You're 52 with a $50M estate. At 5% annual growth, it reaches $276M by age 87. That means an estate tax bill of more than $98M, due in nine months, in cash. Is the estate ready?
Project Your Own ExposureThe exemption is a fixed line. Your estate is not. Every year of growth moves more of it above the line, where it is taxed at 40%.
At 5% a year, a net worth doubles about every 14 years. A family comfortably under the $30M exemption today can be looking at a $130M estate in three decades, and a large, illiquid tax bill waiting at the end.
The Praxis Solution
A life insurance strategy designed today costs dramatically less than one designed at 70. We quantify your future exposure now and fund it at the lowest possible cost, through premium financing or a traditionally structured policy.
| Age 52, today | $50M | $20M above the exemption |
| Age 65 | $94M | estimated tax: $26M |
| Age 75 | $154M | estimated tax: $49M |
| Age 87 | $276M | taxable estate: $246M |
| Estate tax owed | $98M | due 9 months from death, in cash |
Illustrative. Married couple, $30M exemption, 5% annual growth, 40% federal rate.
Real estate sold at a discount under deadline pressure, and business interests sold to the wrong buyer because the right one could not move in nine months.
Family wealth built over generations gets split up to raise cash, and the assets that held the family together are the first ones to go.
After discounts, taxes, and lost growth, heirs receive a fraction of what the estate was actually worth. A liquidity plan is what keeps the estate whole.
Because the exemption is fixed and your estate is growing. At 5% a year an estate roughly doubles every 14 years, so a family under the line today can be well over it later. Planning while you are younger and healthier is what keeps the cost low.
We start from your actual balance sheet and apply a conservative growth assumption over your life expectancy, then compare the result to the exemption. The goal is a realistic future number, not a worst case.
Life insurance pricing is driven by age and health, and both only move one direction. The same coverage designed in your fifties typically costs a fraction of what it would at seventy, if it is available at all.
The plan is reviewed every year. Coverage and funding are adjusted as the estate, the exemption, and interest rates change, so the strategy stays matched to the real number.
A confidential, no-obligation discovery conversation. We educate first. We advise always. We never pressure.
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