Frank and Carol enjoy good health. Frank envisions working full time until age 65 then slowing down, possibly retiring at age 70. They want to protect and preserve their lifestyle together and for each other. They also want to be generous with their children/grandchildren and charities of their choosing.

What personal lifestyle risks do they have now and can expect to have in the future?  

ESSENTIAL FACTS

Frank and Carol, both age 55, have three children, John age 31, Allison age 29, and Andrea age 27.

Frank is 100% owner of a second-generation contracting business in CT, CRC INC. he inherited 15 years ago when his Dad died. The Company is a C Corporation., generating approximately $20 million in gross sales, $2 million in gross profit annually. Frank estimates the value to be between $15 and $25 million. So $20 million as a safe estimate.

John is full time in the business, has worked there since a child, has his MBA from Babson, and is the heir apparent. He is married and has two children, ages 6 and 4. Daughter Allison is married and she and her husband in Maryland have 2 children, one with significant autism. Youngest daughter Andrea is single and works on NYC. Neither daughter has any interest in joining the business.

Frank is healthy, active and showing no signs of slowing down.

There are two other very key employees of this 60 employee company, Erik and Dan, also in their mid to late 30’s, who run the estimating and project supervision divisions.

Frank and Carol personal balance sheet is as follows:

ASSET VALUE OWNER

CRC INC Stock.    20,000,000. Frank

Business realty. 4,000,000.    Frank

Ct residence.    2,000,000.    Joint with right of survivorship

Vermont ski house 1,000,000.    Joint with right of survivorship

Personal investment

Accounts    1,000,000. Frank

500,000.    Carol

401k Plan.    1,500,000.    Frank

Ira. 200,000.    Carol

Personal property. 500,000.    Joint

Group term life ins. 1,000,000.    Frank

Whole life insurance. 1,000,000.    Frank

Whole life insurance. 250,000.    Carol

Frank’s income from the business is approximately $500,000 annually plus an additional $200,000 annually from the business realty he owns and rents to the Company.

Frank and Carol live comfortably, travel, enjoy the children and grandchildren, and give generously annually to various charities. Carol is involved on 3 non-profit boards, and both are involved in Alumni activities with their respective colleges.

They have been referred to you by their best friends and have expressed a willingness to engage in a serious fact-finding and discovery planning process to identify and address all their planning needs and goals.

They have articulated these broad goals and concerns

What planning and funding do you recommend to address these personal planning issues and needs?