case study jack & emily mccaw “keep it simple…” © 2000 financial independence group
TRANSCRIPT
CASE CASE STUDYSTUDYJack & EmilyJack & Emily
McCawMcCaw
““Keep it Keep it Simple…”Simple…”
© 2000 Financial Independence Group
Personal Capital & Social Capital
Personal Capital & Social Capital
4 5.4
4.2
0123456789
10
Millions
Old Plan WITS Old Plan WITS
OLD WEALTH DISTRIBUTION
PLAN FLOWCHART
forMr. & Mrs. McCaw
OLD WEALTH DISTRIBUTION
PLAN FLOWCHART
forMr. & Mrs. McCaw
What Would Have Happened AtThe Death OfMrs. McCaw
What Would Have Happened AtThe Death OfMrs. McCaw
CURRENT ILIT
Irrevocable Life Insurance Trust
$1,000,00
0
GENERATIONSKIPPING TRUST
$185,500
9. Asset Transfers
9. Asset Transfers
Emily’s
Death
FAMILY TRUST
$625,000
MARITAL TRUST
$484,756
EMILY
Personal
Total
$2,314,87
7 2,148,2
07 $4,463,08
3
From Spouse
SETTLEMENT COSTS
Expenses
Taxes
Total
$88,957
2,679,096
$2,768,053
13. Taxes &Expenses
13. Taxes &Expenses14. Net
Estate14. NetEstate
10. Asset Transfers
10. Asset Transfers
HEIRS
Family Trust2nd Estate
InsuranceTotal
McCaw GST
$625,0
00
1,000,00
0
$3,990,287
484,756 11. Asset Transfers11. Asset Transfers
12. Death Benefit12. Death Benefit
185,50
0
2,179,78
7
WEALTH INTEGRATION &
TRANSFER SYSTEM™
FLOWCHARTfor
Mr. & Mrs. McCaw
WEALTH INTEGRATION &
TRANSFER SYSTEM™
FLOWCHARTfor
Mr. & Mrs. McCaw
What WillHappen At
The Death OfMrs. McCaw
What WillHappen At
The Death OfMrs. McCaw
McCAW FOUNDATION
CRUT
BequestTotal
Tst. CLAT
HEIRS
2nd Estate
Total
LLC Units
ILITs
GST
Family Trust
-
Emily's Death
Tstmnt CLAT
$-
2,713,88
6
$4,219,717
1 475,258
625,000
$5,466,57
3
$175,000
SETTLEMENT COSTS
Exp. $77,241
-
$77,241
Taxes
Total
GST
$175,000
MARITAL TRUST
$95,658
CRUT
$1,505,830 EMILY
Spouse
$1,118,17
8 2,148,2
07 $3,362,04
2
Personal
TotalFAMILY TRUST
$625,000
ILIT
Old
3,000,00
0
$1,000,000
New
Total $4,000,000
$1,505,830
15. Asset Transfer
17. Asset Transfer
23. Excess Estate
25. AssetTransfer
22. New B Shares
21. Expenses
19. Unified
Credit
4,000,00
0
20. Asset
Transfer
18. DeathBenefit
570,915
24. Income
16. AssetTransfer
Old PlanOld Plan WITSWITS
Old PlanOld Plan WITSWITSPersonal BenefitsPersonal Benefits $ 2,800,000 $ 2,800,000 $ $ 3,700,0003,700,000Family BenefitsFamily Benefits $ 4,000,000 $ 4,000,000 $ 5,400,000$ 5,400,000Voluntary SocialVoluntary Social $ -0- $ -0- $ $ 4,200,0004,200,000
CASE STUDYMr. & Mrs. Jack McCaw
CASE STUDYMr. & Mrs. Jack McCaw
Benefits ControlledBenefits Controlled
CONTROLLED CONTROLLED $ 6,800,000 $ 6,800,000 $13,300,000$13,300,000TOTAL BENEFITSTOTAL BENEFITS
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