Comprehensive Estate Planning for Mary and John Smith

Mary and John Smith are married and have three children aged 10, 13, and 16. The couple owns a house valued at $1.5 million and has a substantial investment portfolio valued at $3 million. John works as a senior executive for a biotechnology company, while Mary runs a successful consulting firm. Both have a combined annual income of $500,000.

Mary and John have expressed their desire to ensure that their estate is distributed fairly among their children while taking into consideration their individual financial situations. Mary is also concerned about minimizing estate taxes and ensuring enough liquidity to pay for any potential expenses and taxes that may arise during the estate settlement process. Furthermore, they want to establish a plan that includes their philosophical values on education and financial responsibility.

As their wealth manager, your task is to provide a comprehensive estate plan that addresses the following: the distribution of assets among their children, strategies to minimize estate taxes, considerations for liquidity needs, and mechanisms to instill their values and educate their children about financial responsibility.