Secrets of the Ultrawealthy: Minimizing Taxes and Passing on Wealth

From trusts to beneficiary designations, the rich have mastered the art of estate planning to protect their assets

Published on Feb. 17, 2026

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While death and taxes may be inevitable, the ultrawealthy have developed strategic ways to minimize the tax burden on their estates and ensure their wealth is passed down to heirs with ease. From utilizing trusts to take advantage of the 'step-up' rule on investments, the rich have found legal loopholes to grow their fortunes and transfer them across generations.

Why it matters

Understanding the estate planning tactics of the ultrawealthy can provide insights for people with more modest means on how to efficiently transfer assets to their loved ones and avoid the costly and time-consuming probate process. By adopting some of these strategies, even those without million-dollar estates can protect their wealth and legacy.

The details

Key estate planning tactics used by the wealthy include setting up trusts to bypass probate court, taking advantage of the 'step-up' rule to avoid capital gains taxes on appreciated investments, and keeping beneficiary designations up-to-date on financial accounts. While these strategies require upfront legal fees, they can save families significant time and money in the long run by ensuring a smooth transfer of assets.

  • The 'step-up' rule on investments has been a longstanding part of the U.S. tax code, though lawmakers have occasionally proposed limiting it.
  • Many banks and brokerages allow customers to name beneficiaries to whom assets will be transferred upon the account holder's death.

The players

Mark Bosler

An estate planning attorney in Troy, Michigan, and legal adviser to Real Estate Bees.

Renee Fry

The CEO of Gentreo, an online estate planner based in Quincy, Massachusetts.

Benjamin Trujillo

A partner with the wealth advisory firm Moneta, based in St. Louis, Missouri.

Allison Harrison

An attorney in Columbus, Ohio who focuses on estate planning.

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What they’re saying

“It's a strategic game of chess played over decades. While the average person relies on a simple will, the well-to-do utilize a different playbook.”

— Mark Bosler, Estate planning attorney (dnyuz.com)

“Wealth transfer looks like smoke and mirrors. Assets like stocks can quietly grow for decades and, when they're inherited, the tax bill often disappears.”

— Benjamin Trujillo, Partner, Moneta (dnyuz.com)

“Wealthy families plan. They don't leave assets and decisions unprotected.”

— Renee Fry, CEO, Gentreo (dnyuz.com)

The takeaway

While the estate planning strategies of the ultrawealthy may seem out of reach for the average person, understanding these tactics can provide valuable insights on how to efficiently transfer assets and minimize the tax burden on one's heirs. By adopting some of these approaches, even those with more modest means can help ensure their wealth and legacy are preserved for future generations.