The Millionaire’s Guide to Estate Planning in 2026
Estate planning for millionaires and high-net-worth families is complex. Set up your team, paperwork and tax plan to protect your heirs.
Estate planning for millionaires is taking on renewed urgency as the "Great Wealth Transfer" gets underway, with an estimated $124 trillion expected to pass to the next generation over the coming decades. Yet, despite having more wealth to protect, many affluent families actively avoid the topic; according to a 2026 survey from Kiplinger and Morning Consult, roughly two in five families have not even discussed an inheritance strategy.
This silence is especially risky for larger estates, which tend to be complicated and often involve a web of multiple homes, business interests, investment accounts, cars, boats, jewelry, and other high-value assets.
Proper estate planning helps organize your financial affairs so your heirs aren't left with a complicated mess after you're gone. “A well-thought-out plan can be a gift in and of itself to your heirs,” said Matthew Fleming, senior wealth adviser at Vanguard. "It also ensures that your beneficiaries get what you set aside for them and minimizes the tax liability for everyone."
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Estate planning for millionaires: first steps
If you haven't created an estate plan yet, you're in good company: Only 24% of Americans have one, according to a study by Caring, a resource for caregivers. The sandwich generation, those aged 34-54, is the largest group without estate planning documents. However, respondents over 55 appear to have their estate plans in place, which supports "retirement or age-related milestone" as the top reason people made a will, at over 30%.
The financial services industry categorizes wealthy clients into several groups based on the value of their liquid assets. (Liquid assets exclude your home, collectibles and other valuables you can't easily invest.) These tiers range from ordinary investors to ultra-high-net-worth individuals (UHNWI), as demonstrated in the table below.
The Corporate Finance Institute (CFI) categorizes individuals with assets between $ 100,000 and $ 1,000,000 as "mass affluent investors." A very high net worth individual has a net worth of at least $5 million. On the other hand, an ultra-high net worth individual owns at least $10 million in investable assets.
However, these definitions can vary. For example, some investment firms define "ultra-high-net-worth individuals" (UHNWI) as those with at least $25 million, while others define it as having at least $30 or $50 million.
Classification |
Liquid Assets Held |
|---|---|
Ordinary Investor |
Under $100,000 |
Mass Affluent |
$100,000 to $1 million |
High-Net-Worth Individual (HNWI) |
At least $1 million |
Very-High-Net-Worth Individual (VHNWI) |
At least $5 million |
Ultra-High-Net-Worth Individual (UHNWI) |
At least $10 million (or $25, $30 or $50 million, depending on the source) |
Sources: CFI, TheStreet, SmartAsset.com
These classifications can help you assess what kind of estate planning help you might need. The more complex and valuable your assets, the more likely you are to need a bespoke plan from a wealth management team. Very large estates might even consider a family office. You can also follow tactics to secure a family dynasty.
It's about people and paperwork
Estate planning does not have to be daunting, even for larger estates. Think of estate planning as a process about people and paperwork, Vimala Snow, managing director and head of wealth strategy at Cresset Capital, recommends. She stresses the importance of appointing trusted individuals to oversee your affairs and ensuring that all legal documents expressing your wishes are properly executed.
The people on your team. Hire an estate planning attorney to set up trusts and also help you choose a trustee. "Having somebody who’s almost like a quarterback for everything can be really helpful to help guide whom you should meet, when you should meet with them, and how complex it should be," said Ryan Viktorin, vice president and financial consultant at Fidelity. Add a tax accountant and financial adviser to round out your team.
The trustee can be the owner of the assets, another person or a financial institution. If choosing another individual, "are they trustworthy? Can they coordinate all the moving parts?" Snow said. While they do not have to be financial or legal experts, "can they work with accountants and lawyers and financial advisers … and do that for the best interests of the beneficiaries?"
The paperwork you need. Snow said everyone needs a few key documents: a will, a revocable trust, powers of attorney for finances and health care and a living will. "The goal of all these documents is to provide the roadmap" for trustees and beneficiaries so you can "sleep well at night, knowing the right people will benefit and you will have the right decision-makers in charge."
You'll also need to update beneficiary designations on 401(k)s and IRAs, especially since the SECURE Act instituted the rigid 10-year payout rule for non-spouse heirs, which can trigger massive tax bills.
Federal and state estate taxes
Most estate plans start with a revocable trust to park their assets. It is "incredibly common," Viktorin said. People like these trusts because "you still have full access. … You can revoke it at any time and it is still your money. The trust just dictates what happens to the estate upon your passing."
If they have more assets to distribute and shield from taxation, they can also set up irrevocable trusts. Unlike revocable trusts, these trusts require people to give up ownership and control of the assets placed inside them — with some exceptions. In exchange for giving up control, owners are not taxed on the assets in irrevocable trusts.
Very large estates recently got a reprieve. The OBBB bill extends the very generous lifetime estate tax exemption: $15 million for an individual and $30 million for a married couple in 2026.
Viktorin said some states also charge estate taxes, each with distinct rules. Currently, 33 states do not levy these so-called 'death' taxes. If you live in a no-death-tax state but you move, make sure to revisit your estate plan in case your new state charges estate or inheritance taxes, Viktorin added.
In addition to the irrevocable trust, Viktorin detailed other commonly used trusts. An irrevocable life insurance trust (ILIT) would hold your life insurance and include instructions for distributing the payout upon your death. A special needs trust would provide for disabled loved ones without jeopardizing their government benefits. A charitable gift trust can help reduce taxes and satisfy philanthropic goals; ultra-high-net-worth families are most likely to employ charitable trusts.
Keep on gifting. Fleming said another way to shield assets from taxes is to use annual gift exclusions — you can give away $19,000 a year (or $38,000 for a couple) in 2026 to as many people as you wish. "If you tally that up, that’s a significant amount of money you could give away annually," he said. Also, paying the tuition or medical bills of anyone you want — if made directly to the school or health care provider — exempts these gifts from taxes. You can also put gifts in trust; these will not count towards the lifetime estate tax exemption.
If you want to gift more than the gift tax exemption, one way is to loan money to family or friends, Fleming said. However, you must charge interest. The minimum interest you need to charge depends on the IRS’ applicable federal rates, which can be below market rates. There are short-term (less than three years), mid-term (three to nine years) and long-term (more than nine years) rates and they change monthly.
For education planning, wealthy individuals frequently front-load 529 college savings plans, allowing them to gift up to $95,000 at once (5 years x $19,000) per beneficiary without touching their lifetime exemption. Although students with such large 529 plans may not qualify for financial aid, the "grandparent loophole" can sometimes get around this hurdle.
If you have assets abroad and are a U.S. citizen, you might have to pay taxes to the IRS. "Just because an asset might be overseas doesn’t mean that the U.S. doesn’t want to know," Snow said. Remember that other countries have different tax laws, so get local counsel.
Family conflicts and passwords
Snow said it could be a good idea to communicate to your family and beneficiaries about what they should expect from your estate — without sharing dollar figures. "Having people on board ahead of time can sometimes negate the negative family reaction," she said. This allows you to explain your decisions with the right context and potentially avoid future conflicts. This conversation is especially critical for addressing succession issues in a family business.
For tips on how to get started, read: How to Talk to Your Adult Kids About Their Inheritance.
Finally, an often-overlooked task is ensuring your trustees and beneficiaries can access your accounts, Snow said. Make sure they have passwords, tokens, digital keys and the location of your accounts.
Remember that only certain documents or valuables should be kept in a home safe or a safe deposit box.
With all the considerations that come with estate planning, it is easy to feel overwhelmed. Viktorin likes to keep things simple with clients. "My goal is always to help them create a plan that is as simple and streamlined as possible, but as sophisticated as necessary, given their situation."
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