A client sat in my Manhattan office last week after selling his family’s multi-generational manufacturing business. He had the final number on a piece of paper, a figure that represented a lifetime of work by his father and grandfather. He slid it across the table and asked a simple question: “Russel, is this enough? Are we finally comfortable?”
I hear this question often. From my perspective as an estate planning attorney, “comfortable” is not a number on a balance sheet—it’s a state of preparedness. The real question isn’t how much you have, but what you have done to protect it, preserve it, and pass it on with purpose. The moment your net worth grows to a certain point, the nature of your responsibility changes. You transition from an accumulator of assets to a steward of a legacy.
The Question Behind the Number
When clients ask if their net worth is “comfortable,” they are asking three deeper questions. First: “If I am gone tomorrow, will my family be able to maintain their lives without chaos or conflict?” Second: “Are the assets I’ve built protected from future tax burdens, creditors, or a catastrophic lawsuit?” And third: “Have I created a clear plan so this wealth is a foundation for the next generation, not a burden that complicates their lives?”
Answering these questions has little to do with the exact dollar amount and everything to do with the legal structures you put in place. A $5 million estate with a well-drafted trust and a clear succession plan is infinitely more “comfortable” than a $20 million estate with a simple will and no tax planning. The former is a legacy; the latter is a future problem for an executor and, quite possibly, the Surrogate’s Court.
New York’s Bright Line: The Estate Tax Threshold
In financial planning, net worth is a fluid concept. In New York estate law, however, there are hard numbers that trigger entirely different planning conversations. The most significant of these is the New York State estate tax exemption, which stands at $6.94 million for 2024.
This isn’t just a line in the sand—it’s a cliff. Under current law, if your taxable estate is more than 105% of this exemption amount, you don’t just pay tax on the overage. The exemption vanishes, and your entire estate is subject to the New York estate tax. This is a critical detail that can have multi-million dollar consequences for the unprepared.
When a client’s net worth approaches or surpasses this threshold, our work together shifts. We move from foundational planning to more advanced strategies involving irrevocable trusts, gifting strategies, and other tools designed to manage the estate’s exposure to both state and federal taxes. A “comfortable” net worth, in this context, is one that is structured to be as tax-efficient as the law allows.
The Transition from Accumulator to Steward
Achieving a significant net worth marks a fundamental shift in your role. You are no longer just building for yourself; you are now the custodian of generational wealth. This requires a different mindset and a different set of legal instruments.
Stewardship.
This is where the selection of fiduciaries—your executor, your trustee, your agents under a power of attorney—becomes the most important decision you will make. These individuals or institutions will be legally bound to manage your legacy. Their actions are governed by a high standard of care, defined in New York by laws like the Prudent Investor Act, codified in EPTL § 11-2.3. This statute demands that a trustee manage assets with the skill and caution a prudent person would use, considering the trust’s specific goals and the beneficiaries’ needs.
Your job is to choose the right people for that duty and to give them a clear roadmap in your trust documents. That is how true comfort is achieved—not by hitting a magic number, but by deliberately planning for the day you are no longer there to manage things yourself.
A number on a page is just data. A well-designed estate plan transforms that data into a durable legacy for your family. The first step is to understand exactly what your assets are and how they are positioned relative to New York’s tax laws. My firm can begin this process with a confidential review to map your current holdings and assess the duties assigned to your named fiduciaries.
