Jeff is 75 and Theresa is 72. Jeff recently retired from an executive position in a public company. As a result of his retirement he exercised over $45M in stock options and has 5 more years of deferred compensation payments. Jeff has also sold his 50% interest in his Corporation and the note payments are providing significant income for the next 9 years. Jeff and Theresa have annual living expense desires of $725,000, with the available income to more than meet this need. Jeff’s deferred compensation payments average more than $2M/yr. for the next 5 years; his annual pension payments are $660k/yr. (inflating); and he also has note payments totaling $360k/yr. for the next 9 years from the buyout of his Corporation interests. These sources of income are in addition to an investment portfolio that generates more than $1.7M/yr. in income and various oil/gas ventures that generate over $100k/yr. in income. With annual income totaling over $5M/yr. for the family, they have the luxury of accumulating a very significant cash flow surplus each year. Learn more at www.inknowvision.com

1. InKnowVision’s Monthly
HNW Webinar Series
Case Study Webinar
©2012. InKnowVision LLC. All rights reserved. www.inknowvision.com

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

3. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
JEFF AND THERESA ANDERSON
The highlighted tools are those we have determined are most suited to achieving your goals and objectives.
Charitable
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 Corporate
Premium Finance Defective Inheritor's 529 Plans Gifting ILIT
partnership Recapitalization
Trust (BDIT)
Anderson Family Annuity
Walton GRAT Charitable Life Estate NIMCRUT Asset Protection SPIA/Life Arbitrage
Foundation Withdrawal
Charitable Bequest Revocable Living
International
SPIA/Life in a CLAT of $10M to Family Trusts, DPAs and Crummey Powers Dynasty Trust GDOT
VUL
Foundation 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 Risk Management 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 2

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

5. PERSONAL LIVING EXPENSES vs. AVAILABLE CASH FLOW
JEFF AND THERESA ANDERSON
$6,000,000
$5,000,000
Deferred Comp payments
end in 2016
$4,000,000
$3,000,000 -
$2,000,000
$1,000,000
$-
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Proposed Living Expenses Proposed Annual Cash Flow
Illustration compares your living expenses under the proposed plan as against your annual cash flow available.
Page 4

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

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

8. COMPARISON OF PLAN RESULTS - PLAN YEAR 2012
JEFF AND THERESA ANDERSON
Existing Plan Proposed Plan Advantage
Estate Value $ 97,373,504 $ 81,325,584
Total Benefits to Family $ 62,325,076 $ 114,627,062 $ 52,301,985
Family Charity $ 15,687,087 $ 15,687,087 $ -
Estate and Income Tax $ 28,277,506 $ 24,998,429 $ 3,279,076
This chart assumes that you both die this year and compares the results of the current plan with the proposed plan.
Page 7

9. COMPARISON OF PLAN RESULTS - PLAN YEAR 2031
JEFF AND THERESA ANDERSON
Existing Plan Proposed Plan Advantage
Estate Value $ 233,163,934 $ 132,306,482
Total Benefits to Family $ 105,490,474 $ 171,375,204 $ 65,884,730
Family Charity $ 19,816,617 $ 19,816,617 $ -
Estate and Income Tax $ 122,087,556 $ 67,334,516 $ 54,753,039
Present Value of total to Heirs $60,159,743 $97,732,884
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
JEFF AND THERESA ANDERSON
$180,000,000
$160,000,000
$140,000,000
$120,000,000
-
$100,000,000
$80,000,000
$60,000,000
$40,000,000
nt
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ur
C
Current Plan Proposed Plan
This chart compares the amount of your assets that will pass to heirs after estate taxes and costs of implementation in the current plan as against the
proposed plan.
Page 9

11. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
JEFF AND THERESA ANDERSON
The following section of the plan contains a step by step roadmap for each of the strategies that we are recommending.
You will notice that the strategies are often interdependent; that is, in order for one strategy to be successful, you must
complete another strategy as well. It is the integration of each of these strategies that allows you to most efficiently
accomplish your goals.
Also keep in mind that there is often more than one way to get from point A to point B. This is true in wealth transfer
planning. If a particular strategy or combination of strategies is not acceptable to you, we may be able to reach the desired
result in a less efficient but perhaps more acceptable way.
The following pages are a conceptual road map only, there are numerous details contained in each strategy that are not
detailed in the overall plan that follows.
Page 10

12. CREATE AND FUND A FAMILY LIMITED PARTNERSHIP
JEFF AND THERESA ANDERSON
Jeff and Theresa create a limited partnership and a management LLC. They receive limited partnership
shares and LLC receives GP shares. The new entity is organized to develop new investments, protect family
members, streamline business succession planning, create a gifting mechanism and provide centralized
management of investments.
JEFF & THERESA FAMILY LIMITED PARTNERSHIP
LP & LLC interests are split between Jeff &
Theresa
LLC GP SHARES LP SHARES
1% 99%
Page 11

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

14. HAVE THE LIMITED PARTNERSHIP SHARES APPRAISED
JEFF AND THERESA ANDERSON
Jeff and Theresa hire an appraiser to value the limited partnership shares that they own. The appraiser will value the shares taking all
of the following into account:
▪ Liquidity of the shares
▪ Transferability of the shares
▪ Degree of control that accompanies ownership of the shares
▪ The assets owned by the partnership
JEFF & THERESA Appraisal FAMILY LIMITED PARTNERSHIP
Valuation adjustment
Appraised value of LP shares is $30,098,160 assumed to be 20% Inside value of assets is $37,622,700
The appraisal value of the LP units is assumed for illustration purposes only.
Note: Business appraisal is not an exact science. The IRS does not like valuation adjustments.
A well regarded appraiser should be retained to value the interests being sold.
Page 13

15. BUSINESS PURPOSE
JEFF AND THERESA ANDERSON
The Family entity must have a legitimate business purpose for being organized and these purposes should be well documented. Legitimate business purposes examples are as
follows:
a. To Make a Profit – The primary reason for creating this Entity is to make a profit.
b. To Increase Wealth – This Entity will provide an effective legal vehicle to increase the wealth of the Members and their families.
c. To Provide Centralized Management of Investments – This Entity is designed to hold investment assets and allow for centralized management of those assets.
d. To Manage and Develop Real Estate – This Entity will provide the legal vehicle to effectively manage and/or develop any real estate owned or acquired by the Company.
e. To Avoid Two Layers of Taxation on Profits – This Entity provides flexibility in business planning not available to the Members through trusts, corporations, or other business
entities.
f. To Make Gifts Without Fractionalizing Assets – This Entity establishes a method by which annual gifts may be made without fractionalizing family assets.
g. To Make Gifts Without Causing a Loss of Incentive – This Entity provides a method of ownership which allows gifts to be made to children and other beneficiaries without
causing a loss of productivity or the incentive to strive to do well.
h. To Control Cash Flow to Members – This Entity provides a structure by which the Manager can control the assets and the cash flow to Members to achieve the legitimate
purposes of the Company.
i. To Provide a Buy-Sell Arrangement – This Entity provides an orderly buy-sell arrangement between the members of the families that own membership interests to keep the
ownership of Company assets in those families.
j. To Resolve Disputes Privately – This Entity provides for mediation and binding arbitration in disputes by Members that is intended to prevent expensive and embarrassing
public litigation of private family business matters.
k. To Require the Losers of Disputes to Pay the Dispute Costs – This Entity requires the loser in any dispute to pay for the costs of the dispute.
l. To Restrict the Right of Non-Members to Acquire Interests – This Entity restricts the right of non-Members to acquire interests in Company assets.
m. To Prevent Transfers of Membership Interests Because of Failed Marriages – This Entity prevents the transfer of a family member’s interest in the Company because of a failed
marriage.
n. To Prevent Commingling of the Assets of Gift Recipients – This Entity creates a method of ownership that will prevent gifts made to family members from being commingled
with assets owned by others.
o. To Make it Difficult to Withdraw – The restrictions in this Operating Agreement make it difficult for any of the parties to withdraw from the Company once they become a
Member.
p. To Protect Members from the Company’s Creditor Claims – This Entity limits the liability of Members from the Company’s creditors and further limits the liability of Members
holding particular Series of the Company from liability associated with other Series of the Company.
q. To Provide Asset Protection for Members – This Entity protects the family resource base from the claims of future creditors of Members.
The entity may conduct any lawful business and investment activity permitted under the laws of the State and/or country of organization in which it may have a business or
investment interest.
The entity may own, acquire, manage, develop, operate, sell, exchange, finance, refinance, lease and otherwise deal with real estate, personal property and any type of business
as the Manager may from time to time deem to be in the best interest of the entity.
The entity may engage in any other activities that are related or incidental to the foregoing purposes.
Page 14

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

17. GIFT TO GRANTOR DEEMED OWNER TRUST
JEFF AND THERESA ANDERSON
Jeff and Theresa each make a gift of $3,250,000 in cash/securities to their individual GDOT. This gift is designed to give each trust
economic substance and maximize their available lifetime exemption.
JEFF JEFF's GDOT
$3,250,000
THERESA $3,250,000 THERESA's GDOT
Note: After 2012, the exemption may be reduced back down to $1M. This locks in the use of the $5M exemption.
Page 16

18. SELL PARTNERSHIP SHARES TO EACH GDOT
JEFF AND THERESA ANDERSON
Jeff and Theresa sell their limited partnership shares to their individual GDOTs for an installment note.
Sell their combined limited
partnership shares worth
JEFF & THERESA $30,098,160 GDOTs
Jeff and Theresa own an installment note The GDOTs own LP shares worth
after the sale Installment note with a $30,098,160 after the sale
value of $30,098,160 that
provides annual payments
of $791,582
The sale price is based on the assumed value of the assets
sold.
HEIRS
Receive assets in the future according to
*Note payments are assumed to be interest only at Jan.
terms of the trust
2012 long term AFR of 2.63%.
** The note can be re-financed or paid off during the term of the note.
Page 17

19. PURCHASE LIFE INSURANCE IN THE GDOT
JEFF AND THERESA ANDERSON
The GDOT Trustees purchase second-to-die life insurance with the assets of the two GDOTs.
Premium in the amount of
$1,175,000 is scheduled to be
GDOTs paid for all years with assets of LIFE INSURANCE
the GDOTs.
Own Life Insurance $50,000,000
Policy Benefits:
- Used as wealth replacement, it can allow increased charitable giving that reduces or eliminates
estate taxes but ensures a significant inheritance for your heirs
- Policy has a good tax-free return on investment (see IRR page)
- Increased inheritance in trust for heirs
- Over time, annual premiums paid into this vehicle (which is income and estate tax free) will
reduce the income taxes from other investment assets subject to income taxes
The premium is based on certain assumptions. This is for illustration purposes only. Actual insurance numbers can only be
determined by applying for insurance.
Page 18

20. INTERNAL RATE OF RETURN ON LIFE INSURANCE
JEFF AND THERESA ANDERSON
JEFF'S AGE THERESA'S AGE YEAR PREMIUM DEATH BENEFIT IRR
75 72 2012 1,175,000 50,000,000 4155.32%
76 73 2013 1,175,000 50,000,000 504.24%
77 74 2014 1,175,000 50,000,000 210.14%
78 75 2015 1,175,000 50,000,000 122.27%
79 76 2016 1,175,000 50,000,000 82.48%
80 77 2017 1,175,000 50,000,000 60.39%
81 78 2018 1,175,000 50,000,000 46.55%
82 79 2019 1,175,000 50,000,000 37.16%
83 80 2020 1,175,000 50,000,000 30.44%
84 81 2021 1,175,000 50,000,000 25.41%
85 82 2022 1,175,000 50,000,000 21.52%
86 83 2023 1,175,000 50,000,000 18.45%
87 84 2024 1,175,000 50,000,000 15.96%
88 85 2025 1,175,000 50,000,000 13.92%
89 86 2026 1,175,000 50,000,000 12.21%
90 87 2027 1,175,000 50,000,000 10.77%
91 88 2028 1,175,000 50,000,000 9.54%
92 89 2029 1,175,000 50,000,000 8.48%
93 90 2030 1,175,000 50,000,000 7.55%
94 91 2031 1,175,000 50,000,000 6.74%
95 92 2032 1,175,000 50,000,000 6.03%
96 93 2033 1,175,000 50,000,000 5.40%
97 94 2034 1,175,000 50,000,000 4.84%
98 95 2035 1,175,000 50,000,000 4.33%
Page 19

21. COMPARISON OF POTENTIAL PLAN RESULTS - PLAN YEAR 2022
JEFF AND THERESA ANDERSON
Existing Plan Proposed Plan A Proposed Plan B ** Proposed Plan C**
Heirs Receive Immediately $ 69,439,755 $ 129,450,502 $ 107,056,032 $ 86,844,710
Deferred Inheritance** $ - $ - $ 14,878,130 $ 29,756,259
Total Benefits to Family $ 69,439,755 $ 129,450,502 $ 121,934,162 $ 116,600,969
Family Charity $ 17,571,894 $ 17,571,894 $ 67,337,383 $ 112,705,210
Estate and Income Tax $ 78,617,525 $ 52,527,524 $ 25,156,505 $ -
** Plans B & C use charitable techniques at death that decrease estate taxes and could provide a deferred inheritance.
This chart assumes that you both die in 2022 and compares the results of the current plan with the proposed plan(s).
Page 20

22. DETAILED FINANCIAL ANALYSIS
JEFF AND THERESA ANDERSON
INTRODUCTION
The following section of the plan contains all of the financial analysis used to show you where you
stand with your current plan and what is possible with the proposed plan.
All of the numbers are based on information provided by you or gleaned from statements and tax
returns. If numbers do not look correct, please let us know so that we can make appropriate
changes.
Assumed growth and yield numbers are all listed on the Net Worth pages contained in these sections.
Page 21

23. DETAILED FINANCIAL ANALYSIS
JEFF AND THERESA ANDERSON
CURRENT PLAN FINANCIALS
In the Current Plan Section you will find a Net Worth Statement and a detailed cash flow and asset
value projection analysis.
Page 22

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

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

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

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

28. FINANCIAL ANALYSIS - EXISTING PLAN ASSET VALUE PROJECTIONS - EXISTING PLAN
613,500 613,500 644,175 676,384 710,203 906,419 1,156,846
2,000,000 2,036,572 2,077,303 2,118,849 2,161,226 2,386,169 2,634,523
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Asset Values
Cash and cash equivalents 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000
Investment Assets 63,183,243 68,296,961 73,403,462 78,890,220 84,786,054 113,416,288 147,976,189 204,188,541
Other investments 10,619,000 10,458,650 10,313,723 10,165,815 10,014,866 9,212,261 10,199,235 11,524,160
Employee Benefits 613,500 613,500 644,175 676,384 710,203 906,419 1,156,846 1,550,284
Retirement plans/IRAs 4,634,400 4,643,737 4,664,970 4,678,304 4,681,904 4,541,768 4,079,678 3,077,245
Personal residences 1 9,840,000 9,932,656 10,034,910 10,138,216 10,242,587 8,394,608 8,835,697 9,395,704
Personal property 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Total assets in estate 92,318,143 97,373,504 102,489,239 107,976,939 113,863,613 139,899,343 175,675,646 233,163,934
Combined net worth $ 92,318,143 $ 97,373,504 $ 102,489,239 $ 107,976,939 $ 113,863,613 $ 139,899,343 $ 175,675,646 $ 233,163,934
1
Assumes the 2nd residence was put in a 15 yr. QPRT in 2004. Beginning in 2020, the residence is outside of Jeff & Theresa's estate.
In the event that there is a cash flow surplus, the surplus is added to the investment assets row by default.
If there is a cash flow shortage (because of spending or gifting capital) then the shortage is treated as a reduction in investment assets.
Page 27

29. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Sources of taxable income
Investment Assets 1,741,935 1,882,918 2,023,702 2,174,970 2,960,192 3,867,496 5,334,455
Other investments 120,000 120,000 120,000 120,000 120,000 120,000 120,000
Retirement plans/IRAs 202,260 210,954 219,915 230,315 281,618 330,440 359,295
1
Deferred Compensation 1,989,119 2,128,357 2,277,342 2,436,756 - - -
2
Corp Buyout 360,000 360,000 360,000 360,000 360,000 - -
Social security income 35,431 35,431 35,431 35,431 35,431 35,431 35,431
Pension income 660,000 669,900 679,949 690,148 743,485 800,945 875,787
Gross income $ 5,108,745 $ 5,407,559 $ 5,716,338 $ 6,047,619 $ 4,500,726 $ 5,154,312 $ 6,724,967
1
Deferred compensation payments are made until 2016.
2
$30,000/month payments over the next 9 years.
Page 28

30. INCOME TAX PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Income tax Estimation
Adjusted gross income:
Dividend income (marketable sec.) 1,741,935 1,882,918 2,023,702 2,174,970 2,960,192 3,867,496 5,334,455
Earned and other income 3,366,810 3,524,641 3,692,636 3,872,649 1,540,533 1,286,815 1,390,513
Adjusted gross income 5,108,745 5,407,559 5,716,338 6,047,619 4,500,726 5,154,312 6,724,967
Deductions
Real estate tax 92,000 92,000 93,840 95,717 97,631 107,793 119,012 134,027
Charitable gifts to Family Foundation 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Charitable Deduction available 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Charitable Deduction allowed 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total deductions 102,000 103,840 105,717 107,631 117,793 129,012 144,027
Reductions - (83,072) (84,573) (86,105) (94,234) (103,209) (115,221)
Deductions allowed 102,000 20,768 21,143 21,526 23,559 25,802 28,805
Taxable income 5,006,745 5,386,791 5,695,195 6,026,093 4,477,167 5,128,509 6,696,162
Federal income tax $ 1,373,113 $ 2,096,364 $ 2,218,491 $ 2,349,527 $ 1,736,153 $ 1,994,084 $ 2,614,875
Page 29

31. CASH FLOW PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Sources of income for Lifestyle
Non-taxable Social Security Income 6,252 6,252 6,252 6,252 6,252 6,252 6,252
Consumable income (taxable) 5,108,745 5,407,559 5,716,338 6,047,619 4,500,726 5,154,312 6,724,967
Total income available for lifestyle 5,114,997 5,413,812 5,722,590 6,053,871 4,506,978 5,160,564 6,731,220
Uses of Cash
Living expenses 725,000 739,500 754,290 769,376 849,453 937,865 1,056,188
Income tax 1,373,113 2,096,364 2,218,491 2,349,527 1,736,153 1,994,084 2,614,875
Personally held insurance premiums 41,806 41,806 41,806 41,806 41,806 41,806 41,806
Cash gifts to ILIT 48,850 48,850 48,850 48,850 48,850 48,850 48,850
Cash gifts to family 158,000 158,000 158,000 158,000 158,000 158,000 158,000
Cash gifts to Family Foundation 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total uses of cash 2,356,769 3,094,520 3,231,437 3,377,559 2,844,262 3,190,605 3,929,719
Surplus $ 2,758,228 $ 2,319,292 $ 2,491,153 $ 2,676,313 $ 1,662,717 $ 1,969,959 $ 2,801,501
In the event that there is a cash flow surplus, the surplus is added to the investment assets row on the "Asset Value Projections" 3 pages earlier.
If there is a cash flow shortage (spending or gifting capital) then the shortage is treated as a reduction in marketable
securities row on the "Asset Value Projections" 3 pages earlier.
Page 30

32. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Tax calculation on Jeff's death
Combined net worth 92,318,143 97,373,504 102,489,239 107,976,939 113,863,613 139,899,343 175,675,646 233,163,934
Jeff's estimated estate 53,562,522 56,495,617 59,463,740 62,647,676 66,063,095 81,168,894 101,926,125 135,280,540
Death benefit exceeding CV 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053
Total gross estate 55,626,575 58,559,670 61,527,793 64,711,729 68,127,148 83,232,947 103,990,178 137,344,593
Settlement expenses (303,133) (317,798) (332,639) (348,559) (365,636) (441,165) (544,951) (711,723)
Joint, personal and IRA to Theresa (5,109,400) (5,118,687) (5,139,805) (5,153,067) (5,156,647) (5,017,267) (4,557,671) (3,560,645)
Insurance passing to Theresa (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053)
Outright or in trust to Theresa (44,750,726) (47,659,869) (53,991,296) (57,146,051) (60,540,812) (75,710,462) (96,823,503) (131,008,172)
Taxable estate 3,399,263 3,399,263 - - - - - -
Plus Jeff's lifetime taxable gifts 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737
Tax base 5,120,000 5,120,000 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737 1,720,737
Federal Estate Tax - - - - - - - -
Distribution of Jeff's estate
Settlement expenses 303,133 317,798 332,639 348,559 365,636 441,165 544,951 711,723
To family trust 3,399,263 3,399,263 - - - - - -
Joint, personal and IRA to Theresa 5,109,400 5,118,687 5,139,805 5,153,067 5,156,647 5,017,267 4,557,671 3,560,645
Insurance passing to Theresa 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053
Outright or in trust to Theresa 44,750,726 47,659,869 53,991,296 57,146,051 60,540,812 75,710,462 96,823,503 131,008,172
Total $ 55,626,575 $ 58,559,670 $ 61,527,793 $ 64,711,729 $ 68,127,148 $ 83,232,947 $ 103,990,178 $ 137,344,593
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of First Estate" include estate and income taxes.
Page 31

33. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Tax Calculation on Theresa's death
Theresa's assets 38,755,622 40,877,888 43,025,499 45,329,263 47,800,518 58,730,449 73,749,521 97,883,394
Plus assets from Jeff's estate 51,924,179 54,842,608 61,195,154 64,363,171 67,761,512 82,791,782 103,445,227 136,632,870
Theresa's estimated estate 90,679,800 95,720,496 104,220,653 109,692,434 115,562,030 141,522,231 177,194,748 234,516,264
Charitable Bequest (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000)
Settlement expenses (931,798) (982,205) (1,067,207) (1,121,924) (1,180,620) (1,440,222) (1,796,947) (2,370,163)
Theresa's taxable estate 79,208,002 84,198,291 92,613,447 98,030,509 103,841,410 129,542,009 164,857,800 221,606,101
Plus Theresa's lifetime taxable gifts 1,714,582 1,714,582 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Tax base 80,922,584 85,912,873 93,613,447 99,030,509 104,841,410 130,542,009 165,857,800 222,606,101
Federal Estate Tax 26,530,904 28,277,506 51,141,596 54,120,980 57,316,975 71,452,305 90,875,990 122,087,556
Total Estate Tax Due 26,530,904 28,277,506 51,141,596 54,120,980 57,316,975 71,452,305 90,875,990 122,087,556
Distribution of Theresa's estate
Settlement expenses 931,798 982,205 1,067,207 1,121,924 1,180,620 1,440,222 1,796,947 2,370,163
Taxes 26,530,904 28,277,506 51,141,596 54,120,980 57,316,975 71,452,305 90,875,990 122,087,556
Qualified plan to heirs 4,634,400 4,643,737 4,664,970 4,678,304 4,681,904 4,541,768 4,079,678 3,077,245
Charitable Bequest 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000
Residual estate to heirs 48,042,698 51,277,048 36,806,881 39,231,226 41,842,531 53,547,936 69,902,132 96,441,301
Total $ 90,679,800 $ 95,720,496 $ 104,220,653 $ 109,692,434 $ 115,562,030 $ 141,522,231 $ 177,194,748 $ 234,516,264
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of Second Estate" include estate and income taxes.
Page 32

34. SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Benefits to Family
Family trust 3,399,263 3,399,263 - - - - - -
Residual estate 48,042,698 51,277,048 36,806,881 39,231,226 41,842,531 53,547,936 69,902,132 96,441,301
Qualified plan assets 4,634,400 4,643,737 4,664,970 4,678,304 4,681,904 4,541,768 4,079,678 3,077,245
QPRT - 2nd Residence 1 - - - - - 2,386,169 2,634,523 2,966,901
Proceeds from ILIT 3,005,028 3,005,028 3,005,028 3,005,028 3,005,028 3,005,028 3,005,028 3,005,028
Total assets to heirs $ 59,081,389 $ 62,325,076 $ 44,476,879 $ 46,914,557 $ 49,529,462 $ 63,480,901 $ 79,621,361 $ 105,490,474
Estate Taxes $ 26,530,904 $ 28,277,506 $ 51,141,596 $ 54,120,980 $ 57,316,975 $ 71,452,305 $ 90,875,990 $ 122,087,556
1
Assumes the 2nd residence was put in a 15 yr. QPRT in 2004. Beginning in 2020, the residence is outside of Jeff & Theresa's estate.
Page 33

35. ANDERSON FAMILY FOUNDATION DETAILS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Anderson Family Foundation
Beginning of Year Foundation Value 5,000,000 5,137,087 5,301,500 5,470,845 5,645,270 6,599,100 7,704,849 9,266,617
Annual Contributions 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Amount passing to charity (EOY) 5,000,000 5,147,087 5,311,500 5,480,845 5,655,270 6,609,100 7,714,849 9,276,617
Charitable Bequest** 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000
Total to Charity 15,540,000 15,687,087 15,851,500 16,020,845 16,195,270 17,149,100 18,254,849 19,816,617
** The Charitable Bequest includes $540,000 in bequests to various charitable organizations and $10,000,000 to the Anderson Family Foundation.
Page 34

36. DETAILS OF JEFF'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Jeff's Qualified Plans
Jeff's Age 75 76 77 78 83 88 94
Theresa's Age 72 73 74 75 80 85 91
Minimum distribution factor 22.9 22.0 21.2 20.3 16.3 12.7 9.1
Plan contributions - - - - - - -
Plan balance 4,609,400 4,618,572 4,639,566 4,652,696 4,656,134 4,515,912 4,055,284 3,057,094
Minimum distribution 201,284 209,935 218,847 229,197 280,230 328,762 357,346
Preferred distribution - - - - - - -
Actual distribution 201,284 209,935 218,847 229,197 280,230 328,762 357,346
Page 35

37. DETAILS OF THERESA'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Theresa's Qualified Plans
Theresa's Age 72 73 74 75 80 85 91
Jeff's Age 75 76 77 78 83 88 94
Minimum distribution factor 25.6 24.7 23.8 22.9 18.7 14.8 10.8
Plan contributions - - - - - - -
Plan balance 25,000 25,165 25,404 25,607 25,769 25,855 24,394 20,151
Minimum distribution 977 1,019 1,067 1,118 1,387 1,678 1,949
Preferred distribution - - - - - - -
Actual distribution 977 1,019 1,067 1,118 1,387 1,678 1,949
Page 36

38. DETAILED FINANCIAL ANALYSIS
JEFF AND THERESA ANDERSON
PROPOSED PLAN FINANCIALS
In the Proposed Plan Section you will find a balance sheet which reflects the repositioning of assets
as set out in the step by step roadmap in the proceeding section. You will also find detailed cash
flow and asset projection information on each of the proposed planning strategies.
Page 37

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

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

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

42. FINANCIAL ANALYSIS - PROPOSED PLAN ASSET VALUE PROJECTIONS - PROPOSED PLAN
613,500 613,500 644,175 676,384 710,203 906,419 1,156,846
2,000,000 2,036,572 2,077,303 2,118,849 2,161,226 2,386,169 2,634,523
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Asset Values
Cash and cash equivalents 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000 2,428,000
Investment assets** 22,400,543 25,130,959 27,549,941 30,175,589 33,025,373 43,207,687 54,618,881 71,643,368
Other investments 7,279,000 7,478,572 7,702,929 7,934,017 8,172,037 9,473,631 10,982,535 13,113,721
Employee Benefits 613,500 613,500 644,175 676,384 710,203 906,419 1,156,846 1,550,284
Retirement plans/IRAs 4,634,400 4,643,737 4,664,970 4,678,304 4,681,904 4,541,768 4,079,678 3,077,245
Personal residences 1 9,840,000 9,932,656 10,034,910 10,138,216 10,242,587 8,394,608 8,835,697 9,395,704
Personal property 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Note from children's GDOT 30,098,160 30,098,160 30,098,160 30,098,160 30,098,160 30,098,160 30,098,160 30,098,160
Total assets in estate 78,293,603 81,325,584 84,123,085 87,128,669 90,358,263 100,050,272 113,199,797 132,306,482
Combined net worth $ 78,293,603 $ 81,325,584 $ 84,123,085 $ 87,128,669 $ 90,358,263 $ 100,050,272 $ 113,199,797 $ 132,306,482
1
Assumes the 2nd residence was put in a 15 yr. QPRT in 2004. Beginning in 2020, the residence is outside of Jeff & Theresa's estate.
** Reduced by Seed Gift to GDOT
In the event that there is a cash flow surplus, the surplus is added to the investment assets row by default.
If there is a cash flow shortage (because of spending or gifting capital) then the shortage is treated as a reduction in investment assets.
Page 41

43. TAXABLE INCOME PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Investment assets 552,992 620,396 680,112 744,930 1,020,230 1,287,320 1,691,889
Investment assets - GDOT 1,223,481 1,260,296 1,303,919 1,350,596 1,637,812 1,992,697 2,594,227
1
Deferred Compensation 1,989,119 2,128,357 2,277,342 2,436,756 - - -
Retirement plans/IRAs 202,260 210,954 219,915 230,315 281,618 330,440 359,295
Other taxable earnings - GDOT 480,000 480,000 480,000 480,000 480,000 120,000 120,000
Social security income 35,431 35,431 35,431 35,431 35,431 35,431 35,431
Pension income 660,000 669,900 679,949 690,148 743,485 800,945 875,787
Gross income $ 5,143,283 $ 5,405,333 $ 5,676,667 $ 5,968,176 $ 4,198,576 $ 4,566,832 $ 5,676,628
1
Deferred compensation payments are made until 2016.
Page 42

44. INCOME TAX PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Income Tax Estimation
Adjusted gross income:
Dividend income (Marketable Sec.) 1,776,473 1,880,692 1,984,031 2,095,526 2,658,042 3,280,016 4,286,116
Earned and other income 3,366,810 3,524,641 3,692,636 3,872,649 1,540,533 1,286,815 1,390,513
Adjusted gross income 5,143,283 5,405,333 5,676,667 5,968,176 4,198,576 4,566,832 5,676,628
Deductions
Real Estate Tax 92,000 93,840 95,717 97,631 107,793 119,012 134,027
Cash charitable gifts 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Charitable Deduction available 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Charitable Deduction allowed 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total deductions 102,000 103,840 105,717 107,631 117,793 129,012 144,027
Reductions - (83,072) (84,573) (86,105) (94,234) (103,209) (115,221)
Deductions allowed 102,000 20,768 21,143 21,526 23,559 25,802 28,805
Taxable income 5,041,283 5,384,565 5,655,524 5,946,649 4,175,017 4,541,029 5,647,823
Federal income tax $ 1,378,294 $ 2,095,482 $ 2,202,782 $ 2,318,068 $ 1,616,501 $ 1,761,442 $ 2,199,732
Page 43

45. CASH FLOW PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Sources of Income for Lifestyle
Consumable income (taxable) 3,439,802 3,665,038 3,892,748 4,137,580 2,080,764 2,454,135 2,962,402
Non-taxable Social Security Income 6,252 6,252 6,252 6,252 6,252 6,252 6,252
Distribution from Investment assets - - - - - - -
Note Payment from GDOT 791,582 791,582 791,582 791,582 791,582 791,582 791,582
Total income available for lifestyle 4,237,636 4,462,872 4,690,582 4,935,414 2,878,598 3,251,969 3,760,236
Uses of Cash
Living expenses 725,000 739,500 754,290 769,376 849,453 937,865 1,056,188
Income tax 1,378,294 2,095,482 2,202,782 2,318,068 1,616,501 1,761,442 2,199,732
Personally held insurance premiums 41,806 41,806 41,806 41,806 41,806 41,806 41,806
Cash gifts to ILIT 48,850 48,850 48,850 48,850 48,850 48,850 48,850
Cash gifts to family 158,000 158,000 158,000 158,000 158,000 158,000 158,000
Cash gifts to charity 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Total uses of cash 2,361,950 3,093,638 3,215,728 3,346,099 2,724,610 2,957,963 3,514,576
Surplus $ 1,875,686 $ 1,369,233 $ 1,474,854 $ 1,589,314 $ 153,987 $ 294,006 $ 245,660
In the event that there is a cash flow surplus, the surplus is added to the investment assets row on the "Asset Value Projections" 3 pages earlier.
Page 44

46. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Tax calculation on Jeff's death
Combined Net Worth 78,293,603 81,325,584 84,123,085 87,128,669 90,358,263 100,050,272 113,199,797 132,306,482
Jeff's estimated estate 44,440,744 46,161,746 47,749,654 49,455,674 51,288,845 56,790,189 64,254,077 75,099,347
Death benefit exceeding CV 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053
Total gross estate 46,504,797 48,225,799 49,813,707 51,519,727 53,352,898 58,854,242 66,318,130 77,163,400
Settlement expenses (257,524) (266,129) (274,069) (282,599) (291,764) (319,271) (356,591) (410,817)
Joint, personal and IRA to Theresa (5,109,400) (5,118,687) (5,139,805) (5,153,067) (5,156,647) (5,017,267) (4,557,671) (3,560,645)
Insurance passing to Theresa (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053) (2,064,053)
Outright or in trust to Theresa (38,924,557) (40,627,668) (42,335,781) (44,020,008) (45,840,433) (51,453,651) (59,339,816) (71,127,885)
Taxable estate 149,263 149,263 - - - - - -
Plus Jeff's lifetime taxable gifts 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737
Tax base 5,120,000 5,120,000 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737 4,970,737
Tentative Federal Estate Tax - - - - - - - -
Distribution of First Estate
Settlement expenses 257,524 266,129 274,069 282,599 291,764 319,271 356,591 410,817
To family trust 149,263 149,263 - - - - - -
Joint, personal and IRA to Theresa 5,109,400 5,118,687 5,139,805 5,153,067 5,156,647 5,017,267 4,557,671 3,560,645
Insurance passing to Theresa 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053 2,064,053
Outright or in trust to Theresa 38,924,557 40,627,668 42,335,781 44,020,008 45,840,433 51,453,651 59,339,816 71,127,885
Total $ 46,504,797 $ 48,225,799 $ 49,813,707 $ 51,519,727 $ 53,352,898 $ 58,854,242 $ 66,318,130 $ 77,163,400
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of First Estate" include estate and income taxes, if any.
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47. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2020 2025 2031
Tax Calculation on Theresa's death
Theresa's assets 33,852,859 35,163,837 36,373,431 37,672,996 39,069,418 43,260,083 48,945,720 57,207,134
Plus assets from Jeff's estate 46,098,010 47,810,407 49,539,639 51,237,128 53,061,133 58,534,971 65,961,539 76,752,583
Theresa's estimated estate 79,950,869 82,974,245 85,913,070 88,910,124 92,130,551 101,795,054 114,907,259 133,959,718
Settlement expenses (824,509) (854,742) (884,131) (914,101) (946,306) (1,042,951) (1,174,073) (1,364,597)
Existing Charitable Bequest (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000) (10,540,000)
Taxable estate 68,586,360 71,579,502 74,488,939 77,456,022 80,644,246 90,212,103 103,193,187 122,055,121
Plus Theresa's lifetime taxable gifts 4,964,582 4,964,582 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Tax base 73,550,942 76,544,084 75,488,939 78,456,022 81,644,246 91,212,103 104,193,187 123,055,121
Federal Estate Tax 23,950,830 24,998,429 41,173,116 42,805,012 44,558,535 49,820,857 56,960,453 67,334,516
Distribution of Second Estate
Settlement expenses 824,509 854,742 884,131 914,101 946,306 1,042,951 1,174,073 1,364,597
Taxes 23,950,830 24,998,429 41,173,116 42,805,012 44,558,535 49,820,857 56,960,453 67,334,516
Qualified plan to heirs 4,634,400 4,643,737 4,664,970 4,678,304 4,681,904 4,541,768 4,079,678 3,077,245
Other gifts to charity 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000 10,540,000
Residual estate to heirs 40,001,131 41,937,336 28,650,853 29,972,707 31,403,807 35,849,479 42,153,056 51,643,359
Total $ 79,950,869 $ 82,974,245 $ 85,913,070 $ 88,910,124 $ 92,130,551 $ 101,795,054 $ 114,907,259 $ 133,959,718
Assumptions
We assume that Jeff dies first, followed immediately by Theresa.
Taxes under "Distribution of Second Estate" include estate and income taxes, if any.
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