Wealth isn’t just about making money – it’s about keeping it.
You’ve worked hard to build something meaningful, and the last thing you want is to see it eaten away by taxes.
The truth is, the wealthiest families in America don’t just earn money – they engineer ways to protect it. And with the right team, you can use many of the same strategies.
Tools the Wealthy Use (That You Can Too)
- GRATs (Grantor Retained Annuity Trusts):
Imagine transferring a stock or business interest into a GRAT. You get paid back a set amount, and all the extra growth goes to your heirs – often tax-free. When Facebook was still private, Mark Zuckerberg and Dustin Moskovitz used GRATs to move future billions outside of estate taxes. - Charitable Lead Trusts (CLTs):
These let you support causes you care about now, while still protecting your family later. The Rockefellers used charitable trusts to maintain both their philanthropy and their family’s fortune across generations. - Gifting Early:
Giving assets while they’re “small” lets your heirs benefit from all the future growth. A business owner might gift shares in the family company when it’s young and not yet worth much – turning a modest gift into a fortune decades later.
Why These Moves Matter
- Taxes Can Cut Wealth in Half (or More): The estate tax can be as high as 40%. Without planning, nearly half of what you’ve built may vanish.
- Timing is Everything: The earlier you act, the more options you have. Assets grow but so do taxes. Lock in lower values now.
- Privacy & Protection: Many of these strategies also keep your family’s finances private – shielding them from public probate courts, creditors or even family disputes.
- It’s Not Just for Billionaires: The same laws that protect families worth $100 billion also apply to families worth $1 million.
Real-World Examples
- The Walton family (Walmart) and the Mars family (candy empire) have saved their heirs billions through GRATs and trusts.
- The Rockefellers balanced giving and wealth protection so effectively that their name still stands for both philanthropy and fortune.
- Tech founders like Zuckerberg quietly moved billions through GRATs before most people even knew Facebook would change the world.
Smart planning means more of your wealth stays with your family – and less is lost to taxes.
I’m not a financial advisor. These strategies require professional help to set up properly, but the sooner you explore them, the more powerful the results.
Set aside some time to explore these options for your family. You don’t want to kick yourself later when your trusted advisor tells you that you could have saved a lot more by acting earlier.
To Your Legacy,
Chris Witmer