Throughout my career, I have helped hundreds of wealthy families navigate the estate planning process. Now, my focus is on estate conservation for high-net-worth individuals, as I have identified a key strategy that can preserve hundreds of thousands and even millions of dollars for those wishing to pass their wealth to their spouse and descendants.
Starting January 1, 2026, the federal estate tax exemption reverts to around $7 million per person, so if one is married with $20 million or more in estate assets, or single with $10 million, or Protecting Generational more, estate taxes could take a significant toll.
For example, if a single person has a $20 million estate, the taxable portion, the exemption would be $13 million, resulting in an estate tax bill of approximately $5.2 million, due 9 months after death. While there is an option to use an alternate appraisal of the assets six months postmortem if it results in a lower tax burden, most estates do not have $5.2 million, in liquid assets readily available. Even if they do, most would prefer to pass that wealth along to their heirs rather than the IRS. This issue is even much more important when a family’s wealth is tied up in a family business, private stock, real estate, farms, ranches, minerals, royalties, residences, etc. And a forced sale of $5.2 million of assets an independent executor of your estate will significantly diminish the estate’s value.
Traditional Solutions and Their Drawbacks
One common approach to mitigating estate taxes includes lifetime gifts, currently capped at $19,000 per donor per year. Another solution is an insurance trust (with the family as beneficiaries)not taxed in the estate, to fund estate tax liabilities. However, purchasing large life insurance policies later in life can be prohibitively expensive. In addition, after the lifetime gifts are used up, the annual premiums themselves may create additional gift tax burdens.
A More Effective Approach
There is a solution to this problem that allows individuals to secure substantial life insurance coverage – potentially 3 to 5 times more than traditional methods – without personally paying the premiums.
I have helped structure life insurance policies ranging from $9 million to $50 million, implementing strategies that preserve wealth while minimizing out-of-pocket costs.
To see my professional bio (and I’ll put my estate planning credentials up against anyone), and learn more about this plan, please visit www.denmansestateplanningsecrets.com, where you’ll find a short introduction, my professional credentials and a two-page white paper detailing this approach. If you are wealthy, please take 20 minutes to visit the website so that you will know the best and most cost effective manner to protect generational wealth.
Denman Moody, J.D., Chartered Life Underwriter, Chartered Financial Consultant
" I have identified a key strategy that can preserve hundreds of thousands of dollars "