Private Client / HNW Tax Planning

Service description

High-net-worth tax planning coordinates an individual's income, investment, business, and wealth-transfer decisions across the year, rather than reacting to them on a single return each spring. It draws on the individual income tax rules under IRC §1, and, for larger estates, the estate and gift tax rules under IRC §§2001, 2010 and 2501 — including the $15 million per-person basic exclusion amount that can pass free of estate and gift tax, made permanent for 2026 and later years. The scope and value of the planning grows with the complexity of the individual's income sources, business interests, and intended transfers.

Common industries

Any high-net-worth individual or family, across industries, with complex income, business, or wealth-transfer needs.

ROI

Coordinated planning across the year captures savings a once-a-year return preparer misses; value scales with complexity and wealth.

Benefit

Proactive tax planning for high-net-worth individuals and their businesses — entity structure, timing, charitable and wealth-transfer strategies.

Why get it

A once-a-year return preparer reports what already happened; planning changes what happens before it's locked in — timing income and deductions, choosing an entity structure, or using the current, historically high estate and gift tax exclusion while it's in effect.

When you benefit

Ongoing rather than tied to a single filing date, with planning conversations through the year and heavier activity before year-end, when many elections and gifts must be made.

What it costs

Often a retainer or annual fee scaled to complexity, sometimes with project fees for a specific strategy such as a trust structure.

When you pay

Commonly an annual or quarterly retainer for ongoing planning, with a separate fee for a discrete project like setting up a trust or valuing an interest for a gift. Fees are usually due on a fixed schedule rather than at the end of a single engagement.

Other costs

Implementing a strategy often requires separate legal fees to draft trust or entity documents, and an appraisal fee if a gift or transfer needs an independent valuation.

Risks to know

Some wealth-transfer strategies depend on making a gift or filing an election by a specific date, and missing it can mean losing the benefit for that year entirely. The $15 million exclusion is now permanent by statute rather than set to expire, but "permanent" describes current law, not a guarantee — a future Congress can still narrow or repeal it.

When risks arise

Gift and election deadlines fall at year-end or on specific transaction dates, so most of the planning risk concentrates there rather than spreading evenly through the year. A change in the underlying law, by contrast, can affect a strategy already in place with little warning, which is why an ongoing planning relationship — not a one-time strategy — catches it.

The process

The planner reviews the individual's income, holdings, and goals, and identifies strategies across income timing, entity structure, and wealth transfer that fit the situation. It coordinates with the individual's attorney for any documents a strategy requires, such as a trust, and confirms elections and gifts are made by their deadlines. The individual's regular tax return preparer then reflects the results of the plan on the annual return.

Your commitment

The individual shares a full picture of income sources, business interests, existing trusts or entities, and wealth-transfer goals, along with prior-year returns. It should flag major events early — a business sale, a large gift, or a move to a new state — since many strategies only work if set up before the event happens.

Documents to gather

• Prior three years' individual tax returns
• List of business interests, trusts, and entities already in place
• Summary of investment and other income sources
• Description of any planned business sale, large gift, or major life event

Helpful reading

• How OBBBA alters charitable deduction strategies for 2025 and 2026 — Journal of Accountancy
• Recent developments in estate planning — The Tax Adviser

Further research

• 26 U.S. Code § 1 — Tax imposed (individual income tax rates)
• 26 U.S. Code § 2010 — Unified credit against estate tax (the basic exclusion amount)
• 26 U.S. Code § 2501 — Imposition of tax (gift tax)