knox_case_08[1] - Estate Planning Fall, 2008 Kenneth and...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Estate Planning Fall, 2008 Kenneth and Holly Knox Ken and Holly called for an appointment to discuss their estate plan. They currently have simple wills which leave everything to the surviving spouse with no other arrangements. Their wills were drawn before their children were born. Ken and Holly have sent you the attached financial information and, in your first meeting, provided you with the following information. Ken is a former executive with Smith Corona who accepted an early retirement offer late last year. He felt that his position in corporate America did not allow him a sufficient outlet for his creative abilities. During the last several years, Ken has been moonlighting as a corporate image consultant and has been developing a client base not only in Ithaca but on a national level. Ken has been operating this business, which he has called The Country's Best Image (TCBI), as a sole proprietorship. In past years, Ken received minimal income from this business and his only expenditures were for the cost of supplies. He is now devoting his energies to TCBI full-time. He currently uses a spare room in their home. Ken is considering either building an addition or renting commercial space as he expects this business to grow. He has begun to purchase office furniture and equipment in anticipation. Assume that Ken has given you detailed documentation projecting that his net earnings from TCBI will increase substantially over the next 10 years - 50 to 100% a year - before stabilizing. His secret hope is that his daughter, Meredith and/or her husband, Bernie, will want to be involved although he has not raised this with either of them. Holly is a senior architect at Design Bid, one of the largest firms in town. Holly has been at Design Bid for most of her career. She has a six figure income composed of salary, bonus, and generous fringe benefits. She makes before-tax contributions to her firm's qualified retirement plan. Her long-term outlook is to retire in ten years. However, if Ken's business really takes off, she may devote increasing amounts of her time to help develop his business and retire even sooner from Design Bid. One of Holly's chief tax and financial concerns is building a retirement nest egg. She is maximizing her
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

knox_case_08[1] - Estate Planning Fall, 2008 Kenneth and...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online