane hire an appraiser to value the real estate and the appropriate adjustment for the fractional
interest gift to the QPRT. This fractional interest adjustment will take into consideration:
▪ Lack of liquidity
▪ Limited transferability
THOMAS Appraisal of Gift THOMAS's QPRT
The value of Thomas's QPRT gift is
expected to be $571,718
JANE Appraisal of Gift JANE's QPRT
The value of Jane's QPRT gift is
expected to be $635,164
QPRT ASSUMPTIONS
Term (years) 2
7520 Rate 2.34%
Thomas's age 85
Jane's age 78
Page 17

19. AFTER THE QPRT TERM ENDS (I)
THOMAS AND JANE BASIC
Additional estate and gift tax advantages that can be obtained with QPRTs after the term of the QPRT expires
include:
▪ Increases in the value of the real estate are out of your estate
▪ Fair market rent can be paid to the trust to pass additional assets to your heirs without gift, estate or income tax.
▪ The QPRTs should be structured as grantor trusts to neutralize income taxes and kept in place as grantor
trusts after the QPRT term.
THOMAS Rental of the Property THOMAS's QPRT
JANE Rental of the Property JANE's QPRT
We have assumed a total fair market rent of $165,000 after the QPRT term.
Page 18

20. AFTER THE QPRT TERM ENDS (II)
THOMAS AND JANE BASIC
At death, the real estate and any accumulated rental income, passes to your heirs without estate tax. The
trusts can be structured for distributions according to your particular goals and objectives.
THOMAS's QPRT HEIRS
Cumulative rent and the value of the real
estate is assumed to be $2,149,547 as of
2023
JANE's QPRT HEIRS
Cumulative rent and the value of the real
estate is assumed to be $2,149,547 as of
2023
Page 19

21. PREFERRED ANNUAL DISTRIBUTIONS FROM IRA
THOMAS AND JANE BASIC
Thomas & Jane take preferred annual distributions in excess of the required minimum distributions starting at $200,000/yr from
their qualified plans. These distributions are then used to make charitable gifts to a Donor Advised Fund.
IRA THOMAS & JANE
Receives annual preferred distributions each
IRA makes distributions
year
Annual gifts to charity of
$200,000 made with qualified
plan distributions
Making preferred annual distributions allows Tom and Jane to make larger
annual gifts to charity while they're still living. This ultimately reduces the
size of the taxable estate at death also.
FAMILY CHARITY
Premium Payment Details
Donor Advised Fund
Page 20

22. LEAVE YOUR IRA TO CHARITY
THOMAS AND JANE BASIC
At the 2nd death, leave your IRA and qualified plans to charity.
IRA $3,224,902
FAMILY CHARITY
Advantages
No estate tax
No income in respect of a decedent tax
Most efficient asset to satisfy charitable intent
Page 21

23. TESTAM TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part I) - 2012
THOMAS AND JANE BASIC
Include language in your trust or Will that creates a testamentary charitable lead trust (TCLAT) at the second death. Funding of the
TCLAT can be all or partly at the option of each of your children, thus providing maximum flexibility.
THOMAS & JANE TCLAT
At death $13,392,374 of the assets taxable
TCLAT owns assets with a value of
in your estate will pass to the TCLAT. This
$13,392,374 after your death.
should bring your estate tax to $0.
BASIC FAMILY CHARITY
TCLAT Assumptions The charity will receive payments of $805,658
Asset growth rate 8.00% each year for a period of 20 years totaling
TCLAT payout rate 6.02% $16,113,162.
Present value discount rate 4.00%
Assumed date of death 2012
Page 22

24. TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part II) - 2012
THOMAS AND JANE BASIC
At the end of the TCLAT term, your heirs will receive all of the remaining trust assets.
TCLAT HEIRS
Based on the plan assumptions, your heirs
could expect to inherit $11,661,957 from the
At the end of the 20 year term, the TCLAT
TCLAT. The amount passing to heirs is a
assets will be distributed to your heirs.
present value number using a discount rate of
4%.
Page 23

25. DETAILED FINANCIAL ANALYSIS
THOMAS AND JANE BASIC
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 24

26. DETAILED FINANCIAL ANALYSIS
THOMAS AND JANE BASIC
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 25

27. CURRENT NET WORTH STATEMENT
THOMAS AND JANE BASIC
THOMAS JANE JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Bank - 7,266 - 7,266 0.0% 0.0%
Bank - 56,133 - 56,133 0.0% 0.0%
Bank - - 2,080 2,080 0.0% 0.0%
Bank - 44,080 - 44,080 0.5% 0.0%
Bank - - 23,187 23,187 0.0% 0.0%
Bank - - 9,567 9,567 0.5% 0.0%
Bank - - 305,415 305,415 0.0% 0.0%
Bank - - 11,464 11,464 0.0% 0.0%
Bank 2,300,000 - - 2,300,000 0.5% 0.0%
Bank - 2,500,000 - 2,500,000 0.5% 0.0%
Total of Cash and Equivalents 2,300,000 2,607,479 351,713 5,259,192 0.5% 0.0%
OTHER INVESTMENTS
Investment 1 6,400,000 - - 6,400,000 0.6% 3.0%
Investment 2 3,200,000 - - 3,200,000 46.9% 3.0%
Total of Other Investments 9,600,000 - - 9,600,000 16.0% 3.0%
RETIREMENT PLANS/IRAs -
Bank 3,100,000 - 3,100,000 0.0% 4.0%
Bank - 48,577 48,577 0.0% 4.0%
Bank - 76,325 76,325 0.0% 4.0%
Total Retirement Plans 3,100,000 124,902 3,224,902 0.0% 4.0%
Page 26

28. CURRENT NET WORTH STATEMENT (Page 2)
THOMAS AND JANE BASIC
THOMAS JANE JOINT TOTAL YIELD GROWTH
INVESTMENT REAL ESTATE
Property - - 100,000 100,000 0.0% 2.0%
Property 125,000 - - 125,000 0.0% 2.0%
Total of Real Estate Holdings 125,000 - 100,000 225,000 0.0% 2.0%
RESIDENTIAL REAL ESTATE
Primary House - 2,100,000 - 2,100,000 0.0% 3.0%
Summer House - 1,650,000 - 1,650,000 0.0% 3.0%
Total of Personal Residences - 3,750,000 - 3,750,000 0.0% 3.0%
PERSONAL PROPERTY
Jewelry ** - 25,000 - 25,000 0.0% 0.0%
Antiques ** 100,000 100,000 - 200,000 0.0% 0.0%
Autos - - 24,000 24,000 0.0% 0.0%
Total of Personal Property 100,000 125,000 24,000 249,000 0.0% 0.0%
** Estimates subject to appraisals
TOTAL ASSETS 15,225,000 6,607,381 475,713 22,308,094
TOTAL LIABILITIES - - - -
NET WORTH 15,225,000 6,607,381 475,713 22,308,094
Page 27

29. FINANCIAL ANALYSIS - EXISTING PLAN ASSET VALUE PROJECTIONS - EXISTING PLAN
1,600,000 1,648,000 1,697,440 1,748,363 1,800,814 1,854,839 1,910,484
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Asset Values
Cash and cash equivalents 5,259,192 5,502,605 5,658,271 6,333,706 7,030,760 7,749,890 8,468,726 9,205,517 13,153,593
Other investments 9,600,000 9,743,330 10,035,630 10,336,699 10,646,800 10,966,204 11,295,190 11,634,046 13,487,048
529 Plans for Grandchildren - 312,000 234,000 156,000 78,000 - - - -
Retirement plans/IRAs 3,224,902 3,073,332 2,980,679 2,880,003 2,771,136 2,653,946 2,530,313 2,400,376 1,681,775
Investment real estate 225,000 227,245 231,790 236,426 241,154 245,977 250,897 255,915 282,551
Personal residences 3,750,000 3,805,988 3,920,168 4,037,773 4,158,906 4,283,674 4,412,184 4,544,549 5,268,378
Personal property 249,000 249,000 249,000 249,000 249,000 249,000 249,000 249,000 249,000
Total assets in estate 22,308,094 22,913,501 23,309,539 24,229,607 25,175,757 26,148,691 27,206,310 28,289,403 34,122,345
Combined net worth $ 22,308,094 $ 22,913,501 $ 23,309,539 $ 24,229,607 $ 25,175,757 $ 26,148,691 $ 27,206,310 $ 28,289,403 $ 34,122,345
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.
Page 28

30. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
$20,000
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Sources of taxable income
Cash and cash equivalents 24,268 25,391 26,110 29,227 32,443 35,761 39,078 56,896
Other investments 1,535,558 1,558,484 1,605,239 1,653,396 1,702,998 1,754,088 1,806,710 2,094,473
Retirement plans/IRAs 215,612 215,586 219,904 224,067 228,036 229,790 231,150 222,191
Social security income 28,861 29,438 30,027 30,627 31,240 31,865 32,502 35,885
Consulting (Schedule C) 30,000 30,000 30,000 30,000 30,000 - - -
Gross income $ 1,834,299 $ 1,858,900 $ 1,911,279 $ 1,967,317 $ 2,024,717 $ 2,051,504 $ 2,109,441 $ 2,409,444
Page 29

31. INCOME TAX PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Income tax Estimation
Adjusted gross income:
Earned and other income 1,834,299 1,858,900 1,911,279 1,967,317 2,024,717 2,051,504 2,109,441 2,409,444
Adjusted gross income 1,834,299 1,858,900 1,911,279 1,967,317 2,024,717 2,051,504 2,109,441 2,409,444
Deductions
Real estate tax 16,756 16,756 17,259 17,776 18,310 18,859 19,425 20,008 23,194
1
Charitable gifts - DAF set-up gift 15,000 178,000 15,450 15,914 16,391 16,883 17,389 17,911 20,764
Charitable Deduction available 178,000 15,450 15,914 16,391 16,883 17,389 17,911 20,764
Charitable Deduction allowed 178,000 15,450 15,914 16,391 16,883 17,389 17,911 20,764
Total deductions 194,756 32,709 33,690 34,701 35,742 36,814 37,918 43,958
Reductions - (26,167) (26,952) (27,761) (28,593) (29,451) (30,335) (35,166)
Deductions allowed 194,756 6,542 6,738 6,940 7,148 7,363 7,584 8,792
Taxable income 1,639,543 1,852,358 1,904,541 1,960,377 2,017,568 2,044,141 2,101,857 2,400,653
Federal income tax $ 542,980 $ 696,728 $ 717,393 $ 739,504 $ 762,151 $ 772,674 $ 795,530 $ 913,853
1
Gift of $78,000 to newly created DAF in 2012 & other charitable gifts of $100,000 for 2012.
Page 30

32. CASH FLOW PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Sources of income for Lifestyle
Non-taxable Social Security Income 5,093 5,195 5,299 5,405 5,513 5,623 5,736 6,333
Consumable income (taxable) 1,834,299 1,858,900 1,911,279 1,967,317 2,024,717 2,051,504 2,109,441 2,409,444
Total income available for lifestyle 1,839,393 1,864,095 1,916,578 1,972,722 2,030,230 2,057,127 2,115,176 2,415,777
Uses of Cash
Living expenses 375,000 386,250 397,838 409,773 422,066 434,728 447,770 519,088
Income tax 542,980 696,728 717,393 739,504 762,151 772,674 795,530 913,853
529 Plan Contributions to Grandchildren 390,000 - - - - - - -
Gift to Tim's Gift Trust - 250,000 - - - - - -
Gift to Jeanne's Gift Trust - 250,000 - - - - - -
1
Long Term Care Insurance & Care 70,000 70,000 70,000 70,000 70,000 73,500 77,175 98,497
Cash gifts to family 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000
Cash gifts to charity 178,000 15,450 15,914 16,391 16,883 17,389 17,911 20,764
Total uses of cash 1,595,980 1,708,428 1,241,144 1,275,667 1,311,100 1,338,291 1,378,385 1,592,201
Surplus $ 243,413 $ 155,667 $ 675,434 $ 697,055 $ 719,130 $ 718,836 $ 736,791 $ 823,576
1
LTC premiums of $20k/yr start for Jane in year one. Annual premiums inflate at 5% after the 5 year premium lock. Also includes and additional $50k/yr in long term care expenses.
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 the cash
row on the "Asset Value Projections" 3 pages earlier.
Page 31

33. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Tax calculation on Thomas's death
Combined net worth 22,308,094 22,913,501 23,309,539 24,229,607 25,175,757 26,148,691 27,206,310 28,289,403 34,122,345
Thomas's estimated estate 15,462,857 15,882,494 16,157,008 16,794,753 17,450,577 18,124,966 18,858,055 19,608,801 23,651,905
Total gross estate 15,462,857 15,882,494 16,157,008 16,794,753 17,450,577 18,124,966 18,858,055 19,608,801 23,651,905
Settlement expenses (102,314) (104,412) (105,785) (108,974) (112,253) (115,625) (119,290) (123,044) (143,260)
Joint, personal and IRA to Jane (3,437,857) (3,298,612) (3,213,771) (3,126,804) (3,032,241) (2,929,963) (2,822,396) (2,709,040) (2,080,463)
Outright or in trust to Jane (7,012,686) (7,569,470) (12,047,453) (12,768,976) (13,516,083) (14,289,378) (15,126,369) (15,986,718) (20,638,182)
Taxable estate 4,910,000 4,910,000 790,000 790,000 790,000 790,000 790,000 790,000 790,000
Plus Thomas's lifetime taxable gifts 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000
Tax base 5,120,000 5,120,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Federal Estate Tax - - - - - - - - -
Distribution of Thomas's estate
Settlement expenses 102,314 104,412 105,785 108,974 112,253 115,625 119,290 123,044 143,260
To family trust 4,910,000 4,910,000 790,000 790,000 790,000 790,000 790,000 790,000 790,000
Joint, personal and IRA to Jane 3,437,857 3,298,612 3,213,771 3,126,804 3,032,241 2,929,963 2,822,396 2,709,040 2,080,463
Outright or in trust to Jane 7,012,686 7,569,470 12,047,453 12,768,976 13,516,083 14,289,378 15,126,369 15,986,718 20,638,182
Total $ 15,462,857 $ 15,882,494 $ 16,157,008 $ 16,794,753 $ 17,450,577 $ 18,124,966 $ 18,858,055 $ 19,608,801 $ 23,651,905
Assumptions
We assume that Thomas dies first, followed immediately by Jane.
Taxes under "Distribution of First Estate" include estate and income taxes.
Page 32

34. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Tax Calculation on Jane's death
Jane's assets 6,845,238 7,031,007 7,152,531 7,434,854 7,725,180 8,023,724 8,348,255 8,680,602 10,470,440
Plus assets from Thomas's estate 10,450,542 10,868,082 15,261,223 15,895,779 16,548,324 17,219,342 17,948,765 18,695,757 22,718,645
Jane's estimated estate 17,295,780 17,899,088 22,413,754 23,330,633 24,273,504 25,243,066 26,297,020 27,376,359 33,189,085
Settlement expenses (197,958) (203,991) (249,138) (258,306) (267,735) (277,431) (287,970) (298,764) (356,891)
Jane's taxable estate 17,097,822 17,695,097 22,164,617 23,072,327 24,005,769 24,965,635 26,009,050 27,077,596 32,832,194
Plus Jane's lifetime taxable gifts 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000
Tax base 17,307,822 17,905,097 22,374,617 23,282,327 24,215,769 25,175,635 26,219,050 27,287,596 33,042,194
Federal Estate Tax 4,265,738 4,474,784 8,947,100 9,301,107 12,972,873 13,500,799 14,074,677 14,662,378 17,827,407
Total Estate Tax Due 4,265,738 4,474,784 8,947,100 9,301,107 12,972,873 13,500,799 14,074,677 14,662,378 17,827,407
Distribution of Jane's estate
Settlement expenses 197,958 203,991 249,138 258,306 267,735 277,431 287,970 298,764 356,891
Taxes 4,265,738 4,474,784 8,947,100 9,301,107 12,972,873 13,500,799 14,074,677 14,662,378 17,827,407
Qualified plan to heirs 3,224,902 3,073,332 2,980,679 2,880,003 2,771,136 2,653,946 2,530,313 2,400,376 1,681,775
Residual estate to heirs 9,607,182 10,146,981 10,236,837 10,891,216 8,261,760 8,810,890 9,404,059 10,014,842 13,323,012
Total $ 17,295,780 $ 17,899,088 $ 22,413,754 $ 23,330,633 $ 24,273,504 $ 25,243,066 $ 26,297,020 $ 27,376,359 $ 33,189,085
Assumptions
We assume that Thomas dies first, followed immediately by Jane.
Taxes under "Distribution of Second Estate" include estate and income taxes.
Page 33

35. SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Benefits to Family
Family trust 4,910,000 4,910,000 790,000 790,000 790,000 790,000 790,000 790,000 790,000
Residual estate 9,607,182 10,146,981 10,236,837 10,891,216 8,261,760 8,810,890 9,404,059 10,014,842 13,323,012
Qualified plan assets 3,224,902 3,073,332 2,980,679 2,880,003 2,771,136 2,653,946 2,530,313 2,400,376 1,681,775
1
529 Plans for Grandchildren 200,000 278,000 369,900 466,395 567,715 674,100 707,806 743,196 948,527
Total assets to heirs $ 17,942,084 $ 18,408,313 $ 14,377,416 $ 15,027,614 $ 12,390,611 $ 12,928,936 $ 13,432,178 $ 13,948,414 $ 16,743,315
1
Assumes growth of 5 % annually on the 529 Plans.
Page 34

36. DETAILS OF THOMAS'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Thomas's Qualified Plans
Thomas's Age 85 86 87 88 89 90 91 96
Jane's Age 78 79 80 81 82 83 84 89
Minimum distribution factor 14.8 14.1 13.4 12.7 12.0 11.4 10.8 8.1
Plan contributions - - - - - - - -
Plan balance 3,100,000 2,952,102 2,860,818 2,761,756 2,654,766 2,539,726 2,418,532 2,291,335 1,590,552
Minimum distribution 209,459 209,369 213,494 217,461 221,230 222,783 223,938 214,245
Preferred distribution - - - - - - - -
Actual distribution 209,459 209,369 213,494 217,461 221,230 222,783 223,938 214,245
Page 35

37. DETAILS OF JANE'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Jane's Qualified Plans
Jane's Age 78 79 80 81 82 83 84 89
Thomas's Age 85 86 87 88 89 90 91 96
Minimum distribution factor 20.3 19.5 18.7 17.9 17.1 16.3 15.5 12.0
Plan contributions - - - - - - - -
Plan balance 124,902 121,230 119,862 118,247 116,371 114,220 111,781 109,041 91,223
Minimum distribution 6,153 6,217 6,410 6,606 6,805 7,007 7,212 7,946
Preferred distribution - - - - - - - -
Actual distribution 6,153 6,217 6,410 6,606 6,805 7,007 7,212 7,946
Page 36

38. DETAILED FINANCIAL ANALYSIS
THOMAS AND JANE BASIC
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
THOMAS AND JANE BASIC
THOMAS JANE JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Bank - 7,266 - 7,266 0.0% 0.0%
Bank - 56,133 - 56,133 0.0% 0.0%
Bank - - 2,080 2,080 0.0% 0.0%
Bank - 44,080 - 44,080 0.5% 0.0%
Bank - - 23,187 23,187 0.0% 0.0%
Bank - - 9,567 9,567 0.5% 0.0%
Bank - - 305,415 305,415 0.0% 0.0%
Bank - - 11,464 11,464 0.0% 0.0%
Bank 2,300,000 - - 2,300,000 0.5% 0.0%
Bank - 2,500,000 - 2,500,000 0.5% 0.0%
Total of Cash and Equivalents 2,300,000 2,607,479 351,713 5,259,192 0.5% 0.0%
OTHER INVESTMENTS
Investment 2 320,000 - - 320,000 46.9% 3.0%
Total of Other Investments 320,000 - - 320,000 46.9% 3.0%
RETIREMENT PLANS/IRAs
Bank 3,100,000 - 3,100,000 0.0% 4.0%
Bank - 48,577 48,577 0.0% 4.0%
Bank - 76,325 76,325 0.0% 4.0%
Total Retirement Plans 3,100,000 124,902 3,224,902 0.0% 4.0%
Page 38

40. REVISED NET WORTH STATEMENT (Page 2)
THOMAS AND JANE BASIC
THOMAS JANE JOINT TOTAL YIELD GROWTH
INVESTMENT REAL ESTATE
Property - - 100,000 100,000 0.0% 2.0%
Property 125,000 - - 125,000 0.0% 2.0%
Total of Real Estate Holdings 125,000 - 100,000 225,000 0.0% 2.0%
RESIDENTIAL REAL ESTATE
Primary House - 2,100,000 - 2,100,000 0.0% 3.0%
Total of Personal Residences - 2,100,000 - 2,100,000 0.0% 3.0%
PERSONAL PROPERTY
Jewelry ** - 25,000 - 25,000 0.0% 0.0%
Antiques ** 100,000 100,000 - 200,000 0.0% 0.0%
Autos - - 24,000 24,000 0.0% 0.0%
Total of Personal Property 100,000 125,000 24,000 249,000 0.0% 0.0%
** Estimates subject to appraisals
OTHER STRATEGY ASSETS
GRAT Property 4,640,000 4,640,000 9,280,000
QPRT Property 742,500 742,500 - 1,485,000
Total of Other Strategy Assets 5,382,500 5,382,500 - 10,765,000 3.88%
TOTAL ASSETS 11,327,500 10,339,881 475,713 22,143,094
TOTAL LIABILITIES - - - -
NET WORTH 11,327,500 10,339,881 475,713 22,143,094
Page 39

41. FINANCIAL ANALYSIS - PROPOSED PLAN ASSET VALUE PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Asset Values
Cash and cash equivalents 5,259,192 5,200,043 5,148,507 5,437,937 5,734,810 5,779,601 4,811,114 4,484,275 6,337,802
Other investments 1 320,000 384,778 456,321 530,011 605,911 944,515 2,412,999 3,925,538 4,550,775
529 Plans for Grandchildren - 312,000 234,000 156,000 78,000 - - - -
Retirement plans/IRAs 3,224,902 3,073,332 2,980,679 2,880,003 2,770,052 2,648,947 2,516,043 2,370,662 1,431,457
Investment real estate 225,000 227,245 231,790 236,426 241,154 245,977 250,897 255,915 282,551
Personal residences 2,100,000 2,131,354 2,195,294 2,261,153 2,328,988 2,398,857 2,470,823 2,544,948 2,950,292
Residences in QPRTs 1,485,000 1,507,171 1,552,387 - - - - - -
Personal property 249,000 249,000 249,000 249,000 249,000 249,000 249,000 249,000 249,000
Assets in GRAT 9,363,962 9,363,962 9,582,878 9,821,625 10,081,377 10,363,456 10,552,392 10,185,359 -
Total assets in estate 22,227,056 22,448,884 22,630,856 21,572,154 22,089,291 22,630,353 23,263,267 24,015,696 15,801,875
Combined net worth $ 22,227,056 $ 22,448,884 $ 22,630,856 $ 21,572,154 $ 22,089,291 $ 22,630,353 $ 23,263,267 $ 24,015,696 $ 15,801,875
1
Increases over 7 years with the GRAT distribution consisting of interests in Investment 1
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.
Page 40

42. TAXABLE INCOME PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Sources of Taxable Income
Cash and cash equivalents 24,268 23,995 23,757 25,093 26,463 26,670 22,201 27,350
Marketable Securities-GRAT - 108 71 299 810 6,835 33,404 62,935
Other investments 150,000 180,365 213,900 248,442 284,021 442,741 1,131,093 2,071,044
Retirement plans/IRAs 215,612 215,586 219,904 225,151 231,907 238,862 246,022 284,793
Other taxable earnings-GRAT 1,385,558 1,378,120 1,391,338 1,404,953 1,418,977 1,311,346 675,617 48,500
Social security income 28,861 29,438 30,027 30,627 31,240 31,865 32,502 35,885
Consulting (Schedule C) 30,000 30,000 30,000 30,000 30,000 - - -
Gross income $ 1,834,299 $ 1,857,612 $ 1,908,998 $ 1,964,567 $ 2,023,418 $ 2,058,320 $ 2,140,839 $ 2,530,508
Page 41

43. INCOME TAX PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Income Tax Estimation
Adjusted gross income:
Dividend income (Marketable Sec.) - 108 71 299 810 6,835 33,404 62,935
Earned and other income 1,834,299 1,857,504 1,908,927 1,964,268 2,022,608 2,051,484 2,107,435 2,467,573
Adjusted gross income 1,834,299 1,857,612 1,908,998 1,964,567 2,023,418 2,058,320 2,140,839 2,530,508
Deductions
Real Estate Tax 16,756 17,259 17,776 18,310 18,859 19,425 20,008 23,194
Gifts to Charity/DAF from IRA Distributions 378,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Charitable Deduction available 378,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Charitable Deduction allowed 378,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Total deductions 394,756 217,259 217,776 218,310 218,859 219,425 220,008 223,194
Reductions - (50,724) (52,266) (53,933) (55,699) (56,746) (59,221) (70,911)
Deductions allowed 394,756 166,534 165,510 164,377 163,160 162,679 160,786 152,283
Taxable income 1,439,543 1,691,077 1,743,488 1,800,190 1,860,257 1,895,640 1,980,053 2,378,225
Federal income tax $ 472,980 $ 632,861 $ 653,615 $ 676,070 $ 699,856 $ 713,868 $ 747,295 $ 904,972
Page 42

44. CASH FLOW PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Sources of Income for Lifestyle
Consumable income (taxable) 448,741 479,384 517,588 559,314 603,631 740,138 1,431,818 2,419,073
Non-taxable Social Security Income 5,093 5,195 5,299 5,405 5,513 5,623 5,736 6,333
Distribution from Marketable Securities 59,149 51,536 - - - 968,488 326,839 -
GRAT - Cash Distribution 1,380,149 1,380,149 1,380,149 1,380,149 1,119,723 - - -
Total income available for lifestyle 1,893,133 1,916,264 1,903,036 1,944,868 1,728,866 1,714,249 1,764,393 2,425,405
Uses of Cash
Living expenses 375,000 386,250 397,838 409,773 422,066 434,728 447,770 519,088
Income tax 472,980 632,861 653,615 676,070 699,856 713,868 747,295 904,972
1
Rent paid to trust post-QPRT - - 165,000 165,000 165,000 165,000 165,000 165,000
Long Term Care Premiums 2 70,000 70,000 70,000 70,000 70,000 73,500 77,175 98,497
Cash gifts to ILIT 77,653 77,653 77,653 77,653 77,653 77,653 77,653 77,653
Cash gifts to family 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000
529 Plan Contributions to Grandchildren 390,000 - - - - - - -
Gift to Tim's Gift Trust - 250,000 - - - - - -
Gift to Jeanne's Gift Trust - 250,000 - - - - - -
Planning and maintenance Fees 89,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500
Cash gifts to charity 378,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Total uses of cash 1,893,133 1,916,264 1,613,606 1,647,995 1,684,075 1,714,249 1,764,393 2,014,709
Surplus $ - $ - $ 289,430 $ 296,873 $ 44,791 $ - $ - $ 410,696
1
Rent payments begin in 2014, at the end of the QPRT term.
2
LTC premiums of $20k/yr start for Jane in year one. Annual premiums inflate at 5% after the 5 year premium lock. Also includes and additional $50k/yr in long term care expenses.
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.
Page 43

45. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Tax calculation on Thomas's death
Combined Net Worth 22,227,056 22,448,884 22,630,856 21,572,154 22,089,291 22,630,353 23,263,267 24,015,696 15,801,875
Thomas's estimated estate 11,609,210 11,725,071 11,820,115 11,267,154 11,537,255 11,819,852 12,150,424 12,543,418 8,253,333
Total gross estate 11,609,210 11,725,071 11,820,115 11,267,154 11,537,255 11,819,852 12,150,424 12,543,418 8,253,333
Settlement expenses (83,046) (83,625) (84,101) (81,336) (82,686) (84,099) (85,752) (87,717) (66,267)
Joint, personal and IRA to Jane (3,438,758) (3,295,442) (3,208,332) (3,100,183) (3,000,045) (2,889,442) (2,768,484) (2,636,817) (1,645,756)
Outright or in trust to Jane (3,177,405) (3,436,004) (7,737,682) (7,867,353) (8,236,242) (8,628,028) (9,077,905) (9,600,602) (6,323,028)
Taxable estate 4,910,000 4,910,000 790,000 218,282 218,282 218,282 218,282 218,282 218,282
Plus Thomas's lifetime taxable gifts 210,000 210,000 210,000 781,718 781,718 781,718 781,718 781,718 781,718
Tax base 5,120,000 5,120,000 1,000,000 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 83,046 83,625 84,101 81,336 82,686 84,099 85,752 87,717 66,267
To family trust 4,910,000 4,910,000 790,000 218,282 218,282 218,282 218,282 218,282 218,282
Joint, personal and IRA to Jane 3,438,758 3,295,442 3,208,332 3,100,183 3,000,045 2,889,442 2,768,484 2,636,817 1,645,756
Outright or in trust to Jane 3,177,405 3,436,004 7,737,682 7,867,353 8,236,242 8,628,028 9,077,905 9,600,602 6,323,028
Total $ 11,609,210 $ 11,725,071 $ 11,820,115 $ 11,267,154 $ 11,537,255 $ 11,819,852 $ 12,150,424 $ 12,543,418 $ 8,253,333
Assumptions
We assume that Thomas dies first, followed immediately by Jane.
Taxes under "Distribution of First Estate" include estate and income taxes, if any.
Page 44

46. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Tax Calculation on Jane's death
Jane's assets 10,617,846 10,723,813 10,810,741 10,305,000 10,552,036 10,810,501 11,112,843 11,472,278 7,548,543
Plus assets from Thomas's estate 6,616,164 6,731,446 10,946,014 10,967,536 11,236,287 11,517,471 11,846,389 12,237,419 7,968,784
Jane's estimated estate 17,234,010 17,455,259 21,756,755 21,272,536 21,788,323 22,327,972 22,959,233 23,709,696 15,517,326
Settlement expenses (197,340) (199,553) (242,568) (237,725) (242,883) (248,280) (254,592) (262,097) (180,173)
Charitable gift of IRA assets (3,224,902) (3,073,332) (2,980,679) (2,880,003) (2,770,052) (2,648,947) (2,516,043) (2,370,662) (1,431,457)
Charitable deduction from TCLAT (13,021,768) (13,392,374) (17,743,508) (17,999,972) (18,620,552) (19,275,909) (20,033,762) (20,922,102) (13,750,861)
Taxable estate 790,000 790,000 790,000 154,836 154,836 154,836 154,836 154,836 154,836
Plus Jane's lifetime taxable gifts 210,000 210,000 210,000 845,164 845,164 845,164 845,164 845,164 845,164
Tax base 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Federal Estate Tax - - - - - - - - -
Distribution of Second Estate
Settlement expenses 197,340 199,553 242,568 237,725 242,883 248,280 254,592 262,097 180,173
Taxes - - - - - - - - -
Other gifts to charity 3,224,902 3,073,332 2,980,679 2,880,003 2,770,052 2,648,947 2,516,043 2,370,662 1,431,457
Residual estate to heirs 790,000 790,000 790,000 154,836 154,836 154,836 154,836 154,836 154,836
Contribution to TCLAT 13,021,768 13,392,374 17,743,508 17,999,972 18,620,552 19,275,909 20,033,762 20,922,102 13,750,861
Total $ 17,234,010 $ 17,455,259 $ 21,756,755 $ 21,272,536 $ 21,788,323 $ 22,327,972 $ 22,959,233 $ 23,709,696 $ 15,517,326
Assumptions
We assume that Thomas dies first, followed immediately by Jane.
Taxes under "Distribution of Second Estate" include estate and income taxes, if any.
Page 45

47. SUMMARY OF BENEFITS TO FAMILY - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Benefits to Family
Residual estate 790,000 790,000 790,000 154,836 154,836 154,836 154,836 154,836 154,836
Family trust 4,910,000 4,910,000 790,000 218,282 218,282 218,282 218,282 218,282 218,282
1
529 Plans for Grandchildren 200,000 278,000 369,900 466,395 567,715 674,100 707,806 743,196 948,527
Proceeds from ILIT 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
Value of QPRTs 165,000 167,463 172,487 1,941,620 2,166,519 2,399,880 2,642,027 2,893,295 4,299,094
Value of GRAT - - - - - - - - 12,343,976
NPV of TCLAT benefits to children 11,339,236 11,661,957 15,450,885 15,674,211 16,214,607 16,785,286 17,445,217 18,218,775 11,974,124
Total assets to heirs $ 19,404,236 $ 19,807,421 $ 19,573,272 $ 20,455,345 $ 21,321,958 $ 22,232,385 $ 23,168,168 $ 24,228,384 $ 31,938,840
1
Assumes growth of 5 % annually on the 529 Plans.
Page 46

48. VACATION MAINTENANCE TRUST DETAILS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Cash gift to new Trust 77,653 77,653 77,653 77,653 77,653 77,653 77,653 77,653 77,653
Total outlay to Trust 77,653 77,653 77,653 77,653 77,653 77,653 77,653 77,653 77,653
Premium 77,653 77,653 77,653 77,653 77,653 77,653 77,653 77,653
-
Net death benefit from new Trust 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 potential 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 $ 2,000,000
Page 47

49. GRANTOR RETAINED ANNUITY TRUST DETAILS - PROPOSED PLAN
304,123 296,854
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
GRAT Balance Sheet
Marketable Securities - Equities - 5,409 3,569 14,936 40,487 341,766 1,670,201 2,429,328 3,352,611
Investment 2 6,400,000 6,495,554 6,690,420 6,891,133 7,097,867 7,310,803 7,530,127 7,756,031 8,991,365
Investment 1 2,880,000 2,862,999 2,888,889 2,915,556 2,943,022 2,710,887 1,352,064 - -
Total $ 9,280,000 $ 9,363,962 $ 9,582,878 $ 9,821,625 $ 10,081,377 $ 10,363,456 $ 10,552,392 $ 10,185,359 $ 12,343,976
Taxable Income
Marketable Securities - Equities - 108 71 299 810 6,835 33,404 62,935.44
Investment 2 35,558 36,089 37,172 38,287 39,435 40,618 41,837 48,500.45
Investment 1 1,350,000 1,342,031 1,354,167 1,366,667 1,379,542 1,270,728 633,780 -
Total Taxable Income 1,385,558 1,378,228 1,391,410 1,405,252 1,419,787 1,318,182 709,021 111,436
Cash Flow
Yield on asset contributed 1,385,558 1,378,228 1,391,410 1,405,252 1,419,787 1,318,182 709,021 111,436
Distribution of closely held stock 60,000 60,000 60,000 60,000 320,426 1,440,149 1,440,149 -
GRAT payment (1,440,149) (1,440,149) (1,440,149) (1,440,149) (1,440,149) (1,440,149) (1,440,149) -
Net cash to reinvest 5,409 (1,921) 11,261 25,103 300,064 1,318,182 709,021 111,436
GRAT Payments
Distribution of closely held stock 60,000 60,000 60,000 60,000 320,426 1,440,149 1,440,149 -
Cash Distribution 1,380,149 1,380,149 1,380,149 1,380,149 1,119,723 - - -
Total Annual Payment 1,440,149 1,440,149 1,440,149 1,440,149 1,440,149 1,440,149 1,440,149 -
Total Quarterly Payments 360,037 360,037 360,037 360,037 360,037 360,037 360,037 -
Grantor's end of year value 9,363,962 9,363,962 9,582,878 9,821,625 10,081,377 10,363,456 10,552,392 10,185,359 -
Benefit to heirs $ - $ - $ - $ - $ - $ - $ - $ 12,343,976
Note: GRAT term ends in 7 years and assets remaining in the GRAT pass to heirs. During the 7 year term, part of the annual payments consist of interests in Investment 1
** Investment 1 dividend of $1,500,000 given by client. Estimation based on previous years' dividends.
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50. QUALIFIED PERSONAL RESIDENCE TRUST DETAILS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
QPRT Values
Gross value of residence 1,650,000 1,674,635 1,724,874 1,776,620 1,829,919 1,884,816 1,941,361 1,999,602 2,318,086
Discounted value of residence 1,485,000 1,507,171 1,552,387 1,598,958 1,646,927 1,696,335 1,747,225 1,799,641 2,086,278
Diff. between gross and discount 165,000 167,463 172,487 177,662 182,992 188,482 194,136 199,960 231,809
Reversionary value in estate 1,485,000 1,507,171 1,552,387 - - - - - -
Rent paid to heirs post-QPRT - - - 165,000 165,000 165,000 165,000 165,000 165,000
Value of home to heirs - - - 1,776,620 1,829,919 1,884,816 1,941,361 1,999,602 2,318,086
Cumulative rent paid to QPRT - 4.0% return - - - 165,000 336,600 515,064 700,667 893,693 1,981,008
Total Value to Heirs $ - $ - $ - $ 1,941,620 $ 2,166,519 $ 2,399,880 $ 2,642,027 $ 2,893,295 $ 4,299,094
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51. TESTAMENTARY CHARITABLE LEAD TRUST DETAILS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Charitable Lead Annuity Trust
Balance Sheet
Tot. value of TCLAT assets 13,021,768 13,392,374 17,743,508 17,999,972 18,620,552 19,275,909 20,033,762 20,922,102 13,750,861
Annual payment to charity if death
occurs in the column year 783,363 805,658 1,067,414 1,082,842 1,120,175 1,159,600 1,205,191 1,258,631 827,224
Benefits to Charity
NPV of TCLAT income distributions** 13,021,768 13,392,374 17,743,508 17,999,972 18,620,552 19,275,909 20,033,762 20,922,102 13,750,861
Total of TCLAT distributions** 15,667,263 16,113,162 21,348,270 21,656,837 22,403,494 23,191,993 24,103,811 25,172,625 16,544,479
Benefits to Children
Future Benefits to Heirs from TCLAT** 24,845,663 25,552,785 33,854,792 34,344,127 35,528,200 36,778,628 38,224,619 39,919,580 26,236,780
NPV of benefits to children** 11,339,236 11,661,957 15,450,885 15,674,211 16,214,607 16,785,286 17,445,217 18,218,775 11,974,124
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52. BENEFITS TO BASIC FAMILY CHARITY - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Charitable gift of IRA assets 3,224,902 3,073,332 2,980,679 2,880,003 2,770,052 2,648,947 2,516,043 2,370,662 1,431,457
Cumulative of new gifts to charity/DAF - 200,000 390,550 586,353 787,553 994,297 1,206,736 1,425,028 2,610,007
NPV of TCLAT income distributions 13,021,768 13,392,374 17,743,508 17,999,972 18,620,552 19,275,909 20,033,762 20,922,102 13,750,861
Total benefits to foundation $ 16,246,670 $ 16,665,706 $ 21,114,738 $ 21,466,328 $ 22,178,156 $ 22,919,153 $ 23,756,541 $ 24,717,791 $ 17,792,324
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53. DETAILS OF THOMAS'S QUALIFIED PLAN - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2023
Thomas's Qualified Plans
Thomas's age 85 86 87 88 89 90 91 96
Jane's age 78 79 80 81 82 83 84 89
Minimum distribution factor 14.8 14.1 13.4 12.7 12.0 11.4 10.8 8.1
Securities in plans 3,100,000 2,952,102 2,860,818 2,761,756 2,653,681 2,534,727 2,404,261 2,261,621 1,340,233
Plan balance during life 3,100,000 2,952,102 2,860,818 2,761,756 2,653,681 2,534,727 2,404,261 2,261,621 1,340,233
Plan balance at death of survivor 3,100,000 2,952,102 2,860,818 2,761,756 2,653,681 2,534,727 2,404,261 2,261,621 1,340,233
Minimum distribution 209,459 209,369 213,494 217,461 221,140 222,344 222,617 191,961
Preferred distribution 200,000 206,000 212,180 218,545 225,102 231,855 238,810 276,847
Actual distribution 209,459 209,369 213,494 218,545 225,102 231,855 238,810 276,847
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