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

Strategies like trusts and beneficiary designations can help even modest estates avoid taxes and probate court.

Published on Mar. 7, 2026

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This article explores how the wealthy use various estate planning strategies to efficiently pass on their assets to heirs, including the use of trusts to avoid probate and the "step-up" rule that allows heirs to inherit appreciated assets with little or no tax liability. The article also highlights simpler techniques like keeping beneficiary designations up-to-date that can benefit people with more modest estates.

Why it matters

Estate planning is crucial for ensuring your wealth is passed on to your intended heirs in the most efficient and cost-effective way possible, whether you have a multi-million dollar estate or a more modest one. By utilizing tools like trusts and beneficiary designations, even those without vast wealth can avoid the hassle and expense of probate and minimize the tax burden on their heirs.

The details

The article outlines several key estate planning strategies used by the wealthy, including the use of trusts to avoid probate and shield assets, and the "step-up" rule that allows heirs to inherit appreciated assets with little or no capital gains tax. It also highlights the importance of keeping beneficiary designations up-to-date on financial accounts. While these strategies may require upfront legal costs, they can save families significant time and money in the long run by streamlining the wealth transfer process.

  • The "step-up" rule, which allows heirs to inherit appreciated assets with a stepped-up cost basis, has been in place for decades, though lawmakers have at times proposed limiting it.

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 planning service 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 (theday.com)

“Anywhere from 3 to 8% of an estate might be lost.”

— Renee Fry, CEO of Gentreo (theday.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 at Moneta (theday.com)

“One of the easiest ways to transfer assets hassle-free.”

— Allison Harrison, Estate planning attorney (theday.com)

What’s next

Lawmakers have sometimes proposed limits on the "step-up" rule, but for now it remains a key tool in the estate planning arsenal of the wealthy.

The takeaway

By utilizing strategies like trusts, beneficiary designations, and taking advantage of rules like the "step-up" in cost basis, even those without vast wealth can ensure their assets are passed on to heirs in the most efficient and cost-effective way possible, avoiding the hassle and expense of probate.