A standard estate plan is designed for standard situations. Most high-net-worth clients don't have one.
The complexity of your financial picture requires a plan built for it — not a template with your name at the top.
At higher asset levels, a standard revocable trust and basic estate plan leaves significant value on the table. Estate tax exposure, concentrated positions, business equity, real estate portfolios, and large retirement accounts each require specific strategies that a general estate plan doesn't address. The gap between a plan that's technically complete and one that's actually optimized for your situation tends to be measured in six and seven figures.
Most estate planning attorneys offer roughly the same core documents: a revocable trust, a pour-over will, powers of attorney, and a healthcare directive. For most clients, that's an appropriate and complete plan. For clients with significant assets, concentrated positions, business equity, or real estate portfolios, those documents are the starting point, not the finished product.
The difference between a plan that's technically adequate and one that's genuinely optimized is often the difference between a family that preserves generational wealth and one that loses a significant portion of it to taxes, creditors, or the friction of an unplanned transition. We work with high-net-worth clients who need the full picture addressed, not just the foundation laid.
The Estate Tax Exposure Calculation
The federal estate tax exemption is $15 million per individual in 2026, or $30 million for married couples. Estates above those thresholds face a 40 percent federal rate on the excess. The clients who need to pay attention are not just those already above the threshold — they're anyone whose assets are growing toward it.
A business owner with $8 million in company equity, a real estate portfolio worth $4 million, retirement accounts totaling $3 million, and $2 million in life insurance policies they own personally has a $17 million taxable estate. That's $2 million above the individual exemption, generating roughly $800,000 in federal estate tax without any planning. With planning done now, that exposure can be reduced substantially or eliminated.
Concentrated Positions and QSBS
Clients with a significant portion of their net worth in a single stock position, a private company interest, or QSBS face a specific set of problems. Diversifying means recognizing a large capital gain. Holding means continuing to carry concentration risk. And the estate tax valuation of an illiquid private interest adds complexity that a standard plan doesn't address.
A charitable remainder trust can diversify an appreciated position without triggering immediate capital gains while generating an income stream and a partial charitable deduction. A grantor retained annuity trust can transfer a business interest expected to appreciate significantly out of the taxable estate at a low gift tax cost. QSBS planning — ensuring the exclusion is preserved and properly documented through a sale — can eliminate federal capital gains tax on up to $15 million in proceeds entirely.
These strategies require coordination between the legal documents, the tax filing, and the investment strategy. We work with your financial advisor and CPA to make sure each piece is consistent with the others.
Real Estate Portfolios
Arizona real estate investors with significant appreciation in their portfolios face an estate plan that needs to address both the income tax consequences of a sale and the estate tax consequences of holding. A property with a low cost basis that generates significant rental income sits differently in an estate plan than a liquid financial account of the same value.
Qualified Opportunity Zone investments, 1031 exchanges, and charitable remainder trusts are tools that interact with real estate holdings in ways that a standard estate plan doesn't address. How properties are titled, how they're held in the estate plan, and what happens to the stepped-up basis at death are questions worth answering before they become urgent.
Large IRAs and Retirement Accounts
The SECURE 2.0 Act significantly changed the rules for inherited IRAs, compressing the distribution period for most non-spouse beneficiaries to ten years. For clients with large retirement accounts, the income tax consequences of that compressed distribution — essentially forcing a significant amount of income recognition within a decade — can be substantial.
Strategies that address this include Roth conversions to shift assets into an account that beneficiaries can inherit without income tax, charitable beneficiary designations that direct retirement assets to charity while leaving other assets to family, and life insurance structures that replace the value lost to taxes at a lower after-tax cost. None of these strategies are complicated in isolation. Getting them to work together across the full estate plan requires coordination.
Multigenerational Wealth Transfer
Clients who want assets to benefit not just their children but their grandchildren and beyond need a plan that addresses the generation-skipping transfer tax in addition to the estate tax. The GST exemption matches the estate tax exemption at $15 million per person, which creates significant opportunity for dynasty trust funding at current exemption levels.
A dynasty trust holds assets across multiple generations, protected from estate taxes, creditors, and divorcing spouses at each level. Arizona's trust laws support these structures well. For clients with the assets and the intention to build something that lasts, the current exemption environment is an unusually favorable one to act in.
Working With Your Advisors
High-net-worth estate planning doesn't happen in a vacuum. The legal documents need to be consistent with the investment strategy, the tax filing position, the business structure, and the insurance coverage. We work alongside your financial advisor, CPA, and insurance professional as a coordinated team rather than as isolated advisors working from separate assumptions.
If you don't have a full advisory team in place, we can refer you to professionals we know and trust in each area.
What It Costs
Advanced estate planning work is quoted after your free consultation based on the complexity of your situation and the strategies involved. Foundational documents are flat-fee. Complex irrevocable trust structures, GRAT planning, and dynasty trust drafting are quoted based on the work required. You'll know the cost before committing.
Frequently Asked Questions
At higher asset levels, the standard revocable trust and basic documents are a foundation, not a complete plan. Estate tax exposure requires specific reduction strategies. Concentrated positions, business equity, and large retirement accounts each present planning challenges that a general estate plan doesn't address. The gap between a technically adequate plan and an optimized one tends to be significant in dollar terms.
The federal estate tax applies to taxable estates above $15 million per individual in 2026. The rate on the excess is 40 percent. Arizona has no separate state estate tax. Clients with estates approaching or above the threshold, or with growing assets that may cross it over time, benefit from active planning now while the current exemption is in place.
SECURE 2.0 requires most non-spouse beneficiaries to distribute inherited IRAs within ten years, compressing significant income tax recognition into a short window. For large IRAs, this can mean a substantial tax bill for your beneficiaries during the distribution period. Strategies including Roth conversions, charitable beneficiary designations, and life insurance structures can reduce or redirect that tax burden.
A dynasty trust is designed to hold assets across multiple generations, protected from estate taxes, creditors, and divorcing spouses at each generational level. The GST exemption of $15 million per person makes current dynasty trust funding more attractive than it has been in years. Clients with significant assets and an intention to preserve wealth across generations are the primary candidates.
Partially. A revocable trust maintains full control but provides no estate tax reduction. Irrevocable structures — GRATs, ILITs, dynasty trusts, IDGTs — provide tax benefits in exchange for reduced control over transferred assets. The spectrum of available tools allows for meaningful tax reduction while retaining access to income streams, spousal benefits, or continued economic benefit in many structures. The tradeoffs are specific to each tool and each client's situation.
A concentrated position creates both income tax risk and estate tax exposure. Tools including charitable remainder trusts, grantor retained annuity trusts, and exchange funds address different aspects of that problem. Which approach fits depends on your charitable intent, your need for liquidity, your timeline, and how the position fits into the broader estate plan.
More frequently than a standard plan. Major tax legislation, significant changes in asset values, business events, and family changes all warrant a review. We recommend reviewing at least every two to three years and immediately after any significant tax law change or major financial event.
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