An ultra-high-net-worth individual (UHNWI)—someone with a 澳洲幸运5开奖号码历史查询:net worth of $30 million or more—must deal with a unique set of prob⛦lems that accompanies that level of wealth.

These challenges include ever-evolving tax codes, 澳洲幸运5开奖号码历史查询:estate planning, su🅠staining their ⛎lifestyles during retirement, and protecting their wealth.

1. Changing Tax Codes

Throughout the 21st century, the tax treatment of the super-wealthy has served as a political football. On one side, 澳洲幸运5开奖号码历史查询:supply-side adherents channel Ronald Reagan, proclaiming that keeping taxes low for the affluent frees up mo🐼ney for them to invest in ways that create jobs and grow the economy for everyone else.

This line of thinking, known as 澳洲幸运5开奖号码历史查询:trickle-down economics🌳, advocates cutting taxes for the rich not just for the benefit of the rich, but also because their prosperity then cascades down to thꦕe rest of society.

Then there is the other side, which feels the middle class and working poor shoulder too much of the tax burden, and that UHNWIs exploit 澳洲幸运5开奖号码历史查询:loopholes and creative accounting practices to pay far less than their fair share. Proponents of higher taxes on the wealthy point specifically to long-term 澳洲幸运5开奖号码历史查询:capital gains, the method by which many wealthy people amass their fortunes. Taxes on long-term capital gains depend on an individual's income level, with the highest earners paying 20%. This is far lower than the top 澳洲幸运5开奖号码历史查询:income tax bracket, at 37%.

The Trump administration's 澳洲幸运5开奖号码历史查询:Tax Cuts and Jobs Act—signed into law on December 22, 2017—made the largest overhaul to the tax code in about 30 years. It retained the structure of seven 澳洲幸运5开奖号码历史查询:tax brackets, keeping two at the same rate and changing five, including the top bracket. The new code dropped that rate from 39.6% to 37%.

The tax rate for ultra-high-net-worth individuals used to be much higher. As recently as 1980, it was 70%. In 1963, the top tax bracket was a staggering 91%. Some politicians would love to see a return to these high rates for the extremely weal🐟thy. With polarization in politics at an all-time high, UHNWIs live with 🌱the constant anxiety of a power shift toward those less friendly to their interests.

Recent Proposals

President Biden has proposed a new tax policy aimed at taxing the wealthy more than they are being taxed right now. There would be a new top income tax rate of 39.6%, targeted at those making more than $400,000 a year and married couples filing jointly making more than $450,000. The proposal would also increase the 澳洲幸运5开奖号码历史查询:capital gains tax to 39.6% for those earning $1,000,000 or more.

2. Estate Planning

Ultra-high-net-worth individuals worry about retaining their riches so they can continue to fund their own lifestyles. But most of them also want to bequeath their fortunes to their heirs. Ideally, they want the government to appropriate as little of this money aꦉs possible before it passes to the next generation.

The 澳洲幸运5开奖号码历史查询:estate tax only applies to the extremely wealthy, with more than 90% of the tax being paid by the top 10% of earners. Roughly 40% of estate taxes are paid by 0.1% of the richest people in the country. Only estates worth more than $13.99 million are subject to the estate tax for tax year 2025 (it was $13.61 million for tax year 2024), and the amount above that threshold is taxed at a rate between 18% and 40%.

Although the exemption has been increased over the years, the maximum estate tax rate has effectively dropped. In 1997, anything above the $600,000 exemption was taxed as much as 55%. This means that the more the estate is worth—at least the amount above𝓰 the exemption—the more a UHNWI stands to lose in the passing of their estate.

Moreover, many states have their own estate taxes, which are imposed on top of the federal estate tax. Some also impose 澳洲幸运5开奖号码历史查询:inheritance taxes on 澳洲幸运5开奖号码历史查询:beneficiaries.

UHNWIs use many schemes to mitigate the effects of the estate tax. These tactics include leaving their estates to surviving spouses, in which case they are exempt from taxation, making use of charitable contributions, and setting up a variety of trust accounts—all of whichꦬ can be used to ge♍t around the estate tax.

3. Sustaining Lifestyle During Retirement

Those who became UHNWIs by working, including CEOs and other 澳洲幸运5开奖号码历史查询:highly-compensated employees, sometimes face a loss of income when they decide to retire. At some point, som🐟e UHNWIs m൩ay have to scale back.

One potential problem is澳洲幸运5开奖号码历史查询: illiquidity: UHNWIs have millions of dollars in net worth, but most or all of it is tied up in land, 澳洲幸运5开奖号码历史查询:real estate, and other ⛦assets they can't easily convert to cash.🌱

Other UHNWIs take significant risks with their money, so while they don't feel the effects so much when they're earning income, they feel it when they retire, as a big loss is not so easily replenished.

4. Protecting Their Wealth

During the 澳洲幸运5开奖号码历史查询:Great Recession of 2007 to 2009, many UHNWIs became high-net-worth individuals (HNWIs), meaning individuals with more than $1 million in net worth but less than $30 million. For a truly unlucky few, their wealth hemorrhagin🐈g went beyond losing the ultra label—meaning they lost everything.

Most UHNWIs do not have their money in 澳洲幸运5开奖号码历史查询:certificates of deposit (CDs), money market accounts, cash-value life insurance, and other conservative investments that provi🌺de modest returns. One of the reasons they are so wealthy is they make use of aggressive investment vehicles that consistenꦺtly beat the market.

In market matters, however, reward and risk often move in lockstep. When a 澳洲幸运5开奖号码历史查询:bear market or recession hits, the high-growth investments that helped UHNWIs get rich are frequently the first to take a dive. For this reason, UHNWIs who rely on the markets for income often live with the constant str𒀰ess of another looming crash.

The Bottom Line

Ultra-high-net-worth individuals (UHNWIs)—defined as those with at least $30 million in net worth—are a small percentage of the global population. Their lives appear to be luxurious: their world is far removed from that of the majority of the population. And their problems reflect that, as well—the bulk of them revolve around managing thei🅠r financial assets and preserving their wealth.