Log in

Blended Family - Case Study

29 Sep 2021 1:51 PM | Joe Mcmackin (Administrator)

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 2nd 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


Powered by Wild Apricot Membership Software