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The Patton Family Learning Team Case Study

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University of Phoenix Material

The Patton Family Learning Team Case Study

The Patton Family – Information for All Participants
Robert Dennis Patton, age 46

Denise Renee Patton, age 43

Leigh Kay, age 15

Arnold Robert, age 6 1/2
Robert and Denise have known each other since high school. They married 23 years ago, when Robert was 23 and Denise was 20. Both were in college at the time.

The first few years of their marriage, Robert and Denise focused on career building. Robert became a licensed real estate broker while Denise became a software designer, receiving her BS in information sciences from a major university.

When Denise was 28 and Robert 31, Leigh was born. Denise took six weeks off from her job at a bank and then returned to work. After six months, she found it too difficult to work full time and be a parent. She left the bank, and since then, she has worked a series of part-time jobs. At first she looked for work in her field, but it was difficult for her to find work that fit her busy schedule as a parent. About eight years ago, she was laid off from her last software job when her firm downsized. Her career devolved into odd jobs and then into volunteer work. Denise has not had a paying job for about five years, and her last job was a brief three-month stint as a receptionist for Robert’s real estate business, filling in for an employee on medical leave. A number of her volunteer posts have involved some pretty heavy computer programming.

Robert is another story. He has built a successful real estate brokerage and does well financially. Of course, a benefit of being a real estate broker is that Robert gains knowledge of emerging real estate opportunities. He has purchased several properties, including one he acquired jointly with his father and his father’s wife (his stepmother).

Leigh, the Patton’s older child, is in her first year of high school and is doing well. An easygoing and accommodating child, Leigh is an avid equestrian, and two years ago the Pattons bought her Midnight, a retired hunting gelding. Midnight is kept at a local stable under an equi-lease agreement by which the family receives discounted boarding in return for lending Midnight out to other riders at the stable.

Arnie, Leigh’s younger brother, is another story. Arnie is in kindergarten at the local public school. Since he was a toddler, Arnie has been different from Leigh. Arnie has boundless energy and cannot sit still, even by kindergarten standards. Denise has talked to the educational team several times about Arnie’s adjustment. He appears to be very bright, but he is falling behind in his readiness skills. He is finding it hard to get along with other children and is constantly in trouble. There has been a great deal of friction in the family over Arnie’s troubles, which have been evident since preschool. He is becoming increasingly oppositional at home, and Denise monitors him constantly to try to keep him out of trouble and to guide him through his homework.

Denise says that Arnie obviously has a neurological difference that makes him incapable of conforming to the school’s environment, and she wants him evaluated by a neuropsychologist. Robert has never taken much stock in shrinks and says that they are a waste of time and money. Denise, on the other hand, feels that she is dyslexic, and she has a close relative with manic depression, so she has interacted closely with mental health professionals.

Over the past three years, Denise has become more and more absorbed in trying to deal with what she characterizes as Arnie’s special needs. At first, Robert and Denise engaged in screaming matches over how best to parent Arnie. Then they both withdrew, with Robert sleeping on the couch and neither speaking much to the other. Denise, who has always struggled with her weight, gained 40 pounds.

One morning about six months ago, Robert arrived at the breakfast table with a suitcase and announced that he would not be returning home in the evening. “The marriage is over,” he explained to a shocked Denise. Since that time he has periodically returned home to pick up personal items and to see Arnie, but otherwise he has refused to communicate with Denise. He never did speak much with Leigh and has not really had an opportunity to do so since leaving, except to briefly greet her in passing.

Both Robert and Denise sought legal consultation. They were each asked to fill out the accompanying financial statements.

Denise Patton – Confidential Information
I’m 43 years old and live in Anytown, USA, with my two dear children, Leigh, age 15, and Arnie, age 6 1/2. My life fell apart six months ago when my husband, Rob, suddenly walked out on us.

Rob and I were high school sweethearts, and I couldn’t imagine life with anyone else. We married in college. I became a computer programmer, and Rob went into real estate. I worked for a while in a bank, but when we had Leigh, it was like a revelation. I realized that being a mother was more important to me than anything in the world. I’ve been a stay-at-home mom since Leigh was small, and I’m glad. Leigh has grown up into a wonderful young woman, and I have been needed at home because of Arnie’s special problems.

Arnie has always been a special and different sort of child. I knew right away that he was different. He was very high energy and curious as an infant—he crawled early, he walked early, he ran early, and he was always into everything. He never slept through the night, and even now, at age 6, I find him in bed with me every night. And he’s up at 4:30 a.m. every day, ready to rock and roll. It’s clear to me that Arnie has significant disabilities. He cannot control himself in the classroom. I’m constantly being called by that darn teacher about it. She has no insight! She has this shallow, authoritarian attitude—she recommends nothing but reward and punishment systems. I tried one of her behavior charts for about two weeks and it just made things worse. We have an uphill fight ahead of us to qualify him for an Individualized Educational Plan. I have had to devote more and more of my time to Arnie and taking care of him, managing his behavior, and so forth. It takes everything I have. The fight to get Arnie what he needs is being undermined by Rob’s ridiculous attitude. He thinks Arnie’s problem is that he’s spoiled.

Rob has gotten more and more distant since Arnie was born. He spends all of his free time at the office, and during the couple of years before he left, we barely spoke except to fight about Arnie. Rob is afraid of admitting that Arnie has problems. I think he feels it reflects badly on him to have a disabled son. When I suggested that Arnie needed to be evaluated, he flew into a rage. I’m sure that Rob’s attitude and distant behavior is making Arnie worse.

The last time Rob and I had a really substantial conversation, he berated me for paying more attention to my children than to keeping the house perfect. He called me a fat pig and said that I was responsible for all the problems in the family. Not only that, but he has all the money and he uses it to control me and keep me down. He’s an abuser, pure and simple, but I would take him back in a minute to save our family. If he won’t come back, I will need the house, and because I won’t be able to work, I will need for him to pay the mortgage, plus child support and alimony. He will probably need to pay for Arnie’s and the family’s therapy costs and the costs of special education for Arnie, unless I can succeed in my efforts to have the school pay. I won’t ask for much—just to keep the standard of living we have. Rob is super rich; he and his family have innumerable real estate properties, and they can just sell one of them to fund his child’s future.

Rob refuses to help out at all, except to pay the mortgage and to give me a little for groceries and other odds and ends. I have had to borrow from my parents just to make ends meet, and they can’t keep giving me money. Whenever Rob comes to see Arnie, he does nothing but criticize me. I feel like the world is coming to an end; I feel so disoriented and depressed. Sometimes I want to kill myself. But Arnie and Leigh need me.

Rob Patton – Confidential Information
I’ve finally had enough. I have been in this God-forsaken marriage for 23 years, and I’m tired of being the only oarsman on the boat. I work 65-hour weeks to provide for my family, and Denise just sits home and gets fat. She used to work and seem interested in life. Now it’s all just about Arnie’s alleged problems—Arnie has a learning disability, Arnie has a brain problem, etc. If she ever disciplined him, these supposed problems would evaporate. I spoke to the school, and that’s what they said; he just needs his mom to give him a good swift kick once in a while. Instead, she rewards his misconduct with attention. You’d think they were joined at the hip. When I would come into a room it wasn’t even “Hi, Rob, how was your day.” If she acknowledged me at all, it was usually something like, “Arnie really acted out today in school. We’ve got to get moving on his neuro whatchamacallit.” Usually she didn’t even look up. Well, if she thinks I’m going to support this sick approach to raising kids, she’d better think again. Now in my puny little apartment I suppose I’m lonely, but at least when I walk in the door there’s no one there ignoring me.

Now she’s making that big sucking noise—the noise that says, “You will need to cough up really big bucks to send Arnie to therapy, a special school, all that nonsense.” Not one cent is going to a shrink. Arnie is a normal active kid who just needs discipline. None of the effort I put into being a provider is appreciated in the least; she just wants to get more and more out of me. Meanwhile, she sits at home. As my cousin Frank says, good riddance.

Leigh Patton – Confidential Information
My parents, after years of stupid arguments, split up a few months ago. I really don’t think any of this is fair. My dad has never paid any attention to me; he could care less whether I’m dead or alive, but my mom used to be really nice. The operative words here are used to. Since my brother came along, she has just gotten really screwed up. She stopped being interested in stuff. Lots of times I would come home and find her lying in her bed in the dark, or I’d find her crying. I would ask her what was wrong and what I could do about it, but she wouldn’t give me an answer, or she would say some stupid thing about Arnie and his needs. Now dad’s left altogether. I don’t really miss that cold fish, but he could have paid me the common courtesy of telling me he was going and explaining why.

And then there’s Arnie. What a pain in the backside. Mom lets him get away with murder. When I was 6, she would never let me do half the stuff she lets him do. I have had to stop going out in public with them. Sometimes he would do something horrible—like last month, when he kicked my friend and pulled him to the ground—and she doesn’t really punish him. She just talks to him sweetly about it and he just does it some more. I’m really mortified. It’s easier to just spend my days talking to my friends or riding Midnight, my horse.

And speaking of Midnight, this is where it really gets horrible. Mom says Arnie needs special schooling and therapy. I don’t know; maybe he does and maybe he doesn’t. She says that dad refuses to help pay for it, and if we don’t get some more money, she will have to sell Midnight. I just don’t think that’s fair. Both of them should just grow up. I have a boyfriend, but I refuse to get married—even when I am old enough to move out.
Arnie Patton – Confidential Information
I am 6 years old and I go to Miss Mellon’s kindergarten class. My daddy went away because I was a bad boy and he doesn’t like me anymore. I want my daddy to come back and live with me. I promise not to be bad anymore. When I am bad it makes Mommy sad and then Daddy gets mad, and then they have a fight. It makes me sad when Daddy is not in my house at night, and it makes me cry. Also when I am in school I get really, really mad sometimes. School is stupid and I am stupid.

I love my mommy and my big sister. My sister has a black horse named Midnight. Sometimes I get to ride him. He is at the stables. But where is Daddy? Where is his bed? Does he have to sleep on the floor? Who feeds him? He should come home and then I would make him breakfast and he would be OK.

FINANCIAL DATA FORM — Robert Patton
ASSETS

Real Property

Address: 123 Merry Lane, Anytown, USA

Name(s) on title: Robert and Denise Patton

How title held (e.g., tenants by entireties): Tenants by the entireties

Date acquired: 10 years ago

Purchase price: $200,000

Source(s) of down payment: Money on hand

Source(s) of mortgage payments: My salary

Current value: $350,000

When valued: Last month

How valued: Comparable sales

Address: 6 Frontage Drive, West Anytown

Name(s) on title: Robert Patton

How title held (e.g., tenants by entireties): My sole name

Date acquired: 6 years ago

Purchase price: $350,000

Source(s) of down payment: Home equity loan

Source(s) of mortgage payments: Proceeds of rentals received

Current value: $600,000

When valued: April of last year

How valued: Income capitalization

Address: 850 First Street, North Anytown

Name(s) on title: Robert, Edwin, and Tracey Patton (Edwin is my Dad and Tracey is his wife.)

How title held (e.g., tenants by entireties): Joint tenancy

Date acquired: 18 months ago

Purchase price: $500,000

Source(s) of down payment: Edwin put up the $50,000 down

Source(s) of mortgage payments: Proceeds of rentals received

Current value: $530,000

When valued: Last week

How valued: Comparable sales

Vehicles: Automobiles, Motorcycles, Boats, Trucks, etc.

Make, model, year: Lexus GS 430 Sedan 4D

Name(s) on title: Robert Patton

How title held: My sole name

Date acquired: 2 years ago

Purchase price: $40,000

Source(s) of down payment: Savings

Source(s) of installment payments: My salary

Current value: $31,000

When valued: Today

How valued: Online calculator

Make, model, year: Toyota Corolla DX Sedan 4D

Name(s) on title: Robert and Denise Patton

How title held: Joint tenants

Date acquired: 7 years ago

Purchase price: $25,000

Source(s) of down payment: Savings

Source(s) of installment payments: My salary (paid off now)

Current value: $7,000

When valued: Today

How valued: Online calculator

Personal Property (items of significant value):

Description of property: Midnight (horse)

In whose possession? My daughter

Date acquired: Not sure

Purchase price: Don’t remember – about $4,000

Source(s) of down payment: $500 from my daughter, the rest from me

Source(s) of installment payments: None

Current value: $3,500

When valued: Today

How valued: Just guessed

Bank Accounts

Name of bank: First Bank of Anytown

Account Number: 0033 4444 968

Account Type (checking, savings, money market, etc.): Checking

Date established: 15 years ago

Current balance: $12,400

Source(s) of funds and how much from each: My wages

Name(s) on account: Robert and Denise Patton

How held (joint, in common, etc.): Joint

Name of bank: First Bank of Anytown

Account Number: 0035 9256 894

Account Type (checking, savings, money market, etc.): Checking

Date established: 8 years ago

Current balance: $25,000

Source(s) of funds and how much from each: Rental and mortgage proceeds from real estate

Name(s) on account: Robert Patton

How held (joint, in common, etc.): N/A

Name of bank: First Bank of Anytown

Account Number: 5566 3344 112

Account Type (checking, savings, money market, etc.): Passbook CD

Date established: 6 years ago

Current balance: $100,000

Source(s) of funds and how much from each: Some from my wages, some from corporate dividends, and some from rentals and mortgage proceeds. I didn’t keep track of how much from each.

Name(s) on account: Robert Patton

How held (joint, in common, etc.): N/A

Notes, Mortgages, Accounts Receivables OWED TO YOU

Debtor’s name(s): Howard and Nancy Ying

Type of debt: Purchase money mortgage

Original balance: $100,000

Current balance: $91,250

Account number (if any): N/A

Date established: 3 years ago

Date of retirement: In 12 years

Contractual monthly payment: $844

In default? (yes/no): No

Stocks, Bonds, Mutual Funds

(OTHER THAN retirement assets, such as IRAs or 401Ks)

Name or description: Vanguard Total Stock Market Index Fund Investor Shares

Account number (if any): 12345654321

Original purchase date: 4 years ago

Value: $25,820 (1,000 units)

Valuation Date: Today

Over what period of time has asset been purchased? Was purchased in lump sum with cash

Source(s) of funds: Half from checking account and half from savings account

IRA, 401K, and 403b Plans

Account Name: Patton Real Estate IRA (American Century)

Whose account? Robert Patton

Account number (if any): 204936

Constituent Funds

Name of Fund

Type of Fund

Value

Moderate strategic allocation

Diversified moderate-risk fund

$78,326

Inception date: 10 years ago

Valuation Date: Last week

Total value: $78,326

Source(s) of funds: Monthly withdrawals from my paycheck

Account Name: First Bank of Anytown — IRA

Whose account? Denise

Account number (if any): I9875937165

Inception date: 7 years ago

Valuation Date: Beginning of year

Total value: $16,000 approximately

Source(s) of funds: Checking account – my hard-earned wages

Defined-Benefit Pension, Retirement, Employee Profit-Sharing Plans

Fill out for EACH such plan in which you have an interest.

Title of plan: Patton Real Estate Defined-Benefit Plan

Employer through whom you would/will receive benefit: Patton Real Estate

Employee: Robert Patton

Account number (if any): Not sure

Type of plan: Traditional defined-benefit plan

Period of employment: for the past 18 years

Plan Administrator: Ellen Workwoman Associates

Address: Would have to look that up

City:

State:

Zip:

Telephone:

Is pension vested?

YES NO

If not, on what date would it vest?

Assuming that employee continued to work for present employer until retirement date, what benefits would employee receive upon retirement?

I will receive a percentage of the average of the three highest years of my salary.

Retirement Age

Monthly Benefit Without Death Benefit

Monthly Benefit with Death Benefit

55

20 percent of “high 3”

15 percent of “high 3”

60

25 percent of “high 3”

20 percent of “high 3”

65

33 percent of “high 3”

25 percent of “high 3”

Life Insurance (list ONLY insurance having cash value)

NONE – I have only term life insurance

Insurer:

Account number:

Insured:

Inception date:

Redemption Value:

Type of Insurance:

Primary beneficiary:

Secondary/Contingent beneficiary/beneficiaries

Current cash value:

Valuation date:

Source(s) of funds:

Business interests: On separate sheets of paper, please describe each business interest (other than that specified elsewhere in this form) that you or your spouse owns or co-owns. Include the following information:
1. Name of the business: Robert Patton Real Estate, Inc

2. Nature of the business: Real Estate Sales

3. Form of the business (i.e., partnership, sole proprietorship, corporation, etc.) and the nature of you or your spouse’s ownership interest: Closely held corporation. I am the sole stockholder.

4. Original date(s) you or your spouse began to hold an ownership interest: Corporation was incorporated 16 years ago.

5. Source(s) of funds or other source used by you or your spouse to obtain the business interest: We started with $3,000 from Denise’s father and the money we had in our checking account.

6. A list of the assets that make up the business, including goodwill, and an estimate of the value of each asset and liability: See attached

7. The estimated value of the business: I don’t have any idea what the business is worth.

Please furnish latest balance sheet, profit/loss statements, tax returns, and buy-sell agreements pertinent to valuing each business as well as your interest and your spouse’s interest in each business.

LIABILITIES

Mortgages and secured loans on real property, personal property, insurance policies, and pension plans. Include all secured loans here. Under “Security,” list the property that the loan is borrowed against. For example, if the loan is a mortgage on real property, list the real property. You must list an asset you listed previously.

Property borrowed against: 123 Merry Lane, Anytown, USA

Lender: First Bank of Anytown

Account Number: 123567

Original Loan Amount: $350,000

Current Balance: $346,000

Inception Date: 4 years ago

Term of Loan (time): 30 years

Required payments (amount/period): $2,556/month

Interest rate (annual): 6.375%

Is loan past due? YES NO

Sources of payments: My hard-earned salary

Property borrowed against: 6 Frontage Drive, West Anytown

Lender: First Bank of Anytown

Account Number: C- 300567

Original Loan Amount: $320,000

Current Balance: $346,000

Inception Date: 4 years ago

Term of Loan (time): 30 years

Required payments (amount/period): $2,480/month

Interest rate (annual): 6.0%

Is loan past due? YES NO

Sources of payments: Rents

Property borrowed against: 850 First Street, North Anytown

Lender: First Bank of Anytown

Account Number: C- 892365

Original Loan Amount: $460,000

Current Balance: $459,600

Inception Date: 18 months ago

Term of Loan (time): 30 years

Required payments (amount/period): $2,500

Interest rate (annual): 4.0%

Is loan past due? YES NO

Sources of payments: Rents

Property borrowed against: Lexus GS 430 Sedan 4D

Lender: First Bank of Anytown

Account Number: A- 0006922857

Original Loan Amount: $36,000

Current Balance: $31,000

Inception Date: 2 years ago

Term of Loan (time): 6 years

Required payments (amount/period): $682

Interest rate (annual): 7%

Is loan past due? YES NO

Sources of payments: Paid for by the corporation

Credit Cards

Name of bank/creditor: American Express

Type of card: NA

Account number: xxxx-xxxx-xxxx-4567

Who can use card? Denise and I

Who are liable for debt? Denise and I

Annual Interest Rate: Variable

Current Balance: Balance paid every month

Required payments (amount/period): Balance

Is Balance Past Due? YES NO

Name of bank/creditor: Anytown Federal Savings

Type of card: Visa

Account number: xxxx-xxxx-xxxx-2222

Who can use card? Both of us, but Denise is the only one who uses it

Who are liable for debt? Denise and I

Annual Interest Rate: 18%

Current Balance: Don’t know

Required payments (amount/period): Don’t know

Is Balance Past Due? YES NO

Name of bank/creditor: First USA

Type of card: Visa

Account number: xxxx-xxxx-xxxx-9004

Who can use card? Denise and I

Who are liable for debt? Denise and I

Annual Interest Rate: 18%

Current Balance: $15,500

Required payments (amount/period): $870/mo

Is Balance Past Due? YES NO

ASSET/LIABILITY SUMMARY

ASSET/LIABILITY

Self

Spouse

Joint

ASSETS

Cash On Hand

$500

Real property

$530,000

$950,000

Vehicles

$31,000

$ 7,000

$37,400

Personal property (Midnight & tack)

$6,000

Bank accounts

$137,400

Notes, mortgages, etc. owed TO you/to spouse

$91,250

Stocks, bonds, mutual funds

$25,820

IRAs, 401Ks, 403bs

$78,326

$16,000

Defined-benefit pension, retirement, etc.

$130,000

Life Insurance Cash Value

Business Interests

$280,000

Taxes Owed to You or Spouse

Other property

TOTAL ASSETS (sum above column)

$639,326

$29,000

$2,344,370

LIABILITIES

Secured loans, mortgages, etc.

$490,600

$692,000

Credit cards

$15,500

Other unsecured debt

Taxes owed by you/spouse

TOTAL LIABILITIES (sum above 4 items)

$506,100

-0-

$692,000

NET WORTH (total assets minus total liabilities)

$133,226

$29,000

$1,652,370

Health Insurance

Insurance Company Name

Blue Crisscross

Insurance Company Address

Policy Number

102030405060

Group Number

817263

Available through (specify employer if applicable)

Patton Real Estate

Primary insured

Robert Patton

Primary insured’s identification number

00001

Other family member insured and identification numbers

Denise, Leigh, Arnold 00002, 00003, 00004

Monthly premium paid by employee

$500

Portion of premium attributable to children

$300

Portion of premium attributable to spouse (if in addition to premium for children)

—

Annual deductibles

$250

Copayment for office visits

$25

Copayment for prescription medication

$18

Coverage for outpatient mental health services (if applicable)

35% of reasonable and appropriate

Coverage for inpatient services

100%

Other restrictions

Income or Expense Item

Monthly Amount

Attributable to Child/Children

INCOME

Salary (net)

$5,000

Wages

Commissions

Bonuses

Tips

Payments from retirement or pension plan

Royalties or rents

$6,000

Social security and SSI

—

Child support received on behalf of children NOT involved in this action

—

Alimony/spousal support received from former spouse NOT a party to this action

—

Other income (explain) (dividends)

$500

TOTAL INCOME

$11,500

EXPENSES

Mortgage or rent on home in which you live (rent on apt)

$1,800

Electricity

$150

Groceries

$250

Natural gas, coal, oil

$45

Water/Sewer

$10

Trash

$10

Telephone

$55

Cable television

$50

Internet service

$45

Gasoline

$100

Auto maintenance

$100

Auto insurance

$150

Health insurance

$500

Life insurance

$100

Homeowners or renters insurance (unless included in mortgage, above)

$50

Other insurance

Home repairs and maintenance

$50

Child care

Entertainment, recreation

$100

Health care not covered by insurance

Credit card payments

Car payments

$682

Tithing

$200

OTHER – explain

Management Frontage Drive

$500

Mortgage on Frontage Drive

$2,480

Management First Street

$500

Mortgage First Street

$2,500

TOTAL EXPENSES

$10,427

NET INCOME/EXPENSE

$1,073

FINANCIAL DATA FORM — Denise Patton

ASSETS

Real Property

Address: 123 Merry Lane, Anytown, USA

Name(s) on title: Robert and Denise Patton

How title held (e.g., tenants by entireties): Tenants by the Entireties

Date acquired: 10 years ago

Purchase price: $200,000

Source(s) of down payment: Money on hand

Source(s) of mortgage payments: Husband’s salary

Current value: $300,000

When valued: Last week

How valued: Friend who sells real estate

Address: 6 Frontage Drive, West Anytown

Name(s) on title: Robert Patton

How title held (e.g., tenants by entireties): Husband’s name

Date acquired: 6 years ago

Purchase price: $350,000

Source(s) of down payment: Home equity loan

Source(s) of mortgage payments: Proceeds of rentals received

Current value: I have no idea

When valued:

Address: 850 First Street, North Anytown

Name(s) on title: Don’t remember – I think Rob and his father

How title held (e.g., tenants by entireties): Don’t know

Date acquired: 18 months ago

Purchase price: $500,000

Source(s) of down payment: Gift from my father-in-law to the family

Source(s) of mortgage payments: Proceeds of rentals received

Current value: I have no idea

When valued:

How valued:

Vehicles: Automobiles, Motorcycles, Boats, Trucks, Etc.

Make, model, year: Lexus Sedan 4D

Name(s) on title: Robert Patton

How title held: His name only (he uses this car for his business)

Date acquired: 2 years ago

Purchase price:

Source(s) of down payment: Our family savings

Source(s) of installment payments: We pay this auto loan out of funds on hand

Current …