Create a 4 page essay paper that discusses Rich and Ruby.Download file to see previous pages... The trust is designed to remain in place for the benefit of Harriet and be distributed equally between R

Create a 4 page essay paper that discusses Rich and Ruby.

The trust is designed to remain in place for the benefit of Harriet and be distributed equally between Rich and Rebecca when Harriet dies. According to the financial statements, Rich and Ruby have a net worth of $22,000,000 at their disposal which comprises various assets and cash and cash equivalents. Rich is involved actively in the family business and is concerned fully about the welfare of his children and their children. Rich also plans to pay for Katie’s remaining education balance for two years to finish her doctorate degree in bio-gastric anthropology and strongly believes that the world is not yet fully exploited by people with opportunities. Rich also plans to support Caryn, Katie’s life partner even though Ruby his wife and Alvin his son do not approve of the relationship. Rich is in a good financial position with the company’s net annual income of $750,000 and a salary of $200,000 annually. The fact also that the company is worth $8,000,000 and is expected to grow at an annual rate of 10% for the next 6 to 8 years makes it advantageous for Rich to use the finances at his disposal and allocate them effectively and efficiently. Rich also owns the building in which the Macadam company operates valued at $3,000,000 and is leased for $250,000. Rich has come to the realization that his estate has grown significantly over the years and will continue to grow further in the coming years. He further considers that his estate will increase as a result of the inheritance he receives from his father’s and mother’s estate. Rich is not opposed to a gifting program that will enable him and Ruby to enjoy their retirement’s years which he has set to be $300,000. Furthermore, Rich intends to pass on the company business to his son Alvin should he retire or die whichever comes first. Rich has a good plan regarding the estate inheritance that is aimed at passing on the benefits of the estate to the family descendants and ensuring that the lives of all family members are stable and comfortable. Rich is aware of the financial constraints that are in the family and wants a plan that is fully beneficial and successive in nature. Rich wants his daughter Katie and Son Alvin to get an equitable distribution of the available inheritance given the efforts of his son to the growth and success of the business. Assuming that Harriet dies in 2013 with an estate of $15,250,000 and a federal state tax of $5.25 million, and the father’s inheritance of $500,000 and an equal inheritance share between Rich and Rebecca his sister, he will receive $7,250,000 of the estate inheritance. According to this case probate assets are those assets belonging to a deceased person which pass to the beneficiaries named in the decedent’s will or decedent heirs if there is no will as determined by law as part of the probate process. These types of assets do not have a beneficiary designation or survivorship feature to control the reception of the property when the decedent dies. Examples of probate assets include. personal property, proceeds from a life insurance policy owned by the decedent on his or her life payable to the decedent’s estate upon death, banks or brokerage accounts that do not have a beneficiary designation, and, finally the real property owned entirely by the decedent.