Read below and explain two different types of taxes that may be affected by 
their death and whether those taxes can be eliminated through planning (California Laws Apply)

FAMILY DATA and Facts

Members of immediate family Status Age 
Hank Stoney Husband 52
Wanda Stoney Wife 53
Sam Stoney Son 19
Dora Stoney Daughter 17

Hank and Wanda met and married thirty years ago while undergraduate students
attended USC. They have two children together. Neither has ever been married before
or has any other children. Sam lives in a college dorm, but comes home during breaks to
live with Hank and Wanda and plans on living with them after graduation indefinitely.
Dora lives with Hank and Wanda, but plans on moving to New York when she graduates
high school.

Residence 
Hank and Wanda own the real property located at 254 Melrose Avenue, Orange, CA.

Other relatives 
Wanda's parents died many years ago as did Hank's parents. Hank's brother, Bob, is 65
years old and lives in New York. Bob is in moderately good health, but has noticed that
his memory is declining.

ANNUAL INCOME 

Hank Stoney has been employed as a software engineer for a small company based in
Burbank for the past twenty years. His annual salary is $750,000. Wanda is a volunteer
for a local animal rescue and is not otherwise employed. Last year, they received interest
income and dividends of approximately $1,200,000.

ASSETS 

The Stoneys have lived in San Diego since they graduated from college. Neither brought
into the marriage much property of substantial value and neither inherited property. All
life insurance policies and investments were made after they married.

Tangible personal property

Consists of furnishings in the residence, two relatively new automobile (2018 Honda
Civic and 2020 Honda CRV), personal effects and clothing (of nominal value), household
effects, and other similar items. Total estimated value: $50,000.


Real estate 
Family residence: The Stoneys purchased their current home at 789 Fir Avenue,
Northridge, CA purchased fifteen years ago for $2,000,000. The property is currently
valued at $17,500,000. There is a mortgage on the property. The deed is titled: "Hank and
Wanda Stoney, joint tenants with right of survivorship".

Bank accounts 
Checking account: National City Bank of America account balance varies between
$30,000 - $40,000 monthly. The account is held as "Hank and Wanda Stoney, joint
tenants with right of survivorship".

Savings account: National City Bank account in the name of "Hank and/or Wanda
Stoney, payable on death to the survivor." Present balance is $220,000.

Certificates of deposit: (1) Citibank CD issued 1 year ago at 2.5% interest to "Hank
Stoney, payable on death to Sam Stoney" Face value: $500,000 (matures in 4 years).; (2)
Citibank CD issued 1 year ago at 2.5% interest to "Wanda Stoney, payable on death to
Dora Stoney" Face value: $500,000 (matures in 4 years).

Life Insurance 
Suntrust Life Insurance policy: $5,000,000. Hank is listed as the owner, with Wanda
listed as the beneficiary and Sam and Dora listed as the alternate beneficiaries.

State Farm Life Insurance Policy: $2,000,000. Wanda listed as the owner, with no listed
beneficiary.

Employee benefits 
Retirement pension: Hank contributes 5% of his annual salary to the plan and his
employer contributes 10%. The present projection is that he will be able to retire at age
65 with an annuity of $250,000. At his death, Wanda will receive a lump sum payment
of $750,000.