PFIN 2nd Edition by Lawrence Gitman ,Michael Joehnk,Randall Billingsley

Exercise 3

Mark Mead, 48 and a widower, and Natalie White, 44 and divorced, were married 5 years ago. They have children from their prior marriages, two children for Mark and one child for Natalie. The couple's estate is valued at $1.4 million, including a house valued at $475,000, a vacation home in the mountains, investments, antique furniture that has been in Natalie's family for many years, and jewelry belonging to Mark's first wife. Discuss how they could use trusts as part of their estate planning, and suggest some other ideas for them to consider when preparing their wills and related documents.