When most people think about wealth, they picture numbers on a page. But for many families, wealth is really about something bigger. It's about stability, opportunity, and setting up the next generation to move forward with confidence. You worked hard to build what you have. Now the question becomes: how do you pass it on wisely?
The good news is that there are simple, thoughtful ways to transfer wealth that also keep taxes in check and support long-term growth. Here are three strategies that many high earners use to build a lasting financial legacy.
1. Make Use of Annual Gifting
The IRS lets you give up to $19,000 per person in 2025 without paying gift tax. That means you can gift $19,000 to each child, grandchild, or another loved one. If you are married, both spouses can gift that amount, which doubles the impact.
Even though these gifts may not seem dramatic in one year, they add up over time and can make a meaningful difference. This approach is especially helpful because anything you gift now will no longer be counted toward your future taxable estate.
Examples of meaningful ways to use these gifts:
Help a child or grandchild start an investment account
Support a first home savings plan
Help fund a Roth IRA for someone just starting their career
2. Use 529 Plans to Support Education
Education is one of the most valuable tools you can provide someone. A 529 college savings plan lets you set aside money that grows tax-free when used for education costs like tuition, books, and required supplies.
There is also an option to “superfund” a 529, which means you can contribute up to five years’ worth of gifting all at once. This allows the money to start growing sooner and can create a strong foundation for future education or career plans.
And there’s an added bonus. Under current rules, some unused 529 funds may be rolled into a Roth IRA for the beneficiary within certain limits. This can give them a head start on retirement savings.
3. Consider a Family Limited Partnership (FLP)
If your assets include things like real estate, business ownership, or a large investment portfolio, a Family Limited Partnership may be worth exploring. An FLP allows you to maintain control over how assets are managed, while gradually transferring ownership interests to children or other family members.
This structure can sometimes lower the taxable value of the transferred assets. It also helps create a framework for teaching younger generations how to manage wealth responsibly, since the assets remain guided by the family leadership for some time.
An FLP works best when set up with guidance from a financial advisor and estate attorney, so everything is structured clearly and correctly.
Why Plan Now?
The current estate and gift tax rules are scheduled to change in 2026. This could reduce how much can be passed on tax-free. Planning early gives you a wider range of options.
More importantly, planning early gives you time to communicate your intentions. Wealth transfer works best when everyone understands the purpose behind it.
This is how wealth becomes more than just money. It becomes a legacy, shared values, and opportunity that continues long after you are gone.
Source: Laura Bogart, "I’m a Certified Financial Planner: 3 Wealth-Transfer Tips I Tell My High-Income Clients"