Estate Planning Strategies for Maria and John

Hard Private Wealth Management Estate Planning

Maria and John are a married couple in their late 50s with a combined net worth of $4 million. They have two children, both of whom are established professionals and financially independent. Maria and John are considering their estate planning options to ensure that their wealth is distributed according to their wishes after their death while minimizing taxes and administrative costs. They are particularly interested in how different strategies might affect their estate's liquidity and their heirs' ability to access the funds.

As they review their options, they come across three alternatives: a revocable living trust, a charitable remainder trust, and a simple will. Each option offers different benefits and complications. After discussing these strategies with their estate planning advisor, they want to decide which option might best align with their financial goals, particularly concerning tax efficiency and control over their assets.

A revocable living trust allows Maria and John to retain control over their assets during their lifetime while avoiding probate.

A charitable remainder trust would provide Maria and John with immediate estate tax deductions and allow their heirs to receive the remainder interest tax-free.

A simple will is the most effective document for ensuring tax minimization on their estate, allowing for maximized inheritances to their children.

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