About $10$ years ago John $($now age $62$ but started family quite late$)$ purchased

a $$5$ Mil term life insurance. His wife Cathy is the primary beneficiary, and their

$2$ kids $($ages $10$ and $12)$ are the contingent beneficiaries. $($Let$$s assume that

the yearly premium is within the $2503$ exclusion amount.$)$ John and Cathy own

a residence in La Jolla with an estimated value of $$5$Mil and between the two

of them they accumulated $$6$Mil in their retirement plans. They also have

other after$-$tax savings at Fidelity in their names. John is worried that the gift

and estate tax exemption will drop to $$6$Mil in $2026.$ He visits your office $($you

have been his trusted financial advisor for many years$)$ and asks you:

$1.$ what you would recommend they do to avoid probate and to

minimize their estate taxes down the road. This is a recommendation

to a valuable client of yours, so do a good job explaining your

recommendations to him! John is detail oriented.

$($Do not forget to mention how you would fund your particular recommendations$)$

$2.$ John also wants to provide for college education for their $2$ kids. His parents are still around and quite wealthy and are offering to help. What would you recommend?