Instructions: Please follow the instructions carefully.

1. Read the fact pattern below.

2. From what is reflected in the fact pattern, draft an estate plan of all documents you believe are necessary to carry out the wishes of the clients. All documents that encompass your estate plan must be turned in.

3. write a brief summary of the reasons that support your estate plan. This basically reflects your thought process.

Fact Pattern:

Carter Pewterschmidt and Barbara Pewterschmidt are an extremely wealthy married couple. Their holdings can be summarized as follows:

-- Personal residence $22 million

-- Vacation home $6.5 million

-- Stocks and securities $30 million

-- Artwork $17 million

-- Collectible automobiles $4 million

-- Miscellaneous personal property $1 million

-- Baseball cards $2 million

-- Cash $10 million

-- 1/3 interest in a nature preserve

Carter is 71 years old and Barbara is 70 years old. Carter and Barbara have two living children, Lois Griffin and Carol Pewterschmidt. Lois is married to Peter Griffin and the pair have three children, Meg 16 years old, Chris 13 years old and Stewie 2 years old. Carol is unmarried but has three children, Tom, Dick, and Jane. Carter and Barbara come to you in order for you to prepare for them an estate plan.

It is important to both Carter and Barbara that estate taxes and probate fees be minimized as much as possible. Because Carol is fairly financially set, the pair would like to leave 75% of their estate to Lois and her children. However, while they want Meg, Chris and Stewie to share equally in funds, they do not want any of the three to get any money until they reach the age of 35. However, if Meg, Chris and/or Stewie decide to go to college, they do however want them to be able to access money from their estate before the age of 35 to fully pay for their college experience. With respect to Lois, they just want to assure she is able to live comfortably during the balance of her life but want to assure she does not "waste" money that they hope ultimately reach their grandchildren. By absolutely no means do they want to make any gift, whatsoever, to Peter.

In regards to Carol and her children, Carter and Barbara would like to split a ten percent share of their estate equally amongst Carol and all of her children except Jane. Jane is actually an adopted daughter of Carol, and because of that, they do not want to leave any amount to Jane.

As for the remaining ten percent of their estate, they would like to discuss with you possible options on distributing that remaining percentage.They are interested in giving the money to charity and creating a monument to the great Pewterschmidt legacy.

Both Carter and Barbara do not want to be left on life support nor have heroic efforts undertaken to prolong their lives. They would like documents drafted as well to carry out these wishes.

Notes: Do you want the initial trust(s) set up as revocable or irrevocable? Revocable during our lifetime; irrevocable once the first of one of us passes. When do you want the trust(s) terminated? After the lives of the last living beneficiary. Are there any outstanding debts (e,g.maortgage)? Should debts be paid off at the time of first spouse's death or at death of surviving spouse? 4 million mortgage on the house. Pay off at the first spouses death. Does the surviving spouse still have full access to the principal and can use the money at their discretion, or is the spouse only able to access income to support a reasonable lifestyle? Full access to both. What does Barbara want to do with her $1m diamond ring? Give it to the first granddaughter who marries. Do Carol's kids (minus Jane) get any type of income prior to 30 for support? grandkids receive holiday and birthday gifts otherwise no support. Not sure if its been asked, but who are the designated trustees and in what order should they be listed?We would like the trustee to be a neutral third party. A professional trustee who is not a family member. 8. 10. 11. 12. 13. 14. 15. 16. 17. 18. Are they the same who should be appointed as the agent for the POA & Health care directive? No. We would like that to be Carol. For purposes of this assignment, do we make up addresses for the real property? That is fine. Does the surviving trustor/settlor have the power to change the successor trustees? No. Do the beneficiaries have removal powers if they feel the successor trustee is not acting in conformity with the terms of the trust. If so, is it by majority in interest or majority in number? Yes. But only if extrerne malfeasance by majority number. What is the minimum age of distributions for the beneficiaries? It was established that 35 was the minimum age for Lois's kids (except for college), but what about Carol's kids? For Carol's kids, 30. Are Carter and Barbara both U.S. citizens? Yes. If a named beneficiary dies before they receive their complete distribution, should the remaining amount pass to their children per stirpes, or lapse back to the trust and be split among the remaining surviving beneficiaries? If it lapses back to the remaining beneficiaries, should it be divided equally or proportionately according to their designated percentage? Pass per stirpes. If none of Carter and Barbara's named beneficiaries out survive them, do they want to designate someone, or a charity, church, organization, etc. as an ultimate beneficiary, or would they rather have the assets pass by intestate succession? If they choose intestate succession, would Jane still be excluded. Also, are Janes descendants excluded as well? If no one survives, it all should go to charity in creating the Cancer Center Foundation, whose purpose will be to find a cure for, and treat, cancer. Do Carter and Barbara want the POA's to be effective immediately upon execution, or upon incapacitation? Incapacitation. If for some reason Red Cross is not in existence at the time of distribution, is it ok to give the successor trustee power to give the distribution to a charity providing similar services? If not, what should then become of the 10%? Good idea, yes please. Are the assets and holdings all held jointly? If not, which are separate property and of who? All property is community property save for Barbara owning a diamond ring worth 1 million dollars. That is her separate property. 19. Should the assets and holdings be liquidated, and the proceeds distributed according to the percentages, or should any remain in trust? Orisit atthe discretion of the successor trustee? Discretion of trustee best serving our wishes and desires 20. Can we have any identifying information for the Personal Residence, Vacation Home, Stocks and Securities, Artwork, Collectible Autormobiles, Misgpersonal property, baseball cards, and the nature preserve. Anything we could have- deeds, pictures, lists, property identification information. Appraisal documents for the art, cars, baseball cards. Information regarding the stocks? 1. Just make up addresses for the real property. 2. Stocks: a. 20,000 shares of IBM b. 15,000 shares of Apple . 15,000 shares of Nestle 3. Achwork are various master paintings by various artists over the centuries. They will need to be appraised. . Baseball cards have had an appraisal done and are valued at 2 million dollars. 5. Nature preserve is in Fresno County in the unincorporated area. Just make up an address for it. 21. Do you wish for Lois to be the alternative Executor and alternate POA? YES 22. If a conservator need be appointed, who would you nominate? Lois 23. To be clear, settlors/trustees are Carter and Barhara but a professional trustee will be the alternate trustee if either becomes incapacitated (and then the professional becomes the successor trustee when they both pass)? CORRECT 24. If [ understand correctly, each trustee is also the executor of their own trust and then the spouse becomes executor when the other spouse dies? And then after both their deaths, the professional trustee becomes sole trustee and_ also becomes the sole executor of both trusts? CORRECTtechnically trusts only have trustees; there are no executors to a trust. 25. I'mincluding a DPOA/Advanced Health Care Directive my understanding is that the Agent will be the spouse but Carol is the alternate Agent if the original Agent becomes incapacitated. Is that correct? And does the Agent have any limitations to his/her powers? CORRECT and no limitations. 26. Is the Agent authorized to make anatomical gifts, authorize an autopsy, and decide the disposition of either of their remains? Any special instructions we should add to Carter's /Barbara's Advanced Health Care Directive? Not authorized to make gifts; can authorize autopsy; our remains are to be cremated and interred at Clovis Chapel Cemetery. 27. Do Carter or Barbara want to be organ donors? NO 28. Is there a specific location where Carter/Barbara want to be buried? Or can we make it up? See above. 29. Can we make up who the notary public/witnesses are? Yes. 1. In your response, you stated that the trustee should be a neutral and professional third party. Is this to be a person or entity we fabricate that was not provided for us in the facts, such as an accountant or bank? CORRECT 2. Are we to infer that Tom, Dick and Jane have the Bevterschmidt name? CORRECT. 3. Is Carol also to act as the executor in addition to her other roles? Yes; and if you mean executor, we assume you mean executor/personal representative to any will. Trusts do not have executors