High Net Worth Estate Planning By Our Florida Estate Planning Lawyers - Customized Plans for High-Net-Worth Individuals Almost everyone needs an estate plan, no matter how simple or complex their finances may be However, your estate plan should always reflect your circumstances. Even though most people should write a will and execute powers of attorney, wealthy families face unique obstacles in succession. The possibility of litigation, or the very real threat of debilitating estate taxes loom large in high-net-worth families. Our Palm City and Stuart estate planning lawyers will protect your assets and your loved ones while building generational wealth. Contact Us Table of Contents High Net Worth Estate Planning By Our Florida Estate Planning Lawyers - Customized Plans for High-Net-Worth Individuals Lay the Foundation of a High Net Worth Florida Estate Plan Anticipate Taxes and Other Obstacles Build a High-Net-Worth Estate Plan Lay the Foundation of a High Net Worth Florida Estate Plan Include safeguards to protect yourself, your family, and your estate from threats like intestacy and probate incapacity in Your Florida estate plan. In general, this means: Writing a will. A last will and testament is the only way to shield your estate from the risk inherent to intestate succession. Executing powers of attorney. Powers of attorney let a trusted agent make decisions on your behalf if you are incapacitated by injury or illness. Different powers of attorney serve different purposes. They can ensure that your finances stay stable if and when you are incapable of managing them yourself. Establishing an advance care directive. An advance care directive sets conditions on treatment you should receive if you are incapacitated and unlikely to recover. Anticipate Taxes and Other Obstacles Florida eliminated its state-level estate tax in 2005. However, high net-worth families still face steep risks in the form of the federal estate tax. The federal estate tax is applied if and when the total value of an estate exceeds a predetermined threshold. Only the excess amount, termed the “taxable amount,” is subject to taxation In 2024, the federal estate tax threshold was $13.61 million, with rates set at the following levels: A tax rate of 18% on taxable amounts between $1 and $10,000 A tax rate of 20% on taxable amounts between $10,000 and $20,000 A tax rate of 22% on taxable amounts between $20,000 and $40,000 A tax rate of 24% on taxable amounts between $40,000 and $60,000 A tax rate of 26% on taxable amounts between $60,000 and $80,000 A tax rate of 28% on taxable amounts between $80,000 and $100,000 A tax rate of 30% on taxable amounts between $100,000 and $150,000 A tax rate of 32% on taxable amounts between $150,000 and $250,000 A tax rate of 34% on taxable amounts between $250,001 and $500,000 A tax rate of 37% on taxable amounts between $500,001 and $750,000 A tax rate of 39% on taxable amounts between $750,001 and $1 million A tax rate of 40% on taxable amounts above $1 million Since the estate tax is graduated, tax levied at lower brackets could be inconsequential. Families worth substantially more than the federal exemption threshold of $13.61 million require special consideration. The risk presented by a flat 40% rate almost always warrants extensive preparation. Build a High-Net-Worth Estate Plan You need more than an estate plan if your owned or controlled assets approach the IRS exemption limit. Depending on your circumstances and your aspirations, Beacon Legacy Law could help you explore the benefits of wealth-transfer strategies. Those include, but are not limited to, the following: Grantor Retained Annuity Trust (GRAT). The grantor receives annuity payments from this irrevocable trust. Assets may be transferred tax-free to heirs. Generation-Skipping Trusts. Also known as dynasty trusts or legacy trusts, assets are transferred to the grantor’s grandchildren to reduce estate taxes. Irrevocable Life Insurance Trusts. Insurance benefits may be paid into this type of trust, which holds them in trust for your beneficiaries. Spousal Lifetime Access Trust (SLAT). This trust allows a married couple to benefit from the trust while naming descendants as beneficiaries.
