Finance

How to Protect Your Wealth with Estate Planning During Times of Uncertainty

Terry DuPont

With a major election approaching and continued uncertainty around tax policy, many high-net-worth families are rethinking how they protect and transfer wealth. Economic swings, legislative proposals, and shifts in administration can reshape the estate planning landscape in a single fiscal year. In volatile times like these, locking in strategies that withstand change isn’t just smart—it’s essential.

Use Today’s Gift Tax Exemptions Before They Expire

Under the current law, individuals can transfer up to $13.61 million tax-free during their lifetime, thanks to the elevated exemption created by the 2017 Tax Cuts and Jobs Act. But this generous threshold won’t last. By the end of 2025, the exemption is scheduled to be cut nearly in half, potentially exposing families to much higher estate taxes.

Now is the time to act. High-net-worth individuals can preserve this opportunity by making large gifts before the sunset provision takes effect. Those who wait may miss a one-time chance to transfer significant wealth outside of future tax burdens. For families looking to pass on a business, real estate, or valuable investment portfolio, this could be a game-changer.

Why Trust Structures Are Key to Long-Term Planning

For those who want to go a step further, irrevocable trusts offer a layer of protection that adapts to future changes in law. Tools like Grantor Retained Annuity Trusts (GRATs), Intentionally Defective Grantor Trusts (IDGTs), and Dynasty Trusts allow families to transfer appreciating assets outside of their taxable estates.

Dynasty Trusts, in particular, are built for longevity. In certain jurisdictions, they can last for generations, helping preserve wealth while limiting estate tax liabilities at each generational handoff. When structured properly, these trusts also shield assets from creditors, lawsuits, and even divorce settlements.

While they may sound complex, these tools can be tailored to your specific goals—and they’re one of the most powerful ways to prepare for unpredictable tax regimes.

Planning with Purpose: Include Philanthropy and Communication

A thoughtful estate plan isn’t just about passing on wealth—it’s about aligning your assets with your values. Charitable strategies like Charitable Remainder Trusts (CRTs) allow you to support causes you care about while reducing your tax exposure. These trusts pay you income during your lifetime, and the remainder goes to the designated charity—making them a win-win for philanthropic-minded investors.

However, estate planning is also a communication strategy. Clearly outlining your wishes—and explaining the reasons behind them—can help reduce family conflict later. This could mean updating beneficiary designations, writing a letter of instruction, or sitting down with heirs for a candid conversation. Silence leaves room for interpretation, but transparency offers clarity.

How to Prepare Your Estate Plan for What’s Next

Staying ahead of tax and regulatory changes requires more than just a set of documents—it takes a proactive, ongoing strategy. Here’s what you can do right now:

  • Review your estate plan regularly. Major life events or financial changes can trigger the need for updates. So can proposed legislation—particularly if you’ve built your plan on current exemption levels.

  • Build flexibility into your plan. Certain trust structures and powers of appointment can provide your estate with options in case laws change.

  • Work with professionals who specialize in multi-disciplinary planning. Tax, legal, and financial expertise should all work together. Advisors with experience in high-net-worth family planning can help you avoid common pitfalls and tailor your strategy to your goals.

  • Act now, not later. Many strategies take time to execute. Waiting until 2025 to make changes could limit your ability to take full advantage of current laws.

Conclusion

Estate planning isn’t static. It’s a dynamic process shaped by your life, your legacy, and the ever-changing rules of the financial world. With tax laws in flux and the economy throwing curveballs, future-proofing your wealth means staying informed and acting with intention. The most resilient plans are those that reflect your values today and adapt to whatever comes tomorrow.

To learn more about how to protect your wealth with estate planning, email Terry@DuPontAdvisory.com, call (800) 234-4452 or schedule a discovery call.

Sources

IRS

Investopedia

Fidelity

Terry DuPont is the founder and CEO of DuPont Advisory Group, a registered investment advisor firm that delivers family-office experience to clients. With over 40 years in financial services, Terry is passionate about helping clients cut through the noise, preserve their wealth, and retire with success, meaning, and significance. In addition to being a seasoned advisor and mentor, Terry is a sought-after speaker, the founder of Blue Ocean Consulting and the DreamCatchers Initiative, and the author of Retire Abundantly.

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