© The Institute of Continuing Legal Education 2-1
CASE STUDY AND GROUP QUESTIONS FOR
DRAFTING AN ESTATE PLAN FOR AN ESTATE UNDER $5 MILLION
PROBATE CERTIFICATE LIMITED ENROLLMENT SEMINAR1
You have had an office conference with Mark and Nancy Andrews. They have provided
you with the information contained in the attached questionnaire.
This is a second marriage for Mark, and a first marriage for Nancy. They have no estate
planning documents. Their objectives are to avoid or minimize taxes, avoid probate,
protect assets from creditors’ claims (Mark is concerned about medical malpractice
exposure), and protect and provide assets for the benefit of their minor children. Mark
would like his daughter, Susan, to get something at the time of his death, even if Nancy is
surviving. Susan is developmentally disabled and receives SSI and Medicaid benefits.
Susan lives in a group home managed by Community Mental Health, and has a part-time
job at a local McDonald’s restaurant. Because of the age difference, Mark is also
concerned about protecting assets for his children in the event that Nancy were to remarry
following his death.
You should do the following:
Group 1:
1. Analyze the client's existing estate and make recommendations to carry out planning
objectives for Susan.
2. Determine and recommend what the clients should do about their existing life
insurance. Determine and recommend if they need additional life insurance; if they
do, how should it be structured for tax and planning purposes?
Group 2:
1. Analyze the client's existing estate and make recommendations to carry out planning
objectives regarding taxes, probate avoidance, and creditor protection. This would
include selecting marital deduction planning methods.
2. Analyze funding issues and recommend to clients how they should hold title to their
assets, including whether they should fund assets in their trusts; and if so, how those
assets should be handled.
Group 3:
1. Analyze the client's existing estate and make recommendations to carry out planning
objectives regarding their retirement assets.
1 This hypothetical case study was prepared by John E. Bos, Chalgian & Tripp, PLLC.
Drafting an Estate Plan for an Estate Under $5 Million
2-2 © The Institute of Continuing Legal Education
2. Analyze the client's existing estate and make recommendations to carry out planning
objectives regarding their minor children. This would include recommendations
regarding selecting fiduciaries.
© The Institute of Continuing Legal Education 2-3
ESTATE PLANNING QUESTIONNAIRE ______________________________________________
Explanation
The purpose of this Questionnaire is to record information that will be used to
prepare your estate plan, including a Will and/or Trust Agreement. All of the
information is essential. Portions of it will also be helpful in the administration of the
estate or trust and in some cases, required for the preparation of tax returns.
Depending upon your desires, you may prefer to show only the basic
information in the belief that you have only a simple estate. However, it is generally true
that we can minimize certain expenses and save time in planning your estate if we are
furnished with as much information as possible. Your time spent in accurately
completing this Questionnaire will certainly save considerable time, effort and confusion
later.
In the event that insufficient space is provided in this Questionnaire in any
specific area, please use and attach additional sheets.
DOCUMENTS TO BE ATTACHED
Attached or N/A
1. Existing Wills
If so, is it on file? Where? _______________________
N/A
2. Life insurance policies and annuities
YES – SEE QUESTIONNAIRE
3. Income tax return for last year
_____________
4. Schedule of gifts and all Gift tax returns that have been
filed
N/A
5. Business agreements and documents regarding interests in
corporations, partnerships and sole proprietorships
_____________
6. Deeds and land contracts
_____________
7. Statements from Financial Institutions
_____________
Drafting an Estate Plan for an Estate Under $5 Million
2-4 © The Institute of Continuing Legal Education
Instructions
A. Attach additional sheets if necessary.
B. Mark "N/A" by those items which are not applicable.
C. When describing your assets, use "J" for assets jointly owned assets and state
the name of the joint owners; use 'C' for assets owned in your name alone; and
'S' for assets owned in your spouse's name alone.
General Information
YOU
Name: MARK ANDREWS, M.D.
Full Legal Name: MARK GREGORY ANDREWS
Address: 3864 HUMMINGBIRD DRIVE
GRAND RAPIDS, MI 48892
County: KENT
Home Phone:
United States Citizen: Yes X No___
Social Security Number: 824-11-9011
Date of Birth: AUGUST 13, 1974
Employer: KENT PHYSICIANS GROUP, P.C.
Business Address:
Business Telephone:
Marital Status: MARRIED (2ND MARRIAGE)
Have you and your spouse ever resided in the following states (please circle if
applicable):
Arizona California Idaho Louisiana New Mexico Nebraska Texas Washington
Case Study
© The Institute of Continuing Legal Education 2-5
SPOUSE
Name: NANCY ANDREWS
Full Legal Name: NANCY MARIE ANDREWS
United States Citizen: Yes X No
Social Security Number: 047-22-4722
Date of Birth: NOVEMBER 7, 1990
Employer: UNEMPLOYED
Business Address: N/A
Business Telephone: N/A
CHILDREN
Name, Address and Phone Number Birthdate
a. MICHAEL JOHN ANDREWS 5/13/2013
3864 HUMMINGBIRD DRIVE
GRAND RAPIDS, MI 48892
b. MARK GREGORY ANDREWS, JR. 9/8/2015
3864 HUMMINGBIRD DRIVE
GRAND RAPIDS, MI 48892
c. SUSAN ANNE ANDREWS* 7/7/2001
421 FAIRVIEW
LANSING, MI 48911
*MARK’S CHILD FROM 1ST MARRIAGE
Drafting an Estate Plan for an Estate Under $5 Million
2-6 © The Institute of Continuing Legal Education
GRANDCHILDREN
Their Parents Names of Grandchildren Birthdate
a. ____________ (1) NONE_______________________________________
____________ (2) _____________________________________________
(3) _____________________________________________
b. ____________ (1) _____________________________________________
____________ (2) _____________________________________________
(3) _____________________________________________
Parents
You Spouse
Father: _DECEASED__________________ _HAROLD SPRINGER ____64____
Name Birthdate Name Birthdate
___________________________ _______________________________
Address Address
___________________________ _PETOSKEY, MI_______________
City, State, Zip City, State, Zip
Mother: _MABLE ANDREWS____75____ _MARTHA SPRINGER____62____
Name Birthdate Name Birthdate
___________________________ _______________________________
Address Address
_OWOSSO, MI________________ __OWOSSO, MI _______________
City, State, Zip City, State, Zip
Other Relatives
Names, Addresses, Relationships:
PETE & LINDA TOTH (NANCY’S SISTER & HUSBAND)
GORDON & BARBARA SPRINGER (NANCY’S BROTHER & WIFE)
BETH ANDREWS (MARK’S SISTER)
JERRY & JANET ANDREWS (MARK’S BROTHER & WIFE)
Case Study
© The Institute of Continuing Legal Education 2-7
FINANCIAL INSTITUTIONS
Name of Financial Institution Account No. Ownership Amount
J/C/S
Checking
KENT COUNTY FEDERAL CU #467205-A J $3,100
________________________________________________________$_____________
________________________________________________________$_____________
Savings/Money Market
KENT COUNTY FEDERAL CU #467205-B J $ 6,800
FIRST NATIONAL BANK #22406 J $14,200
________________________________________________________$_____________
________________________________________________________$_____________
Certificates of Deposit
KENT COUNTY FEDERAL CU #467205-C C $50,000
________________________________________________________$_____________
________________________________________________________$_____________
TOTAL $74,100
Safety Deposit Box Number___________ Location__________________________
Drafting an Estate Plan for an Estate Under $5 Million
2-8 © The Institute of Continuing Legal Education
PERSONAL PROPERTY
Ownership
J/C/S
Value
AUTOMOBILES
(MAKE)
VOLVO XC70 J $28,000
LAND ROVER DISCOVERY J $25,000
VOLVO 240 C $6,000
HOUSEHOLD
FURNISHINGS
PIANO $5,000
FURNISHINGS $25,000
JEWELRY 18K YELLOW GOLD RING
W/.93 CT DIAMOND
S $4,800
CONCORD 14 CT. GOLD
QUARTZ WATCH
S $1,100
ROLEX WHITE GOLD C $4,500
COLLECTIONS KATE PALMER OIL PAINTINGS
(2)
J $1,500
OTHERS
(Describe)
MARTIN GUITAR C $4,000
MOTO GUZZI CALIFORNIA C $6,000
MOTO GUZZI QUOTA C $7,000
TOTAL $117,900.00
Case Study
© The Institute of Continuing Legal Education 2-9
Real Estate
PARCEL NO. 1
Address: 3864 HUMMINGBIRD DRIVE, GRAND RAPIDS, MI
Legal Description (PLEASE ATTACH COPY OF DEED AND OTHER INSTRUMENT OF
TITLE)
Ownership: _X__ Joint ___ You ___ Spouse
Name of Owner(s): MARK & NANCY ANDREWS
Date of Acquisition: SEPTEMBER 2004
Current Market Value: $410,000
Encumbrances (Name of Mortgagees, Lienors, etc.): ___________________________________
Amount of Debt: $280,000 Monthly Payments: $2,600
Have you conveyed any portion of the above real estate since March 1, 1997? NO
PARCEL NO. 2
Address: NORTHPORT, MI (VACANT LAND) 1 ACRE 300 FEET WATER FRONT
Legal Description (PLEASE ATTACH COPY OF DEED AND OTHER INSTRUMENT OF
TITLE)
Ownership: ___ Joint _X You ___ Spouse
Name of Owner(s): MARK ANDREWS
Date of Acquisition: 1997
Current Market Value: $800,000
Encumbrances (Name of Mortgagees, Lienors, etc.): ___________________________________
Amount of Debt: ______N/A__________ Monthly Payments: ________________
Have you conveyed any portion of the above real estate since March 1, 1997? NO
Drafting an Estate Plan for an Estate Under $5 Million
2-10 © The Institute of Continuing Legal Education
PARCEL NO. 3
Address: GRANDY COUNTY IOWA – 120 ACRES FARM LAND
Legal Description (PLEASE ATTACH COPY OF DEED AND OTHER INSTRUMENT OF
TITLE)
Ownership: ___ Joint ___ You _X_ Spouse
Name of Owner(s): NANCY ANDREWS
Date of Acquisition: 2009 – INHERITED FROM GRANDMOTHER OWNS ½
INTEREST WITH SISTER
Current Market Value: $240,000 (NANCY’S ½)
Encumbrances (Name of Mortgagees, Lienors, etc.): ___________________________________
Amount of Debt: ______N/A__________ Monthly Payments: _____________________
Have you conveyed any portion of the above real estate since March 1, 1997? NO
NOTE: RENTED – ANNUAL INCOME TO NANCY $7,000.
For each additional parcel of real estate attach additional sheets providing above
information.
Case Study
© The Institute of Continuing Legal Education 2-11
INVESTMENTS
Stocks and Mutual Funds
Investment Ownership
J/C/S
No. of Shares VALUE
VANGUARD MUTUAL FUNDS S $240,000
FIDELITY MUTUAL FUNDS C $410,000
TOTAL $650,000
Bonds and Treasury Notes
Investment Ownership
J/C/S
VALUE
SERIES EE BONDS
(COST: $4,250)
J (NANCY & MICHAEL) $4,360
SERIES EE BONDS
(COST $3,750)
J (MARK & MARK JR.) $3,800
$8,160.00
Other Investments
(Limited Partnerships, REIT, etc.)
Investment Ownership Value
J/C/S
____________________________________________________________$__________
____________________________________________________________$__________
____________________________________________________________$__________
____________________________________________________________$__________
TOTAL $ 658,160
For additional investments, please attach additional sheets.
Drafting an Estate Plan for an Estate Under $5 Million
2-12 © The Institute of Continuing Legal Education
BUSINESS INTERESTS
(Use Separate Sheet for Each Business Interest)
Name: KENT PHYSICIANS GROUP, P.C. Percentage Owned: 10%
Type of Entity:
Corporation __PC___ Partnership _____ Sole Proprietorship _____
Limited Liability Company _____
Your estimate of the fair market value of your interest: $100,000
Your Tax basis for your interest: $10,000
Do you have any plans to dispose of business interest(s) during your lifetime? If so,
please describe: NO
_______________________________________________________________________
_______________________________________________________________________
What are you wishes as to disposition of ownership after death:
1) Transfer to Family _____________________________________________________
2) Sale to Co-Owner of Business _YES_______________________________________
3) Sale to Key-Employee __________________________________________________
4) Other________________________________________________________________
Is there a buy/sell or redemption agreement? Yes ___X___ No ______
Please provide financial statements and tax returns for the previous year, a copy of any
buy/sell or redemption agreements, copies of stock certificates, partnership agreements
and LLC Operating Agreements.
Case Study
© The Institute of Continuing Legal Education 2-13
BUSINESS INTERESTS
(Use Separate Sheet for Each Business Interest)
Name: MED PROPERTIES, LLC Percentage Owned: 10%
Type of Entity:
Corporation _____ Partnership _____ Sole Proprietorship _____
Limited Liability Company __X__
Your estimate of the fair market value of your interest: $250,000
Your Tax basis for your interest: $48,000
Do you have any plans to dispose of business interest(s) during your lifetime? If so,
please describe: NO
_______________________________________________________________________
_______________________________________________________________________
What are you wishes as to disposition of ownership after death:
1) Transfer to Family _____________________________________________________
2) Sale to Co-Owner of Business _YES_______________________________________
3) Sale to Key-Employee __________________________________________________
4) Other________________________________________________________________
Is there a buy/sell or redemption agreement? Yes ___X___ No ______
Please provide financial statements and tax returns for the previous year, a copy of any
buy/sell or redemption agreements, copies of stock certificates, partnership agreements
and LLC Operating Agreements.
Please attach a separate sheet for each business entity.
Drafting an Estate Plan for an Estate Under $5 Million
2-14 © The Institute of Continuing Legal Education
RETIREMENT
If you have any interest in a 401(k), pension, profit sharing, stock bonus, self-employed
retirement plan, individual retirement account (traditional or Roth) or deferred compensation
plan, or any other similar type of benefits, complete the following:
Participant: NANCY
Employer/Sponsor of Plan: PIMCO FUNDS
Type of Plan: X IRA – Traditional IRA – Roth 401k 403B SEP
Deferred Compensation Defined Benefit Defined Contribution
Keogh Other
Custodian/Trustee/PlanAdministrator: PIMCO
Value: $23,572
Primary Beneficiary: MARK
Contingent Beneficiary: MARTHA SPRINGER
It is important that you provide a copy of the plan document, or summary plan
description. We must determine what type of payout options are available, does the
plan allow for minimum distributions and whether a trust can be named as
beneficiary of the plan.
**PLEASE PROVIDE A COPY OF YOUR MOST RECENT PLAN STATEMENT
OF ACCOUNT.
Participant: MARK
Employer/Sponsor of Plan: MTL EQUITY PRODUCTS
Type of Plan: X IRA – Traditional IRA – Roth 401k 403B SEP
Deferred Compensation Defined Benefit Defined Contribution
Keogh Other
Custodian/Trustee/PlanAdministrator: MTL
Value: $26,069
Primary Beneficiary: NANCY
Contingent Beneficiary: NONE
It is important that you provide a copy of the plan document, or summary plan
description. We must determine what type of payout options are available, does the
plan allow for minimum distributions and whether a trust can be named as
beneficiary of the plan.
**PLEASE PROVIDE A COPY OF YOUR MOST RECENT PLAN STATEMENT
OF ACCOUNT.
Case Study
© The Institute of Continuing Legal Education 2-15
If you have any interest in a 401(k), pension, profit sharing, stock bonus, self-employed
retirement plan, individual retirement account (traditional or Roth) or deferred compensation
plan, or any other similar type of benefits, complete the following:
Participant: MARK
Employer/Sponsor of Plan: YORK HOSPITAL GROUP
Type of Plan: IRA – Traditional IRA – Roth X 401k 403B SEP
Deferred Compensation Defined Benefit Defined Contribution
Keogh Other
Custodian/Trustee/PlanAdministrator: FIFTH THIRD BANK
Value: $643,000
Primary Beneficiary: NANCY
Contingent Beneficiary: CHILDREN
It is important that you provide a copy of the plan document, or summary plan
description. We must determine what type of payout options are available, does the
plan allow for minimum distributions and whether a trust can be named as
beneficiary of the plan.
**PLEASE PROVIDE A COPY OF YOUR MOST RECENT PLAN STATEMENT
OF ACCOUNT.
Drafting an Estate Plan for an Estate Under $5 Million
2-16 © The Institute of Continuing Legal Education
LIFE INSURANCE PROVIDED BY EMPLOYER
Policy #1 Policy #2
Company: CNA
Policy #: G-490
Type: GROUP
Insured: MARK
Owner: MARK
Beneficiary: NANCY
Contingent
Beneficiary:
CHILDREN
Face Value: $50,000
Loan Amount: 0
LIFE INSURANCE OWNED BY YOU OR SPOUSE
(attach additional pages if necessary)
Policy #1 Policy #2
Company: MTL Insurance Co. USAA
Policy #: 6772-A 46AL22
Type: 10-YEAR TERM LIFE BEGAN 2012 ANNUAL
RENEWABLE
Insured: MARK MARK
Owner: MARK MARK
Beneficiary: NANCY NANCY
Contingent
Beneficiary:
CHILDREN CHILDREN
Face Value: $1 MILLION $197,989
Loan Amount: 0 0
Annual
Premium
$1,250 $624
Case Study
© The Institute of Continuing Legal Education 2-17
LIFE INSURANCE OWNDED BY YOU OR SPOUSE
Policy #3 Policy #4
Company: MTL INSURANCE CO.
Policy #: 86791
Type: WHOLE LIFE
Insured: NANCY
Owner: NANCY
Beneficiary: MARK
Contingent
Beneficiary:
LINDA TOTH
Face Value: $334,211
Current Cash
Surrender
Value
$23,432 (DIVIDENDS BUY
ADDITIONAL PAID UP
INSURANCE)
Amount of
Loan:
$21,308
Annual
Premium:
$2,650
Annuities
Policy #1 Policy #2
Company: HARTFORD
Policy #: 74A621-14
Type: DEFERRED VARIABLE
Annuitant: MARK
Owner: MARK
Beneficiary: NANCY
Contingent
Beneficiary:
CHILDREN
Current Value: $229,310
Cost Basis $100,000
Drafting an Estate Plan for an Estate Under $5 Million
2-18 © The Institute of Continuing Legal Education
OTHER ASSETS
Please provide information on any other assets, including but not limited to Notes, Accounts
Receivable, Mortgages, Land Contracts, Patent and/or Copy Rights, Oil and Gas Rights, Mineral
Rights, interest in any Trust, any prospective gifts and prospective inheritances and please include
description, value, and any other relevant information.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
MONTHLY INCOME
Client Spouse
Employment: $__18,000______________________$________________________________
Retirement
Plan: $______________________________$________________________________
Social
Security: $______________________________$________________________________
Other
(Explain): $______________________________$_7,000 (annual)___________________
LIABILITIES
(Not Previously Listed)
Creditor Secured By Due Date Current Balance
Secured by Due Date Current Balance
KENT COUNTY FCU 12,471
FIFTH THIRD $12,000
FIFTH THIRD $50,000
US DEPT OF EDUCATION $4,954
VOLVO FINANCE $19,500
Case Study
© The Institute of Continuing Legal Education 2-19
PLANNING AND DISTRIBUTION OBJECTIVES
1. Upon your death, how and to whom do you want your assets distributed?
SPOUSE 100%
2. Are there any people who should receive particular items? If so:
Name Item
MICHAEL_____________________ _MARTIN GUITAR___________________
MARK, JR.____________________ _ROLEX WATCH_____________________
_______________________________ _____________________________________
3. If you and your spouse die prematurely leaving minor children, should your
children receive property at:
__________ age of majority (18); or
____X______ held in trust and distributed at age _____?_____.
4. Do you want to make gifts to any charities? If so: (AFTER SECOND TO DIE)
Name and Address of Charities Amount of Gift
KENT CO. HUMANE SOCIETY $10,000
THE NATURE CONSERVANCY $10,000
5. If you die first and none of your children are living at the time of your spouse's death,
do you want your estate to go to: Your Family ___________
Spouse's Family? ___________ Elsewhere?_______________
Explain_______________________________________________________________
_______________________________________________________________________
6. If your estate is required to pay Federal Estate Tax, do you want the tax paid from
____?____The Residuary Estate ____?____Apportioned among all beneficiaries?
Drafting an Estate Plan for an Estate Under $5 Million
2-20 © The Institute of Continuing Legal Education
Wills
Personal Representative. Person responsible for administering your estate and probate
proceedings.
Name Address
1st Choice: __SPOUSE_______________ _________________________________
_________________________________
2nd Choice: ___DON’T KNOW________ _________________________________
_________________________________
Guardian. Person responsible for the well-being and daily care of your minor children,
until they attain age 18, if both parents are deceased.
Name Address
1st Choice: ____LINDA TOTH________ _________________________________
_________________________________
2nd Choice: ___BETH ANDREWS_____ _________________________________
_________________________________
Conservator. Person who will manage any minor child's finances and property, until
that child attains age 18, if both parents are deceased.
Name Address
1st Choice: _____LINDA TOTH_______ _________________________________
_________________________________
2nd Choice: ____BETH ANDREWS____ _________________________________
_________________________________
Case Study
© The Institute of Continuing Legal Education 2-21
Trustee. Person or bank that will manage your assets in a trust and distribute assets after
your death.
Name Address
1st Choice: ____DON’T KNOW_______ _________________________________
_________________________________
2nd Choice: ________________________ _________________________________
_________________________________
Drafting an Estate Plan for an Estate Under $5 Million
2-22 © The Institute of Continuing Legal Education
Financial Power of Attorney
Agent. Person responsible for financial decisions during your lifetime.
Name Address
1st Choice: ______SPOUSE___________ _________________________________
_________________________________
2nd Choice: MARK: JERRY ANDREWS
NANCY: GORDON SPRINGER
Health Care Power of Attorney
Agent. Person responsible for health care decisions during your lifetime, if you are
unable.
Name Address
1st Choice: _____SPOUSE____________ _________________________________
_________________________________
2nd Choice: MARK: BETH ANDREWS
NANCY: LINDA TOTH