Reference no: EM132917404

Ariq and Felipe, a married couple, are reviewing their estate planning needs; they are both aged 65 and supply the following information:

1. They jointly own their home worth $1,200,000 and have no debt.
2. They jointly own a car ($40,000), home contents ($60,000) and savings ($30,000).
3. Ariq's allocated pension has $430,000 (tax-free $80,000, balance from a taxed source).
4. Felipe's allocated pension has $240,000 (tax-free $40,000, balance from a taxed source).
5. They have two financially independent adult children; one is experiencing marital difficulties.
6. They would like to leave their estate to their children equally.

Required:

Problem 1: Discuss the estate planning issues associated with this scenario.