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CHASE AND JANET FISHER 169

ESTATE PLANNING  MINI CASE

MINI CASE 8

INTRODUCTORY DATA Chase Fisher (age 54) is a small business owner. He and his wife, Janet, (age 53) have the following assets:

The Fishers have determined that because of the uncertainty of Congress, they would like to freeze assets at $5.34 million x 2 = $10,680,000 and are concerned that lifetime estate and gift exemptions will be lowered.

The Fishers have three children (ages 34, 32, and 30) and nine grandchildren, 3 from each child varying in ages from 1 to 6 years old. The children are educated, healthy, happily married and are of moderate economic means.

The Fishers have done no estate planning and do not have any estate planning documents.

FINANCIAL GOALS Their primary goal, for this example, is to prepare a basic, but adequate estate plan. Their other goals and concerns are as follows:

• Retire at age 63 and maintain control of the company until retirement. • Protect assets from future creditors. • Avoid probate. • Stretch retirement distributions.

CHASE AND JANET FISHER

His Hers Cash and Cash Equivalents $500,000 Cash and Cash Equivalents $200,000 Residence $2,000,000 Retirement Plans $1,000,000 Brokerage Account $2,500,000 Brokerage Account $1,000,000 Life Insurance (death benefit) $4,000,000 Family Farm $3,000,000 Retirement Account $2,000,000 Miscellaneous Assets $1,000,000 Business (90% Value) $2,250,000 Business 10% Value $250,000 Total $13,250,000 Total $6,450,000

170 ESTATE PLANNING MINI CASE

• Minimize estate tax. • Avoid costly involvement of courts. • Provide for the education of all grandchildren. • Benefit children. • Freeze their estate at $10.68 million.

ASSETS • The residence is titled fee simple. • One brokerage account is in his name only. The other is in her name only. • The life insurance is owned by Chase and is a permanent policy with a cash value of zero. He just pur-

chased the policy and the beneficiary is his estate. • His retirement account (IRA) has no named beneficiary. • His business is an LLC and he is the manager, member with a 90% interest. Janet has a 10% interest. • Chase is the named beneficiary for Janet’s retirement plan. • The family farm is owned fee simple by Janet. • Her miscellaneous assets include art valued at $150,000.

CHASE AND JANET FISHER 171

172 ESTATE PLANNING MINI CASE