Keep What Matters, Transfer What Counts: A New Approach To Estate Planning

Forbes

21-07-2025

Starting in 2026, the federal estate tax exemption is expected to jump to $15 million per person (that's estimated to be $30 million for couples). It's a big opportunity for high-net-worth families to get ahead with their planning; however, many hesitate.
And if that sounds like you, you're not alone. One of the most common concerns I hear in conversations with clients is this:
"I don't want to give up control. Or access. Or income."
Totally fair, but here's the good news, modern estate planning isn't about giving everything away. When done right, it's about protecting what you've built, while keeping the flexibility and control you care about most.
Don't Let the Tax Tail Wag the Dog
Whether you're updating existing plans or starting from scratch, remember taxes shouldn't be the sole driver. Given enough time, the tax code offers multiple ways to address wealth transfer efficiently.
Instead, begin with this question I learned from fellow board member Eleanor Johnson: 'What do you want to be known for?'
It's a powerful shift in perspective. Once you clarify your legacy goals, your estate plan becomes a vehicle to achieve them.
That might look like:
I was recently speaking to a room of about 300 people and asked, 'How many of you know someone who's paid estate tax?' Maybe 15 hands went up.
Then I asked about lawsuits. Around 40% raised their hands. Divorce? Nearly 80%.
The point is, estate taxes get a lot of attention but in reality, things like divorce, lawsuits, poor succession planning, or bad business decisions are far more likely to chip away at your wealth. A sound estate plan guards against these risks, too.
Liquidity Is Often Overlooked
Most of my clients' own businesses making up 50% to 90% of their net worth, with limited liquid assets. In these cases, the biggest threat isn't just tax, it's the lack of cash flow and asset diversification.
What happens if a key owner dies prematurely? The family may lose not only income, but the value of the business itself while also facing an estate tax bill.
Another challenge arises when dividing assets among children. Often, one child is involved in the business while others are not involved in it. Without liquidity, it becomes difficult to equalize inheritance fairly, a common source of family tension.
Permanent life insurance can help:Even if no crisis occurs, life insurance can offer long-term flexibility and tax-free leverage. Please consult with your own personal tax attorney for tax counsel.
Strategies That Preserve Control and Income
Modern planning tools can provide opportunities which allow you to transfer wealth without losing control or income. Here are three common tools used, typically in combination, to achieve this goal:These strategies aren't about losing control; they're about repositioning assets for long-term efficiency while keeping your financial independence intact.
The best plans start with a clear vision and are backed by solid data. Work with an advisor who can walk you through different planning structures and model the impact of each option, including:The Window Is Open but Could Close
Yes, the 2026 law makes the $15 million exemption 'permanent,' but nothing in tax policy is truly permanent. Future administrations can reverse course.
My colleague Michael Amoia coined the term 'Political Life Expectancy' — your life expectancy divided by four. Why? Because every four years brings the possibility of a new administration, and with it, a new tax code.
If you're 60 today, you could see seven to eight major policy shifts before your estate is settled.
That's why flexibility is the most important feature of any estate plan built today.
Waiting could cost a significant amount of its assets, taxes and worse, if your estate lacks liquidity, your family might be forced to:
And don't forget: your assets are likely to grow over the next decade. Transferring them now, while they're still appreciating, creates the opportunity for major tax savings.
What Should You Do Now?
In today's climate, a smart estate plan should:
You don't need to give it all away.
You just need to act while you still have control, clarity, and leverage to choose how and when to use your resources.