My high-net-worth clients often have complex financial portfolios that include various types of assets such as real estate, investments, and businesses. If you are a high net worth client, you may need a more sophisticated approach to your estate planning in addition to your “basic estate plan,” to ensure your wealth is preserved, protected, and effectively transferred to future generations.
Advanced estate planning techniques for high-net-worth clients are typically designed for three purposes: first, to minimize federal estate taxes payable on death, (2) to ensure sufficient liquid assets are available after death to pay any federal estate taxes that may be due, and (3) to reduce the current and future value of a taxable estate. By taking advantage of certain valuation discounts, by charitable giving during your lifetime, or by using your lifetime gift tax exemption and annual gift tax exclusions to make gifts to your family during your lifetime, you can reduce the value of your taxable estate. As the value of your taxable estate is reduced, so is your federal tax bill.
High net worth clients can also minimize future capital gains taxes through strategic estate planning. By transferring appreciating assets to heirs under favorable tax conditions, they can leverage exemptions and reduce taxable estate values. Incorporating charitable giving into an estate plan can also defer capital gains taxes while providing income streams and lowering overall tax liability. Thoughtful structuring of investments and asset locations can optimize growth in tax-advantaged accounts, further mitigating future capital gains exposure. Engaging with financial and legal professionals is essential to tailor these strategies effectively to individual circumstances and maximize tax benefits.
High net worth clients may want to use one or more of the following advanced estate planning techniques, in addition to their “basic estate plan:”
- Irrevocable Life Insurance Trust
- Charitable Remainder Trust
- Charitable Lead Trust
- Grantor-Retained Annuity Trust
- Grantor-Retained Income Trust
- Intentionally Defective Grantor Trust
- Family Limited Partnerships
- Limited Liability Companies
If you are a high-net-worth client you will want a nuanced and experienced approach to your estate planning. I have worked with high-net-worth clients for over 47 years, and will work in close consultation with you and your tax and financial advisors to help ensure your estate plan is designed to be not only legally effective, but also works to minimize federal estate and income taxes payable after your death.
Call me today for a free consultation to discuss advanced estate planning techniques that may minimize your estate and income taxes, provide liquidity for any taxes that may be due after your death, and reduce the current and future taxable value of your estate. I look forward to serving you.
My office is conveniently located at 2945 Townsgate Road, Suite 200, Westlake Village, CA 91361, and you can reach me by phone at (805) 492-4044, or by e-mail to GSindon@Sindon-Law.com. You can also see my LinkedIn profile at www.linkedin.com/in/geoffrey-sindon.