Estate Planning for Families | Guide for High-Net-Worth Generational Wealth
Why Estate Planning is Important
You’ve worked hard to build something meaningful, a business, investments, or a growing net worth. But wealth without a plan is a bigger target for taxes, probate, and family tension.
That’s where estate planning comes in. It’s not just about legal documents, it’s about protecting your values, your vision, and the people who matter most.
For high-net-worth families, the stakes are even higher. More assets mean more complexity. More tax exposure. More potential for disagreements. More opportunities to do it right, or get it very wrong.
Not every family has the same vision.
Some want to pass on a legacy that supports children and grandchildren for decades. Others want to enjoy their wealth now, giving during life, supporting causes they care about, or intentionally spending it down.
A good estate plan supports your goals, not someone else's idea of what legacy should look like.
Let’s walk through what you actually need to consider.
More Than a Will: Why High-Income Families Need a Full Estate Strategy
Estate planning isn’t just about preparing for the unexpected. It’s a core part of managing wealth responsibly. A well-structured plan does four things:
● Protects assets from creditors, lawsuits, and probate
● Minimizes taxes through legal tools like trusts and gifting strategies
● Provides clarity on who gets what, and how decisions get made
● Supports multi-generational wealth by creating structures that last
If your current estate plan is just a will you signed 10 years ago, it’s time for an upgrade.
Will vs Trust: What’s the Right Tool?
This is one of the most common questions I get. The reality? Most high-net-worth families need both.
Here’s a quick breakdown:
Revocable trusts are often the starting point. They help your estate avoid probate and give you control while you’re living. Once you pass, the trust becomes irrevocable, and your successor trustee follows your instructions.
For families looking to reduce estate taxes or protect assets from lawsuits or Medicaid clawback, irrevocable trusts can be a smart addition, but they require careful planning from professionals.
What About A/B Trusts or Bypass Trusts?
If you’re married and your estate could be impacted by federal or state estate taxes, an A/B trust structure may be worth exploring.
Here’s how it works:
● When one spouse dies, the trust splits into two:
● Trust A (Survivor’s Trust): The surviving spouse’s portion
● Trust B (Bypass Trust): Holds the deceased spouse’s share and uses their estate tax exemption
This structure allows both spouses to fully use their estate tax exemptions, while keeping the surviving spouse supported and protected. It’s especially useful in states like here in Oregon, where estate taxes kick in well below federal thresholds.
Don’t Let Taxes Eat Your Legacy
Estate taxes, capital gains, income taxes, they all show up if you’re not proactive. A few key reminders:
● Oregon’s estate tax exemption is currently $1 million. If your estate is over that, you’re exposed.
● The federal exemption is higher, $13.99 million as of 2025
● Irrevocable trusts, annual gifting, and charitable strategies can help reduce the taxable value of your estate.
This is why estate planning is a team sport. You want your financial advisor, attorney, and CPA working together.
Business Owners: Your Estate Plan Needs a Succession Plan
If you own a business, your estate plan has an added layer. What happens to the business if something happens to you?
Options might include:
● A buy-sell agreement with a business partner
● A plan to transition ownership to children or key employees
● Liquidating or selling the business and transferring proceeds through your estate
The key is to start planning early. A business without a transition plan can create chaos for your family and your team.
Family Governance and Legacy Planning
High-net-worth families often want more than just financial continuity; they want their values to be passed down, too.
Consider building a family governance plan that outlines:
● Decision-making structures for shared assets or trusts
● Roles and responsibilities of beneficiaries
● Educational planning for younger generations
● Philanthropic values and family foundations
Clarity now prevents conflict later. The more openly you communicate your intentions, the easier it is for your family to understand and respect them. Regular family meetings can set expectations, reduce assumptions, and help avoid the kind of surprises that often lead to resentment or fractured relationships.
Common Mistakes In Estate Planning
Even well-intentioned families miss important steps. Here are the big ones:
● Outdated documents that don’t reflect current laws or life changes
● No plan for liquidity to cover taxes or expenses
● Failing to educate heirs on the responsibilities of wealth
● Ignoring cross-state or international issues if you own assets in multiple locations
Estate Planning Isn’t One and Done
A good estate plan isn’t a set-it-and-forget-it file. It’s something that needs to evolve as your life, wealth, and goals change.
You should review your estate plan:
● Every 3 to 5 years
● After major life events (marriage, divorce, birth of a child, business sale)
● When tax laws shift or exemptions change
Working with a team that understands the nuances of high-income families and business owners makes all the difference.
Next Steps
If you haven’t reviewed your estate plan in a while or if you’ve never created one, this is your opportunity to get ahead of it. Growing assets is one part of wealth, but make sure you also protect what you’ve built.
Estate planning is just one part of a cohesive financial strategy. Whether you're focused on tax planning, protecting your wealth, or making sure your legacy reflects your values, it all starts with a clear plan.
If you'd like a second opinion on how your estate strategy fits into your overall financial picture, including investments, retirement, business transition, and generational planning, schedule a strategy session.
FAQs
What’s the difference between a will and a trust?
A will directs who receives your assets after death, but it goes through probate. A trust allows assets to bypass probate and provides more control, privacy, and protection.
Do I need a revocable or irrevocable trust?
Most start with a revocable trust. Irrevocable trusts are typically used to reduce estate taxes or protect assets, but involve giving up more control.
What is an A/B trust, and who should use it?
An A/B trust (also called a bypass trust) is used by married couples to fully utilize both spouses’ estate tax exemptions. It’s especially relevant in taxable estates.
How often should I update my estate plan?
Review it at least every 3-5 years, or after major life events like marriage, divorce, or business changes.
What happens if I don’t have an estate plan?
The state decides who gets what, often through a lengthy probate process. It may not reflect your wishes and can create unnecessary taxes and stress for your family.
