Estate Planning for $5M+ Families: What Your Attorney May Not Tell You

Most high-net-worth families have the basics in place - a will, a revocable living trust, powers of attorney, and healthcare directives. But estate planning as a financial strategy goes far beyond these foundational documents.

The current federal estate tax exemption sits at $13.61 million per individual ($27.22 million per married couple) for 2024. However, this elevated exemption is scheduled to sunset at the end of 2025, potentially dropping by roughly half. For families with estates approaching or exceeding these thresholds, planning today is critical.

Strategies worth considering include irrevocable life insurance trusts (ILITs), grantor retained annuity trusts (GRATs), spousal lifetime access trusts (SLATs), and qualified personal residence trusts (QPRTs). Each serves a different purpose and comes with unique trade-offs.

For business owners, succession planning adds another layer of complexity. Buy-sell agreements, valuation discounts for family limited partnerships, and the timing of ownership transfers all require coordination between your wealth advisor, attorney, and CPA.

In community property states like Arizona and Nevada, the step-up in basis at death applies to both halves of community property - a significant advantage that requires careful title management to preserve.

I coordinate with your estate attorney and CPA to ensure your investment strategy, tax planning, and estate documents all work together. This integrated approach prevents the gaps that commonly arise when each professional operates in isolation.