Estate Planning Components for Wealth Transfer

Sarah is a successful entrepreneur in her late 50s, with a significant net worth of $5 million. She has two adult children and is concerned about how to effectively transfer her wealth to them while minimizing taxes. Sarah has expressed her desire to establish a plan that ensures her assets are distributed according to her wishes, helps her children be financially responsible, and supports her philanthropic interests.

Discuss the key components of an estate planning strategy that Sarah should consider as part of her wealth transfer goals. Outline at least three specific components, explaining how they would contribute to an effective estate plan.