Wendy and Will Wolverine are both age 45. They met in Ann Arbor and never left. They have three children, ages 19, 15, and 12. Wendy is a physician in private practice who works part-time but still has' generous benefits. Will is a professor of economics at the University' of Michigan (he s a Wolverine, after all) and he has participated in the University s 403(b) program by maximizing his contributions which are generously matched by the University. They have some after-tax money but primarily they are interested in saving in their respective retirement plans.

Their assets are as follows:
House (entireties, net of the mortgage)	$350,000.00
Cash a'nd Investments (JTWROS)	225,000.00
Wendy s 401(k)/Profit-Sharing Plan '	350,000.00

Will s 403(b) Plan 475,000.00

'

Wendy s Life Insurance 500,000.00

'

Will s Life Insurance 250,000.00

Total Assets $2,150,000.00

Who should be the beneficiaries of the IRAs? What about trusts for the children? How should they be structured for maximum tax deferral for each child?

Part 2

Assume the Wendy and Will Wolverine fact pattern. Will Wolverine dies at age 45, leaving his 403(b) plan to his spouse, Wendy, who is also age 45 and the sole primary beneficiary of the account. Conduit trusts for the benefit of Will and Wendy's three children are the contingent beneficiaries.

What are Wendy's options with regard to the 403(b)? Again, their assets at the time of Will's death are as follows: House (entireties, net of mortgage) $350,000.00 Cash and Investments (JTWROS) 225,000.00 Wendy's401(k)/ProfitSharingPlan 350,000.00 Will's 403(b) Plan 475,000.00 Wendy's Life Insurance 500,000.00 Will's Life Insurance 250,000.00 TotalAssets $2,150,000.00 We don't actually know the Wolverine's income, which is spurious, we would in the real world Let's ASSUME for a moment that Wendy may have a hard time making ends meet without Will's income. This may affect her decision about what to do with Will's 403b. She may need up to $50k/ yr.

ROTH IRA conversions ( not available for Inherited IRAs BTW) allow you to withdraw CONTRIBUTIONS five years after they are made as qualified distributions