High-Net-Worth Estate and Tax Planning for $1M-$2M Inherited Assets

State estate taxes become relevant at this level, and your own estate plan needs updating. Multi-year tax coordination, including Roth conversions and asset sales, can save $50K or more. You should work with a CPA focused on ongoing advisory relationships.

Federal estate tax is still not a concern -- the exemption is $15 million per person in 2026. But state estate taxes become a real factor. Oregon's threshold is $1 million and Massachusetts is $2 million, with several other states setting thresholds between $1 million and $5 million.

Why multi-year planning is essential:

• The planning gap is large. The difference between a well-coordinated 5-year strategy and year-by-year filing can easily be $50,000 or more in total tax savings.
• Roth conversions, asset sales, and distribution timing all need to work together. Converting too much in one year can push you into a higher bracket and trigger surcharges; spreading it out takes deliberate planning.
• Your own estate plan may now need attention. What you inherited plus your existing assets could create a combined estate that warrants trusts, updated beneficiary designations, or gifting strategies.

The tradeoff: At this level you need more than a tax preparer -- you need a CPA who does ongoing advisory work. The annual cost of that relationship ($2,000-$5,000) is easily justified by the planning value, but you should ask specifically about their approach to multi-year projections.