Chapter 15: Estate Planning

The Sampsons - A Continuing Case

Dave and Sharon want to make sure that their family is properly cared for in the event of their death. They recently purchased term life insurance and want to make sure that the funds are allocated to best serve their children in the long run. Specifically, they have set the following goals. First, they want to make sure that a portion of the insurance proceeds

is set aside for the childrens education. Second, they want to make sure that the insurance proceeds are distributed evenly over several years, so that the children do not spend the money too quickly.

Questions and Answers:

1) Advise the Sampsons on how they can plan their estate to achieve their financial goals. (2 Points)

2) What important consideration are the Sampsons overlooking in their estate-planning goals? (1 Point)

3) Dave recently met with an estate planner who offered to create an elaborate estate plan without asking Dave specific questions. What should Dave have done prior to meeting with the estate planner? (2 Points)