Case 4 Belinda Johnson Helps Her Uncle Plan His Estate Belinda Johnson has been approached by her uncle, Ryan Lawrence, who seeks advice about planning his estate. She has been handling some of Ryan’s investments, and he trusts her judgment on fi nancial matters. Ryan has a net worth of

$2,340,000. At age 54, he is concerned about preparing his fi nances so that as much as possible of his estate will go to his heirs according to his wishes. Ryan has no will but has written down some of his ideas. He has no wife or children but wants to be able to provide for his mother, four nephews, Belinda, and a disabled sister.

(a) What is the fi rst action Ryan should take in planning his estate?

(b) Why might an irrevocable living trust be a good idea for Ryan in providing for his mother and sister?

(c) What other types of trusts might Ryan use in his estate planning?