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2. FAMILY WEALTH GOAL ACHIEVER™ - INITIAL
PREPARED FOR:
JONATHAN AND SUSAN GILBERT
January 1, 2011
PRESENTED BY
Scott Hamilton
InKnowVision
Copyright InKnowVision, LLC 2011

3. YOUR GOALS AND OBJECTIVES
JONATHAN AND SUSAN GILBERT
Maintain our customary lifestyle. This should take about $2,000,000 annually after taxes and gifts.
Provide for the financial security of the surviving spouse.
Maintain adequate liquidity for emergencies and investment opportunities. We prefer to keep at least $2,000,000 in
cash and readily marketable securities.
Maximize the inheritance that we leave to our daughters and our grandchildren.
Provide for lifetime annual charitable gifts for Cancer Research (or other charitable causes) and a significant
charitable gift at death.
Reduce income taxes.
Eliminate or reduce estate taxes.
Provide asset protection for our estate as well as our children.
Page 2

4. JONATHAN AND SUSAN GILBERT
LIFETIME SPENDING
AND LIQUIDITY
Page 3

5. YOUR LIQUID ASSETS - CURRENT PLAN VS. PROPOSED PLAN
JONATHAN AND SUSAN GILBERT
$200,000,000
$180,000,000
$160,000,000
$140,000,000
$120,000,000
$100,000,000 -
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$20 000 000
$-
Liquid Assets Current Liquid Assets Proposed Total Living Expenses
Most of our clients want to know that they have sufficient income and liquid assets to pay for their living expenses for the rest of their lives. This chart assumes full
implementation of the proposed plan and shows your liquid assets over your life expectancy compared with liquid assets if you left your current planning in place.
Liquid assets include cash, stocks, bonds, annuities and qualified retirement accounts but do not include any other assets you might own such as promissory notes,
businesses or real estate.
Page 4

6. JONATHAN AND SUSAN GILBERT
INCOME TAX SAVINGS
Page 5

7. COMPARISON OF INCOME TAX RESULTS - PLAN YEAR 2011
JONATHAN AND SUSAN GILBERT
Existing Plan Proposed Plan Income Tax Saved
2011 Estimated Income Tax $ 4,500,000 $ 3,400,000 $ 1,100,000
2012 Estimated Income Tax $ 4,700,000 $ 4,300,000 $ 400,000
2 Year Estimated Income Tax Savings $ 1,500,000
Page 6

8. INCOME TAXES PAID - CURRENT VS. PROPOSED
JONATHAN AND SUSAN GILBERT
$12,000,000
$10,000,000
$8,000,000
-
$6,000,000
$4,000,000
$2,000,000
$-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Current Plan Proposed Plan
This chart compares the amount of income taxes paid in the current plan as against the proposed plan.
Page 7

9. CREATE A CHARITABLE LIFE ESTATE
JONATHAN AND SUSAN GILBERT
Jonathan & Susan create a charitable life estate with a DAF or Cancer Research Charity.
Assumptions:
Value of Property $ 3,500,000
Life of Property 40 What am I keeping?
Salvage Value $ 350,000 -The right to live in the house
Land Value $ 700,000 -The right to make improvements
7520 Rate 3.20% -The right to rent the property
Age of Donor 76
Age of Donor Spouse 74
Remainder Interest* $ 1,977,402
Potential Tax Savings $ 680,507
*(Value of Income Tax Deduction)
Page 8

10. DISTRIBUTION OF HOME UPON SECOND DEATH
JONATHAN AND SUSAN GILBERT
Upon the second death, the home will be distributed to the DAF or Cancer Research Charity.
Page 9

11. BEGIN MAKING ANNUAL CHARITABLE GIFTS
JONATHAN AND SUSAN GILBERT
Jonathan & Susan make charitable gifts.
Assumptions:
Annual Gifts $ 600,000
Approx Annual Tax Savings 230,250
Amount of gift is for illustration only.
Gift is built into liquidity results.
Page 10

12. JONATHAN AND SUSAN GILBERT
INCREASE INHERITANCE
AND REDUCE ESTATE TAX
Page 11

13. COMPARISON OF PLAN RESULTS - PLAN YEAR 2011
JONATHAN AND SUSAN GILBERT
Existing Plan Proposed Plan Advantage
Estate Value $ 141,785,579 $ 136,933,458
Heirs Receive Immediately $ 113,798,140 $ 139,786,697 $ 25,988,557
Heirs Receive Benefits from TCLAT $ - $ 74,608,048 $ 74,608,048
Total Benefits to Family $ 113,798,140 $ 214,394,745 $ 100,596,605
Family Charity $ - $ 127,030,966 $ 127,030,966
Estate and Income Tax $ 45,923,753 $ - $ 45,923,753
This chart assumes that you both die this year and compares the results of the current plan with the proposed plan.
Page 12

14. COMPARISON OF PLAN RESULTS - PLAN YEAR 2011
JONATHAN AND SUSAN GILBERT
CURRENT PLAN PROPOSED PLAN
Heirs Estate Tax Charity Heirs Estate Tax Charity
Heirs $113,798,140 Heirs $214,394,745
Estate Tax $45,923,753 Estate Tax $0
Charity $0 Charity $127,030,966
In the current plan, a portion of the benefit to heirs is qualified plan money. Withdrawals from these plans will be treated as ordinary income.
Page 13

15. COMPARISON OF PLAN RESULTS - PLAN YEAR 2026
JONATHAN AND SUSAN GILBERT
Existing Plan Proposed Plan Advantage
Estate Value $ 397,435,879 $ 261,714,223
Heirs Receive Immediately $ 199,577,351 $ 192,956,191 $ (6,621,160)
Heirs Receive Benefits from TCLAT $ - $ 152,896,387 $ 152,896,387
Total Benefits to Family $ 199,577,351 $ 345,852,577 $ 146,275,226
Family Charity $ - $ 267,377,348 $ 267,377,348
Estate and Income Tax $ 215,276,801 $ - $ 215,276,801
Present Value of total to Heirs $128,101,107 $221,989,609
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 14

16. COMPARISON OF PLAN RESULTS - PLAN YEAR 2026
JONATHAN AND SUSAN GILBERT
CURRENT PLAN PROPOSED PLAN
Heirs Estate Tax Charity Heirs Estate Tax Charity
Heirs $199,577,351 Heirs $192,956,191
Estate Tax $215,276,801 Estate Tax $0
Charity $0 Charity $267,377,348
In the current plan, a portion of the benefit to heirs is qualified plan money. Withdrawals from these plans will be treated as ordinary income.
Page 15

17. ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED
JONATHAN AND SUSAN GILBERT
$360,000,000
$320,000,000
$280,000,000
$240,000,000
-
$200,000,000
$160,000,000
$120,000,000
$80,000,000
Current Plan Proposed Plan Proposed Plan w/out Life Ins Proposed Plan w/out TCLAT
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 16

18. ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED
JONATHAN AND SUSAN GILBERT
$360,000,000
$320,000,000
$280,000,000
$240,000,000
-
$200,000,000
$160,000,000
$120,000,000
$80,000,000
Proposed Plan - Heirs Receive at Death Proposed Plan - Heirs Receive 16 years after death Current Plan Proposed Plan Without TCLAT
This chart compares the amount of money passing to your heirs at death in the various plans against a background of assets passing to heirs immediately and assets
passing to heirs at the end of the TCLAT.
Page 17

19. BENEFITS - PLAN YEAR - VALUE OF LIFE INSURANCE
JONATHAN AND SUSAN GILBERT
With Life Insurance Without Life Insurance Advantage
Death Occurs Today - Heirs Receive $ 218,757,960 $ 98,757,960 $ 120,000,000
Death Occurs in 2026 - Heirs Receive $ 345,852,577 $ 327,845,601 $ 18,006,976
The benefits are based on certain assumptions. This is for illustration purposes only. Actual insurance numbers can only be determined by applying for insurance.
Page 18

20. JONATHAN AND SUSAN GILBERT
INCREASE IN
CHARITABLE GIVING
Page 19

21. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2011
JONATHAN AND SUSAN GILBERT
Existing Plan Proposed Plan Increase in Charity
Charity Receives from TCLAT $ - $ 122,800,000 $ 122,800,000
Family Charity $ - $ 127,000,000 $ 127,000,000
Page 20

22. COMPARISON OF CHARITY RESULTS - PLAN YEAR 2026
JONATHAN AND SUSAN GILBERT
Existing Plan Proposed Plan Increase in Charity
Charity Receives from TCLAT $ - $ 251,700,000 $ 251,700,000
Family Charity $ - $ 267,400,000 $ 267,400,000
Page 21

23. GIFTING TO CHARITY - EXISTING PLAN VS. PROPOSED PLAN
JONATHAN AND SUSAN GILBERT
$280,000,000
$240,000,000
$200,000,000
$160,000,000
-
$120,000,000
$80,000,000
$40,000,000
$-
Current Plan Charity Proposed Plan Charity
This chart compares the amount of your gifts to charity in the current plan as against the proposed plan.
Page 22

24. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - CONSIDERED
JONATHAN AND SUSAN GILBERT
In our planning process, we start with the universe of available planning tools. While this universe is constantly changing, the following chart outlines
many of the available tools. We examine each of these strategies and discard those that are not suitable for meeting your goals and objectives.
Charitable
Family Limited Charitable Lead
Remainder Uni- 412(i) Private Annuity GDOT SCIN
Partnership Annuity Trust
Trust
Qualified Personal Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Flip CRT
Residence Trust Note Liability Company Insurance
Preferred Limited Long Term Care Sell 60% Monster
Premium Finance 529 Plans Gifting ILIT
partnership Insurance Biz Stock to GDOT
Charitable Life
Walton GRAT Private Foundations NIMCRUT Annuity Withdrawal Asset Protection SPIA/Life Arbitrage
Estate
New Annual Revocable Living GDOT Purchases
SPIA/Life in a
Lifetime Gifts to Trusts, DPAs and Crummey Powers Dynasty Trust Life Insurance GDOT
CLAT
Charity of $600,000 POAs Policy From LLC 1
Supporting Short-Term Loan to
IRA Maximizer Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations GDOT
Charitable
Defined Benefit Qualified Plan
Bargain Sales Succession Planning Risk Management Remainder Annuity ESOP Planning
Plans Limited Partnership
Trust
Page 23

25. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
JONATHAN AND SUSAN GILBERT
The highlighted tools are those we have determined are most suited to achieving your goals and objectives.
Charitable
Family Limited Charitable Lead
Remainder Uni- 412(i) Private Annuity GDOT SCIN
Partnership Annuity Trust
Trust
Qualified Personal Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Flip CRT
Residence Trust Note Liability Company Insurance
Preferred Limited Long Term Care Sell 60% Monster
Premium Finance 529 Plans Gifting ILIT
partnership Insurance Biz Stock to GDOT
Charitable Life
Walton GRAT Private Foundations NIMCRUT Annuity Withdrawal Asset Protection SPIA/Life Arbitrage
Estate
New Annual Revocable Living GDOT Purchases
SPIA/Life in a
Lifetime Gifts to Trusts, DPAs and Crummey Powers Dynasty Trust Life Insurance GDOT
CLAT
Charity of $600,000 POAs Policy From LLC 1
Supporting Short-Term Loan to
IRA Maximizer Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations GDOT
Charitable
Defined Benefit Qualified Plan
Bargain Sales Succession Planning Risk Management Remainder Annuity ESOP Planning
Plans Limited Partnership
Trust
Green equals a new Blue equals a social Yellow equals an
planning tool for capital or charitable existing planning
family tool tool
Page 24

26. ESTATE PLAN OVERVIEW AND ESTATE DISTRIBUTION - 2008
JONATHAN AND SUSAN GILBERT
Gifts to ILIT
NET WORTH
129,801,661 EXISTING ILIT
LIFE ESTATE Short term loan to GDOT
1,055,324
3,500,000
INSURANCE
Sell Monster Biz Shares to GDOT
15,000,000 GDOT
Installment note
Owns Monster Biz
GDOT Purchases Life Insurance from LLC 1 Stock
INSURANCE
GDOT Purchases New Life Insurance
120,000,000
First Death
FAMILY TRUST / SUSAN MARITAL TRUST / SUSAN SUSAN ADMIN
irst
4,235,543 119 736 945
119,736,945 745,348
745 348 651,848
Second Death
TCLAT ADMIN
Heirs From HEIRS
TCLAT
115,904,584 1,274,143
218,757,960
FAMILY CHARITY
120,004,584
Page25

27. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
JONATHAN AND SUSAN GILBERT
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 26

28. HAVE THE MONSTER BIZ SHARES APPRAISED
JONATHAN AND SUSAN GILBERT
Hire an appraiser to value 6.12% of the Monster Biz shares. 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 corporation
Appraisal
The assumed value of the Monster Biz stock is 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 27

29. CREATE GRANTOR DEEMED OWNER TRUST
JONATHAN AND SUSAN GILBERT
Jonathan creates an individual grantor deemed owner trust (GDOT).
Page 28

30. SELL MONSTER BIZ SHARES TO THE GDOT
JONATHAN AND SUSAN GILBERT
Jonathan sells 60% of his Monster Biz stock to the GDOT for an installment note.
Sells his Monster Biz stock
worth $42,165,000
An installment note worth
$42,165,000 that provides
annual payments of
$1,880,559
The sale price is based on the assumed value of the assets
sold.
*Note payments are interest only at 4.46%.
Page 29

31. LOAN TO GRANTOR DEEMED OWNER TRUST
JONATHAN AND SUSAN GILBERT
Jonathan makes a short term loan to the grantor deemed owner trust (GDOT).
Page 30

32. BENEFICIARIES GUARANTEE GDOT OBLIGATION
JONATHAN AND SUSAN GILBERT
The heirs guarantee the obligation of the GDOT.
Installment note
Beneficiaries of th GDOT ( others)
B fi i i f the (or th )
guarantee a portion of the GDOT obligation.
Page 31

33. PURCHASE LIFE INSURANCE IN THE GDOT
JONATHAN AND SUSAN GILBERT
The GDOT Trustees purchase second-to-die life insurance with the assets of the GDOT.
Premium Payment Details
Premium in the amount of $13,440,000 is paid in the first year with assets of the
GDOT. No premium payments are made for 10 years, then beginning in year 11,
premiums in the amount of $9,363,183 are paid annually thereafter.
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 32

34. WHY USE A ONE PAY WITH CATCH UP STRUCTURE FOR PREMIUMS
Reasons to use a one pay with catch up:
1. Allows you to wait and see what will happen with the estate tax.
2. You may decide to keep all of the death benefit or you might keep the policy but reduce the death benefit. Clients in their
late 70s and 80's can consider selling the policy if they decide they do not want to keep it.
3. Better economics. Allows you to keep the “unpaid” premium dollars and invest as you normally would. You will usually be
better off than with level premiums.
4. Relatively small commitment compared to death benefit. Usually less than the equivalent of two normal premiums.
5. Works nicely with a TCLAT. Allows you to zero out the tax and give money to your kids. Keep in mind that your kids could
be in their 70s or 80s before they inherit any money from the TCLAT.
6. Policy is guaranteed (if required first year and catch up premiums are paid).
7. People often lose guarantees because they pay premiums late. Because there are no premiums to pay until the catch-up
premiums begin, there is no need to worry about losing guarantees during this time period.
8. Less administration and headache. Because you pay only one premium now, you only need to send Crummey notices this
year. Then none until premiums start up again.
Page 33

35. GDOT PURCHASES LIFE INSURANCE FROM LLC 1
JONATHAN AND SUSAN GILBERT
The GDOT Trustees purchase insurance policies from LLC 1
GDOT purchases
insurance policies from
LLC 1 for a note issued
by the GDOT to LLC 1.
The GDOT will issue a mid term note to LLC 1 collateralized by the policy.
This reduces the value of LLC 1 over time and shifts assets to your daughters.
Page 34

36. TESTAM TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part I)
JONATHAN AND SUSAN GILBERT
Include language in your trust or Will that creates a testamentary charitable lead trust (TCLAT) at the second death.
TCLAT Assumptions
Asset growth rate 8.00%
TCLAT payout rate 8.08%
Present value discount rate 3.00%
Assumed date of death 2011
Page 35

37. TESTAMENTARY CHARITABLE LEAD ANNUITY TRUST (Part II)
JONATHAN AND SUSAN GILBERT
At the end of the TCLAT term, your heirs will receive all of the remaining trust assets.
Page 36

38. COST BENEFIT ANALYSIS
JONATHAN AND SUSAN GILBERT
All strategies have an element of risk; a chance that the program adopted does not work as planned. Estate planning strategies carry an element of risk as
well. Many advisors warn their clients of risk but do not make an effort to quantify those risks. We have taken the position in our planning that if a risk is
quantifiable, it should be identified as such and the cost of the risk should be disclosed to our client. When the risk is not quantifiable, this should also be
disclosed.
Any risk analysis begins with two questions:
What is the reward to be gained by taking the risk?
What is the cost of the potential loss if the plan fails totally?
If you are satisfied that the reward is worth the risk and that the risk of loss is acceptable, it would then make sense to pursue the strategy. If the risk is such
that you could not comfortably accept the loss, then the risk should not be taken.
Is the reward worth the risk?
The reward of the proposed plan results in an advantage to your heirs today of $100,596,605 over your existing plan.
The reward of the proposed plan results in an advantage to your heirs at life expectancy of $146,275,226 over your existing plan.
What if the Plan fails totally?
There are 4 basic areas of potential risk involved in this comprehensive plan. We assume total failure of all planning techniques in order to provide a worst
case analysis.
Transaction costs
Attorneys Fees 200,000
Valuation Fees 15,000
Total $ 215,000
Annual Maintenance Fee $ 15,000
Taxes
This represents the taxes that will have to be paid if the plan fails entirely. Note that this is the same amount that would be paid without the planning.
Total additional tax over current plan = $0
Page 37

39. COST BENEFIT ANALYSIS (Continued)
Interest (cost of money)
Interest is charged on late tax payments by the IRS at the rate of the applicable federal rate plus 3%. You must invest at a rate less than this rate to lose
money. Assuming that assets earn in excess of that rate, there should be no risk of loss due to cost of money.
Nonetheless, we assume that assets actually earn 2% less than the IRS interest rates, and the risk of loss would be $835,828.
Penalties
Assuming the plan is implemented with the help of knowledgeable advisors, the only potential penalty is for substantial undervaluation. The penalty comes
into play in the case of a challenge to asset valuation. If the value reported for a transaction is less than 65% of the value as finally determined for tax
purposes (by the IRS or the courts) then there is a 25% substantial undervaluation penalty.
The valuation adjustment assumed in this plan is 0.00%. Therefore, an adjustment should not result in a substantial undervaluation penalty.
Risk Analysis
$160,000,000
$140,000,000
$120 000 000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$-
Benefit to Heirs 2011 Benefit to Heirs 2026 Potential Loss (Total Failure)
Page 38

40. DETAILED FINANCIAL ANALYSIS
JONATHAN AND SUSAN GILBERT
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 39

41. DETAILED FINANCIAL ANALYSIS
JONATHAN AND SUSAN GILBERT
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 40

42. CURRENT NET WORTH STATEMENT
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Private Bank 536,343 - - 536,343 2.0% 0.0%
Private Bank CD 15,000,000 2,400,000 - 17,400,000 5.5% 0.0%
Private Bank MMF 5,304,042 583,353 - 5,887,395 3.0% 0.0%
National City - 23,997 - 23,997 2.0% 0.0%
Bank of America MMF 100,686 - - 100,686 2.0% 0.0%
Bank of America 31,425 - - 31,425 2.0% 0.0%
Bank of America 320,235 - - 320,235 2.0% 0.0%
LLC 1 - 3,756 - 3,756 2.0% 0.0%
LLC 2 - 3,054 - 3,054 2.0% 0.0%
LLC 3 - 3,507 - 3,507 2.0% 0.0%
LLC 4 - 5,556 - 5,556 2.0% 0.0%
Cash on Hand - - 25,500 25,500 2.0% 0.0%
Total of Cash and Equivalents 21,292,731 3,023,223 25,500 24,341,454 4.7% 0.0%
Page 41

43. CURRENT NET WORTH STATEMENT (Page 2)
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
Note 1 1,059,000 - - 1,059,000 5.0% 5.0%
Note 2 893,352 - - 893,352 0.0% 10.0%
Total of Other Investments 1,952,352 - - 1,952,352 2.7% 7.3%
CLOSELY HELD BUSINESS
Monster Biz (10.2%) 70,275,000 - - 70,275,000 13.0% 3.0%
Total Closely Held Business 70,275,000 - - 70,275,000 13.0% 3.0%
INVESTMENT REAL ESTATE
LLC 1 3,900,000 - - 3,900,000 2.4% 4.0%
LLC 2 4,647,000 - - 4,647,000 8.4% 4.0%
LLC 3 6,000,000 - - 6,000,000 0.0% 4.0%
LLC 4 19,800,000 - - 19,800,000 4.6% 4.0%
LLC 5 13,926,000 - - 13,926,000 4.3% 4.0%
LLC 6 11,010,000 - - 11,010,000 3.3% 4.0%
LLC 7 13,500,000 - - 13,500,000 1.6% 4.0%
LLC 8 2,400,000 - - 2,400,000 0.0% 4.0%
LLC 9 3,000,000 - - 3,000,000 4.0% 4.0%
Total of Real Estate Holdings 78,183,000 - - 78,183,000 3.4% 4.0%
Page 42

44. CURRENT NET WORTH STATEMENT (Page 3)
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
RESIDENTIAL REAL ESTATE
12345 Main St - 3,500,000 - 3,500,000 0.0% 3.0%
Florida Condo 3,500,000 - - 3,500,000 0.0% 3.0%
Total of Personal Residences 3,500,000 3,500,000 - 7,000,000 0.0% 3.0%
PERSONAL PROPERTY
Personal Property - - 1,500,000 1,500,000 0.0% 0.0%
Total of Personal Property - - 1,500,000 1,500,000 0.0% 0.0%
TOTAL ASSETS 175,203,083 6,523,223 1,525,500 183,251,806
LIABILITIES
12345 Main St - 686,001 - 686,001
LLC 1 3,113,664 - - 3,113,664
LLC 2 15,641,955 - - 15,641,955
LLC 3 10,427,970 - - 10,427,970
LLC 4 8,689,974 - - 8,689,974
LLC 5 10,315,581 - - 10,315,581
LLC 6 - - 75,000 75,000
LLC 7 2,250,000 2,250,000 - 4,500,000
Total Liabilities 50,439,144 2,936,001 75,000 53,450,145
TOTAL LIABILITIES 50,439,144 2,936,001 75,000 53,450,145
NET WORTH 124,763,939 3,587,222 1,450,500 129,801,661
Page 43

45. SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN
JONATHAN AND SUSAN GILBERT
COMPANY INSURED POLICY # BENEFICIARY PREMIUM CASH VALUE DEATH BENEFIT
Policies owned by LLC 1
John Hancock Jonathan & Susan 1234567 LLC 1 240,330 482,209 10,000,000
Metlife Jonathan & Susan 2345678 LLC 1 108,968 197,729 5,000,000
Totals 349,298 679,938 15,000,000
Policies owned by ILIT
AXA Jonathan 3456789 ILIT DTD 03/12/1996 20,251 103,349 1,055,324
Totals 20,251 103,349 1,055,324
Page 44

46. FINANCIAL ANALYSIS - EXISTING PLAN ASSET VALUE PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Asset Values
Cash and cash equivalents 24,341,454 30,753,104 37,571,662 44,118,551 51,058,392 83,130,976 134,542,064 172,557,606
Other investments 1,059,000 1,111,801 1,167,391 1,225,761 1,287,049 1,564,416 1,996,636 2,311,355
Closely held business 70,275,000 72,377,388 74,548,710 76,785,171 79,088,727 89,015,058 103,192,850 112,761,613
Note 2 1 893,352 982,431 1,080,674 1,188,741 1,307,615 1,914,479 3,083,288 4,103,857
Investment real estate 78,183,000 81,301,583 84,553,647 87,935,793 91,453,224 106,987,337 130,166,454 146,419,559
Personal residences 7,000,000 7,209,416 7,425,699 7,648,470 7,877,924 8,866,672 10,278,904 11,232,035
Personal property 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Total assets in estate 183,251,806 195,235,724 207,847,783 220,402,486 233,572,930 292,978,940 384,760,196 450,886,024
Less estimated liabilities (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145)
Combined net worth $ 129,801,661 $ 141,785,579 $ 154,397,638 $ 166,952,341 $ 180,122,785 $ 239,528,795 $ 331,310,051 $ 397,435,879
1
We're assuming the note will not be paid off, and it will continue accruing at 10%. Our assumption is that the 10% interest is taxable.
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 45

47. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Sources of taxable income
Cash and cash equivalents 1,154,703 1,458,857 1,782,314 2,092,883 3,530,573 5,840,892 7,554,666
Other investments 52,950 55,590 58,370 61,288 74,496 95,078 110,065
Closely held business 9,135,750 9,409,060 9,691,332 9,982,072 11,234,910 13,024,340 14,232,048
Investment real estate 2,692,896 2,800,311 2,912,323 3,028,816 3,543,287 4,310,950 4,849,232
Social security income 17,856 18,213 18,577 18,949 20,511 22,646 24,032
Pension income 48,000 48,000 48,000 48,000 48,000 48,000 48,000
Gross income $ 13,102,155 $ 13,790,032 $ 14,510,917 $ 15,232,009 $ 18,451,777 $ 23,341,905 $ 26,818,043
Page 46

48. INCOME TAX PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Income tax Estimation
Adjusted gross income:
Earned and other income 13,102,155 13,790,032 14,510,917 15,232,009 18,451,777 23,341,905 26,818,043
Adjusted gross income 13,102,155 13,790,032 14,510,917 15,232,009 18,451,777 23,341,905 26,818,043
Deductions
Real estate tax 50,956 50,956 51,975 53,015 54,075 58,532 64,625 68,580
Interest 25,000 25,000 25,500 26,010 26,530 28,717 31,706 33,647
Charitable gifts 57,250 57,250 58,395 59,563 60,754 65,762 72,607 77,051
Charitable Deduction available 57,250 58,395 59,563 60,754 65,762 72,607 77,051
Charitable Deduction allowed 57,250 58,395 59,563 60,754 65,762 72,607 77,051
Total deductions 133,206 135,870 138,588 141,359 153,012 168,937 179,278
Reductions - - (110,870) (113,087) (122,409) (135,150) (143,422)
Deductions allowed 133,206 135,870 27,718 28,272 30,602 33,787 35,856
Taxable income 12,968,949 13,654,162 14,483,199 15,203,737 18,421,174 23,308,118 26,782,188
Federal and State income tax $ 4,509,004 $ 4,748,828 $ 5,699,414 $ 5,984,747 $ 7,258,852 $ 9,194,082 $ 10,569,813
Page 47

49. CASH FLOW PROJECTIONS - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Sources of income for Lifestyle
Depreciation Add Back 52,000 52,000 52,000 52,000 52,000 52,000 -
Consumable income (taxable) 13,102,155 13,790,032 14,510,917 15,232,009 18,451,777 23,341,905 26,818,043
Total income available for lifestyle 13,154,155 13,842,032 14,562,917 15,284,009 18,503,777 23,393,905 26,818,043
Uses of Cash
Living expenses 2,000,000 2,040,000 2,080,800 2,122,416 2,297,371 2,536,484 2,691,737
Income tax 4,509,004 4,748,828 5,699,414 5,984,747 7,258,852 9,194,082 10,569,813
Cash gifts to ILIT 20,251 20,251 20,251 20,251 20,251 20,251 20,251
Cash gifts to family 156,000 156,000 156,000 156,000 156,000 156,000 156,000
Cash gifts to charity 57,250 58,395 59,563 60,754 65,762 72,607 77,051
Total uses of cash 6,742,505 7,023,474 8,016,028 8,344,168 9,798,237 11,979,423 13,514,852
Surplus $ 6,411,650 $ 6,818,558 $ 6,546,889 $ 6,939,841 $ 8,705,540 $ 11,414,482 $ 13,303,191
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 48

50. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Tax calculation on Jonathan's death
Combined net worth 129,801,661 141,785,579 154,397,638 166,952,341 180,122,785 239,528,795 331,310,051 397,435,879
Jonathan's estimated estate 125,489,189 137,074,959 149,268,000 161,405,592 174,138,467 231,570,798 320,302,754 384,231,648
Total gross estate 125,489,189 137,074,959 149,268,000 161,405,592 174,138,467 231,570,798 320,302,754 384,231,648
Settlement expenses (652,446) (710,375) (771,340) (832,028) (895,692) (1,182,854) (1,626,514) (1,946,158)
Joint, personal and IRA to Susan (725,250) (792,209) (862,677) (932,825) (1,006,413) (1,338,336) (1,851,152) (2,220,622)
Outright or in trust to Susan (119,875,950) (131,336,833) (143,398,440) (159,405,196) (172,000,819) (228,814,065) (316,589,546) (379,829,325)
Taxable estate 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Plus Jonathan's lifetime taxable gifts 764,457 764,457 764,457 764,457 764,457 764,457 764,457 764,457
Tax base 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Federal Estate Tax - - - - - - - -
Distribution of Jonathan's estate
Settlement expenses 652,446 710,375 771,340 832,028 895,692 1,182,854 1,626,514 1,946,158
To family trust 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Joint, personal and IRA to Susan 725,250 792,209 862,677 932,825 1,006,413 1,338,336 1,851,152 2,220,622
Outright or in trust to Susan 119,875,950 131,336,833 143,398,440 159,405,196 172,000,819 228,814,065 316,589,546 379,829,325
Total $ 125,489,189 $ 137,074,959 $ 149,268,000 $ 161,405,592 $ 174,138,467 $ 231,570,798 $ 320,302,754 $ 384,231,648
Assumptions
We assume that Jonathan dies first, followed immediately by Susan.
Taxes under "Distribution of First Estate" include estate and income taxes.
Page 49

51. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Tax Calculation on Susan's death
Susan's assets 4,312,472 4,710,620 5,129,638 5,546,749 5,984,318 7,957,997 11,007,296 13,204,231
Plus assets from Jonathan's estate 120,601,200 132,129,041 144,261,117 160,338,021 173,007,231 230,152,401 318,440,698 382,049,947
Susan's estimated estate 124,913,672 136,839,661 149,390,755 165,884,770 178,991,550 238,110,398 329,447,994 395,254,178
Settlement expenses (1,274,137) (1,393,397) (1,518,908) (1,683,848) (1,814,915) (2,406,104) (3,319,480) (3,977,542)
Susan's taxable estate 123,639,535 135,446,265 147,871,847 164,200,923 177,176,634 235,704,294 326,128,514 391,276,636
Plus Susan's lifetime taxable gifts 764,457 764,457 764,457 764,457 764,457 764,457 764,457 764,457
Tax base 124,403,992 136,210,722 148,636,304 164,965,380 177,941,091 236,468,751 326,892,971 392,041,093
Federal Estate Tax 41,791,397 45,923,753 50,272,706 90,385,159 97,521,800 129,712,013 179,445,334 215,276,801
Total Estate Tax Due 41,791,397 45,923,753 50,272,706 90,385,159 97,521,800 129,712,013 179,445,334 215,276,801
Distribution of Susan's estate
Settlement expenses 1,274,137 1,393,397 1,518,908 1,683,848 1,814,915 2,406,104 3,319,480 3,977,542
Taxes 41,791,397 45,923,753 50,272,706 90,385,159 97,521,800 129,712,013 179,445,334 215,276,801
Residual estate to heirs 81,848,138 89,522,512 97,599,141 73,815,764 79,654,834 105,992,281 146,683,180 175,999,835
Total $ 124,913,672 $ 136,839,661 $ 149,390,755 $ 165,884,770 $ 178,991,550 $ 238,110,398 $ 329,447,994 $ 395,254,178
Assumptions
We assume that Jonathan dies first, followed immediately by Susan.
Taxes under "Distribution of Second Estate" include estate and income taxes.
Page 50

52. SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Benefits to Family
Family trust 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Residual estate 81,848,138 89,522,512 97,599,141 73,815,764 79,654,834 105,992,281 146,683,180 175,999,835
Grandchildren's Trust 378,010 396,857 416,700 437,535 459,412 558,418 712,699 825,038
LLC 1 (Insurance Policies) 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000
LLC 1 (Other)1 3,449,907 3,587,903 3,731,419 3,880,676 4,035,903 4,721,436 5,744,349 6,461,611
Proceeds from ILIT 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324
Total assets to heirs $ 105,966,922 $ 113,798,140 $ 122,038,127 $ 94,424,842 $ 100,441,016 $ 127,563,002 $ 169,431,095 $ 199,577,351
1
LLC 1:
34567 Main St, Fairview Heights, IL $4,000,000 ($7.5 M value, debt of $3.5M)
John Hancock 2nd to die policy 1234567 $15,000,000 (death benefit)
Debt owed to Jonathan -$353,000
Private Bank Accounts $475,539
Page 51

53. DETAILED FINANCIAL ANALYSIS
JONATHAN AND SUSAN GILBERT
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 52

54. NET WORTH STATEMENT AFTER PLAN IMPLEMENTATION
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
CASH AND EQUIVALENTS
Private Bank 536,343 - - 536,343 2.0% 0.0%
Private Bank CD 15,000,000 2,400,000 - 17,400,000 5.5% 0.0%
Private Bank MMF 5,304,042 583,353 - 5,887,395 3.0% 0.0%
National City - 23,997 - 23,997 2.0% 0.0%
Bank of America MMF 100,686 - - 100,686 2.0% 0.0%
Bank of America 31,425 - - 31,425 2.0% 0.0%
Bank of America 320,235 - - 320,235 2.0% 0.0%
LLC 1 - 3,756 - 3,756 2.0% 0.0%
LLC 2 - 3,054 - 3,054 2.0% 0.0%
LLC 3 - 3,507 - 3,507 2.0% 0.0%
LLC 4 - 5,556 - 5,556 2.0% 0.0%
Cash on Hand - - 25,500 25,500 2.0% 0.0%
Total o Cas a d Equivalents
ota of Cash and qu va e ts 21,292,731
, 9 ,73 3,0 3, 3
3,023,223 25,500
5,500 24,341,454
,3 , 5 4.7%
.7% 0.0%
Page 53

55. REVISED NET WORTH STATEMENT (Page 2)
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
OTHER INVESTMENTS
Note 1 1,059,000 - - 1,059,000 5.0% 5.0%
Note 2 893,352 - - 893,352 0.0% 10.0%
Total of Other Investments 1,952,352 - - 1,952,352 2.7% 7.3%
CLOSELY HELD BUSINESS
Monster Biz (10.2%) 28,110,000 - - 28,110,000 13.0% 3.0%
Total Closely Held Business 28,110,000 - - 28,110,000 13.0% 3.0%
INVESTMENT REAL ESTATE
LLC 1 3,900,000 - - 3,900,000 2.4% 4.0%
LLC 2 4,647,000 - - 4,647,000 8.4% 4.0%
LLC 3 6,000,000 - - 6,000,000 0.0% 4.0%
LLC 4 19,800,000 - - 19,800,000 4.6% 4.0%
LLC 5 13,926,000 - - 13,926,000 4.3% 4.0%
LLC 6 11,010,000 - - 11,010,000 3.3% 4.0%
LLC 7 13,500,000 - - 13,500,000 1.6% 4.0%
LLC 8 2,400,000 - - 2,400,000 0.0% 4.0%
LLC 9 3,000,000 - - 3,000,000 4.0% 4.0%
Total of Real Estate Holdings 78,183,000 - - 78,183,000 3.4% 4.0%
Page 54

56. REVISED NET WORTH STATEMENT (Page 3)
JONATHAN AND SUSAN GILBERT
JONATHAN SUSAN JOINT TOTAL YIELD GROWTH
RESIDENTIAL REAL ESTATE
12345 Main St - 3,500,000 - 3,500,000 0.0% 3.0%
Total of Personal Residences - 3,500,000 - 3,500,000 0.0% 3.0%
PERSONAL PROPERTY
Personal Property - - 1,500,000 1,500,000 0.0% 0.0%
Total of Personal Property - - 1,500,000 1,500,000 0.0% 0.0%
OTHER STRATEGY ASSETS
GDOT Note 42,165,000 - - 42,165,000 4.46%
Total of Other Strategy Assets 42,165,000 - - 42,165,000 4.46%
TOTAL ASSETS 171,703,083 6,523,223 1,525,500 179,751,806
LIABILITIES
12345 Main St - 686,001 - 686,001
LLC 1 3,113,664 - - 3,113,664
LLC 2 15,641,955 - - 15,641,955
LLC 3 10,427,970 - - 10,427,970
LLC 4 8,689,974 - - 8,689,974
LLC 5 10,315,581 - - 10,315,581
LLC 6 - - 75,000 75,000
LLC 7 2,250,000 2,250,000 - 4,500,000
Total Liabilities 50,439,144 2,936,001 75,000 53,450,145
TOTAL LIABILITIES 50,439,144 2,936,001 75,000 53,450,145
NET WORTH 121,263,939 3,587,222 1,450,500 126,301,661
Page 55

57. FINANCIAL ANALYSIS - PROPOSED PLA ASSET VALUE PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Asset Values
Cash and cash equivalents 13,091,454 15,912,416 18,454,642 20,350,452 22,297,614 41,946,149 58,764,580 67,327,917
Other investments 1,059,000 1,111,801 1,167,391 1,225,761 1,287,049 1,564,416 1,996,636 2,311,355
Closely held business 28,110,000 28,950,955 29,819,484 30,714,069 31,635,491 35,606,023 41,277,140 45,104,645
Note 2 1 893,352 982,431 1,080,674 1,188,741 1,307,615 1,914,479 3,083,288 4,103,857
Loan to the GDOT 11,250,000 11,250,000 11,250,000 11,250,000 11,250,000 - - -
Investment real estate 78,183,000 81,301,583 84,553,647 87,935,793 91,453,224 106,987,337 130,166,454 146,419,559
Personal residences 3,500,000 3,604,708 3,712,849 3,824,235 3,938,962 4,433,336 5,139,452 5,616,018
Residences in charitable life estate 3,500,000 3,604,708 3,712,849 3,824,235 3,938,962 4,433,336 5,139,452 5,616,018
Personal property 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Note from children's GDOT 42,165,000 42,165,000 42,165,000 42,165,000 42,165,000 42,165,000 37,165,000 37,165,000
Total assets in estate 183,251,806 190,383,603 197,416,536 203,978,285 210,773,916 240,550,077 284,232,002 315,164,368
Less estimated liabilities (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145) (53,450,145)
Combined net worth $ 129,801,661 $ 136,933,458 $ 143,966,391 $ 150,528,140 $ 157,323,771 $ 187,099,932 $ 230,781,857 $ 261,714,223
1
We're assuming the note will not be paid off, and it will continue accruing at 10%. Our assumption is that the 10% interest is taxable.
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 56

58. TAXABLE INCOME PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Sources of Taxable Income
Cash and cash equivalents 621,029 754,849 875,446 965,379 1,885,341 2,436,646 3,052,715
Other investments 52,950 55,590 58,370 61,288 74,496 95,078 110,065
Closely held business 3,654,300 3,763,624 3,876,533 3,992,829 4,493,964 5,209,736 5,692,819
Investment real estate 2,692,896 2,800,311 2,912,323 3,028,816 3,543,287 4,310,950 4,849,232
Other taxable earnings-GDOT 5,481,450 5,670,718 5,902,963 6,148,077 7,040,483 8,410,579 8,940,761
Social security income 17,856 18,213 18,577 18,949 20,511 22,646 24,032
Pension income 48,000 48,000 48,000 48,000 48,000 48,000 48,000
Gross income $ 12,568,481 $ 13,111,305 $ 13,692,212 $ 14,263,338 $ 17,106,082 $ 20,533,634 $ 22,717,624
Page 57

59. INCOME TAX PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Income Tax Estimation
Adjusted gross income:
Earned and other income 12,568,481 13,111,305 13,692,212 14,263,338 17,106,082 20,533,634 22,717,624
Adjusted gross income 12,568,481 13,111,305 13,692,212 14,263,338 17,106,082 20,533,634 22,717,624
Deductions
Real Estate Tax 50,956 51,975 53,015 54,075 58,532 64,625 68,580
Interest 25,000 25,500 26,010 26,530 28,717 31,706 33,647
Cash charitable gifts 657,250 658,395 659,563 660,754 665,762 672,607 677,051
LTCapGains property charitable gifts 1,977,402 - - - - - -
Charitable Deduction available 2,634,652 658,395 659,563 660,754 665,762 672,607 677,051
Charitable Deduction allowed 2,634,652 658,395 659,563 660,754 665,762 672,607 677,051
Total deductions 2,710,608 735,870 738,588 741,359 753,012 768,937 779,278
Reductions - - (405,762) (422,896) (508,178) (611,005) (623,422)
Deductions allowed 2,710,608 735,870 332,825 318,463 244,833 157,932 155,856
Taxable income 9,857,873 12,375,435 13,359,387 13,944,875 16,861,248 20,375,702 22,561,769
Federal and State income tax $ 3,420,127 $ 4,301,274 $ 5,254,384 $ 5,486,238 $ 6,641,121 $ 8,032,845 $ 8,898,527
Page 58

60. CASH FLOW PROJECTIONS - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Sources of Income for Lifestyle
Consumable income (taxable) 7,087,031 7,440,587 7,789,249 8,115,261 10,065,599 12,123,055 13,776,863
Payment from GDOT (Initial Loan) 360,000 360,000 360,000 360,000 - - -
Depreciation Add Back 52,000 52,000 52,000 52,000 52,000 52,000 -
Payment from GDOT 1,880,559 1,880,559 1,880,559 1,880,559 1,880,559 6,657,559 1,657,559
Total income available for lifestyle 9,379,590 9,733,146 10,081,808 10,407,820 11,998,158 18,832,614 15,434,422
Uses of Cash
Living expenses 2,000,000 2,040,000 2,080,800 2,122,416 2,297,371 2,536,484 2,691,737
Income tax 3,420,127 4,301,274 5,254,384 5,486,238 6,641,121 8,032,845 8,898,527
Cash gifts to ILIT 20,251 20,251 20,251 20,251 20,251 20,251 20,251
Cash gifts to family 156,000 156,000 156,000 156,000 156,000 156,000 156,000
Planning and maintenance Fees 305,000 15,000 15,000 15,000 15,000 15,000 15,000
Cash gifts to charity 57,250 58,395 59,563 60,754 65,762 72,607 77,051
New Cash gifts to charity 600,000 600,000 600,000 600,000 600,000 600,000 600,000
Total uses of cash 6,558,628 7,190,920 8,185,998 8,460,659 9,795,506 11,433,186 12,458,566
Surplus $ 2,820,962 $ 2,542,226 $ 1,895,810 $ 1,947,161 $ 2,202,652 $ 7,399,428 $ 2,975,856
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 59

61. FIRST ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Tax calculation on Jonathan's death
Combined Net Worth 129,801,661 136,933,458 143,966,391 150,528,140 157,323,771 187,099,932 230,781,857 261,714,223
Jonathan's estimated estate 125,369,684 132,257,971 139,050,771 145,388,474 151,952,074 180,711,551 222,901,990 252,778,194
Total gross estate 125,369,684 132,257,971 139,050,771 145,388,474 151,952,074 180,711,551 222,901,990 252,778,194
Settlement expenses (651,848) (686,290) (720,254) (751,942) (784,760) (928,558) (1,139,510) (1,288,891)
Joint, personal and IRA to Susan (745,348) (786,300) (826,684) (864,363) (903,385) (1,074,366) (1,325,197) (1,502,817)
Outright or in trust to Susan (119,736,945) (126,549,838) (133,268,290) (143,536,625) (150,028,385) (178,473,084) (220,201,740) (249,750,943)
Taxable estate 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Plus Jonathan's lifetime taxable gifts 764,457 764,457 764,457 764,457 764,457 764,457 764,457 764,457
Tax base 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Tentative estate tax - - - - - - - -
Distribution of First Estate
Settlement expenses 651,848 686,290 720,254 751,942 784,760 928,558 1,139,510 1,288,891
To family trust 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Joint, personal and IRA to Susan 745,348 786,300 826,684 864,363 903,385 1,074,366 1,325,197 1,502,817
Outright or in trust to Susan 119,736,945 126,549,838 133,268,290 143,536,625 150,028,385 178,473,084 220,201,740 249,750,943
Total $ 125,369,684 $ 132,257,971 $ 139,050,771 $ 145,388,474 $ 151,952,074 $ 180,711,551 $ 222,901,990 $ 252,778,194
Assumptions
We assume that Jonathan dies first, followed immediately by Susan.
Taxes under "Distribution of First Estate" include estate and income taxes, if any.
Page 60

62. SECOND ESTATE TAX ESTIMATION AND DISTRIBUTION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Tax Calculation on Susan's death
Susan's assets 4,431,977 4,675,486 4,915,620 5,139,666 5,371,698 6,388,382 7,879,867 8,936,029
Plus assets from Jonathan's estate 120,482,293 127,336,138 134,094,974 144,400,988 150,931,770 179,547,450 221,526,937 251,253,760
Susan's estimated estate 124,914,270 132,011,625 139,010,595 149,540,655 156,303,468 185,935,831 229,406,804 260,189,789
Settlement expenses (1,274,143) (1,345,116) (1,415,106) (1,520,407) (1,588,035) (1,884,358) (2,319,068) (2,626,898)
Charitable life estate transfer of home (3,500,000) (3,604,708) (3,712,849) (3,824,235) (3,938,962) (4,433,336) (5,139,452) (5,616,018)
Charitable deduction from TCLAT (115,904,584) (122,826,257) (129,647,096) (143,960,470) (150,540,929) (179,382,594) (221,712,741) (251,711,330)
Taxable estate 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Plus Susan's lifetime taxable gifts 764,457 764,457 764,457 764,457 764,457 764,457 764,457 764,457
Tax base 5,000,000 5,000,000 5,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Federal Estate Tax - - 0 - - - 0 -
Distribution of Second Estate
Settlement expenses 1,274,143 1,345,116 1,415,106 1,520,407 1,588,035 1,884,358 2,319,068 2,626,898
Taxes - - 0 - - - 0 -
Residual estate to heirs 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Charitable Life Estate Gift 3,500,000 3,604,708 3,712,849 3,824,235 3,938,962 4,433,336 5,139,452 5,616,018
Contribution to TCLAT 115,904,584 122,826,257 129,647,096 143,960,470 150,540,929 179,382,594 221,712,741 251,711,330
Total $ 124,914,270 $ 132,011,625 $ 139,010,595 $ 149,540,655 $ 156,303,468 $ 185,935,831 $ 229,406,804 $ 260,189,789
Assumptions
We assume that Jonathan dies first, followed immediately by Susan.
Taxes under "Distribution of Second Estate" include estate and income taxes, if any.
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63. SUMMARY OF BENEFITS TO FAMILY - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Benefits to Family
Residual estate 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Family trust 4,235,543 4,235,543 4,235,543 235,543 235,543 235,543 235,543 235,543
Value of GDOT (1,560,041) (10,334,436) (5,939,096) (1,116,873) 4,165,695 29,773,231 45,730,433 46,560,806
Life insurance proceeds GDOT 120,000,000 120,000,000 120,000,000 120,000,000 120,000,000 120,000,000 120,000,000 120,000,000
Grandchildren's Trust 378,010 396,857 416,700 437,535 459,412 558,418 712,699 825,038
LLC 1 (Insurance Policies) 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000
LLC (Other and loan from GDOT) 5,009,948 5,197,865 5,392,900 5,595,324 5,805,420 6,728,556 8,093,830 9,043,937
Proceeds from ILIT 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324 1,055,324
NPV of TCLAT benefits to children 70,403,633 74,608,048 78,751,213 87,445,550 91,442,701 108,961,922 134,674,418 152,896,387
Total assets to heirs $ 218,757,960 $ 214,394,745 $ 223,148,127 $ 228,887,947 $ 238,399,639 $ 282,548,538 $ 325,737,790 $ 345,852,577
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64. CORPORATE RECAPITALIZATION - PROPOSED PLAN
YEAR Current 2011 2012 2013 2014 2018 2023 2026
Balance sheet
Re-capitalized closely held business 42,165,000 43,426,433 44,729,226 46,071,103 47,453,236 53,409,035 61,915,710 67,656,968
Total Value $ 42,165,000 $ 43,426,433 $ 44,729,226 $ 46,071,103 $ 47,453,236 $ 53,409,035 $ 61,915,710 $ 67,656,968
Adjusted value of shares 42,165,000 43,426,433 44,729,226 46,071,103 47,453,236 53,409,035 61,915,710 67,656,968
Taxable Income
Re-capitalized closely held business 5,481,450 5,645,436 5,814,799 5,989,243 6,740,946 7,814,604 8,539,229
Taxable income 5,481,450 5,645,436 5,814,799 5,989,243 6,740,946 7,814,604 8,539,229
Total distribution to shareholders $ 5,481,450 $ 5,645,436 $ 5,814,799 $ 5,989,243 $ 6,740,946 $ 7,814,604 $ 8,539,229
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