How Does Net Worth Affect Estate Planning? | IL

Estate planning is a necessary consideration for people from all walks of life. While some estate planning issues relate to everyone, those with a high net worth may have additional issues to consider to ensure full protection for themselves and their loved ones. Because larger, more complex estates are more likely to be exposed to business conflicts, family issues, creditors, and estate taxes, extra planning steps are necessary to mitigate these risks.

If you have a high net worth and are considering your estate plan, having knowledgeable legal assistance can be an invaluable resource. If your estate is more complex than the average, or you own a business, there are even more issues to address in your estate plan. Naperville, IL high net worth estate planning attorney Denice Gierach can address your financial concerns while helping you plan for the future. You will have the most up-to-date estate planning tools and strategies available to ensure your estate plan fully reflects your goals.

Retirement Planning for Those with a High Net Worth

Retirement planning is one of the most important aspects of estate planning. Working professionals and business owners, in particular, spend decades of their lives building a successful business or furthering their chosen careers. The most effective high-net-worth retirement plan may include optimizing tax strategies, planning for medical and long-term care, maxing out retirement accounts, and creating an estate plan that fully protects your assets.

Tailor Your Estate Plan to Include Buying and Selling Properties

If you are considering buying real estate as an investment, you have a unique opportunity to tailor financing in ways that benefit your long-term estate plan. Carefully consider a low-interest rate loan as opposed to cash on hand or a line of credit.

The need for comprehensive risk management increases as you add real estate to your balance sheet, especially if you have out-of-state properties. Since high-net-worth individuals often hold highly appreciated assets, estate and income tax planning strategies are essential. Tax loss harvesting and placing assets in a trust to defer or eliminate capital gains are just a couple of these strategies.

Gifting and Charitable Giving for High-Net-Worth Estate Plans

Those with a high net worth can save on estate taxes by leveraging the annual gift tax exclusion, which is $18,000 per recipient in 2024, as well as the lifetime gift exemption, which is $13.61 million in 2024. Direct payments can also be made for medical and educational expenses. These gifts allow individuals to support their loved ones while reducing their taxable estate.

Those who believe in charitable giving may choose to gift assets to charity to receive an unlimited charitable deduction for gift tax purposes. A Charitable Remainder Trust is another way to give to worthy causes while receiving an income for the term of the trust, saving on capital gains taxes, and receiving an upfront income tax charitable deduction. Donor-advised funds allow individuals to place assets into a “bucket” that will then be distributed to one or more charities while also offering significant financial benefits.

Additional Estate Planning Considerations Related to Net Worth

Individuals with significant assets may want to consider more complex strategies, which can include setting up trusts that address specific issues and ensure the easiest transfer of wealth to beneficiaries. If avoiding probate is a goal, trusts may be the best way to accomplish this. A simple mistake in a complex estate can have a major ripple effect on the owner of the estate as well as his or her loved ones, which makes the assistance of qualified professionals critical to the process.  

Contact a Naperville, IL Complex Estate Planning Lawyer

A Naperville, IL complex estate planning lawyer from Gierach Law Firm brings more than 30 years of experience to the table. We are ready to build customized solutions for your specific situation and goals. As a business owner, attorney, and Certified Public Accountant, attorney Denice Gierach has a deep understanding of the necessary components of a complex estate plan.  Contact the Gierach Law Firm at 630-228-9413 to schedule a consultation to discuss your estate planning needs.