In the late 1980s, Carsten Richter, from Germany, migrated to the United States, where he is now a citizen. A man of many talents and deep foresight, he has built a large fleet of oceangoing oil tankers during his stay in the United States. Now a wealthy man in his 60s, he resides in Aspen, Colorado, with his second wife, Gabriela, age 50. They have two sons, one in junior high and one a high school freshman. For some time, Carsten has considered preparing a will to ensure that his estate will be properly distributed when he dies. A survey of his estate reveals the following:

Ranch in Colorado$ 1,000,000 Condominium in Santa Barbara800,000 House in Aspen1,500,000 Franchise in ice cream stores2,000,000 Stock in Google5,000,000 Stock in Wal-Mart1,000,000 Stock in Silver Mines International3,000,000 Other assets200,000 Total assets$14,500,000

The house and the Silver Mines International shares are held in joint tenancy with his wife, but all other property is in his name alone. He desires that there be a separate fund of $1 million for his sons education and that the balance of his estate be divided as follows: 40 percent to his sons, 40 percent to his wife, and 20 percent given to other relatives, friends, and charitable institutions. He has scheduled an appointment for drafting his will with his attorney and close friend, Forrest Gauthier. Carsten would like to appoint Forrest, who is 70 years old, and Carstens 40-year-old cousin, Heinrich Richter (a CPA), as co-executors. If one of them predeceases Carsten, hed like First National Bank to serve as co-executor.

1. Does Carsten really need a will? Explain why or why not. What would happen to his estate if he were to die without a will?

2. Might the manner in which titles are held thwart his estate planning desires? What should be done to avoid problems

3. How does the age of Carstens children complicate the estate plan? What special provisions should he consider?