Estate Tax Reduction Planning

Shift wealth to your children. Avoid the 40% estate tax. Keep control.

Make the Most of the New $15 Million Exemption

With the passage of the One Big Beautiful Bill Act, the landscape for estate tax planning has fundamentally changed. Effective January 1, 2026, the federal estate, gift, and generation-skipping transfer (GST) tax exemption will permanently increase to $15 million per individual (or $30 million for married couples), adjusted annually for inflation. This is a substantial increase over the originally scheduled exemption of approximately $7.2 million in 2026 under prior law.

For high-net-worth families, this new law offers unprecedented planning opportunities to transfer wealth efficiently, minimize estate tax exposure, and build multigenerational structures with clarity and time.

How We Help Clients Reduce or Eliminate Estate Tax

At Sollertis, our clients regularly use their $15 million (or $30 million) exemption as part of a coordinated estate tax reduction plan. The most common strategy involves transferring a discounted interest in a key holding company—what we call the Asset Hub—to a Children’s Trust. By combining this structure with valuation discounts and our in-house tax and legal expertise, we help clients reduce or eliminate federal estate tax liability on up to $45 million of family wealth.

All tax planning is handled by our own attorneys, with support from appraisers when appropriate.

Why It Works

The strategy leverages two core elements:

Valuation Discounts
Transferring a non-controlling, non-marketable interest in your Asset Hub allows for a discounted valuation—typically between 25% and 33⅓%—meaning you can transfer more economic value while using less of your exemption.
Irrevocable Trust Structure
Assets are moved outside your taxable estate and into a Children’s Trust, designed to benefit your descendants without exposing them to unnecessary taxes or outside claims. The result? Clients who might otherwise face $10 million or more in estate tax liabilities can pass their wealth intact to future generations.

Why Now

Although the exemption increase is permanent under current law, Congress can always make changes in the future. That means high-net-worth families have a rare and valuable window—with no impending deadline—to plan calmly and strategically.

But just because there’s no sunset doesn’t mean there’s no urgency.

Here’s the real reason to act now: growth.

Most of our clients are still in the prime of their lives, actively growing their estates. Let’s say you transfer $45 million via a properly structured estate tax reduction plan today. If those assets double in value over the next 10 years (to $90 million) and then double again over the following 10 years (to $180 million), which is entirely realistic for long-term investors, and you pass away in 20 years, the estate tax calculation could look like this:

Exemption in 20 Years: Still $30 million (couple)
Taxable estate: $180 million – $30 million = $150 million
Federal estate tax due: 40% × $150 million = $60 million

By transferring $45 million via a trust structure now, that future $180 million of value can grow outside your taxable estate—potentially saving $60 million in taxes.

This is the compounding power of planning early. It’s not just about using the $30 million exemption—it’s about getting appreciating assets out of your estate now, so that growth happens in a protected structure.

What You Can Expect from Our Team

We guide clients through every step of the estate tax reduction process:

We form the Asset Hub to centralize family assets and manage ownership.
We draft the Children’s Trust and coordinate with appraisers to support valuation discounts.
We advise on the optimal amount and timing of transfers.
We handle all legal documentation and tax compliance in-house.
We help maintain and adjust the structure over time.

For clients with international ties, we also integrate cross-border tax planning to comply with U.S. and foreign tax regimes.

Key Highlights

$15 million federal exemption per person, effective 1/1/2026 (or $30 million per couple with portability)
No more “sunset” risk—this exemption is permanent under current law
Still taxed at 40% over the exemption—planning remains critical
State-level estate taxes still apply in many jurisdictions
Best suited for clients with estates > $15M (individual) or > $30M (married)

Let’s Talk

If your estate plan hasn’t been updated recently—or if you’ve been waiting for clarity on what Congress would do—now is the time to act. With a clear, generous, and permanent exemption in place, strategic planning can secure your legacy and significantly reduce estate tax exposure.