SENSIBLE ESTATE PLANNING TO REDUCE THE RISK OF ANY FUTURE CLAIMS - - PowerPoint PPT Presentation

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• PUTTING THE PLAN TOGETHER –

A CASE STUDY ILLUSTRATING BEST PRACTICES

SENSIBLE ESTATE PLANNING TO REDUCE THE RISK OF ANY FUTURE CLAIMS OF CREDITORS

Last Revised 4-24-17

Presented By: William K. Norman Ord & Norman

8815727.ppt

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• I. Case Study for Discussion
• Dr. Gideon Fisherman (“Giddy”) is a practicing

urologist with a declining medical practice based in Palm Beach, Florida. He recently decided to expand his medicine practice to include orthopedic surgery. As part of his business plan, Giddy has entered into a professional medical partnership with Dr. Willy Normandy (“Willy”), a former gastroenterologist who has recently become a orthopedic surgeon as well. Giddy and Willy met at a four week accelerated

• rthopedic residency given by a well advertised

medical school with an associated teaching hospital located in the Caribbean.

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• I. Case Study for Discussion (cont.)

Currently, Dr. Normandy maintains medical

• ffices only in Beverly Hills. Dr. Fisherman is

licensed in Nevada and California, as is Dr.

• Normandy. Neither Fisherman nor Normandy is

board-certified in cosmetic surgery. In their new practice, Fisherman and Normandy intend to start with the “easy stuff” knees and shoulders until they “get the hang of it.” The physicians also intend to open a clinic and surgery center in Las Vegas, Nevada, in the near future.

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• I. Case Study for Discussion (cont.)
• Dr. Fisherman’s wife Jenny is an investment
• banker. Through her small private equity firm with
• ffices in Century City and Palm Beach, Florida,

she has put together numerous Internet company deals in the late 1990s, early 2000s and real estate mortgage pool funds before the meltdown in 2007-2008.. More recently, she is promoting and selling solar energy funds. Most of her Internet companies have tanked. All of her real estate funds are under

• water. Given the recent election, she is concerned

for the short term future of solar.

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• I. Case Study for Discussion (cont.)

Jenny majored in aeronautical engineering at

• USC. As a “hobby,” she designs and builds

experimental aircraft in an abandoned hangar at Santa Monica Airport. Her “partner” in the hobby is a well know celebrity whose pilot’s license was recently suspended by the FAA. Several of her remote-controlled designs recently crashed into Santa Monica Bay, narrowly missing pleasure craft in the ocean. One missed the ferris wheel at the Pier by less than 30 feet.

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• I. Case Study for Discussion (cont.)

Jenny spends roughly 50% of her time in California in the couple’s Malibu beach house or her own Bel Air Tudor – the remainder of her time is spent in Palm Beach

• r at the Jackson house.

She is a fitness fanatic. She is currently a member in good standing of the Kamikaze Ski Club at Jackson, whose members are under injunction to cease reckless skiing in Teton County. She maintains a complete kettlebell gym at all of her residences and is teaching the young children in her various neighborhoods how to juggle two 10-pound cast iron kettlebells. She does not believe in helmets.

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• I. Case Study for Discussion (cont.)

Jenny urged Giddy to call one of the asset- protection specialists who advertises online. Instead, Giddy calls you. Giddy and Jenny bring you the following personal financial statements put together by the office bookkeeper. Your law firm is part of the Wealth Preservation Alliance (“WPA”). At the monthly dinner meeting of the WPA, you have asked attending members of the WPA to provide their input.

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COMBINED PERSONAL FINANCIAL STATEMENT

Assets: Newport Beach Home Jackson Hole Second Home (log construction, under picketing by environmental group) Laguna Beach Front Home (beach front patrolled by armed guard) Miami Beach Condo Apartment 401K (Giddy) 401K (Jenny) 529 Plan for two kids FMV $6,500,000 (less $2,000,000 in mortgages) $3,500,000 free and clear $5,000,000 (less $3,500,000 in mortgages) $4,500,000 $ 200,000 $1,200,000 $ 220,000

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COMBINED PERSONAL FINANCIAL STATEMENT (cont.)

Assets: Car Collection (10) Art Collection (10) Securities (Giddy) Professional Practice (appraised by bookkeeper) Prospective Inheritances: Jenny Giddy FMV $ 700,000 $2,800,000 $4,500,000 $ 500,000 $3,000,000 $2,000,000

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COMBINED PERSONAL FINANCIAL STATEMENT (cont.)

Liabilities: Bank Loan to Establish Practice (used for advertising in various youth soccer magazines) Credit Card Debt $ 950,000 $ 175,000

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