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Question

Larry and Chris are a married couple, living in a community property state, who want to minimize their estate taxes on their $$12,000,000$ total estate. They have two children, Katryna and Roselyn, and several grandchildren. They recently met with a financial planner and hope to leave a $$2,000,000$ legacy to their children. However, they are concerned about the potential need to pay for medical expenses in the future and want to ensure that they have sufficient funds to cover these costs.$$

Which estate planning technique would be the most effective way to help minimize current and future estate taxes, and also ensure sufficient funds are available for medical expenses?$$

A$.$Amend the will to set up a$$testamentary bypass trust.

B$.$Gift $$2$ million to the children$$s and$$grandchildren$$s trust.

C$.$Make annual exclusion gifts to all$$known family members.

D$.$Transfer all assets into Chris's name.