Estate Planning Strategy for Diverse Beneficiary Needs

Very Hard Private Wealth Management Estate Planning

Evelyn Bennett, a 67-year-old retiree, has a complex estate valued at approximately $12 million. Her assets include a diversified investment portfolio, a primary residence worth $3 million, and a beach house valued at $2 million. Evelyn wishes to ensure an equitable distribution of her assets to her three children: Sarah, Mark, and Anna. Each child has unique financial situations—Sarah is financially stable, Mark is struggling due to a recent job loss, and Anna is starting a family and is in need of financial support. Evelyn is also concerned about minimizing estate taxes and providing liquidity for her beneficiaries to cover potential expenses related to estate settlement. In light of these considerations, which estate planning strategy would be most suitable for Evelyn to address her objectives?

Establish a living trust to facilitate the direct transfer of assets to her children upon her passing.

Create a family limited partnership (FLP) to transfer her beach house to her children while retaining control of the property.

Use a combination of inter vivos (living) gifts and a charitable remainder trust to achieve tax efficiency and provide support to her children.

Hint

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