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    CORNERSTONE GUIDE

    Estate Planning for High-Net-Worth Families

    New York, New Jersey & Ohio

    Trusts, asset protection, and tax-efficient wealth transfer strategies for families with complex estates. This guide covers the state-specific rules that matter most.

    By Drew Jacobs, Esq. — Founder, Jacobs Counsel LLC

    Director, Sports, Entertainment & Gaming Initiatives at Seton Hall Law

    Last reviewed:

    Plan Your Legacy →

    How does estate planning differ in New York, New Jersey, and Ohio?

    Each state has its own trap. New York has an estate-tax cliff that can tax the entire estate if it exceeds 105% of the state exemption. New Jersey kept its inheritance tax after repealing the estate tax. Ohio has no state estate tax but distinct probate rules. The federal exemption is scheduled to drop in 2026 — plan now.

    How do NY, NJ, and OH estate taxes compare?

    Factor New York New Jersey Ohio
    State Estate Tax Yes, with cliff provision at 105% of exemption Repealed in 2018 Repealed in 2013
    Inheritance Tax No Yes, varies by beneficiary class (11-16%) No
    Probate Process Surrogate's Court; can be lengthy for contested estates Surrogate's Court; relatively streamlined Probate Court; transfer-on-death designations available
    Income Tax on Trusts Taxes trusts administered in NY or with NY trustees Taxes trusts with NJ grantor or resident trustees Taxes trusts with OH resident beneficiaries
    Key Planning Concern Estate tax cliff; trust situs planning Inheritance tax for non-exempt beneficiaries Federal estate tax; probate avoidance

    Which trust structures work best for high-net-worth families?

    Revocable Living Trust

    Avoids probate and provides privacy. The grantor retains control during their lifetime. Does not provide estate tax benefits but simplifies asset transfer at death.

    Best for: Probate avoidance, privacy, incapacity planning

    Irrevocable Life Insurance Trust (ILIT)

    Removes life insurance proceeds from the taxable estate. The trust owns the policy, and proceeds pass to beneficiaries free of estate tax. Requires careful administration of Crummey notices.

    Best for: Estate tax reduction, liquidity for estate expenses

    Grantor Retained Annuity Trust (GRAT)

    Transfers future appreciation of assets to beneficiaries with minimal gift tax cost. The grantor receives annuity payments for a set term, and remaining assets pass to beneficiaries at the end.

    Best for: Wealth transfer with reduced gift tax exposure

    Dynasty Trust

    Designed to last multiple generations while avoiding estate tax at each generational transfer. Uses the generation-skipping transfer (GST) tax exemption. Requires careful state selection for trust situs.

    Best for: Multi-generational wealth preservation

    Domestic Asset Protection Trust (DAPT)

    Protects assets from future creditors while allowing the grantor to remain a discretionary beneficiary. Not available in all states; Ohio is among the states that permit self-settled asset protection trusts.

    Best for: Creditor protection, wealth preservation

    Qualified Personal Residence Trust (QPRT)

    Transfers a primary residence or vacation home to beneficiaries at a reduced gift tax value. The grantor retains the right to live in the property for a set term.

    Best for: Reducing taxable estate; transferring real estate efficiently

    What happens when the federal estate tax exemption sunsets in 2026?

    The Tax Cuts and Jobs Act of 2017 roughly doubled the federal estate and gift tax exemption. That increase is scheduled to sunset at the end of 2025, meaning the exemption will drop to approximately half its current level, adjusted for inflation.

    For families with estates near or above the reduced exemption, the window to lock in the higher exemption through lifetime gifts and trust funding is closing. The IRS has confirmed that gifts made under the higher exemption will not be clawed back after the sunset, making 2025 and early 2026 a critical planning period.

    Action Items Before the Sunset

    • Evaluate whether lifetime gifts can lock in the current higher exemption
    • Consider funding irrevocable trusts before the exemption decreases
    • Review existing estate plans for exposure under the reduced exemption
    • Assess whether GRAT or ILIT strategies are appropriate for your situation
    • Coordinate with your financial advisor and CPA on implementation timing

    What estate planning services do we handle?

    Wills and revocable living trusts
    Irrevocable trusts (ILITs, GRATs, dynasty trusts)
    Powers of attorney and healthcare proxies
    Asset protection trust design
    Business succession planning
    Digital asset and cryptocurrency planning
    Guardianship and minor's trust provisions
    Charitable giving structures (CRTs, donor-advised funds)
    Trust administration and trustee guidance
    Estate tax minimization strategies
    Multi-state planning for families with residences in NY, NJ, or OH
    Coordination with financial advisors and CPAs

    Start Your Estate Plan

    Fixed-fee estate planning for high-net-worth families. Licensed in New York, New Jersey, and Ohio.

    Estate Planning FAQ

    What is the New York estate tax cliff?
    New York imposes a state estate tax with a cliff provision. If a taxable estate exceeds 105% of the state exemption, the entire estate is taxed from the first dollar, not just the amount over the threshold. This makes planning around the cliff essential for New York estates near the exemption amount.

    Does New Jersey have an estate tax?
    New Jersey repealed its estate tax in 2018 but retains an inheritance tax. The inheritance tax applies to transfers to certain beneficiaries, with rates varying based on the relationship between the decedent and the beneficiary. Spouses, children, and grandchildren are exempt.

    How does Ohio handle estate taxes?
    Ohio repealed its state estate tax in 2013. However, Ohio estates are still subject to federal estate tax if they exceed the federal exemption. Ohio's probate process and transfer-on-death designations remain important planning considerations.

    What is the federal estate tax exemption in 2026?
    The federal estate tax exemption is scheduled to decrease significantly in 2026 when the Tax Cuts and Jobs Act provisions sunset. The exemption is expected to drop from approximately $13.6 million per person to roughly half that amount, making proactive planning critical for high-net-worth individuals.

    Do I need an estate plan if my estate is under the exemption?
    Yes. Estate planning covers more than tax minimization. Powers of attorney, healthcare proxies, guardianship designations, asset protection trusts, and probate avoidance benefit estates of all sizes.

    What trusts should high-net-worth families consider?
    Common structures include revocable living trusts for probate avoidance, irrevocable life insurance trusts (ILITs) for estate tax reduction, grantor retained annuity trusts (GRATs) for wealth transfer, and dynasty trusts for multi-generational planning. The right combination depends on estate size, family structure, and objectives.

    How do digital assets factor into estate planning?
    Digital assets including cryptocurrency, NFTs, social media accounts, and online business accounts require specific planning. Access credentials can be lost permanently without proper documentation, and platform-specific policies vary on account transfer after death.

    How much does estate planning cost for high-net-worth families?
    Complexity determines cost. A straightforward trust-based plan is a different scope than a multi-entity structure with business succession and generation-skipping provisions. All engagements are quoted as fixed fees after an initial strategy call.