Case Approach to Financial Planning Expenses Funeral and final expenses assumed the same for both IM *Clio is the beneficiary of Marcel's policy, and Marcel is the beneficiary of Clio's policy. Use this information to answer the questions that follow: Costs $25,000 se Questions tify the statement below that correctly characterizes property interests held by Marcel that, ath, pass by operation of law. If the property passes according to the operation of law, the property avoids probate. wolved in an i is $50,000. himself, his expenses of Chapter 14- Financial Planning Cases 481 1411 MINI CASE 10: THE MARCEL AND CLIO DION CASE Estate Planning Mini-Case Marcel and Clio Dion are taking steps to begin evaluating their estate planning situation. Marcel is sixty years old. Clio is fifty-three years old. They have children, ages thirteen and eighteen. Marcel is a successful executive with a Fortune 500 company, while Clio has achieved success as a cosmetics home sales trainer. Currently, Marcel and Clio's wills state that if either Marcel or Clio were to pass away, the surviving spouse will inherit everything. Both Marcel and Clio value their privacy, but they have not established a trust at this time. Marcel and Clio have an interest in providing charitable support to their church, but they have not made any sizable contributions. Table 14.5 summarizes the asset, liability, and estate expense situation for Marcel and Clio. Table 14.8. Asset, Liability, and Expense Situation for the Dion Household. Assets Checking account Savings account Money market account Other monetary assets EE/Ibonds Mutual funds (basis less than fair market value) Other investment assets Primary residence Other housing assets (vacation home) Vehicles Personal property Retirement assets (e.g., 401(k) and IRA) Retirement assets (eg. 401(k) and IRA) Other assets Life insurance (variable universal life) Life insurance (universal life) Liabilities Mortgage on vacation home Debts Hand Value $26,000 $20,000 $90,000 50 $100,000 $11,720,000 $250,000 $700,000 $240,000 586,000 $134,000 $2,768,000 $2,345,000 $48,000 $1,500,000 $250,000 Value $112.000 $86,000 Ownership JTWROS JTWROS JIWROS JTWROS JTWROS JIWROS JIWROS JTWROS JIWROS TWROS ITWROS Marcel Clio Jointly held but not titled Marcel Cho Ownership Joint Joint Exam rights 6 I, II, and iii What is the value of Marcel's adjusted gross estate if he were to pass away today and before Clio? $2,475,000 & $3,975,000 c. $9,591,000 d. $10,851,000 L