Boulder Estate Planning Legal Blog
Because everyone is different, they have unique estate planning needs. For some people, this means prioritizing savings for retirement, whereas for others, it may mean planning how they would like end-of-life care handled. For ultra-high net worth individuals, their primary estate planning goal is protecting their current assets for future generations. Ultra-high net worth individuals are those with over $30 million in net worth. Because of this, their estate planning strategies may be different from other individuals. Below are some estate planning strategies that ultra-high net worth individuals can utilize to maximize their wealth for future generations.
Splitting Family Income
Splitting family income can assist ultra-high net worth individuals in mitigating their estate tax liability—one of the primary estate planning goals for these people. The American tax system is based on the idea that individuals who earn more pay higher taxes. Because of this, their estate tends to be larger—meaning, their estate will have to pay an estate tax before assets are distributed amongst beneficiaries. By dividing income among other lower-income earners in the family, the family’s tax burden will be reduced. This reduction will be seen both yearly through income taxes and when a person passes away in their estate tax liability.
Planning for Business Succession and Instilling Financial Responsibility
Many ultra-high net worth families have accumulated most of their wealth through owning a business. For those families who this is true, they should start taking steps now to plan for the future of the business. This may include planning for who will take over the business in the future, discussing the transition, and giving them the ability to ease into a larger role in the corporation over time. Planning for a business’s future can allow owners to know that the business will be in capable hands, even after they pass away. While this may not seem like an estate planning issue, attorneys can advise clients on how to ensure a smoother transition and how to incorporate the business success into their estate planning documents.
Similarly, it is important to instill financial responsibility in future generations that will receive a majority of the wealth. This is the best way to make sure the wealth is not mismanaged in the future. Estate planning attorneys and wealth management teams can assist with this as well.
Estate planning is critical for everyone, not just ultra-high net worth individuals. However, individuals with a higher net worth may have unique estate planning needs. Therefore, before making life-altering decisions, ultra-high net worth individuals should consult with an experienced estate planning attorney.
Contact a Colorado Estate Planning Attorney
If you or a loved one needs assistance creating an estate plan, contact the Boulder estate planning attorneys at the Braverman Law Group. Our knowledgeable attorneys can assist with drafting estate plans, advising about estate planning strategies, and creating trusts and other estate planning documents. Whether for ultra-high net worth individuals or those focused on saving for retirement, we can help. For a free, no-obligation consultation with one of our estate planning attorneys, give us a call today at (303) 800-1588.
