Reference no: EM133072393

Question - Your client, Mrs. Moneybags (75), has a net worth in excess of $100 Million. She was widowed in 1990 and never remarried. The majority of her wealth is highly appreciated Apple and Microsoft stock, having invested in both of those companies initial public offerings. In addition to her $80 Million stock position, Mrs. Moneybags has a paid off residence worth $10 Million and bank account of $2 Million. Mrs. Moneybags has several high end cars, a small yacht currently sitting in an offshore harbor. Mrs. Moneybags annual expenses are around $800,000. She collects social security and has Medicare parts A, B, D and a supplement. Mrs. Moneybags does not have any long term care insurance, life insurance or estate planning documents in place.

She has two children, Donald (45) and Launchpad (40). Donald is married to Daisy (43) and they have three children Huey (18), Dewey (17) and Louie (16). Launchpad is single.

Mrs. Moneybags recently had a serious health scare and is interested in making transformational gifts to the world around her. Additionally she would like to provide for her grandchildren's college and begin an annual gifting program to Donald and Launchpad. Her specific charities of interest include Ducks Unlimited and Heifer.

Consider both readings this week (Fussner & James) and the last two weeks of class lectures as you prepare your answers to the following questions:

1) What are five to ten meaningful questions you would ask Mrs. Moneybags about giving to help develop a plan of action?

2) How much can Mrs. Moneybags give to each of her children, daughter in-law and grandchildren this year and avoid filing a federal gift tax return?

3) What are strategies Mrs. Moneybags can employ to help pay for her children's college education? Which assets should she consider using towards this goal?

4) What would happen to Mrs. Moneybags estate if she died tomorrow? How might a sudden death impact family dynamics?