Question

A single client is referred to you and you have determined that he has a net worth of $16,000,000 consisting of a house in his name worth $5,000,000, an investment account in his name alone worth $9,750,000 and a bank account in joint tenancy with his only child, 18-years-old, worth $1,250,000. In addition to this, he also has a life insurance policy with a face amount of $1,000,000, the beneficiary being his child.

He has asked you about gifts, death tax, probate costs and how to handle his life insurance. He is also considering a gift to his church.

What would you tell him to motivate him to act on your advice? What would your advice be? What more information might you want?

Answer 1

solution:

Net worth = $16,000,000

Includes:

House=$ 5,000,000

Investment account = $9,750,000

Joint account = $1,250,000

Other:

Insurance = $1,000,000

a) I am the best one you got and I handle all these cost with proper calculations and according to the rules and regulations with full guarantee. Further the fee I will charge for the first time will be discounted to make sure it goes for a long-term client relationship.

b) I would like to suggest that he should invest more in assets that will increase his wealth which could be stock options, real estate and bonds. This is because this will keep on increasing his wealth and diversify his portfolio. This will leave him with extra portion for gifts and pay his taxes & costs and save him for his child's future education and life.

c) I want his income sources, investments and life insurance plan to precisely guide him through and make a good financial plan according to needs and spending patterns.