1. What type of trust is appropriate for remarried couples such as the Lipmans? How might your answer change if each spouse has sufficient assets to provide for himself or herself independently following the death of the other spouse?
2. Should either of them die in 2014, how much estate tax would Cindy and Ned owe on their respective estates? How does the portable estate exemption affect their potential tax liability?
3. What can Cindy and Ned do to address their concerns about estate planning in the event of incapacitation?
4. Would Cindy and Ned make good health-care proxies for one another? Why or why not?
5. Since Cindy and Ned both have valid wills, are revisions necessary? If so, what changes should be made?
Cindy and Ned Lipman were recently married, each for the second time. Both are concerned about leaving assets to the adult children from their previous marriages and are reluctant to combine their individual assets. Together, they have an estate valued at $7.25 million, of which $3,100,000 is in Cindy's name and $3,350,000 is in Ned's name. They live in Cindy's $800,000 home, which she received in her divorce settlement. Cindy and Ned have not revised their wills since their marriage. The wills still name their previous spouses as executor and beneficiary of their respective estates.