Estate Planning Strategies for Nora Johnson

Nora Johnson is a 70-year-old widow with four adult children. She has a net worth of approximately $10 million, comprised of cash, investments, a vacation home, and a family business that she owns. Nora is concerned about how her assets will be managed and distributed after her death. She wants to ensure an equitable distribution among her children, avoid potential conflicts, and minimize estate taxes.

Nora is particularly interested in utilizing estate planning tools to facilitate her wishes. She has discussed the possibility of setting up a trust, but is uncertain about which type of trust would best serve her goals. Additionally, she would like to understand the implications of gifting her assets during her lifetime versus transferring them upon her death.

Discuss the estate planning strategies that Nora could employ to achieve her goals, including the implementation of trusts, gifting strategies, and tax considerations. Provide specific recommendations tailored to her situation and clearly explain the advantages and disadvantages of each strategy.