How the Rich Pass on Their Wealth - And How You Can Too

The tricks the wealthy use to avoid taxes and ensure their assets transfer to heirs can work for more modest estates as well.

Feb. 18, 2026 at 4:31pm

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While death and taxes may be inevitable, a big bill for your heirs is not. The rich have made an art of avoiding taxes and ensuring their wealth passes down effortlessly to the next generation. But the strategies they use - like trusts, taking advantage of the 'step-up' rule on investments, and keeping beneficiary designations up to date - can also benefit people with more modest estates. Estate planning experts say investing time in mapping out your estate is one of the key moves that separates the wealthy from the less well-off.

Why it matters

Most people can pass on what they have without worrying about their heirs being caught in a web of taxes, but it requires some planning to avoid a messy probate process that can hold up estates for years and cost families significantly in court fees and lawyer bills. The strategies used by the wealthy can help more average Americans ensure their assets are transferred to their intended heirs efficiently and with minimal tax implications.

The details

Trusts are a relatively simple tool that can make sense for many people, even those not leaving behind enough to trigger estate taxes. They can help an estate sidestep probate court and shield details from public view. The 'step-up' rule also allows many rich families to grow their wealth while ensuring their heirs won't be saddled with a big tax bill when they inherit assets like stocks, real estate, or artwork. Keeping beneficiary designations on accounts up to date is another easy way to ease the transfer of assets to loved ones.

  • The 'step-up' rule has been in place for decades, allowing wealthy families to quietly grow their assets over time.
  • Lawmakers have sometimes proposed limits on the 'step-up' rule, but it remains in place at least for now.

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

“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

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

— Renee Fry, CEO, Gentreo

What’s next

Lawmakers have sometimes proposed limits on the 'step-up' rule, so it's important for people to stay up to date on any potential changes that could impact their estate planning strategies.

The takeaway

While the wealthy have access to sophisticated estate planning tools, many of the strategies they use to pass on their assets - like trusts, taking advantage of the 'step-up' rule, and keeping beneficiary designations current - can also benefit more average Americans. Investing time in mapping out your estate is a key move that can help ensure your assets are transferred efficiently to your intended heirs.