CASE STUDY Jack & Emily McCaw “Keep it Simple…” © 2000 Financial Independence Group

Personal Capital & Social Capital Old Plan WITS

OLD WEALTH DISTRIBUTION PLAN FLOWCHART for Mr. & Mrs. McCaw OLD WEALTH DISTRIBUTION PLAN FLOWCHART for Mr. & Mrs. McCaw

What Would Have Happened At The Death Of Mrs. McCaw What Would Have Happened At The Death Of Mrs. McCaw

CURRENT ILIT Irrevocable Life Insurance Trust $1,000,000 GENERATION SKIPPING TRUST $185, Asset Transfers Emily’s Death FAMILY TRUST $625,000 MARITAL TRUST $484,756 EMILY Personal Total $2,314,877 2,148,207 $4,463,083 From Spouse SETTLEMENT COSTS Expenses Taxes Total $88,957 2,679,096 $2,768, Taxes & Expenses 13. Taxes & Expenses 14. Net Estate 14. Net Estate 10. Asset Transfers HEIRS Family Trust 2nd Estate Insurance Total McCaw GST $625,000 1,000,000 $3,990, , Asset Transfers 12. Death Benefit 185,500 2,179,787

WEALTH INTEGRATION & TRANSFER SYSTEM™ FLOWCHART for Mr. & Mrs. McCaw WEALTH INTEGRATION & TRANSFER SYSTEM™ FLOWCHART for Mr. & Mrs. McCaw

What Will Happen At The Death Of Mrs. McCaw What Will Happen At The Death Of Mrs. McCaw

McCAW FOUNDATION CRUT Bequest Total Tst. CLAT HEIRS 2nd Estate Total LLC Units ILITs GST Family Trust - Emily's Death Tstmnt CLAT $- 2,713,886 $4,219, , ,000 $5,466,573 $175,000 SETTLEMENT COSTS Exp. $77,241 - Taxes Total GST $175,000 MARITAL TRUST $95,658 CRUT $1,505,830 EMILY Spouse $1,118,178 2,148,207 $3,362,042 Personal Total FAMILY TRUST $625,000 ILIT Old 3,000,000 $1,000,000 New Total $4,000,000 $1,505, Asset Transfer 17. Asset Transfer 23. Excess Estate 25. Asset Transfer 22. New B Shares 21. Expenses 19. Unified Credit 4,000, Asset Transfer 18. Death Benefit 570, Income 16. Asset Transfer

Old Plan WITS Personal Benefits$ 2,800,000 $ 3,700,000 Family Benefits$ 4,000,000 $ 5,400,000 Voluntary Social$ -0- $ 4,200,000 CASE STUDY Mr. & Mrs. Jack McCaw CASE STUDY Mr. & Mrs. Jack McCaw Benefits Controlled CONTROLLED $ 6,800,000 $13,300,000 TOTAL BENEFITS

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