EP High Income High Net Worth Estate Planning Asset Protection Trusts

High Income and Ultra High Net Worth

Families, Singles, and Couples

Family‑office‑grade design on a Revocable Trust foundation, layered with the right irrevocable tools (SLAT, IDGT, GRAT, ILIT, Dynasty/GST, QPRT, SRT), business and real‑estate structuring, and disciplined funding and maintenance.

The more complex your balance sheet, the more a “basic trust” becomes a liability. HNW and UHNW families need a plan that works operationally (quiet, private transitions), strategically (marital and bloodline protections), and mathematically (estate/income tax, basis, and liquidity). We build on a Revocable Living Trust (RLT) for privacy and continuity, then add calibrated layers—Credit Shelter/QTIP, SLAT/IDGT/GRAT, ILIT, Dynasty/GST, QPRT, SRT—so your plan is coordinated, fundable, and adaptable in New Jersey and beyond.

Who This is For (And Why it Matters)

If your estate crosses seven or eight figures, includes concentrated equity, private business interests, carried interest, significant real estate (shore/out‑of‑state), substantial retirement accounts, or art/collectibles, a basic plan leaves money on the table and invites conflict. You need:

Privacy & Speed: Keep administration out of public probate; enable immediate successor authority.
Marital/Bloodline Clarity: Care for a spouse while safeguarding children from prior relationships and future divorces.
Tax Engineering: Preserve exemptions, stage gifts/sales, manage basis, and plan for liquidity without fire sales.
Operational Discipline: Funding, Crummey notices, trustee coaching, and ongoing counsel so the design performs.

Our Architecture

Foundation — RLT + Marital Structure. We start with a funded RLT to avoid most probate, then add A/B or A‑B‑C with Credit Shelter (CST) and QTIP/Clayton options for post‑death control and flexibility. We model portability (Form 706/DSUE) and disclaimers.

Growth & Transfer — Irrevocable Playbook.

SLAT (Spousal Lifetime Access Trust): Move appreciating assets out of the estate while preserving indirect access through a spouse; draft to avoid the reciprocal trust trap and consider situs.
IDGT (Intentionally Defective Grantor Trust): Freeze value with a sale to IDGT; push upside to heirs; coordinate seed gifts and notes.
GRAT (Grantor Retained Annuity Trust): “Rent” the IRS’s assumptions on short rolling terms; strip out growth above the §7520 rate.
ILIT (Irrevocable Life Insurance Trust): Create tax‑efficient liquidity for estate taxes and equalization; run Crummey administration on schedule.
Dynasty/GST Trusts: Lock in multi‑generational protection with a near‑zero inclusion ratio; select situses with strong trust law.
QPRT (Qualified Personal Residence Trust): Transfer a home at a discount; plan the rent‑back post‑term.

Operating Assets & Entities.

LLC/FLP structuring with voting/non‑voting recapitalizations; valuation discounts for lack of control/marketability (with appraisals).
S‑Corporations: Trust shareholder compliance (QSST/ESBT); calendar elections; no accidental S‑status blowups.
Buy‑Sell Architecture: Cross‑purchase/entity redemption; funding (life/disability); formula vs appraisal; put/call rights; ROFR; drag/tag.

Retirement, Philanthropy & Alternatives.

SRT (Stand‑Alone Retirement Trust): Coordinate SECURE Act 10‑year rules; conduit vs accumulation for creditor/divorce protection.
Charitable Tools: DAF, CRT/CLT, and “charitable stacking” to smooth income, diversify concentrated positions, and align with mission.
Art/Collectibles/Passion Assets: Provenance, fractional ownership, display/loan agreements, export rules, and disposition playbooks.

Liquidity & Post‑Death Options.

ILIT proceeds timed to liabilities; bank covenants mapped to fiduciary transitions.
Portability/706, §6166 deferral for closely‑held business estate tax; disclaimers to rebalance once numbers are real.

Governance & Peacekeeping.

Independent/professional trustees where wise; directed trusts and trust protectors for flexibility without court.
Family meetings, Letters of Wishes, and a Lasting Message Session so heirs hear values along with value.

New Jersey Focus (What Changes Here)

Probate Is Public: A funded RLT keeps administration private and faster; we draft bond waivers where appropriate.
NJ Inheritance Tax: Gifts to non‑Class A beneficiaries (siblings, nieces/nephews, friends) may trigger tax; we design distributions accordingly.
No DAPT: NJ has no Domestic Asset Protection Trust; we use third‑party trusts, situs selection, insurance, and entities for protection.
Deeds & Recording: Bargain & Sale deeds common; shore counties back up in season—plan transfers around timing.
Multi‑State Holdings: Coordinate counsel and titling for out‑of‑state property and filing quirks.

Case Study 1 — Second Marriage, Company Sale, Big IRA

Profile: Founder (62) in second marriage; adult children from first; pending $18M liquidity event; $4.2M IRA; shore home.
Design: RLT + A/B with CST/QTIP, SRT for IRA beneficiaries, ILIT for $6M second‑to‑die coverage, SLAT funded pre‑sale with discounted LLC units; shore home into QPRT.
Outcome: Spouse receives lifetime income/use (QTIP); children receive protected remainder; IRA distributions coordinated to minimize bracket spikes; insurance creates tax‑efficient liquidity; probate avoided; shore home retained with rent‑back post‑QPRT.

Case Study 2 — Concentrated Stock & Philanthropy as a Strategy

Profile: Executive couple (50s) with $22M NW; $9M single‑stock risk; strong charitable intent.
Design: Laddered GRATs for risk‑managed transfer of appreciation; DAF for immediate deduction; testamentary CRT for income smoothing to kids and remainder to charity; Dynasty/GST trusts for long‑term protection; IDGT sale of a portion post‑vesting; SRT for retirement accounts.
Outcome: Diversification without punitive tax; significant charitable leverage; children receive protected lifetime trusts; estate shrinks while basis planning preserved; privacy intact.

Case Study 3 — Family Enterprise & Succession Without A Civil War

Profile: S‑Corp, two active children, one passive; $35M enterprise value; real estate held outside opco.
Design: Recap into voting/non‑voting; buy‑sell with formula pricing and ILIT‑funded liquidity; trusts as QSST/ESBT based on roles; FLP for real estate with discounts; directed trust structure and board‑of‑advisors; Letters of Wishes and family constitution.
Outcome: Control to active heirs, economics shared; liquidity for estate tax and equalization; S‑status preserved; governance prevents stalemates; public probate avoided.

What Happens If You Choose Less‑Experienced Lawyers (Real Mistakes We Fix)

Missed Portability (DSUE): No timely 706 filed after the first death → permanent loss of millions in exemption. We build a 706/DSUE decision tree and calendar.
Crummey Failures: ILIT gifts with no notices → policy proceeds dragged back into the estate or disallowed gifts. We run administration and store proofs.
SECURE Act Misfires: Conduit trusts drafted for pre‑SECURE “stretch” → forced 10‑year payouts and bracket spikes. We correct to accumulation designs or SRTs.
S‑Corp Trust Errors: Failure to draft as QSST/ESBT or to file timely elections → S‑status termination. We blueprint trust language and election calendars.
Reciprocal SLAT Trap: Spouses create mirror SLATs → both unwound in court. We differentiate terms, timing, and situs to avoid it.
GRAT/QPRT Technical Misses: Wrong annuity calcs, no rent‑back plan, or retained powers that collapse the strategy. We draft with precision and check math.
GST Allocation Blunders: No or wrong allocation → inclusion ratio ≠ 0; skip tax later. We calculate, file, and monitor.
Unfunded Trusts: Fancy documents, zero asset transfers → everything lands in probate. We fund, confirm, and track.

Bottom line: in HNW work, process errors cost seven figures. We prevent them with design memos, funding trackers, trustee playbooks, and AMP/CCP maintenance.

How We Work (White‑Glove, Disciplined, Done)

Discovery & Modeling: Map people, assets, entities; stress‑test goals (marital, children, philanthropy). Visual models show cash flows, taxes, and control.
Design: Choose the architecture (CST/QTIP/Clayton, SLAT/IDGT/GRAT/QPRT, ILIT, Dynasty/GST, SRT). Identify situses, trustees, protectors, and governance.
Draft & Coordinate: Plain‑English docs + tax elections and admin calendars. Coordinate with CPA/EA, RIA/CFP®, insurance, and bankers.
Fund & Prove: Deeds, assignments, entity interest transfers, beneficiary changes, Crummey notices; confirmations into your secure vault.
Maintain (AMP/CCP): Quarterly Advisor Summits as needed; portability/706 windows; ILIT logs; QSST/ESBT compliance; GRAT annuity proofs; funding KPIs.

FAQs

Will A Revocable Trust Protect Me From Lawsuits?
No. It protects privacy and administration. Asset protection relies on third‑party trusts, entities, good insurance, and jurisdiction selection.

Can Trusts Own My S‑Corp Or LLC?
Yes—with the right drafting (QSST/ESBT for S‑corp) and timely elections; LLC/FLP interests are commonly trust‑owned.

How Do We Handle Large IRAs/401(k)s?
Beneficiary design is key. We often use SRTs to control 10‑year withdrawals, protect heirs, and manage bracket creep.

Will My Heirs Be “Over‑Controlled”?
We can set generous, flexible standards with guardrails (HEMS/discretionary). Independence and dignity are design choices.

What About Cross‑Border Or A Non‑Citizen Spouse?
We draft QDOT pathways and coordinate reporting; we also consider situs and treaty issues with your tax counsel.

Serving New Jersey’s Most Distinguished Communities

Trusted Estate Planning for High‑Net‑Worth Families, Entrepreneurs, and Legacy‑Builders Across the Garden State.

Wherever success has taken you—from the Shore to the Somerset Hills—we offer private, strategic estate planning that preserves wealth, dignity, and peace of mind.

Our firm proudly serves families, professionals, and business owners throughout New Jersey’s most prestigious municipalities—places known for their achievement, tradition, and community stewardship. Whether you live in the rolling estates of Morris County, along the iconic Shore, or in the tree‑lined suburbs of Bergen and Somerset Counties, we help you secure your legacy with the same care and precision that built it.

From Mantoloking and Sea Girt on the coast to Short Hills, Rumson, Alpine, and Bernardsville inland, our clients include leaders in finance, medicine, real estate, and industry—people who value discretion, clarity, and excellence in every detail of their estate plan.

We regularly represent clients in:

Bergen County: Alpine, Saddle River, Ho‑Ho‑Kus, Franklin Lakes, Upper Saddle River, Englewood Cliffs, Tenafly, Demarest, Ridgewood, Allendale.

Morris County: Mendham Township, Harding, Chatham Township, Chatham Borough, Mountain Lakes, Mendham Borough, Morris Township.

Somerset County: Bernardsville, Bernards Township, Peapack‑Gladstone, Far Hills, Warren Township, Montgomery Township.

Monmouth County: Rumson, Fair Haven, Little Silver, Monmouth Beach, Spring Lake, Sea Girt, Avon‑by‑the‑Sea, Colts Neck, Holmdel.

Hunterdon County: Tewksbury Township, Delaware Township, Clinton Township.

Essex County: Millburn (Short Hills), Essex Fells, North Caldwell, Glen Ridge.

Union County: Summit, Westfield, New Providence.

Ocean County: Mantoloking, Bay Head, Harvey Cedars, Long Beach Township, Surf City.

Cape May County: Avalon, Stone Harbor.

Burlington County: Moorestown.

Each of these communities reflects the same qualities we value—legacy, foresight, and a commitment to family. Whether your goals include protecting a lifetime of achievement, transferring a business, securing generational continuity, or creating a philanthropic impact, our team offers elite‑level estate planning, tax strategy, and trust administration tailored to your life.

Ready to Begin Protecting Your Legacy?
Book a confidential consultation today and discover how Simon Law Group crafts estate plans that work in the real world—protecting what matters most.

Book a Strategy Call.

Related Legal Services

Services we offer in connection with Estate Planning

Real estate transactions (purchase/sale, deed work, LLC transfers), business & succession planning (buy‑sell agreements, family LLC/FLP), civil litigation (probate disputes, fiduciary claims), elder law/long‑term care planning, and Family/Divorce.

For Families Who Measure Wealth in Dollars and Decades.

Estate Planning for High‑Net‑Worth (HNW) & Ultra‑High‑Net‑Worth (UHNW) Families and Singles in New Jersey

Engineer Privacy, Control, and Tax‑Smart Outcomes Across Marriages, Generations, and Jurisdictions - outside of Court.