I’m 80 with $1 million. How do I prevent my son from being hit with taxes?

February 22, 2026 - 06:32

Navigating estate taxes is a common concern for seniors aiming to preserve their legacy for their heirs. For an individual with a $1 million portfolio, comprised of $650,000 in investments, $250,000 in life insurance, and $150,000 in home equity, proactive planning is key to minimizing the tax burden on their son.

A primary tool is leveraging the current federal estate tax exemption, which is historically high. For most individuals, an estate of this size will not incur federal estate taxes. However, state-level inheritance or estate taxes vary and must be reviewed.

A critical step is ensuring beneficiary designations on accounts like life insurance and retirement funds are up-to-date, as these typically transfer directly to heirs outside of probate. For the investment accounts and home, establishing a revocable living trust can be highly effective. This avoids the public and often lengthy probate process, potentially reducing administrative costs and simplifying the transfer of assets.

Consulting with an estate planning attorney is essential to tailor a strategy. They can help structure the trust, advise on gifting strategies, and ensure all assets are titled correctly to work in harmony with the overall plan, providing peace of mind that your legacy will be passed on as intended.