Estate Planning for High Net Worth Families

Yes—Maryland is one of the few states that levies its own estate tax, separate from the federal estate tax. As of 2025, the Maryland exemption is approximately $5 million per individual, while the federal exemption remains higher (though it may sunset soon under current legislation). If your total estate—real estate, business interests, investments, retirement accounts, and life insurance—exceeds these thresholds, your estate could face a combined tax rate over 50%.

We help clients implement proactive strategies to reduce or defer taxes, including:

• Structuring trusts
• Making strategic lifetime gifts
• Leveraging valuation discounts through FLPs or LLCs
• Establishing charitable giving vehicles

A Family Limited Partnership (FLP) is an entity used to centralize the management of family-owned assets—such as real estate, businesses, or investments—while also facilitating tax-efficient wealth transfer.

You can retain control as the general partner while gifting limited partnership interests to children or grandchildren. These interests often qualify for valuation discounts, reducing the size of your taxable estate. FLPs also protect assets from claims by creditors or divorcing spouses and provide a structured way to pass down family wealth and values.

We help clients evaluate whether an FLP fits their goals, draft and implement the structure, and align it with the broader estate plan.

This is one of the most sensitive and critical issues in high-net-worth planning. You may want to:

• Provide for your spouse during their lifetime
• Ensure assets eventually pass to children from a previous relationship
• Avoid conflict between stepchildren and surviving spouses
• Maintain discretion around certain assets or inheritance amounts

We use tools like qualified terminable interest property (QTIP) trusts, lifetime trusts, and inheritance equalization strategies to ensure both fairness and clarity. Every family is different—we listen first, then design a plan that protects everyone involved.

Yes—certain types of irrevocable trusts can provide strong asset protection, especially if created proactively and not as a reaction to an impending claim. For example:

• Domestic Asset Protection Trusts (DAPTs) offer protection in many states
• Spousal Lifetime Access Trusts (SLATs) allow couples to preserve control while removing assets from the taxable estate
• Spendthrift provisions in trusts prevent beneficiaries from squandering inheritances or exposing them to creditors

We help clients use these strategies ethically and effectively, always mindful of the legal limitations and risks of fraudulent conveyance claims.

If your estate is likely to exceed state or federal exemption levels in the coming years, it’s smart to:

• Start planning early—strategies are most effective when implemented before death or incapacity
• Document asset values and ownership structures now
• Use your lifetime gift exemption strategically, before potential legislative changes reduce it
• Coordinate with your financial advisor and CPA to integrate estate, tax, and investment planning
• Keep your documents current, especially if there have been business changes, new grandchildren, or shifts in family dynamics

We serve as a legal partner in this process, helping you implement flexible, forward-thinking solutions that evolve with your life and the law.