Estate Planning Strategies for John and Sarah

John and Sarah are a married couple in their mid-50s with two children, both of whom are in college. Recently, John received a substantial promotion at work, resulting in a significant increase in their household income. They own their home, have a diversified investment portfolio, and are considering how to best manage their estate planning as their financial situation changes.

In your response, identify and discuss three key estate planning strategies that John and Sarah should consider to optimize their wealth transfer while minimizing tax implications. Be sure to address the importance of each strategy in relation to their current financial situation.