Planit:Estate Analysis of Expenses and Distributions Exercise Answer Key

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== Question One: == You are expanding on your estate analysis for Walter and Alice Black, who are beginning to get concerned about the value of estate they will have to pass on. They have told you that they would like to plan for burial costs of {{{burial cost}}} and probate and other fees at a rate of {{{probate and other fees}}}. They each have a will and power of attorney for property. Their will was re-drafted last on January 1st, eight years ago. Walter would like to give {{{Amount to charity}}} to {{{charity}}}, a registered charity, followed by $50000 to his children. The residual beneficiary for Walter’s estate is Alice. {{{Female name}}} wants to give $300000 of her estate to Walter, and then $15000 to her sister. The residual beneficiaries for Alice’s estate are her children. What is the total distribution to Alice if Walter dies first? What is the total distribution to their children if Alice dies first? Contents 1 Answer: 2 Answer: 3 Answer: 4 Answer: Answer: Change the drop-down menu option under Client Data Entry to Integrated Planning. Use the navigation panel to go directly to the Will Information screen. Starting under the Planning Assumptions section: 1. Enter $15000 in the field Assumed Burial Costs 2. Set the rate for Probate and Other Fees to 7.5% 3. For Canada, set the Marginal Tax Rate on Estate for both clients to {{{marginal tax rate}}}. For all other countries, set the Marginal Tax Rate on Estate to 0%. 4. Walter indicated he had a power of attorney for property and a will, so click the checkboxes beside Have a Will and Have a Power of Attorney for Property. 5. The will was effective eight (8) years ago, Jan 1st, so under Effective From for Have a Will enter 20XX-01-01 as appropriate. 6. Repeat these steps for Alice as well. We will now proceed to enter the data for the Partial Distribution and Residual Distribution sections. 7. For Walter’s first partial distribution, enter 5% in the Percent field, leaving the Dollar Amount field blank. Change the Beneficiary to Charitable Donation. 8. For Walter’s second partial distribution, enter $50000 in the Dollar Amount field, leaving the Percent blank. Change the Beneficiary setting to Child. 9. For Alice’s distribution to Walter, change the first Dollar Amount field to $300000. Change the drop-down menu for the Beneficiary to Spouse. 10. For Alice’s second partial distribution, enter $15000 in the Dollar Amount field, leaving the Percent field blank. Change the Beneficiary to Other since there is no specific setting for sister. 11. The Residual Distribution setting for Walter can be left at Spouse, however, for Alice, it should be changed to Child. 12. Click Save To View the Estate Analysis Report: Click the Preview button at the bottom of the screen, OR 1. In the Your Working Documents screen, click on Preparing Reports – Risk Management. 2. Click on the Radio button beside Estate Analysis. 3. Click on the Generate Document link. It will take approximately one minute to generate. Hit the Refresh button periodically until the completed document is ready. 4. Finally, when the document has completed calculating and is ready to view, click the Download button. The report is broken down into four sections for two different scenarios – one for the event that Walter dies first, and another for the event that Alice dies first. And for each scenario, the analysis is done on first and second death. To identify the total distribution to Alice if Walter dies first, scroll down to the last line called Total Distribution in the scenario that “Walter Dies First”. Follow the line until it meets the column titled Alice or Spouse and record the number. To identify the total distribution to their children if Alice dies first, scroll down to the last line called Total Distribution in the scenario for “Alice Dies First” AND “Walter Dies Second”. Follow the line until it meets the column titled Children. Add the two values and record the sum.

United States of America
{{{United States Workbook Template}}}

Argentina
{{{Argentina Workbook Template}}}

Brazil
{{{Brazil Workbook Template}}}

United Kingdom

== Question One: == You are expanding on your estate analysis for Walter and Alice Black, who are beginning to get concerned about the value of estate they will have to pass on. They have told you that they would like to plan for burial costs of {{{burial cost}}} and probate and other fees at a rate of {{{probate and other fees}}}. They each have a will and power of attorney for property. Their will was re-drafted last on January 1st, eight years ago. Walter would like to give {{{Amount to charity}}} to {{{charity}}}, a registered charity, followed by the remainder to his children. The residual beneficiary for Walter’s estate is Alice. {{{Female name}}} wants to give £350,000 of her estate to Walter, and then £15,000 to her sister. The residual beneficiaries for Alice’s estate are her children. What is the total distribution to Alice if Walter dies first? What is the total distribution to their children if Alice dies first? Answer: Change the drop-down menu option under Client Data Entry to Integrated Planning. Use the navigation panel to go directly to the Will Information screen. Starting under the Planning Assumptions section: 1. Enter £2,000 in the field Assumed Burial Costs 2. Set the rate for Probate and Other Fees to 2.5% 3. For {{{Country}}}, set the Marginal Tax Rate on Estate for both clients to {{{marginal tax rate}}}. For all other countries, set the Marginal Tax Rate on Estate to 0%. 4. Walter indicated he had a power of attorney for property and a will, so click the checkboxes beside Have a Will and Have a Power of Attorney for Property. 5. The will was effective eight (8) years ago, Jan 1st, so under Effective From for Have a Will enter 20XX-01-01 as appropriate. 6. Repeat these steps for Alice as well. We will now proceed to enter the data for the Partial Distribution and Residual Distribution sections. 7. For Walter’s first partial distribution, enter 10% in the Percent field, leaving the Dollar Amount field blank. Change the Beneficiary to Charitable Donation. 8. For Walter’s second partial distribution, enter the remainder in the Dollar Amount field, leaving the Percent blank. Change the Beneficiary setting to Child. 9. For Alice’s distribution to Walter, change the first Dollar Amount field to £350,000. Change the drop-down menu for the Beneficiary to Spouse. 10. For Alice’s second partial distribution, enter £15,000 in the Dollar Amount field, leaving the Percent field blank. Change the Beneficiary to Other since there is no specific setting for sister. 11. The Residual Distribution setting for Walter can be left at Spouse, however, for Alice, it should be changed to Child. 12. Click Save To View the Estate Analysis Report: Click the Preview button at the bottom of the screen, OR 1. In the Your Working Documents screen, click on Preparing Reports – Risk Management. 2. Click on the Radio button beside Estate Analysis. 3. Click on the Generate Document link. It will take approximately one minute to generate. Hit the Refresh button periodically until the completed document is ready. 4. Finally, when the document has completed calculating and is ready to view, click the Download button. The report is broken down into four sections for two different scenarios – one for the event that Walter dies first, and another for the event that Alice dies first. And for each scenario, the analysis is done on first and second death. To identify the total distribution to Alice if Walter dies first, scroll down to the last line called Total Distribution in the scenario that “Walter Dies First”. Follow the line until it meets the column titled Alice or Spouse and record the number. To identify the total distribution to their children if Alice dies first, scroll down to the last line called Total Distribution in the scenario for “Alice Dies First” AND “Walter Dies Second”. Follow the line until it meets the column titled Children. Add the two values and record the sum.

Russia
{{{Russia Workbook Template}}}

China
{{{China Workbook Template}}}

Malaysia

== Question One: == You are expanding on your estate analysis for Lee Ming and Lee An {{{Last Name}}}, who are beginning to get concerned about the value of estate they will have to pass on. They have told you that they would like to plan for burial costs of {{{burial cost}}} and probate and other fees at a rate of {{{probate and other fees}}}. They each have a will and power of attorney for property. Their will was re-drafted last on January 1st, eight years ago. Lee Ming would like to give {{{Amount to charity}}} to {{{charity}}}, a registered charity, followed by 0 to his children. The residual beneficiary for Lee Ming’s estate is Lee An. {{{Female name}}} wants to give 0 of her estate to Lee Ming, and then 0% to her sister. The residual beneficiaries for Lee An’s estate are her children. What is the total distribution to Lee An if Lee Ming dies first? What is the total distribution to their children if Lee An dies first? Answer: Change the drop-down menu option under Client Data Entry to Integrated Planning. Use the navigation panel to go directly to the Will Information screen. Starting under the Planning Assumptions section: 1. Enter RM 80,000 in the field Assumed Burial Costs 2. Set the rate for Probate and Other Fees to 1% 3. For {{{Country}}}, set the Marginal Tax Rate on Estate for both clients to {{{marginal tax rate}}}. For all other countries, set the Marginal Tax Rate on Estate to 0%. 4. Lee Ming indicated he had a power of attorney for property and a will, so click the checkboxes beside Have a Will and Have a Power of Attorney for Property. 5. The will was effective eight (8) years ago, Jan 1st, so under Effective From for Have a Will enter 20XX-01-01 as appropriate. 6. Repeat these steps for Alice as well. We will now proceed to enter the data for the Partial Distribution and Residual Distribution sections. 7. For Lee Ming’s first partial distribution, enter 0 in the Percent field, leaving the Dollar Amount field blank. Change the Beneficiary to Charitable Donation. 8. For Lee Ming’s second partial distribution, enter 0 in the Dollar Amount field, leaving the Percent blank. Change the Beneficiary setting to Child. 9. For Lee An’s distribution to Lee Ming, change the first Dollar Amount field to 0. Change the drop-down menu for the Beneficiary to Spouse. 10. For Lee An’s second partial distribution, enter 0% in the Dollar Amount field, leaving the Percent field blank. Change the Beneficiary to Other since there is no specific setting for sister. 11. The Residual Distribution setting for Lee Ming can be left at Spouse, however, for Lee An, it should be changed to Child. 12. Click Save To View the Estate Analysis Report: Click the Preview button at the bottom of the screen, OR 1. In the Your Working Documents screen, click on Preparing Reports – Risk Management. 2. Click on the Radio button beside Estate Analysis. 3. Click on the Generate Document link. It will take approximately one minute to generate. Hit the Refresh button periodically until the completed document is ready. 4. Finally, when the document has completed calculating and is ready to view, click the Download button. The report is broken down into four sections for two different scenarios – one for the event that Walter dies first, and another for the event that Lee An dies first. And for each scenario, the analysis is done on first and second death. To identify the total distribution to Lee An if Lee Ming dies first, scroll down to the last line called Total Distribution in the scenario that “Lee Ming Dies First”. Follow the line until it meets the column titled Lee An or Spouse and record the number. To identify the total distribution to their children if Alice dies first, scroll down to the last line called Total Distribution in the scenario for “Lee An Dies First” AND “Lee Ming Dies Second”. Follow the line until it meets the column titled Children. Add the two values and record the sum.

Singapore

== Question One: == You are expanding on your estate analysis for Ming An and Elsie Lee {{{Last Name}}}, who are beginning to get concerned about the value of estate they will have to pass on. They have told you that they would like to plan for burial costs of {{{burial cost}}} and probate and other fees at a rate of {{{probate and other fees}}}. They each have a will and power of attorney for property. Their will was re-drafted last on January 1st, eight years ago. Ming An would like to give {{{Amount to charity}}} to {{{charity}}}, a registered charity, followed by 100,000 to each of 5 kids to his children. The residual beneficiary for Ming An’s estate is Elsie Lee. {{{Female name}}} wants to give $240,000 of her estate to Ming An, and then 5% to her sister. The residual beneficiaries for Elsie Lee’s estate are her children. What is the total distribution to Elsie Lee if Ming An dies first? What is the total distribution to their children if Elsie Lee dies first? Answer: Change the drop-down menu option under Client Data Entry to Integrated Planning. Use the navigation panel to go directly to the Will Information screen. Starting under the Planning Assumptions section: 1. Enter $10,000 in the field Assumed Burial Costs 2. Set the rate for Probate and Other Fees to 4% 3. For {{{Country}}}, set the Marginal Tax Rate on Estate for both clients to {{{marginal tax rate}}}. For all other countries, set the Marginal Tax Rate on Estate to 0%. 4. Ming An indicated he had a power of attorney for property and a will, so click the checkboxes beside Have a Will and Have a Power of Attorney for Property. 5. The will was effective eight (8) years ago, Jan 1st, so under Effective From for Have a Will enter 20XX-01-01 as appropriate. 6. Repeat these steps for Alice as well. We will now proceed to enter the data for the Partial Distribution and Residual Distribution sections. 7. For Ming An’s first partial distribution, enter 0 in the Percent field, leaving the Dollar Amount field blank. Change the Beneficiary to Charitable Donation. 8. For Ming An’s second partial distribution, enter 100,000 to each of 5 kids in the Dollar Amount field, leaving the Percent blank. Change the Beneficiary setting to Child. 9. For Elsie Lee’s distribution to Ming An, change the first Dollar Amount field to $240,000. Change the drop-down menu for the Beneficiary to Spouse. 10. For Elsie Lee’s second partial distribution, enter 5% in the Dollar Amount field, leaving the Percent field blank. Change the Beneficiary to Other since there is no specific setting for sister. 11. The Residual Distribution setting for Ming An can be left at Spouse, however, for Elsie Lee, it should be changed to Child. 12. Click Save To View the Estate Analysis Report: Click the Preview button at the bottom of the screen, OR 1. In the Your Working Documents screen, click on Preparing Reports – Risk Management. 2. Click on the Radio button beside Estate Analysis. 3. Click on the Generate Document link. It will take approximately one minute to generate. Hit the Refresh button periodically until the completed document is ready. 4. Finally, when the document has completed calculating and is ready to view, click the Download button. The report is broken down into four sections for two different scenarios – one for the event that Walter dies first, and another for the event that Elsie Lee dies first. And for each scenario, the analysis is done on first and second death. To identify the total distribution to Elsie Lee if Ming An dies first, scroll down to the last line called Total Distribution in the scenario that “Ming An Dies First”. Follow the line until it meets the column titled Elsie Lee or Spouse and record the number. To identify the total distribution to their children if Alice dies first, scroll down to the last line called Total Distribution in the scenario for “Elsie Lee Dies First” AND “Ming An Dies Second”. Follow the line until it meets the column titled Children. Add the two values and record the sum.

Hong Kong
{{{Hong Kong Workbook Template}}}

India
{{{India Workbook Template}}}

Caribbean
Jamaica {{{Jamaica Workbook Template}}} Trinidad and Tobago {{{Trinidad and Tobago Workbook Template}}} Barbados {{{Barbados Workbook Template}}} Bermuda {{{Bermuda Workbook Template}}} Bahamas {{{Bahamas Workbook Template}}} Puerto Rico {{{Puerto Rico Workbook Template}}}

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