1. Trusts (Irrevocable, Dynasty, and Grantor Trusts)

Trusts are the cornerstone of UHNW ownership.

• Irrevocable Trusts hold ownership of real estate, investment accounts, and business interests, removing assets from the taxable estate.
• Dynasty Trusts are designed to last multiple generations, shielding assets from estate taxes and creditors for decades.
• Intentionally Defective Grantor Trusts (IDGTs) allow the grantor to pay income taxes while letting the assets grow outside the estate.

Benefits:
✔ Asset protection
✔ Estate tax reduction
✔ Privacy (avoids probate)
✔ Multi-generational control

2. Holding Companies (LLCs, LPs, S-Corps)

UHNW families rarely hold real estate, businesses, or alternative investments directly.

• Limited Liability Companies (LLCs) are commonly used to own family real estate, yachts, aircraft, and venture capital investments.
• Family Limited Partnerships (FLPs) allow older generations to gift interests to heirs while retaining control.
• S-Corps may be used for tax-efficient operating businesses, though ownership is more restrictive.

Benefits:
✔ Centralized management of family assets
✔ Limited liability
✔ Income splitting and valuation discounts for estate/gift tax purposes
✔ Operational and legal insulation

3. Private Foundations and Donor-Advised Funds (DAFs)

Philanthropy is not only a legacy tool—it’s also a sophisticated ownership strategy.

• Private Foundations often own family art, real estate used for charitable purposes, or shares in mission-aligned companies.
• DAFs can be used to park highly appreciated assets (e.g., pre-IPO stock), generating large tax deductions without immediate distribution obligations.

Benefits:
✔ Significant charitable deductions
✔ Legacy building and family governance
✔ Control over charitable capital and influence

4. Life Insurance Structures (ILITs & PPLI)

• Irrevocable Life Insurance Trusts (ILITs) own large life insurance policies outside the taxable estate, providing tax-free liquidity at death.
• Private Placement Life Insurance (PPLI) is used by UHNW families to wrap hedge funds or private equity within a tax-deferred insurance structure.

Benefits:
✔ Estate tax mitigation
✔ Tax-free death benefit
✔ Tax-deferred growth on high-return investments

5. Offshore Entities and Multi-Jurisdictional Trusts

UHNW families with international assets or mobility often use:

• Offshore Trusts (e.g., in Cayman, Jersey, or Cook Islands) for privacy and asset protection
• Foreign Corporations or Foundations to hold cross-border assets

Benefits:
✔ Political and jurisdictional diversification
✔ Global asset protection
✔ Privacy and separation from domestic legal systems

6. Family Offices and Custodial Platforms

All of the above structures are often administered through single-family offices, which provide:

• Investment oversight
• Legal and tax compliance
• Philanthropic administration
• Concierge and legacy services

Think of the family office as the operational engine behind the ownership structure.

Key Takeaway: Wealth Is Owned Indirectly—but Controlled Intentionally

UHNW families don’t “own” assets directly. Instead, they design a framework that separates ownership from control—allowing for:

• Tax minimization
• Risk insulation
• Generational governance
• Seamless transfer

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Fixed insurance offered through various independent insurance companies. Cambridge and Vast Wealth Advisors are not affiliated. Cambridge does not offer tax or legal advice.