Estate Planning Strategy for High-Net-Worth Client

Alice is a high-net-worth individual (HNWI) in her early 60s, recently widowed, with two adult children and a diverse investment portfolio worth approximately $10 million. Her primary concerns revolve around the efficient transfer of her wealth to her heirs while minimizing tax liabilities. Alice's estate includes, but is not limited to, family-owned real estate, stocks, bonds, and a family business valued at $2 million. She is particularly worried about potential estate taxes and the impact of inheritance on her children’s motivation and independence.

As her financial advisor, outline a detailed estate planning strategy that addresses her concerns while ensuring her legacy is preserved. Discuss the use of trusts, gifting strategies, and any other relevant estate planning tools that can be used to achieve her objectives. Additionally, evaluate the implications of each method regarding taxes, control, and family dynamics.