Opportunities in Tax Efficiency

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As a wealth manager serving highly affluent individuals and families with large and multifaceted estates, I must navigate a complex web of tax structures daily to ensure that my clients keep more of their hard-earned money. Tax dynamics are fluid, shifting alongside evolving policy priorities. While it’s important to remain adaptable as tax law readily dips one way or another, proactivity is always the best measure.

True tax efficiency is not about finding one silver bullet but thinking holistically about someone’s unique situation. I have identified a few opportunities within my portfolio and wealth management practice that prompt consideration for your own strategies as you plan for large estates.

How effectively are you using location?

Tax situations vary by state. Shifting the location for a situs is not always an option for every wealth management company, and it's not always an option for even wealthy individuals and families. However, taking advantage of varying state laws can offer greater flexibility, optimal tax savings and better protection

In Nevada, clients can take advantage of no state income tax on individuals, business entities, or trusts, no state transfer taxes, and no inheritance taxes. There is protection from federal or state transfer tax or state income tax for dynasty trusts through a perpetuity period of 365 years. States like Texas and Wyoming offer many of the same benefits, and states like New Hampshire and Louisiana (as well as many others) offer at least one.