For purposes of this study, assume the annual gift tax exclusion is $14,000. Please also assume the lifetime estate and gift tax exclusion is $5.45 million (the applicable amount in 2016). Introductory Data Chase Fisher (age 54) is a small business owner. He and his wife, Janet, (age 53) have the following assets: His Hers Cash and Cash $500,000 Cash and Cash $200,000 Equivalents Equivalents Residence $2,000,00 Retirement Plans $1,000,00 0 0 Brokerage Account $2,500,00 Brokerage Account $1,000,00 0 0 Life Insurance (death $4,000,00 Family Farm $3,000,00 benefit) 0 0 Retirement Account $2,000,00 Miscellaneous Assets $1,000,00 0 0 Business (90% Value) $2,250,00 Business 10% Value $250,000 0 Total $13,250,0 Total $6,450,00 00 0 The Fishers have determined that because of the uncertainty of Congress, they would like to freeze assets at $5.34 million x 2 = $10,680,000 and are concerned that lifetime estate and gift exemptions will be lowered. The Fishers have three children (ages 34, 32, and 30) and nine grandchildren, 3 from each child varying in ages from 1 to 16 years old. The children are educated, healthy, happily married and are of moderate economic means. The Fishers have done no estate planning and do not have any estate planning documents. Financial Goals Their primary goal, for this example, is to prepare a basic, but adequate estate plan. Their other goas and concerns are as follows: Retire at age 63 and maintain control of the company until retirement.