A couple in their late thirties buys their first apartment in Brooklyn. Between their 401(k)s, the equity in their new home, and some vested stock options from work, their combined net worth suddenly crosses the seven-figure mark. They feel successful—and they should. But their first question to me is often, “Are we doing enough?” The better question is, “Are we doing the right things?”
Online calculators and financial articles love to provide net worth targets by age. These can be useful for retirement planning, but they are often a distraction in estate planning. As an attorney, I am less concerned with whether your net worth is “good” for your age. I am far more concerned with whether your legal structures are appropriate for your net worth. The plan for a family with $500,000 in assets looks fundamentally different from the plan for a family with $5 million—not because one is better, but because the legal and tax implications are worlds apart.
The Flaw in Averages
Generic benchmarks fail to account for the most important factor: the composition of your assets. A 45-year-old executive with a $2 million net worth held entirely in a 401(k) and company stock has a different set of challenges than a 45-year-old business owner with a $2 million net worth tied up in their company, equipment, and real estate.
For the executive, our conversation might focus on beneficiary designations, tax-advantaged trusts for their children, and strategies for managing a concentrated stock position. For the business owner, we have to address succession. Who will run the company if you are incapacitated? How will your family get value from the business if you pass away? Is there a buy-sell agreement in place? These are not financial planning questions; they are structural, legal questions that define a legacy.
Your net worth is not just a number. It is a collection of specific assets, each with its own rules, risks, and opportunities. Treating it as a single figure on a spreadsheet is the first mistake. The real work is in understanding the parts and building a plan that honors the whole.
The Number That Truly Matters in New York
While I advise clients to look past generic benchmarks, there is one number that every New Yorker with significant assets must know: the New York State estate tax exemption. In 2024, that amount is $6.94 million per person. This is not a fuzzy guideline; it is a hard line drawn by the law.
Under New York Tax Law § 952, if the value of your taxable estate is below this threshold, you owe no state estate tax. But New York has a “cliff.” If your estate’s value is more than 105% of the exemption amount, the exemption vanishes. The tax is then calculated on the entire value of your estate, not just the amount over the limit. This can result in a sudden and significant tax liability that catches many families by surprise.
This is why tracking your net worth matters. It’s not about keeping up with your peers. It’s about knowing when you cross a threshold that requires a more deliberate approach to your planning. When a family’s assets begin to approach this number, relying on a simple will is no longer a prudent strategy. We must start looking at trusts and other tools designed specifically to manage potential tax obligations and preserve the value of the estate for the next generation.
Shifting From Accumulator to Steward
In the early stages of a career, life is about accumulation. You save, you invest, you build. The primary goal is growth. But as your net worth grows, a subtle but critical shift must occur. Your role begins to change from that of an accumulator to that of a steward.
Stewardship is about protecting what you have built and directing it with intention. It means thinking in generational terms. It means recognizing that you are the current custodian of assets that will, one day, support your spouse, provide for your children’s education, or fund a charitable cause you believe in. This shift in mindset has profound implications for your estate plan.
An accumulator might have a will that says, “I give everything to my spouse, and then to my kids.” A steward creates a structure that asks deeper questions. Should the inheritance be given outright, or should it be held in trust to protect it from creditors or a future divorce? Who is the right person—or institution—to serve as the trustee, holding the fiduciary duty to manage these assets responsibly? How can we minimize conflict among beneficiaries?
This is the real work of estate planning. It’s not about filling out forms. It’s about building a framework for your family’s future—a framework that reflects your values long after you are gone.
When a family’s assets approach or exceed the state exemption, a simple will is often no longer sufficient. The first step is not to redraft a document, but to map your assets against your intentions. We reserve time each week to conduct these initial asset and legacy reviews with families to determine if their current plan aligns with their net worth.
