In the context of estate planning, consider the following scenario:
John is a 55-year-old high-net-worth individual with a significant investment portfolio valued at $10 million. He is married to Linda, age 52, and they have two children, ages 15 and 18. John desires to ensure that his estate is passed down to his family with the least amount of taxation and to maintain financial security for his wife and children. He is particularly concerned about incurring significant estate taxes and wants to provide for a seamless transfer of wealth.
Discuss the key components of an effective estate plan that John should consider. Include potential strategies for minimizing estate taxes, ensuring proper asset distribution, and addressing any liquidity concerns. Additionally, explain how the estate plan can adapt to changes in family dynamics or financial conditions.