High Net Worth Estate Planning Secrets Exposed for Success
Tax Implications and Strategies
Estate taxes can significantly impact the wealth passed on to heirs. As of 2023, the federal estate tax exemption is $12.92 million per individual2. However, high net worth individuals often exceed this threshold, making tax planning essential.
- **Generation-Skipping Transfer Tax (GSTT)**: This tax applies to transfers to grandchildren or unrelated individuals more than one generation below the donor. Proper planning can help mitigate GSTT liabilities.
- **State Estate Taxes**: Some states have their own estate taxes, with lower exemption limits than the federal government. Understanding your state's tax laws is crucial to effective planning.