The Unger Company Ltd. was established exclusively to serve people who are defined as high-net-worth individuals (HNWI) and ultra-high-net-worth individuals (UHNWI) with estate tax planning that will enable smooth wealth transfer to the next generations.
We have been asked to explain what it means to be a HNWI and UHNWI many times, so we think it makes sense to define this and explain why this is a segment that needs specialized help with asset protection from estate tax regimes at both the federal and state levels.
The industry currently set the following parameters on people in these wealth classes:
- From $5 million to $30 million is typically understood to be the high net worth range.
- Above $30 million is understood to be the ultra-high net worth range.
For those operating as financial advisors, these are very reasonable definitions.
The Unger Company, however, is a highly specialized firm that works with clients who are subject to the federal estate tax. Right now, the IRS has set that number at $12.92 million. For us, this is where we start defining high net worth clients.
Sometimes people can be insulted by our definition. “What, isn’t my estate big enough?” Having an estate with a net worth of $5 million is nothing to sneeze at, but in our business, no, having an estate of $5 million dollars isn’t big enough. This isn’t to be insulting – it’s because our work is so specialized and focused on those subject to the federal estate tax that an estate below that threshold generally doesn’t qualify with some distinct exceptions such as children of HMWI and UHNWI who are beneficiaries of blood line trusts that will not benefit their spouses.
Why is this important? It comes down to the matter of wealth transfer. The IRS can apply an estate tax rate of up to 40 percent on an estate. Think about that! A $5 million estate will pay no estate tax, but boost it to $20 million, and you could be paying +/-$3 million in estate taxes to the federal government. If that doesn’t spell it out, we don’t know what does.
The Unger Company is here to work with your advisors – trust and estate attorneys, accountants, and financial advisors – to implement an elegant, effective plan that will help you to legally avoid that level of taxation and enable maximum wealth transfer to the next generation.
Harold Unger LinkedIn: https://www.linkedin.com/in/harold-m-unger-9453aa73/
The Unger Company Ltd. LinkedIn: https://www.linkedin.com/company/93617123/