9 Summary For your Estate Plan Assignment, you will review a set of facts and prepare a comprehensive estate plan. You will play the role of a professional financial planner and represent your client, Benny and Martha Franklin, in the development of the estate plan. After you develop the estate plan, you will write up a professional communication that advises the client on how to best implement the estate plan. You are submitting a professional letter including a recommended plan, gift tax returns, and estate tax return by Sunday at 11:59PM ET. Problem Statement Your task in this assignment is to prepare a basic estate plan, communicate to a client, and satisfy IRS compliance requirements as part of estate planning. To prepare the estate plan, you will utilize the facts presented to you by your client and address the goals they have, as well as ensure that they have followed proper tax compliance requirements.

CASE Apiptendx Tax Rare Scheoule fon TaxaBLE Girts ANo Estates (2009) 1: Read the Benny and Martha Franklin Case. The case can be found on pg. 616 of your textbook. 2: Prepare a professional letter addressed to your client that addresses the following: - What are the steps Benny and Martha should take immediately and over the long-run to reduce their gross estate and achieve their goals? Be specific and quantify the impact of each recommendations. - Prepare the gift tax returns for 2009 and 2012, as well as for the current year (2022), based on recommendations. The applicable credit amount for gift tax purposes was $345,800 in 2009,$1,772,800 in 2012 , and $4,769,800 in 2022. The annual exclusion was $13,000 in 2009 and 2012 and is $16,000 in 2022 - Prepare an estate tax return for Benny as of the end of the current year after any recommended transfers. Assume he dies on December 31 of the current year. Assuming the combined last medical and funeral costs are $100,000 and the estate administration cost is $150,000. Vecawion Howe Benry and Martha used to ppend summen with frichds ar a home en Manta's Vincyand Ther had such fond memorics that once they became succouful. they deciled to purchise a bome on Martha's Vincrand. They spend a subsantial amount of time with their doildren and grandehildren ot the vacation home every summer. Life Issaramere The life insurance policy is a second-to-die policy on the lives of Benny and Martha. The policy han a death benefit of $2 million. Asume the replacement value of the policy is $200,000. The polic is currently owned by Benny and the three boys are the bepticiaries. Inivatuent Roul Eitate The investment real estate includes several pieces of commercial real eatate held in separate catioica. The value is expected to increase at an avetape rate of 10 percent per year. Eitate Plenming Docnmentr Benny and Martha have basic wills that make optimal wee of testamentary bypas trume and the marital deduction. The wills were designed to avoid all cuate ux at the death of the first spouse and to make use of their lifetime exemptions. They also have durable powen of attomey for bealth care, advanced medical directives and financial powen of attorncy. Prier Gifo In 2000, Benny cublished a Charitable Remainder Annuity Trust and funded it with highly appreciated publicly-traded stock worth $1,000,000. Benny and Martha wete the income beneficiaries and the Wounded Warrior Project was the remainder beneficiury. The truat was ist up with a ten-year term. In 2009, Benny established an irrevocable trust for each of the three boys and funded each trus with 51 million. The trusts were set up in such a way as to allow the tnuster of each crast to provide for the healh, education, maintenance and support of the bencficiary. The trusts were eatablished as simple trusts. The trusee is directed to not terminite the truct untif the bencficitry tures sge is. the trus were nor ser up as crumny truts. The thust name die dhildren. (bora and unbom) of cach of the boys as the concingent beneficiaries for each crus. In 2012. Benny grve Unde Gcorge a gifr of $1,013,000 in cant. His uncle had beces ingpirational when Benny was a kid and has fillen on hard times. Marcha has not made aty roxalle gifs in her pant. Summary For your Estate Plan Assignment, you will review a set of facts and prepare a comprehensive estate plan. You will play the role of a professional financial planner and represent your client, Benny and Martha Franklin, in the development of the estate plan. After you develop the estate plan, you will write up a professional communication that advises the client on how to best implement the estate plan. You are submitting a professional letter including a recommended plan, gift tax returns, and estate tax return by Sunday at 11:59PMET. Problem Statement Your task in this assignment is to prepare a basic estate plan, communicate to a client, and satisfy IRS compliance requirements as part of estate planning. To prepare the estate plan, you will utilize the facts presented to you by your client and address the goals they have, as well as ensure that they have followed proper tax compliance requirements. Gones: Petpake A Proper Estate PLan 1. Mfindmine exate ean 2. Find cotlegr educatinn for the five gandchiliren. dren. 5. Keep 100 percent of busines intercis in dhe family. 6. Maintain control of the busines until retirement at whidb time James and Joe will bater over. 7. Trander an additional $2 million to the Wounded Warriot Proper some time in at funite: FINANCIAL STATEMENTS Summary For your Estate Plan Assignment, you will review a set of facts and prepare a comprehensive estate plan. You will play the role of a professional financial planner and represent your client, Benny and Martha Franklin, in the development of the estate plan. After you develop the estate plan, you will write up a professional communication that advises the client on how to best implement the estate plan. You are submitting a professional letter including a recommended plan, gift tax returns, and estate tax return by Sunday at 11:59PMET. Problem Statement Your task in this assignment is to prepare a basic estate plan, communicate to a client, and satisfy IRS compliance requirements as part of estate planning. To prepare the estate plan, you will utilize the facts presented to you by your client and address the goals they have, as well as ensure that they have followed proper tax compliance requirements. CASE Apiptendx Tax Rare Scheoule fon TaxaBLE Girts ANo Estates (2009) TAX RATE SCHEDULE FOH TACABLE GIFTS AND ESTATLS (2009) 1: Read the Benny and Martha Franklin Case. The case can be found on pg. 616 of your textbook. 2: Prepare a professional letter addressed to your client that addresses the following: - What are the steps Benny and Martha should take immediately and over the long-run to reduce their gross estate and achieve their goals? Be specific and quantify the impact of each recommendations. - Prepare the gift tax returns for 2009 and 2012, as well as for the current year (2022), based on recommendations. The applicable credit amount for gift tax purposes was $345,800 in 2009,$1,772,800 in 2012 , and $4,769,800 in 2022. The annual exclusion was $13,000 in 2009 and 2012 and is $16,000 in 2022 - Prepare an estate tax return for Benny as of the end of the current year after any recommended transfers. Assume he dies on December 31 of the current year. Assuming the combined last medical and funeral costs are $100,000 and the estate administration cost is $150,000. Vecawion Howe Benry and Martha used to ppend summen with frichds ar a home en Manta's Vincyand Ther had such fond memorics that once they became succouful. they deciled to purchise a bome on Martha's Vincrand. They spend a subsantial amount of time with their doildren and grandehildren ot the vacation home every summer. Life Issaramere The life insurance policy is a second-to-die policy on the lives of Benny and Martha. The policy han a death benefit of $2 million. Asume the replacement value of the policy is $200,000. The polic is currently owned by Benny and the three boys are the bepticiaries. Inivatuent Roul Eitate The investment real estate includes several pieces of commercial real eatate held in separate catioica. The value is expected to increase at an avetape rate of 10 percent per year. Eitate Plenming Docnmentr Benny and Martha have basic wills that make optimal wee of testamentary bypas trume and the marital deduction. The wills were designed to avoid all cuate ux at the death of the first spouse and to make use of their lifetime exemptions. They also have durable powen of attomey for bealth care, advanced medical directives and financial powen of attorncy. Prier Gifo In 2000, Benny cublished a Charitable Remainder Annuity Trust and funded it with highly appreciated publicly-traded stock worth $1,000,000. Benny and Martha wete the income beneficiaries and the Wounded Warrior Project was the remainder beneficiury. The truat was ist up with a ten-year term. In 2009, Benny established an irrevocable trust for each of the three boys and funded each trus with 51 million. The trusts were set up in such a way as to allow the tnuster of each crast to provide for the healh, education, maintenance and support of the bencficiary. The trusts were eatablished as simple trusts. The trusee is directed to not terminite the truct untif the bencficitry tures sge is. the trus were nor ser up as crumny truts. The thust name die dhildren. (bora and unbom) of cach of the boys as the concingent beneficiaries for each crus. In 2012. Benny grve Unde Gcorge a gifr of $1,013,000 in cant. His uncle had beces ingpirational when Benny was a kid and has fillen on hard times. Marcha has not made aty roxalle gifs in her pant. BENNY AND MARTHA FRANKLIN CASE Bony and Manhu Franklin have come to you for help with their cuate plan. PERSONAL BACKGROUND AND INFORMATION Benny and Martha Franklin are 55 -your-old and have been happily married for 35 year. Ther ars both in exdlent healeh and expect they will live well into their 90s. They live in Virginis and luve three children and six grandchildren. The Franklins plan to retire at ase 65. The charr below depicts their family as of todsy. Joe and James ate both married and work in the family businesics. Jeff is a lawyer and is recently divorted with catody over his daughter, Elizabeth. Je's youngot child, Ivan, was born as a special neceds child who needi fult time are. Berny and Martha have a grear relarionship with their dayghter-in-Luw and consider them part of the family. Benny graduated from MTT and is an aerospuce engineer. He started and owns three companie that produce components for various wrapons systems for the United Sates. Department of Defenic, Joe and James both gradured from West Point Academy and spent several years in the military. They have been working for Benny in various roles for the last couple years. The thise buanesses are structured as C corporations and are owned entircly by Benny and Martha. The three busineses have appreciared over the laut five years at an Annual compound rate of growth of 10 percenc. Benny expects this rate of grewth to continue indefinitely. Marta mujored in communicitions at Boston College and has been a stay-at-home mem. She pow helpe with dhe prandchildren regularly and volunieers with the Wounded Warios Projece. Attend MII. Ivan is nor expected to artend college. The current cost of undergalute undien at MTT is $63,000 per ycar. Tuition has becn increasing at an arerage neve of seven pricem and is ceprad to concinue at that nate. 1: Read the Benny and Martha Franklin Case. The case can be found on pg. 616 of your textbook. 2: Prepare a professional letter addressed to your client that addresses the following: - What are the steps Benny and Martha should take immediately and over the long-run to reduce their gross estate and achieve their goals? Be specific and quantify the impact of each recommendations. - Prepare the gift tax returns for 2009 and 2012, as well as for the current year (2022), based on recommendations. The applicable credit amount for gift tax purposes was $345,800 in 2009,$1,772,800 in 2012 , and $4,769,800 in 2022. The annual exclusion was $13,000 in 2009 and 2012 and is $16,000 in 2022 - Prepare an estate tax return for Benny as of the end of the current year after any recommended transfers. Assume he dies on December 31 of the current year. Assuming the combined last medical and funeral costs are $100,000 and the estate administration cost is $150,000. CASE ASSUMPTIONS 1. They want to make manimume une of their annul cadiusines. plach the bet plan. 4 Thelonpterm AFR is 3Nh. 5. Any minority trander of basines interess will necrive a 25s dincoumb. 6. Their life erpectuncies for GRAT or QPRT purposes asc a fallows 7. Thait principal roidence and the vacation bomx are appicciating at 109 per yoar and are cypecred to continus to grow at that nate. Dinechons FOn THE CASE oanmendutions. The applicalle codit amount for gift tas parposes was $345,500 in 200%. $1,72,800 in 2012 , and 54,417,800 in 2018 . The annal cuduion wa $13,000 in 2009 and 2012 , and is 515,000 in 2018 . sk50,000. Summary For your Estate Plan Assignment, you will review a set of facts and prepare a comprehensive estate plan. You will play the role of a professional financial planner and represent your client, Benny and Martha Franklin, in the development of the estate plan. After you develop the estate plan, you will write up a professional communication that advises the client on how to best implement the estate plan. You are submitting a professional letter including a recommended plan, gift tax returns, and estate tax return by Sunday at 11:59PMET. Problem Statement Your task in this assignment is to prepare a basic estate plan, communicate to a client, and satisfy IRS compliance requirements as part of estate planning. To prepare the estate plan, you will utilize the facts presented to you by your client and address the goals they have, as well as ensure that they have followed proper tax compliance requirements. Gones: Petpake A Proper Estate PLan 1. Mfindmine exate ean 2. Find cotlegr educatinn for the five gandchiliren. dren. 5. Keep 100 percent of busines intercis in dhe family. 6. Maintain control of the busines until retirement at whidb time James and Joe will bater over. 7. Trander an additional $2 million to the Wounded Warriot Proper some time in at funite: FINANCIAL STATEMENTS CASE ASSUMPTIONS 1. They want to make manimume une of their annul cadiusines. plach the bet plan. 4 Thelonpterm AFR is 3Nh. 5. Any minority trander of basines interess will necrive a 25s dincoumb. 6. Their life erpectuncies for GRAT or QPRT purposes asc a fallows 7. Thait principal roidence and the vacation bomx are appicciating at 109 per yoar and are cypecred to continus to grow at that nate. Dinechons FOn THE CASE oanmendutions. The applicalle codit amount for gift tas parposes was $345,500 in 200%. $1,72,800 in 2012 , and 54,417,800 in 2018 . The annal cuduion wa $13,000 in 2009 and 2012 , and is 515,000 in 2018 . sk50,000. BENNY AND MARTHA FRANKLIN CASE Bony and Manhu Franklin have come to you for help with their cuate plan. PERSONAL BACKGROUND AND INFORMATION Benny and Martha Franklin are 55 -your-old and have been happily married for 35 year. Ther ars both in exdlent healeh and expect they will live well into their 90s. They live in Virginis and luve three children and six grandchildren. The Franklins plan to retire at ase 65. The charr below depicts their family as of todsy. Joe and James ate both married and work in the family businesics. Jeff is a lawyer and is recently divorted with catody over his daughter, Elizabeth. Je's youngot child, Ivan, was born as a special neceds child who needi fult time are. Berny and Martha have a grear relarionship with their dayghter-in-Luw and consider them part of the family. Benny graduated from MTT and is an aerospuce engineer. He started and owns three companie that produce components for various wrapons systems for the United Sates. Department of Defenic, Joe and James both gradured from West Point Academy and spent several years in the military. They have been working for Benny in various roles for the last couple years. The thise buanesses are structured as C corporations and are owned entircly by Benny and Martha. The three busineses have appreciared over the laut five years at an Annual compound rate of growth of 10 percenc. Benny expects this rate of grewth to continue indefinitely. Marta mujored in communicitions at Boston College and has been a stay-at-home mem. She pow helpe with dhe prandchildren regularly and volunieers with the Wounded Warios Projece. Attend MII. Ivan is nor expected to artend college. The current cost of undergalute undien at MTT is $63,000 per ycar. Tuition has becn increasing at an arerage neve of seven pricem and is ceprad to concinue at that nate