How the Rich Pass Wealth: Tax-Efficient Estate Planning Strategies

The wealthy employ strategic estate planning to minimize taxes and ensure smooth wealth transfer, techniques accessible to those with modest estates. Federal estate tax applies to estates over $15 million; 16 states and D.C. impose their own taxes with lower exemptions. Key tools include revocable living trusts, which bypass probate and reduce legal fees (typically 3-8% of the estate). The step-up in basis at death resets capital gains, often eliminating tax on appreciated assets like Nvidia stock, real estate, and collectibles. Beneficiary designations on accounts override wills, enabling direct transfers. Experts emphasize proactive planning to protect assets and avoid court delays.