A high net worth individual is a person with at least $1 million in liquid financial assets.
HNWIs are in high demand by private wealth managers because more work is needed to maintain and preserve these assets.
These individuals are also eligible for higher benefits.
In 2021, the US had the most HNWIs in the world, with over 7.4 million people.
A person with a very high net worth has a net worth of at least $5 million, while a person with an ultra high net worth is defined as having assets of at least $30 million.
AB trust is a joint trust created by a married couple; after the death of one of the spouses, the trust is divided into the survivor’s part (Trust A) and the bypass part (Decedent’s Trust or Trust B).
The agency, if necessary, allows any person or entity to act on behalf of another person when the beneficiary cannot explicitly give permission to do so.
A generation skip trust (GST) is a legally binding arrangement whereby assets are passed on to the grantor’s grandchildren or anyone 37.5 years younger, bypassing the grantor’s next generation of children.
Annuity preservation trusts (GRAT) are estate planning instruments in which the grantor freezes assets in a trust from which they receive an annual income.