Husband: Stanley, 65 years old

• ·         This is Stanley’s first, and only marriage
• ·         Together with wife they have two kids and six grandchildren
• ·         He has an IRA valued at $600,000
• ·         He receives $2000/month in Social Security
• ·         He has a limited partnership where his income is $1000/month
• ·         He just sold his apartment building for $2.9M
• ·         The residence is community and valued at $1.3M
• ·         The cost basis of the house is $500,000, and there is a remaining mortgage of $300,000
• ·         Stanley and Stella have charitable intents
• ·         Stanley suspects Stella is having an affair
• ·         Stanley had bypass surgery 3 years ago
• ·         Stanley loves cigars

Wife: Stella, 62 years old

• ·         This is Stella’s 2^nd marriage
• ·         First  husband is deceased
• ·         Their two kids live in Denver and Chicago
• ·         She has an IRA from her first husband, valued at $1.1M
• ·         She receives a $1200/month in pension from her deceased first husband
• ·         She was the net income beneficiary from Stanley’s apartment building
• ·         She is the owner of Stanley’s life insurance policy. Death Benefit is $1.5M and has prepaid premiums, cash surrender value $850,000
• ·         Stella travels alone, often to see her kids and grandkids
• ·         Stella’s Aunt is 90 years old and is living in their home

Questions for Discussion -

• 1.      Consider Dissolution
• 2.      Consider their insurance needs

We have a couple: wife (w) 82; husband (h) 87

Married for 60 years

3 children (Michael, Richard, and Jeff): 2 of whom are married and successful; baby of the family, Jeff, is 45 and still lives at parents’ home, and has never been married

Jeff works part time and does all of the household chores and care for the aging parents. Aging parents want to leave house for him so he has somewhere to live. House is valued at 600k. The rest of the estate is worth approx 400k.

Of the 400k, 200 k in an IRA, solely in the husband’s name, and names Michael and Richard as beneficiaries. H receives pension of approximately $1200/month and Social Security $1200/month. House is completely paid off. Cost basis in the house is 100k. Wife appears to be developing symptoms of Alzheimer’s. The other children hate Jeff and want nothing to do with him.

They have long term care insurance that came through H’s workplace but does not include any care at home.

Wife has never worked outside of the home. Avoids going to the doctor for anything because she does not want to be found out.

Husband is the decision maker when it comes to finances and pays for all bills

45 year old Jeff is a cosigner on the main checking account.

What happens to her if something happens to him?

Gift to the 45 year old, should it include monthly rent that he is not paying?

Can he offset that by recording his hours?