Tax-Efficient Estate Planning Example

Wealthy families often invest across 3 or more generations. Each generation faces different types of taxes. Generation 1 often has high income tax exposure. Generation 2 may face estate, gift, and capital gains taxes. Generation 3 may have these taxes plus GST taxes. Portfolio optimization must take into account all types of taxes as well as the needs of different trust beneficiaries. Costs for portfolio design and trust drafting are usually less than 1% of the tax savings.