Flora and Nicholas have come to you with questions about estate planning. They are in their mid-40's, and are raising two children, Venus, age 8, and Adam, age 14. Venus is a child of the marriage, and Adam is Nicholas's son from a previous marriage. Flora is an administrator with the public-school system and has been working there for 10 years. She is participating in the state's retirement system. Nicholas is an entrepreneur and is the sole owner of a successful pizza restaurant, Nick's Pizza Den, which currently has 12 full- and part-time employees. Nicholas's son Adam also works in the business part- time. Nicholas also owns the building where his business is located, and rents space out to two other small businesses. Flora and Nicholas have brought in their account statements and information as you requested, and you have taken the following notes on what was provided: Latest book value of Nick's Pizza Den: $500,000 Commercial building owned by Nicholas: $800,000 FMV (outstanding mortgage principal balance is $440,000) Earned income last year was $52,000 for Flora and $175,000 for Nicholas, Nicholas also received $68,000 in rental income from leasing space in the commercial building he owns Flora and Nicholas work with a CPA and are comfortable with their finances and cash flow. Other assets - . Flora IRA - $165,000, Nicholas is the beneficiary