This website uses cookies to ensure you have the best experience. Learn more

Case Study In Will, Trust And Estate Planning

3981 words - 16 pages

Thinking about updating your estate plan? Whether due to the birth of a child, the death of a friend, reaching retirement, the sale of your business, reaching a certain age, or hitting the lottery, whatever the reason, most people eventually decide to see a lawyer about preparing a Will or updating their old one. By considering the particularities of a family's circumstances, the amount of wealth involved, and the desire to achieve estate tax savings and/or protection from creditors, what may start out in the client's mind as "updating my will" should result in the formulation of a comprehensive estate plan. This article will discuss the legal ...view middle of the document...

The Internal Revenue Service will not impose an estate tax on estates at or below $600,000 (sometimes called the "credit shelter amount" or the "exemption equivalent"). Because the estate tax imposed by a sponge tax state is equal to the "state death tax credit" allowed against the federal estate tax (zero in this case), no state estate taxes will be imposed. Accordingly, the Murphy's estate plan can be formulated without the need for estate tax planning at this point in their lives. As their net worth grows, however, so will the need to reconsider their estate plan in the future.
The plan recommended for the Murphy's will consist of nine documents:
Reciprocal Wills (2)
Family Trust
Durable Powers of Attorney (2)
Living Wills (2)
Health Care Proxies / Health Care Durable Powers. (2)
Reciprocal Wills. While it may be possible to plan the Murphy's estates to avoid probate, Reciprocal (simple) Wills are still necessary to direct the disposition of assets for which probate is required, nominate guardians for minor children, and to name executors to administer the estate. Without Wills, the Murphy's property would pass according to the laws of intestacy and, in most states, would divide the family property between the surviving spouse and children, not what the Murphy's had in mind. The Murphy's should continue to have simple Wills which bequeath all property to the surviving spouse. However, under their new Wills, if there was no surviving spouse (i.e., if one spouse was already deceased), property would instead pass to a Family Trust to be held for the children.
Family Trust. The purpose of the Family Trust is to hold and administer the family's assets for the benefit of the children in the event both spouses died prior to their children reaching a predetermined age. For this reason, this trust is sometimes referred to as a "stand by" trust. Selecting the age for distribution to children requires careful consideration by parents. When the question is put to many parents, age 21 is a common first response. Upon reflection, however, the prospect of a 21-year old son or daughter gaining unrestricted access to one-half of a $585,000 estate (in the Murphy's example) would cause most parents to reconsider. The Murphy's decided that their children would receive one-half of their share of the trust at age 30 and the remainder at age 35. Until these ages, income and principal of the trust would be distributable to the children in the discretion of the trustee(s). The Murphy's must also decide if the trustee's discretion will be absolute or subject to a predetermined standard (e.g., "health, education and support").
In the event that one of the Murphy children predeceased them, his share would be allocated to the surviving child. If a child predeceased them leaving children of his own (the Murphy's grandchildren), the Family Trust would hold such deceased child's share for the health, education and support of these grandchildren until they reached...

Other Papers Like Case Study in Will, Trust and Estate Planning

Case Study Analysis 2 of Coach K: a Matter of the Heart and Coach Knight: the Will to Win

721 words - 3 pages Case Study Analysis 2 of Coach K: A Matter of the heart and Coach Knight: The will to win Valencia Carter Grand Canyon University Coach K and Coach Knight both achieved significant success during their college coaching careers. Both coaches possessed the knowledge, skills, and abilities to lead their teams to numerous victories. However, their approaches to this success were very different. Robert Katz and M.D. Mumford identified three

Security, Confidentiality And International Issues In Real Estate

2733 words - 11 pages agent. Agents are independent contractors so they pay for all legal fees in case of a law suit unless the broker will cover the cost or has an insurance policy to cover this type of situation. Legal issues which real estate companies face the most are civil lawsuits from unsatisfied clients.Re/Max, Coldwell Banker and Century 21, like other real estate company, encourage their agents to disclose all pertinent and non pertinent information to the

P1 – Identify How Two Organisations Plan Recruitment Using Internal and External Sources. in This Assignment I Will Be Investigating Recruitment Planning in Two Big Organisation

3179 words - 13 pages Recruitment and selection in business P1 – Identify how two organisations plan recruitment using internal and external sources. In this assignment I will be investigating recruitment planning in two big organisation. House of Fraser (HOF) House of Fraser is a British, national organisation within the competitive retail industry. The company sells a variety of products under 5 main departments

Case Study Google In China

666 words - 3 pages "Google in China" Case Study PAGE \* MERGEFORMAT 1 University of PhoenixGoogle in China Case StudyFor this week's paper I chose the "Google in China" case to study because Asia will soon become the largest area in the world with the highest internet population. China is currently experiencing a rapid economic growth and for people in business, internet and technology, China represents an opportunity to invest without precedents. In this paper

In N Out Case Study

793 words - 4 pages Case Study In-N-Out Burger 1. Why do some business analysts say that In-N-Out's business model is "counter intuitive"? In-N-Out’s business model is considered to be counter intuitive as it is opposite to the commonly found business model in the fast-food industry. Firstly, all the stores are privately owned by the promoter family only unlike other chains which use franchise based model to expand their business. Such conservative and slow

Business and Economics Case Study

944 words - 4 pages Name Instructor Course Date Case Study In the case study provided, Westport Electric Company seems to be having serious budgetary problems. The selection, planning and implementation of various projects seem to be faulty. In this particular case, King who is the supervisor of the administrative staff budget staff section has raised a red alarm with regard to two recent budget approvals (Kieso 161). Background Information: Origin and

China and India Case Study

2117 words - 9 pages the two countries contributed about half of world income (measured in 1990 prices), in 1950 they contributed less than 10 per cent (the preceding century in the case of China and nearly two centuries in the case of India included rather unpleasant encounters with the international powers), and the very rough projection is that in 2025 the two countries will contribute about one-third of world income (China much more than India). In the 1870’s

Recruitment and Selection Case Study

1769 words - 8 pages Recruitment and Selection at Enterprise Rent-a-car Case Study Introduction Enterprise Rent-A-Car (Enterprise) was founded by Jack Taylor in 1957 in the basement of a car dealership in St Louis in the USA. The business began with only seven cars. Today, Enterprise is the largest car rental business in North America with more than 7,000 offices in the USA and more than 900 in Canada, Puerto Rico, the UK, Germany and Ireland. In 2007, Enterprise

Change and Culture Case Study

2175 words - 9 pages Change and Culture Case Study II Cassandra Foster HCS/514: Managing In Today’s Health Care Organization University Of Phoenix Renee Sharp July 25, 2011 Change and Culture Case Study II The organizational literature provides two major concepts that aid in comprehending the job restructuring process. The two concepts are job design and system redesign respectively. The job design deals with the

Eric and Kipsy Case Study

2321 words - 10 pages Table of contents 1. Introduction:- 3 2. Problems:- 3 2.1 To begin with identifying some of the problems occurred in the case study 3 2.2 Unsatisfied customers:- 4 2.3 Absenteeism:- 4 2.4 Applying the theory of Motivation: 4 2.5 Self-actualization needs 5 3. Motivational factors 5 3.1 Interest 6 3.2 Achievement 6 3.3 Recognition 6 3.4 Social contact 6 3.5 Money and tangibly rewards 6 3.6 The other six points below are not

Motivation and Teams Case Study

539 words - 3 pages . The expectancy theory argues that the motivation of employees depends upon whether or not they believe that performing at a high level will lead to the rewards they desire. Sheets’s approach to creating high-performing teams within the company was with rewards and proper training. In the second case study, Siemens’s New Boss, Klaus Kleinfeld used the expectancy theory to quickly climb up the corporate ladder at Siemens. Kleinfeld found

Related Essays

Kagiso Trust Case Study

1242 words - 5 pages 1. INTRODUCTION a) The Business and Sectors the Company Operates in. Kagiso Trust was established in May 1985 when funded from the European Union & rescue’s Special Programme for Support of Victims of Apartheid. It grew from a small unit to a national operation and from 1985 to 1994 the Kagiso Trust had a readily accessible source of donor funding, mainly from the European Union. Though it was difficult to access these funds post 1994, In

Case Study: Trust Issues Glaxo Smith

925 words - 4 pages deceive and defraud physicians, patients, regulators, and federal health care programs such as Medicare to prescribe and receive payment for drugs such as Paxil, Wellbutrin SR, and Advair. When we are children we are taught that doctors and nurses are supposed to make us feel better. They are the ones that make all the “boo boo’s” go away. But, what happens when someone puts their trust in a doctor, nurse, or medical professional and that trust is

Study On Trust Evaluation Algorithms Of Domains In Grid Environment

2222 words - 9 pages is completely unreliable, 1 represents the resource entity is fully trusted. Definition 5: The minimum acceptable trust in an industry is called ε, and ε∈[0,1]. ε = 0 indicates that the resource is willing to accept any resources to provide services, and ε = 1 indicates that the resource will only accept the resources which are fully trusted. 2.2 Description of the trust relationships in domain structure The two-layer domain structure mainly

Honesty, Integrity And Trust In Leadership

2327 words - 10 pages Honesty, Integrity and Trust in Leadership December 08, 2008   Recently upper management of the Indiana University Information Technology Services Department (UITS), Finance Office Staff called a departmental meeting to discuss the results of an employee job satisfaction survey the was taken approximately nine months earlier by the employees of UITS. We had received hints, from our manager, during our last workgroup meeting that