Due to the recent news on potential legislative changes to estate taxation, the Holmes are interested in your opinion. Which one of the following actions would be most appropriate for them to take now to plan for their estate liquidity? Provide at least 1 cons for each action you do not recommend, and at least 1 pros for the action you recommend.

purchase a life insurance policy on Stuart

establish an unfunded IRC Section 303 corporate stock redemption plan

arrange for a 10-year installment sale of Blue Water

use a grantor-retained income trust (GRIT) to remove assets from the taxable estate