Estate Planning Strategies for a Single Parent

Margaret is a 55-year-old single mother with a net worth of approximately $4 million. She has one teenage son, James, who is set to start college next year. Margaret is concerned about ensuring that James benefits from her estate while also addressing her obligations towards her aging parents who live in another state. She has a mix of investments, including a family home, a diversified portfolio of stocks and bonds, and a small business. Her primary concerns include minimizing estate taxes, providing for her son’s education, and ensuring that her parents have sufficient financial resources as they age.

Margaret seeks your expertise in estate planning. Discuss the various strategies you would recommend to help her achieve her objectives. Address issues such as setting up trusts, tax implications, and considerations for guardianship for James. Additionally, assess the importance of liquidity in her estate planning process and recommend actions she could take for both her immediate and long-term financial security.