Please answer all points

Maria and Marco have built a successful family construction business worth $30 million. They have 2 children, Xavier (age 10) and Alejandra (age 6). They recently attended an estate planning seminar and were concerned to find out that if they both died they would owe estate tax shortly after the death of the second spouse. They do not know what role their children will play in the future of the business but they do not want them to be forced to sell the business. They would like to begin to gift some of their business interests to their children now to reduce the size of their estate. They are not sure when they will be willing to turn over control of the business to the children, if ever.

They have asked for your advice on what would be the best way to achieve their objectives. Please complete a slide presentation for Maria and Marco that address the following questions. You will need to tape it through zoom and attach the MP4 file as your submission.

1) Recap their objectives

2) What type of specific trust used in estate planning would you recommend based on their objectives?

3) What are the advantages and disadvantages of this technique?

4) How much money would they be able to transfer per year using this approach? Assuming the value of the business increases by 5% per year and they continue this approach until Alejandra reaches age 30, how much would the children's assets be at that point?

5) Who will control the business under this approach? Who will control the children's assets under this transfer approach?

6) Make the presentation easy to follow and concise.

Advising on Potential Trust Structure

Criteria

Ratings

Pts

This criterion is linked to a Learning OutcomeRecap their Objectives

5 pts Clear and concise explanation of client objectives

0 pts Client objectives missing or not understandable

5 pts

This criterion is linked to a Learning OutcomeWhat type of specific trust used in Estate Planning would you recommend based on their objectives?

10 pts Name and clearly describe recommended trust or transfer technique

5 pts Inappropriate transfer technique or missing explanation

10 pts

This criterion is linked to a Learning OutcomeWhat are the advantages and disadvantages of this technique?

10 pts List at least 3 (total) advantages/disadvantages

0 pts Incomplete

10 pts

This criterion is linked to a Learning OutcomeHow much money would they be able to transfer per year using this approach? Assuming the value of the business increases by 5% per year and they continue this approach until Alejandra reaches age 30, how much would the children's assets be at that point?

10 pts Identify annual amount transferred and accurately calculate future value of transfers

6 pts Inaccurate annual amount or future value calculation

10 pts

This criterion is linked to a Learning OutcomeWho will control the business under this approach? Who will control the children's assets under this transfer approach?

5 pts Clearly identify control for business and control of children's assets

3 pts Provide incomplete information on control of business or children's assets

5 pts

This criterion is linked to a Learning OutcomeMake the presentation easy to follow and concise.

Presentations judged on following criteria: 1) Professional appearance and use of word choice 2) Avoid filler words "uhm', "like", etc. 3) Presentation taped with voice thread with image showing (2 pts)

5 pts Presentation clear and concise

0 pts Presentation not clear and/or concise Points given for presentation skills effectively completed.

5 pts

Total Points: 45