Estate Planning for Wealth Transfer

Emma and Jack, a couple in their mid-60s with a total net worth of $7 million, are considering their estate planning options as they prepare for retirement. They have two adult children, both of whom have stable careers but live in different states. Emma has a substantial pension, while Jack has significant investments in a diversified portfolio. They are concerned about minimizing estate taxes and ensuring that their assets are distributed according to their wishes after they pass away.

In their meeting with a financial advisor, they are informed about various estate planning strategies, including trusts, gifts, and taxable events upon their death. The couple is particularly interested in how to effectively transfer wealth to their children while also providing for their own retirement income needs.

Which of the following strategies would best help Emma and Jack achieve their estate planning goals?