John, 55 and Sophie, 51 just celebrated their twelfth wedding anniversary in their home inToronto, Ontario. For both John and Sophie this is their second marriage. John has two childrenfrom his first marriage, Hannah, 21 and Zack, 15 who live with John's ex-wife, Margaret inLondon, Ontario, (about 200 km away). Hannah is studying fashion at Fanshawe College inLondon, while Zack is in high school and spends the week with his mother and every otherweekend with John and Sophie. Although Hannah is studying Fashion, she has maxed out bothof her credit cards (approximately $25,000) and lives with Margaret spending every paychequeshe receives.

Sophie has three children from her previous marriage with Grant. Their children's names areFrank, 25, Zoey, 23, and Joseph, 20. Frank is disabled, living with Sophie and John. He iscurrently receiving government subsidies for his disability, cerebral palsy. Frank is fullydependent on Sophie and John as he will never be able to work. Zoey is attending the University of Toronto for her dual MBA and law degree and Joseph is attending Seneca College studying to be an accountant.

John is a mechanical engineer who is a 50% owner of a fabrication plant, MovieLand, theyspecialize in making custom molds for movie sets. John's partner, Bill owns the remaining 50%of the business. John focuses on the mechanics and building, Bill focuses on the front office,marketing, and sales for the company, MovieLand. MovieLand employs 15 people, ten in theback working with John and five in the front end working with Bill. John and Bill have beenrunning the company for 5 years and are contemplating the next steps in their businessrelationships and what agreements may be required to support that. Currently they have noagreements in place. John brings home a salary of $150,000 per year with bonuses of up to

$15,000.

Sophie is a teacher for the Toronto District School Board. She makes $85,000 per year and hascontributed into the teacher's pension since she started teaching 28 years ago. She is hoping toretire in 4 years at age 55 to receive her full pension.

John is paying child support for both Hannah and Jack, he is not sure how much longer andhoping you can help with that. Margaret never remarried after the divorce with John and hasbeen working as a manager at Tim Horton's.

John and Sophie have several properties. Prior to their marriage, John purchased a recreationalproperty in Arizona for $115,000 USD it is currently worth $250,000 USD (approximately

$318,000 CAD). Sophie used the proceeds of her divorce to purchase a cottage in NorthernOntario. She purchased it in 2007 for $300,000 CAD, it is now worth $850,000. Together theypurchased their home in Toronto for $600,000 that is now worth $1,300,000. They have amortgage on their Toronto home of $550,000 and have utilized a line of credit on the cottage of

$250,000.

John has not updated his will since his marriage with Margaret. Sophie selected her brother wholives in Edmonton, Alberta to be her Power of Attorney for Personal Care and her sister wholives in Toronto, Ontario to be her Power of Attorney for Property.

John and his brother, James have just been appointed Power of Attorney for Property and forPersonal Care for their mother who has been diagnosed with early-stage Alzheimer's. John doesnot know how much this role is going to demand and is hoping you can help him with this.

John and Sophie are concerned about their disabled son and would like to ensure he will be okay should something happen to them.

John has a Term Life insurance policy for $500,000 that is coming up for renewal in 3 years thathas the beneficiary of Margaret. According to the divorce, John must maintain this policy untilhis children have finished either high school or post-secondary education, whichever is later.

John would like to keep the policy to go towards his estate plan, but he is not sure if $500,000 isenough to cover his estate planning needs.

Sophie has a Permanent Policy for $100,000 with a term rider of $500,000. She is unsure if thisis enough coverage.

John and Sophie's monthly net income is currently $19,600 before deductions (CPP, EI, IncomeTaxes, Pension and Group RRSP Contributions). $13,000 after deductions.

Investable Assets:

John's Group RRSP: $700,000 (ACB $455,500)Sophie's RRSP: $75,000 (ACB $57,250) John's TFSA: $45,000 (ACB $30,500)

Sophie's TFSA: $25,000 (ACB $14,250)

Joint Non-Registered Account: $15,000 (ACB $9,000)

Sophie's Pension: Monthly benefit at age 65 of $4,020

Monthly Expenses:

Property Taxes	$1,200
Water, sewer	$500
Property Ins	$400
Heat, Electricity	$1,000
Main, security	$1,000
Garden	$250
Prop Management Service	$300
Transportation	$465
Groceries	$1,000
Clothing	$500
Gifts	$500
Charity	$700

Entertainment	$350
Travel	$500
Personal care	$300
Subscriptions (Netflix, Amazon, Disney+, etc.)	$100
Communications	$300
Support for Frank	$300
TFSA Savings	$1,000
Total	$10,665
Surplus ($13000 Net)	$ 2,335

Instructions:

Read the case study above and show an analysis of their goals, concerns, questions for the clients and potential recommendations for their estate plan.

You are meeting with John and Sophie for your second meeting. You have all the informationlisted above however you find there may be missing information. Your job is to summarize Johnand Sophie's objectives and goals as well as discuss any other gaps in their estate plan that youwould like to bring to John and Sophie's attention.

In your presentation show a family tree, net worth statement, and identify 4 to 6 itemsregarding their estate plan that need recommendations or further questioning.

Some items you may want to address:

1) Do the clients' estate/risk planning needs seem clear enough? Do you require addedclarification? Do you require more information to know if the needs are in conflict with other objectives (if so, what)?

For the presentation, if you require information, state this as you discuss goals. In general, youcan assume that your client (s) have and will continue to maintain their current lifestyle.

2) Provide a list of your client (s) current financial position and his or her future incomepotential and identify financial obligations or objectives that might interfere or conflict with the client's estate/risk planning objectives