Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1 . CJay Pritchett Jay is age 6 5 . He has been retired for five years. A few years ago, he turned his closet
CJay Pritchett
Jay is age He has been retired for five years. A few years ago, he turned his closet fixtures
business over to his younger brother, Donnie. Jay has a prior marriage and two adult children
from the prior marriage, Mitchell Pritchett and Claire Pritchett Dunphy Both have
their own families. Gloria is his second wife. Due to his divorce experience, he entered into a
prenuptial agreement with Gloria prior to their marriage.
Gloria Pritchett
Gloria is age Gloria has had one prior marriage. She has one child by that marriage her
son Manny age She only has limited assets due to raising Manny on her own with minimal
income. Recently, Gloria gave birth to Joseph, the only child of this marriage to Jay. Because
of Manny's health, Gloria has made out a simple will with of her assets to Manny in a
testamentary trust and to to her other child, Joseph. Gloria is a Columbian native, and it
is unclear whether she has completed the process to become a US citizen.
Jay and Gloria
Jay and Gloria currently live in a community property state. They completed a prenuptial
agreement before they got married five years ago. After they got married, Jay did a revocable
trust with QTIP trust provisions. He wants Gloria to be able to use certain assets especially
the house if she survives him. He is revisiting his estate plan as he has decided he wants all
his assets to be divided between Gloria, and his four children he includes Manny
PrenuptialJay
All assets owned by Jay shown on the financial statement would currently go to his children
from his first marriage. His estate plan has not been revised since just after his marriage to
Gloria. Assets shown in joint name new will go by joint tenancy to Gloria. If Gloria survives
Jay, certain assets go into the QTIP trust.
Gloria. After years, the remaining trust principal will be paid out to his children
equally.
The remaining assets will be placed in a QTIP trust for Gloria's benefit for as long as
she may live. At her death, the trust principal will be paid out to his children equally
currently this only names Mitchell and Claire
Jay's Brother
Donnie is age Since Jay retired five years ago, Donnie has run down the business. Five
years ago, the business generated $ of income for both Jay and Alan. Now Donnie is
barely taking $ from the business, and Jay takes nothing. Donnie just can't handle the
business alone. Jay has a third party who is interested in buying the business from the
partnership and the warehouse from Jay. Jay would like to get what he can from these assets
while he can. The warehouse property is in another nearby state common law
Jay's Children first marriage
Claire stayathome mom, failed City Council candidate age married to Phil Dunphy
moderately successful realtor and has children Haley Alex and Luke
Mitchell environmental attorney age lives with his partner Cameron Tucker music
teacher and parttime clown and has an adopted daughter Lily
Gloria's Child first marriage
Manny As of this writing, Jay has not legally adopted Manny, although it has been
discussed. Unfortunately, Manny was recently diagnosed with a degenerative disease. This
diagnosis will prevent Manny from living independently as he ages.alculate the total of the assets that will pass through Jays Probate Estate if he dies first.Jay Pritchett
Jay is age He has been retired for five years. A few years ago, he turned his closet fixtures
business over to his younger brother, Donnie. Jay has a prior marriage and two adult children
from the prior marriage, Mitchell Pritchett and Claire Pritchett Dunphy Both have
their own families. Gloria is his second wife. Due to his divorce experience, he entered into a
prenuptial agreement with Gloria prior to their marriage.
Gloria Pritchett
Gloria is age Gloria has had one prior marriage. She has one child by that marriage her
son Manny age She only has limited assets due to raising Manny on her own with minimal
income. Recently, Gloria gave birth to Joseph, the only child of this marriage
Calculate the total of the assets that will be included in Jays Gross Estate if he dies first.
Based on Jay and Glorias financial information and family status, provide your recommendations that will accommodate their specific estate plan goals. Provide your rationale and the economic benefits of your recommended estate planning vehicles.
Take into consideration the cost of implementing the estate planning vehicles. Your analysis should also include a review of the familys assets and expenses, and how your estate planning recommendations will impact their current budget and expenses. Do not forget that either spouse may predecease the other.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started