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2. FAMILY WEALTH GOAL ACHIEVER™ - INITIAL
PREPARED FOR:
ALLEN AND NANCY WILSON
November 1, 2011
DRAFT FOR DISCUSSION PURPOSES ONLY
Planned Presented by:
Scott Hamilton
InKnowVision, LLC
715 Enterprise Drive
Oak Brook, IL 60523
Scott@ikvllc.com
Phone: (630) 596-5090
Draft for Discussion Purposes Only
Copyright 2011 InKnowVision, LLC

3. YOUR GOALS AND OBJECTIVES
ALLEN AND NANCY WILSON
Maintain our customary lifestyle. This should take about $750,000 annually after taxes and gifts.
Maintain adequate liquidity for emergencies and investment opportunities. We prefer to keep at least
$2,000,000 in cash and readily marketable securities.
Assure we have sufficient liquid assets available at our deaths to eliminate the forced sale of ABC or the real
estate assets we desire to keep in the family.
Provide a significant inheritance for our children.
Reduce income taxes today and on the sale of ABC if possible.
Eliminate or reduce estate taxes.
Page 2

4. ALLEN AND NANCY WILSON
LIFETIME SPENDING
AND LIQUIDITY
Page 3

5. YOUR LIQUID ASSETS - PROPOSED PLAN
ALLEN AND NANCY WILSON
$180,000,000
$160,000,000
$140,000,000
$120,000,000
$100,000,000 -
Sale of ABC in 2015
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$-
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20
20
Liquid Assets Proposed GDOTs Value Liquid Assets Current
Page 4

6. ALLEN AND NANCY WILSON
INCOME TAX PLANNING
Page 5

7. PHASED PLANNING - INCOME TAXES
ALLEN AND NANCY WILSON
Phase 1 Phase 2
Wilson, M.D. establishes
Establish Donor Advised
a Charitable Remainder
Fund (DAF)
Unitrust (CRT)
Wilson, M.D. transfers
Gift ABC interests to DAF
ABC interests to CRT **
** To occur prior to sale of ABC
Page 6

8. GIFT ABC INTERESTS TO DONOR ADVISED FUND
ALLEN AND NANCY WILSON
Gift ABC interests To Donor Advised Fund
WILSON, M.D. (S Corp) DONOR ADVISED FUND
Owns interests in ABC
Deduction flows through to owners of Wilson, M.D.
Advantages Income Tax Deduction 1,000,000
Pre-fund charitable giving Value of deduction (approx.) 400,000
Create a tax deduction today
Reduce future income tax on ABC taxable income
Ongoing taxes on the active income associated with ABC interests owned by the DAF will be paid by the DAF.
Taxes on the dividends generated by ABC investments should not be subject to income tax.
Page 7

9. CREATE A CHARITABLE REMAINDER UNITRUST
ALLEN AND NANCY WILSON
Wilson, M.D. (S Corp) creates a charitable remainder unitrust (CRT).
WILSON, M.D. (S Corp) CRT
CRT Assumptions
Total Return Rate 6.00%
CRT payout rate 11.12%
7520 rate 2.28%
Term of trust (years) 20
Income Tax Deduction - 2015 $ 2,000,400
Page 8

10. FUND A CHARITABLE REMAINDER UNITRUST
ALLEN AND NANCY WILSON
Prior to the sale of ABC, Wilson, M.D. transfers $20,000,000 of ABC interests to the CRT.
WILSON, M.D. (S Corp) CRT
$20,000,000
Detail of Assets Transferred to CRT
ABC Business Interests 20,000,000
Total 20,000,000
Note: There will be no capital gains taxes due at the time of the sale on the interests that are owned by the CRT.
Note: Consideration will have to be given for handling UBTI and avoiding tax penalties.
Page 9

11. INCOME FROM THE CRT
ALLEN AND NANCY WILSON
Wilson, M.D. receives annual payments beginning in 2016 for a term of 20 years. The S Corp can distribute the CRT payments it receives to
Allen & Nancy.
WILSON, M.D. (S Corp) CRT
Receive annual income
Allen & Nancy receive distributions from the S
Corp
Estimated Annual CRT Distributions to S Corp (Years 1-10)
2016 2,200,000
2017 2,100,000
2018 2,000,000
2019 1,900,000
2020 1,800,000
2021 1,700,000
2022 1,600,000
2023 1,500,000
2024 1,500,000
2025 1,400,000
Total (10 years) 17,700,000
Note: payment schedule assumes consistent 6% growth on CRT assets.
Page 10

12. DISTRIBUTION AT THE END OF THE CRT
ALLEN AND NANCY WILSON
At the termination of the CRT, the assets of the CRT will be distributed to the charity or charities of your choice.
CRT FAMILY CHARITIES
Page 11

13. ALLEN AND NANCY WILSON
INCREASE INHERITANCE
AND REDUCE ESTATE TAX
Page 12

14. ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED
ALLEN AND NANCY WILSON
$200,000,000
$175,000,000
$150,000,000
$125,000,000
-
$100,000,000
$75,000,000
$50,000,000
$25,000,000
nt
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Current Plan
Proposed Plan
Proposed Plan w/ Guar. Death Benefit
Proposed Plan w/ Non-Guar Death Benefit
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. Two proposed plan options illustrate the benefit to heirs including the death benefit of the new Life Insurance policy.
Page 13

15. ESTATE TAX - CURRENT VS. PROPOSED
ALLEN AND NANCY WILSON
$120,000,000
$100,000,000
$80,000,000
-
$60,000,000
$40,000,000
$20,000,000
$-
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Current Plan Proposed Plan
This chart compares the amount of your estate taxes in the current plan as against the proposed plan.
Page 14

16. ESTATE TAX vs. LIQUIDITY - PROPOSED PLAN
ALLEN AND NANCY WILSON
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
-
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
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Liquid Assets Proposed Available for Taxes Estate Tax Due
Liquid Assets w/ Guar. Death Benefit Liquid Assets w/ Non-Guar Death Benefit
This review illustrates the estate taxes due as against the liquid assets available to pay the taxes under the proposed plan. Liquid assets include cash,
securities, retirement funds and life insurance. Two proposed plan options illustrate the liquid assets available to pay taxes from the death benefit of the
new Life Insurance policy.
Page 15

17. COMPARISON OF PLAN RESULTS - PLAN YEAR 2011
ALLEN AND NANCY WILSON
Existing Plan Proposed Plan Advantage
Estate Value $ 64,116,470 $ 53,352,776
Heirs Receive Immediately $ 50,245,677 $ 54,029,419 $ 3,783,742
Total Benefits to Family $ 50,245,677 $ 54,029,419 $ 3,783,742
Estate and Income Tax $ 23,699,897 $ 20,049,154 $ 3,650,743
This chart assumes that you both die this year and compares the results of the current plan with the proposed plan.
Page 16

18. COMPARISON OF PLAN RESULTS - PLAN YEAR 2015
ALLEN AND NANCY WILSON
Existing Plan Proposed Plan Advantage
Estate Value $ 70,731,265 $ 43,012,160
Income Taxes $ 13,821,640 $ 9,329,634 $ 4,492,005
Heirs Receive Immediately $ 40,190,253 $ 59,365,530 $ 19,175,276
Total Benefits to Family $ 40,190,253 $ 59,365,530 $ 19,175,276
Family Charity $ - $ 2,178,370 $ 2,178,370
Estate and Income Tax $ 41,093,909 $ 24,623,674 $ 16,470,235
This chart illustrates the plan results in the year of assumed sale of ABC interests.
Page 17

19. COMPARISON OF PLAN RESULTS - PLAN YEAR 2043
ALLEN AND NANCY WILSON
Existing Plan Proposed Plan Advantage
Estate Value $ 200,612,646 $ 57,277,519
Heirs Receive Immediately $ 106,195,674 $ 173,432,825 $ 67,237,152
Total Benefits to Family $ 106,195,674 $ 173,432,825 $ 67,237,152
Family Charity $ - $ 6,986,326 $ 6,986,326
Estate and Income Tax $ 111,633,831 $ 32,371,216 $ 79,262,616
Present Value of total to Heirs $41,239,713 $67,350,389
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 18

20. ALLEN AND NANCY WILSON
FAMILY WEALTH
TRANSFER PLANNING
Page 19

21. PHASED PLANNING - WEALTH TRANSFER
ALLEN AND NANCY WILSON
Phase 1 Phase 2
Transfer existing term
Establish Grantor Deemed
policy to Irrevocable Life
Owner Trusts (GDOTs)
Insurance Trust (ILIT)
Qualified Personal
Gift Wilson, M.D. interests
Residence Trust (QPRT)
to GDOTs
for Vacation Home
Sell Wilson, M.D. interests
to GDOTs
Page 20

22. CREATE GRANTOR DEEMED OWNER TRUSTS
ALLEN AND NANCY WILSON
Allen and Nancy 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.
ALLEN ALLEN's GDOT
NANCY NANCY's GDOT
HEIRS
Nancy may be a discretionary beneficiary of
Allen's GDOT
Note: Allen may also be a discretionary beneficiary of Nancy's trust. Attention should be paid to avoid reciprocal trust doctrine.
Page 21

23. GIFT TO GRANTOR DEEMED OWNER TRUST
ALLEN AND NANCY WILSON
Allen and Nancy each make a gift of Wilson, M.D. stock worth $3,500,000 to their individual GDOTs. This gift is designed to give
each trust economic substance.
ALLEN Wilson, M.D. stock worth ALLEN's GDOT
$3,500,000
Wilson, M.D. stock worth
NANCY NANCY's GDOT
$3,500,000
Page 22

24. SELL WILSON, M.D. INTERESTS TO EACH GDOT
ALLEN AND NANCY WILSON
Allen and Nancy sell their Wilson, M.D. stock to their individual GDOTs for an installment note.
Sell their combined Wilson,
ALLEN & NANCY M.D. stock worth $43,000,000 GDOTs
Allen and Nancy own an installment note The GDOTs own Wilson, M.D. stock worth
after the sale Installment note with a value $43,000,000 after the sale
of $43,000,000 that provides
annual interest and principal
payments
The sale price is based on the assumed value of the assets
sold.
HEIRS
Transaction Notes:
- Installment Note makes annual interest payments. Interest calculated
Receive assets in the future according to
on the Nov. 2011 Mid Term AFR at 1.20%
terms of the trust
- At the end of year 4, Wilson, M.D. interests are used to pay off the
installment note.
- Beginning in year 5, the grantor status of the trusts is revoked and the
trusts become responsible for paying its own income taxes.
Page 23

25. TRANSFER EXISTING INSURANCE TO ILIT
ALLEN AND NANCY WILSON
Give existing term policy to
ILIT. Gift annually to the ILIT
ALLEN & NANCY to pay continued premiums. ILIT
You own life insurance personally with Owns life insurance with a death benefit of
death benefit of $3,000,000 $3,000,000
Policy proceeds will be included in the
taxable estate if death occurs within three
years of the date of the gift.
HEIRS
$3,000,000 in assets are distributed according
to the terms of the ILIT.
Page 24

26. CREATE AND FUND A QUALIFIED PERSONAL RESIDENCE TRUST
ALLEN AND NANCY WILSON
Nancy creates a qualified personal residence trust (QPRT) with a term of 32 years. She transfers her interest
in the home listed below to the trust.
NANCY Deed NANCY's QPRT
Nancy gifts her 1/2 undivided interest in property QPRT Nancy gifts a 1/2 undivided interest in property to each QPRT
Vacation Home 1 1,000,000 Vacation Home 1 500,000
Sub Total 1,000,000 Sub Total 500,000
Note: If Nancy dies before the QPRT term ends, the property is back in her estate.
Page 25

27. QPRT APPRAISAL - GIFT OF REAL ESTATE
ALLEN AND NANCY WILSON
Nancy hires 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
NANCY Appraisal of Gift NANCY's QPRT
The value of Nancy's QPRT gift is
expected to be $191,544
QPRT ASSUMPTIONS
Term (years) 32
7520 Rate 1.40%
Nancy's age 53
Page 26

28. AFTER THE QPRT TERM ENDS (I)
ALLEN AND NANCY WILSON
Additional estate and gift tax advantages that can be obtained with QPRT 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 QPRT should be structured as a grantor trust to neutralize income taxes and kept in place as a grantor
trust after the QPRT term.
NANCY Rental of the Property NANCY's QPRT
Page 27

29. AFTER THE QPRT TERM ENDS (II)
ALLEN AND NANCY WILSON
At death, the real estate and any accumulated rental income, passes to your heirs without estate tax. The
trust can be structured for distributions according to your particular goals and objectives.
NANCY's QPRT HEIRS
The value of the real estate is assumed to
be $2,587,625 as of 2043
Note: This illustration assumes no rent is paid; however, under certain circumstances fair market rent may need to be paid.
For example, once the QPRT term is over, if Allen is not living at the time, Nancy will need to pay fair market rent. The
advantage to this is that rent is a very effective way to move additional assets outside of the taxable estate.
Page 28

30. FURTHER PLANNING NOTES
ALLEN AND NANCY WILSON
Discuss the possibility of a Captive Insurance Company at the ABC level.
Ensure notification of pending ABC sale prior to binding documents.
Page 29

31. DETAILED FINANCIAL ANALYSIS
ALLEN AND NANCY WILSON
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 30

32. DETAILED FINANCIAL ANALYSIS
ALLEN AND NANCY WILSON
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 31

33. CURRENT NET WORTH STATEMENT
ALLEN AND NANCY WILSON
ALLEN NANCY JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Cash/Checking 42,500 42,500 - 85,000 1.0% 0.0%
Cash Value of Life Insurance 280,000 - 280,000 0.0% 0.0%
Total of Cash and Equivalents 322,500 42,500 - 365,000 0.2% 0.0%
MARKETABLE SECURITIES - EQUITIES
Account 1 1,500,000 1,500,000 - 3,000,000 2.0% 4.0%
Account 2 11,500 11,500 - 23,000 2.0% 5.0%
Total of Equities 1,511,500 1,511,500 - 3,023,000 2.0% 4.0%
Page 32

34. CURRENT NET WORTH STATEMENT (Page 2)
ALLEN AND NANCY WILSON
ALLEN NANCY JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
LP 1 75,000 75,000 - 150,000 0.0% 5.0%
LP 2 15,000 15,000 - 30,000 0.0% 5.0%
LP 3 22,500 22,500 - 45,000 0.0% 5.0%
LP 4 10,000 10,000 - 20,000 0.0% 5.0%
Loans to Life Insurance Trusts** 177,000 177,000 - 354,000 0.0% 2.0%
Total of Other Investments 299,500 299,500 - 599,000 0.0% 3.2%
** Growth rate of 2% attached to account for any accrued interest on the promissory notes for insurance premiums.
CLOSELY HELD BUSINESS
Wilson, M.D. (S Corp) - ABC ** 25,000,000 25,000,000 - 50,000,000 11.0% 10.0%
Total Closely Held Business 25,000,000 25,000,000 - 50,000,000 11.0% 10.0%
** Value is based on discussions and not a formal valuation. We also assume that $10M has been given to trusts using exemption.
** S Corp holds interests in ABC Practice.
RETIREMENT PLANS/IRAs
IRA 845,000 - 845,000 0.0% 6.0%
IRA 123,000 - 123,000 0.0% 6.0%
IRA 115,000 - 115,000 0.0% 6.0%
IRA - 55,000 55,000 0.0% 6.0%
Total Retirement Plans 1,083,000 55,000 1,138,000 0.0% 6.0%
INVESTMENT REAL ESTATE
Rental Home Property 1 750,000 750,000 - 1,500,000 -2.1% 3.0%
Rental Home Property 2 750,000 750,000 - 1,500,000 -2.1% 3.0%
Total of Real Estate Holdings 1,500,000 1,500,000 - 3,000,000 -2.1% 3.0%
Page 33

35. CURRENT NET WORTH STATEMENT (Page 3)
ALLEN AND NANCY WILSON
ALLEN NANCY JOINT TOTAL YIELD GROWTH
RESIDENTIAL REAL ESTATE
123 Main St. 3,000,000 3,000,000 - 6,000,000 0.0% 3.0%
Vacation Home 1 1,000,000 1,000,000 - 2,000,000 0.0% 3.0%
Vacation Home 2 750,000 750,000 - 1,500,000 0.0% 3.0%
Vacant Land 175,000 175,000 - 350,000 0.0% 3.0%
Vacation Home 3 157,500 157,500 - 315,000 0.0% 3.0%
Total of Personal Residences 5,082,500 5,082,500 - 10,165,000 0.0% 3.0%
PERSONAL PROPERTY
Autos 100,000 100,000 - 200,000 0.0% 0.0%
Total of Personal Property 100,000 100,000 - 200,000 0.0% 0.0%
TOTAL ASSETS 34,899,000 33,591,000 - 68,490,000
LIABILITIES
123 Main St. 1,750,000 1,750,000 - 3,500,000
Total Liabilities 1,750,000 1,750,000 - 3,500,000
COMMERCIAL LIABILITIES
Rental Home Property 1 550,000 550,000 - 1,100,000
Rental Home Property 2 600,000 600,000 - 1,200,000
Total Commercial Liabilities 1,150,000 1,150,000 - 2,300,000
TOTAL LIABILITIES 2,900,000 2,900,000 - 5,800,000
NET WORTH 31,999,000 30,691,000 - 62,690,000
Page 34

36. SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN
ALLEN AND NANCY WILSON
COMPANY INSURED POLICY # BENEFICIARY PREMIUM CASH VALUE DEATH BENEFIT
Policies owned by Allen
Policy 1 (term to age 95) Allen # Nancy 5,630 - 3,000,000
Policy 2 (variable) Allen # Nancy 10,000 100,000 800,000
Policy 3 (419 plan) Allen # Nancy - 180,000 1,200,000
Totals 15,630 280,000 5,000,000
Policies owned by ILIT
ILIT Policy 1 Nancy # Trust 34,000 20,000 2,000,000
ILIT Policy 2 Allen # Trust 84,000 500,000 2,000,000
Totals 118,000 520,000 4,000,000
Page 35

37. FINANCIAL ANALYSIS - EXISTING PLAN ASSET VALUE PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Asset Values
Cash and cash equivalents 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000
Marketable securities - Equities 3,023,000 3,423,718 3,932,677 4,454,239 4,988,564 58,087,727 68,834,983 98,939,647 163,315,633
Other investments 1 599,000 720,136 861,375 1,007,172 1,157,673 1,313,032 2,168,343 3,716,588 5,616,423
Closely held business 2 50,000,000 50,789,540 55,868,494 61,455,344 67,600,878 - - - -
Retirement plans/IRAs 1,138,000 1,188,953 1,300,290 1,418,307 1,543,406 1,676,010 2,242,879 3,051,445 2,849,500
Investment real estate 3,000,000 3,014,612 3,105,051 3,198,202 3,294,148 3,392,973 3,933,385 5,286,141 7,762,876
Personal residences 10,165,000 10,214,512 10,520,947 10,836,575 11,161,673 11,496,523 13,327,621 17,911,208 26,303,213
Personal property 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Total assets in estate 68,490,000 69,916,470 76,153,833 82,934,839 90,311,342 76,531,265 91,072,212 129,470,029 206,412,646
Less estimated liabilities (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000)
Combined net worth $ 62,690,000 $ 64,116,470 $ 70,353,833 $ 77,134,839 $ 84,511,342 $ 70,731,265 $ 85,272,212 $ 123,670,029 $ 200,612,646
1
Increased by new promissory notes for annual premiums currently being paid on the ILIT policies.
2
We assume a sale of ABC in 2015.
In the event that there is a cash flow surplus, the surplus is added to the marketable securities 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 marketable securities.
Page 36

38. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Sources of taxable income
Cash and cash equivalents 850 850 850 850 850 850 850 850
Marketable securities - Equities 60,460 68,474 78,654 89,085 99,771 1,330,405 1,905,461 3,140,757
Closely held business 5,500,000 5,586,849 6,145,534 6,760,088 - - - -
Retirement plans/IRAs - - - - - - 140,816 253,270
Investment real estate (64,000) (64,000) (64,000) (64,000) (64,000) (64,000) (64,000) (64,000)
Sale of ABC - - - - 49,030,948 - - -
Client earned income 210,000 210,000 214,200 218,484 222,854 - - - -
Spouse earned income 81,600 81,600 83,232 84,897 86,595 88,326 - - -
Social security income - - - - - - 27,613 31,426
Gross income $ 5,788,910 $ 5,889,606 $ 6,464,419 $ 7,095,471 $ 49,155,896 $ 1,267,255 $ 2,010,740 $ 3,362,303
Page 37

39. INCOME TAX PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Income tax Estimation
Adjusted gross income:
Dividend income (marketable sec.) 60,460 68,474 78,654 89,085 99,771 1,330,405 1,905,461 3,140,757
Capital Gains income - - - - 49,030,948 - - -
Earned and other income 5,728,450 5,821,131 6,385,765 7,006,386 25,176 (63,150) 105,279 221,546
Adjusted gross income 5,788,910 5,889,606 6,464,419 7,095,471 49,155,896 1,267,255 2,010,740 3,362,303
Deductions
Real estate tax 34,624 34,624 35,663 36,733 37,835 38,970 45,176 60,713 89,160
State income taxes 549,946 559,513 614,120 674,070 4,669,810 120,389 191,020 319,419
Interest 90,321 90,321 93,031 95,822 98,696 101,657 117,848 158,378 232,584
Charitable gifts 24,152 24,152 24,877 25,623 26,392 27,183 31,513 42,351 62,193
Charitable Deduction available 24,152 24,877 25,623 26,392 27,183 31,513 42,351 62,193
Charitable Deduction allowed 24,152 24,877 25,623 26,392 27,183 31,513 42,351 62,193
Total deductions 699,043 713,082 772,297 836,992 4,837,620 314,927 452,463 703,356
Reductions - - (188,929) (207,860) (1,469,673) (33,014) (55,318) (95,865)
Deductions allowed 699,043 713,082 583,368 629,132 3,367,947 281,913 397,145 607,491
Taxable income 5,089,867 5,176,523 5,881,050 6,466,339 45,787,948 985,341 1,613,595 2,754,812
Federal and State income tax $ 2,289,179 $ 2,327,472 $ 2,907,083 $ 3,198,807 $ 13,821,640 $ 474,651 $ 794,071 $ 1,374,391
Page 38

40. CASH FLOW PROJECTIONS - EXISTING PLAN
ABC Basis 9,300,000 11,510,821 13,770,198 16,008,649 18,569,930
3,289,179 3,327,472 3,907,083 4,198,807
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Sources of income for Lifestyle
Distribution from Marketable Securities - - - - - 351,120 151,569 15,678
Return of basis from ABC Sale - - - - 18,569,930 - - -
Undistributed Consumable Income ** (2,210,821) (2,259,377) (2,238,452) (2,561,281) - - - -
Non-taxable Social Security Income - - - - - - 4,873 5,546
Consumable income (taxable) 5,788,910 5,889,606 6,464,419 7,095,471 49,155,896 1,267,255 2,010,740 3,362,303
Total income available for lifestyle 3,578,089 3,630,229 4,225,967 4,534,190 67,725,826 1,618,374 2,167,181 3,383,527
Uses of Cash
Living expenses 750,000 772,500 795,675 819,545 844,132 978,580 1,315,130 1,931,312
Income tax 2,289,179 2,327,472 2,907,083 3,198,807 13,821,640 474,651 794,071 1,374,391
Personally held insurance premiums 15,630 15,630 15,630 15,630 15,630 15,630 15,630 15,630
Cash loans to ILIT 1 118,000 118,000 118,000 118,000 118,000 118,000 - -
Cash gifts to charity 24,152 24,877 25,623 26,392 27,183 31,513 42,351 62,193
Total uses of cash 3,196,961 3,258,479 3,862,011 4,178,374 14,826,585 1,618,374 2,167,181 3,383,527
Surplus $ 381,128 $ 371,750 $ 363,956 $ 355,816 $ 52,899,241 $ - $ - $ -
1
We assume that loans are made annually to pay premiums on ILIT policices, we also assume that enough premiums are paid by 2025 to keep the policies in-force and premiums cease.
** Assumes that ABC distributes an amount sufficient to pay income tax plus an additional $1M of excess cash.
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row on the "Asset Value Projections" 3 pages earlier.
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 39

41. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Tax calculation on Allen's death
Combined net worth 62,690,000 64,116,470 70,353,833 77,134,839 84,511,342 70,731,265 85,272,212 123,670,029 200,612,646
Allen's estimated estate 31,999,000 32,727,116 35,910,868 39,372,112 43,137,318 36,103,521 43,525,690 63,125,176 102,399,172
Death benefit exceeding CV 4,720,000 4,720,000 4,720,000 4,720,000 4,720,000 4,720,000 4,720,000 4,720,000 4,720,000
Total gross estate 36,719,000 37,447,116 40,630,868 44,092,112 47,857,318 40,823,521 48,245,690 67,845,176 107,119,172
Settlement expenses (208,595) (212,236) (228,154) (245,461) (264,287) (229,118) (266,228) (364,226) (560,596)
Joint, personal and IRA to Nancy (1,183,000) (1,231,490) (1,337,446) (1,449,760) (1,568,812) (1,695,008) (2,234,480) (3,003,968) (2,811,783)
Insurance passing to Nancy (5,000,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000) (5,000,000)
Outright or in trust to Nancy (30,227,405) (30,903,391) (33,965,267) (37,396,892) (41,024,219) (33,899,396) (40,744,982) (59,476,982) (98,746,793)
Taxable estate 100,000 100,000 100,000 - - - - - -
Plus Allen's lifetime taxable gifts 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000
Tax base 5,000,000 5,000,000 5,000,000 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000
Federal Estate Tax - - - - - - - - -
Distribution of Allen's estate
Settlement expenses 208,595 212,236 228,154 245,461 264,287 229,118 266,228 364,226 560,596
To family trust 100,000 100,000 100,000 - - - - - -
Joint, personal and IRA to Nancy 1,183,000 1,231,490 1,337,446 1,449,760 1,568,812 1,695,008 2,234,480 3,003,968 2,811,783
Insurance passing to Nancy 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Outright or in trust to Nancy 30,227,405 30,903,391 33,965,267 37,396,892 41,024,219 33,899,396 40,744,982 59,476,982 98,746,793
Total $ 36,719,000 $ 37,447,116 $ 40,630,868 $ 44,092,112 $ 47,857,318 $ 40,823,521 $ 48,245,690 $ 67,845,176 $ 107,119,172
Assumptions
We assume that Allen dies first, followed immediately by Nancy.
Taxes under "Distribution of First Estate" include estate and income taxes.
Page 40

42. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Tax Calculation on Nancy's death
Nancy's assets 30,691,000 31,389,354 34,442,965 37,762,727 41,374,025 34,627,744 41,746,522 60,544,854 98,213,475
Plus assets from Allen's estate 36,410,405 37,134,881 40,302,714 43,846,652 47,593,031 40,594,404 47,979,462 67,480,950 106,558,576
Nancy's estimated estate 67,101,405 68,524,235 74,745,679 81,609,379 88,967,055 75,222,147 89,725,984 128,025,803 204,772,050
Settlement expenses (696,014) (710,242) (772,457) (841,094) (914,671) (777,221) (922,260) (1,305,258) (2,072,721)
Nancy's taxable estate 66,405,391 67,813,992 73,973,222 80,768,285 88,052,385 74,444,926 88,803,724 126,720,545 202,699,330
Plus Nancy's lifetime taxable gifts 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000 4,900,000
Tax base 71,305,391 72,713,992 78,873,222 85,668,285 92,952,385 79,344,926 93,703,724 131,620,545 207,599,330
Federal Estate Tax 23,206,887 23,699,897 25,855,628 44,571,757 48,578,012 41,093,909 48,991,248 69,845,500 111,633,831
Total Estate Tax Due 23,206,887 23,699,897 25,855,628 44,571,757 48,578,012 41,093,909 48,991,248 69,845,500 111,633,831
Distribution of Nancy's estate
Settlement expenses 696,014 710,242 772,457 841,094 914,671 777,221 922,260 1,305,258 2,072,721
Taxes 23,206,887 23,699,897 25,855,628 44,571,757 48,578,012 41,093,909 48,991,248 69,845,500 111,633,831
Qualified plan to heirs 1,138,000 1,188,953 1,300,290 1,418,307 1,543,406 1,676,010 2,242,879 3,051,445 2,849,500
Residual estate to heirs 42,060,504 42,925,142 46,817,304 34,778,221 37,930,968 31,675,007 37,569,596 53,823,600 88,215,998
Total $ 67,101,405 $ 68,524,235 $ 74,745,679 $ 81,609,379 $ 88,967,055 $ 75,222,147 $ 89,725,984 $ 128,025,803 $ 204,772,050
Assumptions
We assume that Allen dies first, followed immediately by Nancy.
Taxes under "Distribution of Second Estate" include estate and income taxes.
Page 41

43. SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Benefits to Family
Family trust 100,000 100,000 100,000 - - - - - -
Residual estate 42,060,504 42,925,142 46,817,304 34,778,221 37,930,968 31,675,007 37,569,596 53,823,600 88,215,998
Qualified plan assets 1,138,000 1,188,953 1,300,290 1,418,307 1,543,406 1,676,010 2,242,879 3,051,445 2,849,500
ABC Gifted to Kids - Nevada Trusts 2,000,000 2,031,582 2,234,740 2,458,214 2,704,035 2,839,237 3,623,666 5,902,570 11,130,175
Proceeds from ILIT 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
Total assets to heirs $ 49,298,504 $ 50,245,677 $ 54,452,334 $ 42,654,742 $ 46,178,408 $ 40,190,253 $ 47,436,141 $ 66,777,615 $ 106,195,674
Total Taxes 23,206,887 23,699,897 25,855,628 44,571,757 48,578,012 41,093,909 48,991,248 69,845,500 $ 111,633,831
Total Liquid Assets to Pay Taxes ** 13,526,000 13,977,670 14,597,966 15,237,546 15,896,969 69,128,737 80,442,863 111,356,092 $ 175,530,133
Liquidity Surplus/Shortfall (9,680,887) (9,722,227) (11,257,661) (29,334,210) (32,681,042) 28,034,828 31,451,615 41,510,592 $ 63,896,302
** Includes cash, securities, retirement plan funds and life insurance proceeds (ILIT and persoanlly owned policies)
Page 42

44. DETAILS OF ALLEN'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Allen's Qualified Plans
Allen's Age 58 59 60 61 62 67 77 90
Nancy's Age 53 54 55 56 57 62 72 85
Minimum distribution factor 38.7 37.8 36.8 35.8 34.9 30.2 21.2 11.4
Plan contributions 40,000 40,000 40,000 40,000 40,000 - - -
Plan balance 1,083,000 1,133,423 1,241,429 1,355,914 1,477,269 1,605,905 2,149,064 2,895,388 2,677,276
Minimum distribution - - - - - - 134,845 241,544
Preferred distribution - - - - - - - -
Actual distribution - - - - - - 134,845 241,544
Page 43

45. DETAILS OF NANCY'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Nancy's Qualified Plans
Nancy's Age 53 54 55 56 57 62 72 85
Allen's Age 58 59 60 61 62 67 77 90
Minimum distribution factor 43.6 42.6 41.6 40.7 39.7 34.9 25.6 14.8
Plan contributions - - - - - - - -
Plan balance 55,000 55,529 58,861 62,393 66,136 70,105 93,816 156,057 172,225
Minimum distribution - - - - - - 5,971 11,726
Preferred distribution - - - - - - - -
Actual distribution - - - - - - 5,971 11,726
Page 44

46. DETAILED FINANCIAL ANALYSIS
ALLEN AND NANCY WILSON
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 45

47. NET WORTH STATEMENT AFTER PLAN IMPLEMENTATION
ALLEN AND NANCY WILSON
ALLEN NANCY JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Cash/Checking 42,500 42,500 - 85,000 1.0% 0.0%
Cash Value of Life Insurance 280,000 - - 280,000 0.0% 0.0%
Total of Cash and Equivalents 322,500 42,500 - 365,000 0.2% 0.0%
MARKETABLE SECURITIES - EQUITIES
Account 1 1,500,000 1,500,000 - 3,000,000 2.0% 4.0%
Account 2 11,500 11,500 - 23,000 2.0% 5.0%
Total of Equities 1,511,500 1,511,500 - 3,023,000 2.0% 4.0%
Page 46

48. REVISED NET WORTH STATEMENT (Page 2)
ALLEN AND NANCY WILSON
ALLEN NANCY JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
LP 1 75,000 75,000 - 150,000 0.0% 5.0%
LP 2 15,000 15,000 - 30,000 0.0% 5.0%
LP 3 22,500 22,500 - 45,000 0.0% 5.0%
LP 4 10,000 10,000 - 20,000 0.0% 5.0%
Loans to Life Insurance Trusts** 177,000 177,000 - 354,000 0.0% 2.0%
Total of Other Investments 299,500 299,500 - 599,000 0.0% 3.2%
** Growth rate of 2% attached to account for any accrued interest on the promissory notes for insurance premiums.
RETIREMENT PLANS/IRAs
IRA 845,000 - 845,000 0.0% 6.0%
IRA 123,000 - 123,000 0.0% 6.0%
IRA 115,000 - 115,000 0.0% 6.0%
IRA - 55,000 55,000 0.0% 6.0%
Total Retirement Plans 1,083,000 55,000 1,138,000 0.0% 6.0%
INVESTMENT REAL ESTATE
Rental Home Property 1 750,000 750,000 - 1,500,000 -2.1% 3.0%
Rental Home Property 2 750,000 750,000 - 1,500,000 -2.1% 3.0%
Total of Real Estate Holdings 1,500,000 1,500,000 - 3,000,000 -2.1% 3.0%
Page 47

49. REVISED NET WORTH STATEMENT (Page 3)
ALLEN AND NANCY WILSON
ALLEN NANCY JOINT TOTAL YIELD GROWTH
RESIDENTIAL REAL ESTATE
123 Main St. 3,000,000 3,000,000 - 6,000,000 0.0% 3.0%
Vacation Home 1 1,000,000 - - 1,000,000 0.0% 3.0%
Vacation Home 2 750,000 750,000 - 1,500,000 0.0% 3.0%
Vacant Land 175,000 175,000 - 350,000 0.0% 3.0%
Vacation Home 3 157,500 157,500 - 315,000 0.0% 3.0%
Total of Personal Residences 5,082,500 4,082,500 - 9,165,000 0.0% 3.0%
PERSONAL PROPERTY
Autos 100,000 100,000 - 200,000 0.0% 0.0%
Total of Personal Property 100,000 100,000 - 200,000 0.0% 0.0%
OTHER STRATEGY ASSETS
GDOT Note 21,500,000 21,500,000 - 43,000,000 1.20%
QPRT Property - 800,000 - 800,000
Total of Other Strategy Assets 21,500,000 22,300,000 - 43,800,000 1.20%
TOTAL ASSETS 31,399,000 29,891,000 - 61,290,000
LIABILITIES
123 Main St. 1,750,000 1,750,000 - 3,500,000
Total Liabilities 1,750,000 1,750,000 - 3,500,000
COMMERCIAL LIABILITIES
Rental Home Property 1 550,000 550,000 - 1,100,000
Rental Home Property 2 600,000 600,000 - 1,200,000
Total Commercial Liabilities 1,150,000 1,150,000 - 2,300,000
TOTAL LIABILITIES 2,900,000 2,900,000 - 5,800,000
NET WORTH 28,499,000 26,991,000 - 55,490,000
Page 48

50. FINANCIAL ANALYSIS - PROPOSED PLA ASSET VALUE PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Asset Values
Cash and cash equivalents 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000
Marketable securities - Equities 3,023,000 3,423,718 3,932,677 4,454,239 4,988,564 12,773,190 16,761,650 22,905,872 22,568,131
Other investments 1 599,000 720,136 861,375 1,007,172 1,157,673 1,313,032 2,168,343 3,716,588 5,616,423
Closely held business 2 - - - - 10,131,848 - - - -
PV of future CRT Distributions in S Corp - - - - 18,500,000 17,821,630 12,460,544 3,866,905 -
Retirement plans/IRAs 1,138,000 1,188,953 1,300,290 1,418,307 1,543,406 1,676,010 2,242,879 3,051,445 2,849,500
Investment real estate 3,000,000 3,014,612 3,105,051 3,198,202 3,294,148 3,392,973 3,933,385 5,286,141 7,762,876
Personal residences 9,165,000 9,209,641 9,485,930 9,770,508 10,063,623 10,365,532 12,016,493 16,149,161 23,715,588
Residences in QPRTs 3 800,000 803,897 828,014 852,854 878,440 904,793 1,048,903 1,409,638 -
Personal property 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Note from children's GDOT 43,000,000 40,226,821 37,382,070 33,923,572 - - - - -
Total assets in estate 61,290,000 59,152,776 57,460,406 55,189,855 51,122,702 48,812,160 51,197,197 56,950,750 63,077,519
Less estimated liabilities (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000)
Combined net worth $ 55,490,000 $ 53,352,776 $ 51,660,406 $ 49,389,855 $ 45,322,702 $ 43,012,160 $ 45,397,197 $ 51,150,750 $ 57,277,519
1
Increased by new promissory notes for annual premiums currently being paid on the ILIT policies.
2
GDOT note is paid off in 2014 with ABC interests. It is then assumed that $20M of those interests are contributed to a Charitable Remainder Trust.
3
Residence in QPRTs are outside of the taxable estate at the end of the trust term in 2043.
In the event that there is a cash flow surplus, the surplus is added to the marketable securities 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 marketable securities.
Page 49

51. TAXABLE INCOME PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Sources of Taxable Income
Cash and cash equivalents 850 850 850 850 850 850 850 850
Marketable securities - Equities 60,460 68,474 78,654 89,085 99,771 320,913 447,418 461,907
Capital Gains from sale of ABC 1 - - - - 7,348,634 - - -
Retirement plans/IRAs - - - - - - 140,816 253,270
Investment real estate (64,000) (64,000) (64,000) (64,000) (64,000) (64,000) (64,000) (64,000)
Other taxable earnings - GDOT 2 5,500,000 5,586,849 6,145,534 6,760,088 - - - -
3
CRT Income distributed from S Corp - - - - - 1,802,585 1,065,381 -
Client earned income 210,000 210,000 214,200 218,484 222,854 - - - -
Spouse earned income 81,600 83,232 84,897 86,595 88,326 - - -
Social security income - - - - - - 27,613 31,426
Gross income $ 5,788,910 $ 5,889,606 $ 6,464,419 $ 7,095,471 $ 7,473,582 $ 2,060,347 $ 1,618,078 $ 683,453
1
Assumes the sale of all ABC interests in 2015. The capital gains taxes reflected are on the remaining interests owned personally by Allen & Nancy.
2
GDOT note is paid off in 2014 with ABC interests and grantor status is revoked. Trust begins paying income taxes in 2015.
3
CRT is funded prior to ABC sale with business interests. CRT begins making annual payments for 20 years in 2016.
Page 50

52. INCOME TAX PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Income Tax Estimation
Adjusted gross income:
Dividend income (Marketable Sec.) 60,460 68,474 78,654 89,085 99,771 320,913 447,418 461,907
Capital Gains income - - - - 7,348,634 - - -
Earned and other income 5,728,450 5,821,131 6,385,765 7,006,386 25,176 1,739,435 1,170,660 221,546
Adjusted gross income 5,788,910 5,889,606 6,464,419 7,095,471 7,473,582 2,060,347 1,618,078 683,453
Deductions
Real Estate Tax 34,624 35,663 36,733 37,835 38,970 45,176 60,713 89,160
State income taxes 549,946 559,513 614,120 674,070 709,990 195,733 153,717 64,928
Interest 90,321 93,031 95,822 98,696 101,657 117,848 158,378 232,584
Cash charitable gifts 24,152 24,877 25,623 26,392 27,183 31,513 42,351 62,193
Charitable Remainder Trust 1 - - - - 2,000,400 - - -
Charitable Deduction available 24,152 24,877 25,623 26,392 2,027,583 31,513 42,351 62,193
Charitable Deduction allowed 24,152 24,877 25,623 26,392 2,027,583 31,513 42,351 62,193
Deduction carried over - - - - - - - -
Total deductions 699,043 713,082 772,297 836,992 2,878,200 390,271 415,160 448,865
Reductions - - (188,929) (207,860) (219,203) (56,806) (43,538) (15,500)
Deductions allowed 699,043 713,082 583,368 629,132 2,658,997 333,464 371,622 433,366
Taxable income 5,089,867 5,176,523 5,881,050 6,466,339 4,814,585 1,726,883 1,246,456 250,088
Federal and State income tax $ 2,289,179 $ 2,327,472 $ 2,907,083 $ 3,198,807 $ 1,667,147 $ 843,646 $ 611,381 $ 132,676
1
One time deduction in 2015 for contribution of $20M in ABC interests to the Charitable Remainder Trust.
Page 51

53. CASH FLOW PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Sources of Income for Lifestyle
Consumable income (taxable) 288,910 302,756 318,884 335,383 7,473,582 2,060,347 1,618,078 683,453
1
Return of basis from ABC Sale - - - - 2,783,214 - - -
Non-taxable Social Security Income - - - - - - 4,873 5,546
Distribution from Marketable Securities - - - - - - 361,541 1,452,813
2
Note Payment from GDOT 3,289,179 3,327,472 3,907,083 4,198,807 - - - -
Total income available for lifestyle 3,578,089 3,630,229 4,225,967 4,534,190 10,256,796 2,060,347 1,984,491 2,141,812
Uses of Cash
Living expenses 750,000 772,500 795,675 819,545 844,132 978,580 1,315,130 1,931,312
Income tax 2,289,179 2,327,472 2,907,083 3,198,807 1,667,147 843,646 611,381 132,676
Personally held insurance premiums 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Cash gifts/loans to ILIT 3 123,630 123,630 123,630 123,630 123,630 123,630 5,630 5,630
Cash gifts to charity 24,152 24,877 25,623 26,392 27,183 31,513 42,351 62,193
Total uses of cash 3,196,961 3,258,479 3,862,011 4,178,374 2,672,092 1,987,369 1,984,491 2,141,812
Surplus $ 381,128 $ 371,750 $ 363,956 $ 355,816 $ 7,584,704 $ 72,979 $ - $ -
1
Reflects only the return of basis on the ABC interests still held by Allen & Nancy personally.
2
Total payment reflects an assumption that ABC distributes an amount sufficient to pay income tax plus an additional $1M of excess cash.
3
We assume that loans are made annually to pay premiums on ILIT policices, we also assume that enough premiums are paid by 2025 to keep the policies in-force and premiums cease.
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row on the "Asset Value Projections" 3 pages earlier.
Page 52

54. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2015 2020 2030 2043
Tax calculation on Allen's death
Combined Net Worth 55,490,000 53,352,776 51,660,406 49,389,855 45,322,702 43,012,160 45,397,197 51,150,750 57,277,519
Allen's estimated estate 28,499,000 27,401,348 26,532,166 25,366,038 23,277,198 22,090,531 23,315,457 26,270,413 29,417,048
Death benefit exceeding CV 4,720,000 4,720,000 4,720,000 4,720,000 1,720,000 1,720,000 1,720,000 1,720,000 1,720,000
Total gross estate 33,219,000 32,121,348 31,252,166 30,086,038 24,997,198 23,810,531 25,035,457 27,990,413 31,137,048
Settlement expenses (191,095) (185,607) (181,261) (175,430) (149,986) (144,053) (150,177) (164,952) (180,685)
Joint, personal and IRA to Nancy (1,183,000) (1,231,490) (1,337,446) (1,449,760) (1,568,812) (1,695,008) (2,234,480) (3,003,968) (2,811,783)
Insurance passing to Nancy (5,000,000) (5,000,000) (5,000,000) (5,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000)
Outright or in trust to Nancy (26,844,905) (25,704,251) (24,733,459) (23,460,848) (21,278,399) (19,971,470) (20,650,800) (22,821,494) (26,144,580)
Plus Allen's lifetime taxable gifts 8,495,772 8,495,772 8,495,772 8,495,772 8,495,772 8,495,772 8,495,772 8,495,772 8,495,772
Tax base 8,495,772 8,495,772 8,495,772 8,495,772 8,495,772 8,495,772 8,495,772 8,495,772 8,495,772
Tentative Federal Estate Tax - - - - - - - - -
Distribution of First Estate
Settlement expenses 191,095 185,607 181,261 175,430 149,986 144,053 150,177 164,952 180,685
Joint, personal and IRA to Nancy 1,183,000 1,231,490 1,337,446 1,449,760 1,568,812 1,695,008 2,234,480 3,003,968 2,811,783
Insurance passing to Nancy 5,000,000 5,000,000 5,000,000 5,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Outright or in trust to Nancy 26,844,905 25,704,251 24,733,459 23,460,848 21,278,399 19,971,470 20,650,800 22,821,494 26,144,580
Total $ 33,219,000 $ 32,121,348 $ 31,252,166 $ 30,086,038 $ 24,997,198 $ 23,810,531 $ 25,035,457 $ 27,990,413 $ 31,137,048
Assumptions
We assume that Allen dies first, followed immediately by Nancy.
Taxes under "Distribution of First Estate" include estate and income taxes, if any.
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