Session 3: Estate Planning Strategies for $2–$5 Million Clients
Subtitle: High-Impact Planning Without Overengineering
Overview
This session focuses on practical, high-leverage strategies for clients with $2–$5 million in net worth. These clients require thoughtful planning that balances tax efficiency, control, and cost without unnecessary complexity.
Key Topics
Tax Optimization
- Portability elections
- State estate tax planning
- Basis step-up timing strategies
- Lifetime gifting vs. wait-and-see approaches
Control and Protection
- Revocable trust optimization
- Retirement trust considerations
- LLC structures for real estate
- Umbrella liability coordination
Business Owner Planning
- Buy-sell agreement alignment
- Cross-purchase vs. entity structures
- Integration with personal estate plans
- Preventing liquidity issues at death
Avoiding Overengineering
- When advanced strategies (GRATs, ILITs) are unnecessary
- Managing complexity and client understanding
- Avoiding “trust fatigue”
Funding Formula Risks
- Pecuniary vs. fractional formulas
- Capital gains exposure during funding
- Impact of post-death appreciation
- Coordination with tax professionals
Planner Takeaway
The primary risk at this wealth level is either under-planning or overengineering. Advisors must prioritize strategies that deliver meaningful impact without unnecessary complexity.