Bob and Jan are a married couple in their late 70s who lives in Idaho. Their net worth is $25 million.They have three children Bob Junior, Tim, and Kimberly all of whom are in their 50s. Bob is a joint tenant in his fourth Street business with his brother Ken. Bob purchased the entire business lot due to his gratitude in helping Bob out in his career early on he granted joint ownership of the business to Ken. Bob and Jan own a four bedroom house valued at $600,000 that they have lived in since 1983. Since Bob Junior still lives in the area and would like to eventually live in the house after they have passed on they would like to ensure that Bob Junior gets the house. Bob and Jan have five grandchildren.

Assuming that Bob and Jan will continue to live for another 10 years discuss the strategies that they can utilize to minimize their gift and estate tax liability. Also discuss the basics of the gift tax along with the estate tax and how it would likely apply to them.