As part of an estate plan for Marsha, would you recommend a will, a will with a testamentary trust, or a revocable living trust? Why.  Are the children old enough to voice their preference for a guardian? Why.
 Marsha were to die first, can she exclude her former husband, Ben, from becoming the guardian of the person of her minor children? What about the guardian of the property? If so, why.  If not, why not.
 Marsha Thompson, age 34, is a single parent who divorced her husband, Ben Thompson, three years ago. Marsha has custody of their two children, Andrea, age 12, and Jonas, age 8. Marsha is a marketing manager for a local retail store. She earns $35,000 per year. The company provides Marsha and her dependents with a health insurance plan; a group term life insurance policy worth $20,000; and a 401(k) employee benefit plan to which the company annually contributes 3 percent of her salary. Marsha makes contributions of $200 per month to the 401(k) plan, and she has named her two children the beneficiaries of the plan and her life insurance. Marsha has a checking account of $1,200; owns a 2011 Ford; and, after the divorce, has title to a house worth $85,000 with equity of $15,000. She has no other savings or investments. Marsha's former husband, Ben, is a salesman who has difficulty keeping a job because of his dependency on alcohol. Currently, he sells new and used cars. He has visitation rights with the children, but he frequently fails to show up. Ben has been ordered to pay monthly child support of $300, which he has paid sporadically depending on whether he has a job. He is now $4,500 behind in support payments, and Marsha has little hope of enforcing payment.

Name the fiduciaries who would need to be appointed as part of Marsha's estate plan.

What other kinds of insurance, if any, would you recommend Marsha buy, e.g., homeowners, car, life, disability, health, or long-term care?

What kinds of investments, if any, would you recommend, e.g., stocks, bonds, certificates of deposit, and IRAs?

Answer rating: 100% (QA)

For Marshas estate plan considering her circumstances I would recommend a will with a testamentary trust Heres why 1 Will with Testamentary Trust Mars... View the full answer