Reference no: EM133052732

Richard and Monica maintained their contrasting views when it came to estate planning. Even though their assets were well under the threshold for exposure to federal estate tax, he wanted to set up a bypass trust. Monica wanted the personal assets, now mostly in Richard's name, placed in their joint names. I had the feeling that she would prefer to have as many of the assets in her name as possible as a control on Richard's investment policy. She wanted their daughter, who might be divorced fairly soon, to receive the majority of their estate. Richard said that fact did not persuade him and that their son (who had an average career potential) should not be penalized due to their daughter's situation. Somehow it did not surprise me that they didn't have wills currently.

1. Why should Richard and Monica have wills drawn up?

2. Discuss your opinion about equal versus unequal division of estate assets.

3. Do you believe they should establish bypass trusts?

4. What do you think of the advantage Monica would gain having all personal assets including Richard's placed in her name? Does she deserve this?

5. What other estate planning recommendations do you have?

6. Complete the estate planning section of the financial plan.