Analyzethe following Case in this week's Module; Casesare short and intended to highlight a few key concepts from our Module; see syllabus and rubric for full details.

• Number all questions as indicated (1, 2, 3).
• Your answer must be responsive to the questions.
• Do not repeat the question.
• ONLY consult the CASE and your TEXT to respond to the questions. NO outside sources. Note: All information that is not common knowledge must follow the citation rules below (including any paraphrase).
• EACH question response must contain at least one quote and citation from our TEXT or CASE.
  • If from the TEXT, use QUOTES and a PAGE NUMBER, ex, "This is a quote from the text." (Text, page 88).
  • If from the CASE, use QUOTES, ex, "This is a quote from the case." (Case).
• Your answer must be 200 words or more.

In the late 1980s, Carsten Richter, from Germany, migrated to the United States, where he is now a citizen. A man of many talents and deep foresight, he has built a large fleet of oceangoing oil tankers during his stay in the United States. Now a wealthy man in his 60s, he resides in Aspen, Colorado, with his second wife, Gabriela, age 50. They have two sons, one in junior high and one a high-school freshman. For some time, Carsten has considered preparing a will to ensure that his estate will be property distributed when he dies. A survey of his estate reveals the following: Ranch in Colorado $1,000,000 Condominium in Santa Barbara 800,000 House in Aspen 1,500,000 Franchise in ice cream stores 2,000,000 Stock in Google 5,000,000 Stock in Wal-Mart 1,000,000 Stock in Silver Mines International 3,000,000 Other assets 200,000 Total Assets $14,500,000

The house and the Silver Mines International shares are held in joint tenancy with his wife, but all other property is in his name alone. He desires that there be a separate fund of $1 million for his sons' education and that the balance of his estate be divided as follows: 40 percent to his sons; 40 percent to his wife, and 20 percent to given to other relatives, friends and charitable institutions. He has scheduled an appointment for drafting his will with his attorney and close friend, Forrest Gauthier. Carsten would like to appoint Forrest, who is 70 years old and Carsten's cousin Heinrich Richter (a CPA) as co-executors. If one of them predeceases Carsten, he'd like First National Bank to serve as co-executor.

Analysis

1. What are the primary estate planning tools available that one should consider?
2. Under the facts presented, is a will needed? Explain why or why not?
3. Without a will, what would happen to this? Briefly, what is a trust, and how do they work?