Estate Planning Essentials for the Smith Family

John and Mary Smith are married and have two children, aged 10 and 12. They have accumulated a net worth of $2 million, which includes a primary residence valued at $800,000, retirement accounts totaling $1 million, and investment accounts worth $200,000. As they plan for their future, John and Mary are particularly concerned about how their assets will be distributed in the event of their passing.

They would like to ensure that their assets are distributed according to their wishes, minimize estate taxes, and provide for their children’s education. Describe the key elements of an effective estate plan for John and Mary, including considerations related to wills, trusts, and beneficiary designations.