Advising Families on Estate Planning Harvard Case Solution & Analysis


The estate planning advisor, Sean Warrickis planning for ameeting with two of hisclients regarding estate planning. Peggy and David Bartley areone of the clients of Sean Warrick. They are professional in their career and have a moderate wealth means. The names of the second couple of clients are Ray and Michelle Polanski, who had married after so many years, they tend to have asymmetrical age and wealth.

The chiefestate planning advisor namely Peter Sullivan had written a report which was read by Warrick, the report illustrates the effective estate planning strategies and the way through which the strategies might be modified due to the changes occurs in the tax law. More specifically, Warrick had to decide whetherthe couples should pursue with the current and existing estate planning strategy or they have to switch to another strategy, whether they ought to modify the existing strategy somewhat or whether they should forsake the strategycompletely.

All of the discussion revolves the strategywhich the couples must opt forthe current strategy or they should embark on a newly designed effective estate planning strategy. Choosing an appropriate strategy might benefit them in the long run. Both couples are susceptible to select the most suitable and effective strategy recommended by Warrick.

Advising Families on Estate Planning Harvard Case Solution & Analysis

AB Trust Strategy

AB trust planning strategy has long been the conventional approach and estate planning tool for couples married together. An AB trust is usually established by the married couples with theultimatepurpose of minimizing the estate taxes. AB trust is one of the estate trusts which tend to separate into two upon the first spouse’s death. Each of the two spouses is confined to place assets in the trust and givesthe name of thefinal beneficiarywho is a suitable person other than the spouse.AB trust is splitinto A and B due to their different and distinctfeatures, i.e. an A trust or the trust of survivors and B trust or the trust of the decedent. The husband would be able to access the 5% of the trust left after death of the second spouse.

The couples should opt for the AB trust strategy as it would be beneficial for them for number of means;

  • The AB trust strategy would allow the couples to separate the estate equally amongst two spouses.
  • They are allowed to transfer the portion of their estate to their beneficiarieswhen any of the spouse die which is a benefit associated with AB trust.
  • Another important benefit is that the living spouse would be allowed to get the income from the decreased property of the spouse. They would be able to make use of the assets in the trust even though the assets are not technically owned by them.
  • In order to maximize the exemption, the couples should follow the AB trust strategy due to which the estate exemption would be preserved if the first spouse is to die, it would also allow the other spouse to utilize the exemption..................

This is just a sample partical work. Please place the order on the website to get your own originally done case solution.

Other Similar Case Solutions like

Advising Families on Estate Planning

Share This