The trouble with flaring like that is the farther out you move the lower it drops as it swings in an arc and you really don't gain much. I think if you want to go wider you have to cut higher. Either that or make a cut and raise it up. At least that has been my experience trying to do something similar.
As far as how much clearance you need you should cycle the steering and suspension through their full motion with the spring removed. Make sure you have your camber and caster aligned where you want them at ride height.
Maybe some of the fab experts will chime in.
Don
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