Jack (age 54) and Reese (52) Holmes are a married couple with two children, Mattie (24)...

 

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Jack (age 54) and Reese (52) Holmes are a married couple with two children, Mattie (24) and Rose (30). Rose has 2 kids, Macie and Wade (ages 2 and 4). Jack Holmes is an oral surgeon, and he co-owns a practice with another doctor. Reese is a homemaker. Both of them are heavily involved in working with their favorite charities, Austin Smiles and The Gideons International. The Holmes have obtained substantial assets throughout their lives, approximately $12 million each. In addition to sound planning and saving, Jack and Reese have both inherited large sums from their parents. Over the years, they have divided their assets evenly into investment accounts, real estate holdings, and artwork. They have a ranch in their home state of Texas where they spend a lot of time with family and friends. Jack offers a company-sponsored retirement plan through the practice, so he has a sizeable 401(k), as well as joint and individual brokerage and bank accounts. Three weeks ago, an unannounced guest visited the Holmes. It seems that Jack was surprised to learn that he has a son he never knew about, who was born before he ever met Reese. While they are surprised at this revelation, the family wants to form a relationship with him. The Holmes have approached you, their financial planner, to develop a comprehensive plan for them. They are interested in gifting strategies to both their family members and charity. They also want your advice about creating a trust, including which type of trust is most useful for their situation. What do you suggest for the Holmes family? 1. What gifting strategies would you suggest? Make any additional assumptions about the family in order to complete the steps. Jack (age 54) and Reese (52) Holmes are a married couple with two children, Mattie (24) and Rose (30). Rose has 2 kids, Macie and Wade (ages 2 and 4). Jack Holmes is an oral surgeon, and he co-owns a practice with another doctor. Reese is a homemaker. Both of them are heavily involved in working with their favorite charities, Austin Smiles and The Gideons International. The Holmes have obtained substantial assets throughout their lives, approximately $12 million each. In addition to sound planning and saving, Jack and Reese have both inherited large sums from their parents. Over the years, they have divided their assets evenly into investment accounts, real estate holdings, and artwork. They have a ranch in their home state of Texas where they spend a lot of time with family and friends. Jack offers a company-sponsored retirement plan through the practice, so he has a sizeable 401(k), as well as joint and individual brokerage and bank accounts. Three weeks ago, an unannounced guest visited the Holmes. It seems that Jack was surprised to learn that he has a son he never knew about, who was born before he ever met Reese. While they are surprised at this revelation, the family wants to form a relationship with him. The Holmes have approached you, their financial planner, to develop a comprehensive plan for them. They are interested in gifting strategies to both their family members and charity. They also want your advice about creating a trust, including which type of trust is most useful for their situation. What do you suggest for the Holmes family? 1. What gifting strategies would you suggest? Make any additional assumptions about the family in order to complete the steps.