Final Fact Pattern

Papers should be 3-5 pages

Mark Smith and his wife Beth are both 45 years old and they have 3 children (18, 15 and 7). Mark owns his own business (sole proprietorship) and it is estimated to be worth $9,000,000. Beth and Mark have a joint bank account worth $500,000. Beth owns a $5,000,000 term life insurance policy on Mark's life. They also own a primary residence worth $500,000 as tenants in common. Beth has $100,000 in a traditional IRA that names Mark as beneficiary.

Beth's father recently died and she has inherited $3,000,000 (her share after splitting with her brother) after taxes and splitting the estate with her brother. Mark and Beth have come to you because they want to make sure they protect as much of their assets as possible. They currently have no estate plan and are in desperate need of your help.

In your meeting Mark and Beth tell you that they are considering giving money to charity but need some advice about what to donate.

What recommendations do you have for Mark and Beth? What do they need to consider to complete their estate planning? What are the consequences if they do not do any planning?