High Net Worth Estate Planning

What is High-Net-Worth Estate Planning?

High-Net-Worth Estate Planning is designed for you and your family when you have substantial assets and your legal, tax, and legacy considerations extend beyond basic Estate Planning. As your wealth increases, so does complexity — often involving business interests, real estate portfolios, investments, charitable goals, and multigenerational planning.

The primary objectives of high-net-worth planning are to preserve your wealth, minimize your tax exposure, protect your assets from risk, and ensure a smooth transfer of wealth according to your clearly defined wishes. Without advanced planning, a significant portion of your estate may be lost to taxes, administrative inefficiencies, or unintended distributions.

Comprehensive High-Net-Worth Estate Planning may address:

Federal and state estate tax mitigation strategies
Sophisticated trust structures for asset control and protection
Business succession and ownership transition planning
Real estate and investment asset coordination
Charitable giving and philanthropic legacy planning
Multigenerational wealth transfer strategies

This type of planning often involves irrevocable trusts, family limited partnerships, charitable trusts, and other advanced tools that require careful structuring and long-term oversight. Each component must be coordinated to avoid conflicts and ensure your plan remains effective as laws, assets, and family circumstances change.

High-Net-Worth Estate Planning is not static. Regular review and adjustment are essential to account for changes in tax law, your asset values, your family dynamics, and your long-term goals. When implemented thoughtfully, it provides you with clarity, control, and confidence for both current and future generations.

Different Trust Options for High-Net-Worth Individuals

There are many different types of specialized trusts used by high-net-worth individuals. Some of them are:

Spousal Lifetime Access Trust (SLAT)

A SLAT is an irrevocable trust created by one spouse for the benefit of the other spouse. It allows you to transfer assets to the trust, removing them from your estate and potentially reducing estate taxes. The spouse can access the trust’s income or principal during their lifetime while still providing for future generations. This trust is structured as a Grantor Trust, allowing you to pay the taxes on all income accrued inside the trust, thus removing more money from your estate.

Spousal Lifetime Access Non-Grantor Trust (SLANT)

Similar to a SLAT, a SLANT is an irrevocable trust created by one spouse for the benefit of the other spouse. However, it is structured as a non-grantor trust, meaning the trust is responsible for paying its own taxes. This can be advantageous for estate planning purposes and further reduces the taxable estate.

Qualified Personal Residence Trust (QPRT)

A QPRT allows you to transfer your primary residence or vacation home to a trust while retaining the right to live in it for a specified period. This trust can provide estate tax savings while allowing you to continue enjoying the property during the trust term.

Family Limited Partnership (FLP) and Family LLC (FLLC)

FLPs and Family LLCs are structures that allow high-net-worth individuals to consolidate family assets and maintain control over their wealth. These entities offer asset protection, estate tax benefits, and facilitate the transfer of wealth to future generations while retaining control through the management structure.

Grantor Retained Annuity Trust (GRAT) and Grantor Retained Uni-Trust (GRUT)

A GRAT allows you to transfer assets to beneficiaries while minimizing gift taxes. With a GRAT, you retain the right to receive an annuity payment for a fixed period. After the trust term ends, the remaining assets pass to your beneficiaries tax free. The annuity payments are fixed during the term of the GRAT, derived either from interest earned on the assets in the trust or as a percentage of the total value of the assets. In the event the grantor dies before the trust ends, it will become part of your taxable estate. A GRUT is very similar, except the amount you receive on an annual basis from the trust will be a fixed percentage that is calculated each year based on the trust’s new value. This essentially allows you to receive a “variable annuity” payment where the income stream will vary each year based on the total trust value at the end of the prior year.

Irrevocable Life Insurance Trust (ILIT)

An Irrevocable Life Insurance Trust (ILIT) is a powerful tool for high-net-worth individuals seeking to protect their wealth and efficiently transfer assets to future generations. An ILIT is specifically designed to hold life insurance policies outside of your taxable estate, thereby potentially reducing estate taxes.

You establish an ILIT and transfer ownership of life insurance policies to the trust, or purchase the insurance policy in the name of the trust from the outset. Since the trust is the owner, the proceeds from the policies are not included in your estate upon your passing. This exclusion can significantly reduce estate taxes, allowing more of your wealth to pass to your beneficiaries. Read more about ILITs here on our ILIT page.

Charitable Remainder Trusts and Charitable Lead Trusts

Both of these charitable trust allows you to donate assets to a charity while retaining a right for you or your beneficiaries to receive payments, either during your life or after your death. This strategy provides he dual benefits of supporting a cause you care about while also potentially reducing estate taxes. Read more about these strategies here on our Charitable Trust Page.

Why Choose the Farr Law Firm for High Net Worth Estate Planning?

As top experts in high-net-worth estate planning, our attorneys bring a wealth of knowledge and experience to each client we serve. Here’s why you should choose the Farr Law Firm as your trusted high-net-worth advisor:

Expertise: With over 60 years of combined specialized experience in high-net-worth estate planning, our attorneys have a deep understanding of the intricate strategies required to protect and grow your wealth while minimizing tax liabilities.
Tailored Solutions: We recognize that every client’s situation is unique. We take the time to listen to your specific needs, goals, and concerns to develop personalized estate planning strategies that align with your objectives.
Comprehensive Approach: Our approach to high-net-worth estate planning encompasses a broad range of considerations, including asset protection, tax optimization, business succession planning, charitable giving, and more. We offer a comprehensive solution tailored to your specific circumstances.
Trusted Relationships: We prioritize building long-lasting relationships with our clients and your other advisors, such as your financial advisor and your CPA. Our relationships are built on trust, transparency, and open communication. We are dedicated to providing ongoing guidance and support as your financial circumstances and legal needs evolve over time.

Take the Next Step in High Net Worth Estate Planning

Securing your financial legacy requires careful planning and expert guidance. Contact us today to schedule a consultation and explore how we can help you navigate the intricacies of high-net-worth estate planning. Together, we can develop a robust and comprehensive set of strategies to protect your wealth and provide for future generations.

Protect and Preserve What You’ve Built

High-net-worth estates require thoughtful, forward-looking planning. Farr Law Firm provides experienced guidance to help protect your assets, reduce risk, and preserve your legacy. Contact us to begin a High-Net-Worth Estate Planning strategy tailored to your long-term goals.