Wealth Management in Palm Beach | Serving High-Net-Worth Families

A $4 million investment portfolio sounds like a lot. And it is. But for a Palm Beach family that also owns a $5 million residence, has $3 million in real estate elsewhere, holds $4 million in a closely held business, and carries $2 million in retirement accounts, the investable assets are less than a quarter of the actual balance sheet. That's an $18 million estate, and it deserves a planning approach built around that reality, not around the brokerage account alone.

Bouchey Financial Group works with high-net-worth families in Palm Beach and throughout Palm Beach County. The firm's advisory team — 9 CERTIFIED FINANCIAL PLANNER™ professionals, 3 CPAs, and 1 IRS Enrolled Agent — treats portfolio management, tax planning, and estate coordination as one integrated strategy, not three separate conversations with three separate firms.

What Changes as Wealth Gets More Complex

Complexity doesn't scale linearly with net worth. A household with $1 million in investable assets mainly needs a retirement plan, tax-efficient portfolio management, and up-to-date estate documents.

At $5 million, the picture shifts. Concentrated positions, trust structures, multi-property ownership, and charitable intent all start requiring active coordination. At $10 million and above, estate tax exposure becomes a real planning variable. And for families with significant business interests or real estate, the gap between "investable assets" and "total estate" is often enormous.

The 2026 Estate Tax Landscape

The federal estate tax exclusion for 2026 is $15 million per individual, according to IRS 2026 inflation adjustments. For married couples, proper planning can effectively double that to $30 million. Most families don't come close. But Palm Beach households with large real estate holdings, business interests, and retirement accounts can cross the threshold faster than they expect, especially as those assets appreciate.

The annual gift tax exclusion remains $19,000 per recipient in 2026, or $38,000 per couple, per IRS gift tax guidance. Systematic gifting is one tool. Trust structures are another. The critical point is that retirement income planning and estate planning need to be built together. Withdrawals made today affect estate size tomorrow.

Estate Tax vs. Capital Gains Tax: When They Pull in Opposite Directions

Here's a planning tension that doesn't get nearly enough attention. Many HNW families assume gifting appreciated assets out of the estate is always smart. Sometimes it is. Sometimes it costs heirs more than it saves.

According to IRS Publication 551, inherited property generally receives a stepped-up basis equal to fair market value at the date of death. A Palm Beach family holding stock bought decades ago at $10 per share, now worth $150, might be better off leaving it in the estate. The heir who inherits gets a $150 basis. The heir who receives it as a lifetime gift keeps the $10 basis and pays capital gains tax on the full appreciation when they sell. The right answer depends on estate size, the asset, and the heir's tax situation. It requires analysis, not a rule of thumb.

The Tax Cost of Diversifying a Concentrated Position

Founders, executives, and long-term investors frequently arrive at a point where a single position represents a disproportionate share of their net worth. Diversifying that position is the right financial planning move. But executing it badly is an expensive mistake.

Selling a large appreciated position triggers federal long-term capital gains, the 3.8% Net Investment Income Tax when MAGI exceeds $250,000 for married filers, and can push taxable income into brackets that affect Medicare premiums simultaneously. The combined federal rate on long-term gains at the top bracket is 23.8%. On a $3 million concentrated position with a $200,000 cost basis, the tax bill on an all-at-once sale could approach $660,000.

A multi-year diversification strategy typically produces a far better after-tax outcome. That means coordinating annual gain realizations against other income, harvesting losses elsewhere in the portfolio, and using charitable giving with appreciated shares to reduce position size while satisfying philanthropic goals.

When Charitable Giving Becomes Part of Wealth Strategy

Philanthropic intent and financial planning don't have to be separate conversations. For Palm Beach families with highly appreciated assets and significant charitable goals, a charitable remainder trust is worth understanding.

A CRT accepts an irrevocable contribution of appreciated assets, potentially defers the capital gain on sale within the trust, provides the donor with an income stream for a specified period or lifetime, and ultimately transfers the remainder to charity. The donor also receives a partial charitable income tax deduction at the time of the contribution, based on the present value of the remainder interest.

CRTs aren't for everyone. They're irrevocable and involve compliance costs. But for a Palm Beach family holding a large appreciated position who wants to diversify, needs income, and has meaningful charitable intent, the CRT can accomplish several objectives simultaneously in a way that pure portfolio management cannot.

Qualified Charitable Distributions for Retirees

For families using IRAs to fund charitable giving, the qualified charitable distribution is often the most tax-efficient structure. Per IRS Publication 590-B, a QCD allows IRA owners age 70½ or older to transfer up to $111,000 directly to a qualifying charity in 2026, excluding that amount from taxable income entirely. It satisfies Required Minimum Distributions without increasing AGI, which protects Medicare IRMAA thresholds and the provisional income calculation for Social Security. 

For retirees who give regularly, it's almost always the better structure compared to taking a distribution first and then donating the after-tax proceeds.

Florida Residency and the Federal Planning Opportunity

Florida's Constitution, Article VII, Section 5, per the Florida Legislature's official text, restricts state taxation of natural persons' income, estates, and inheritances. No state income tax. No state estate tax.

Federal obligations remain. Capital gains, the NIIT, estate tax for large estates, and income tax on retirement distributions are all still federal questions. What Florida changes is the calculation. Roth conversions cost less. Capital gains realizations are cheaper. The planning opportunity is real, but capturing it requires deliberate coordination across tax, investment, and estate disciplines.

Multi-Generational Planning: More Than Beneficiary Designations

Beneficiary designations override wills. A retirement account left to the wrong beneficiary is a tax and legal problem regardless of what the estate documents say.

Real multi-generational planning includes trust structures that control distribution timing, family financial education so heirs understand what they'll receive, and coordination with estate attorneys to ensure documents align with account titling. These conversations don't fit into a quarterly portfolio review. They require a firm that plans to have them.

Coordinating Across Professionals

Most Palm Beach families at significant wealth levels already have an estate attorney, a CPA, and possibly a business attorney. The question isn't whether you need multiple professionals. It's whether they're working from the same information.

Investment decisions have tax consequences. Tax decisions affect estate size. When these functions operate independently, someone usually discovers the coordination failure at the worst possible time. Bouchey Financial Group's in-house CPAs and CFP® professionals work from the same financial picture, which means a portfolio decision and its downstream effects are evaluated together.

Is Bouchey Financial Group the Right Fit?

Bouchey Financial Group works with individuals and families with $500,000 or more in investable assets and manages approximately $1.6 billion for clients in 34 states. To talk through whether the firm is the right fit for your family's situation, use the Contact Us page to schedule a free initial conversation. Recent planning discussions and market perspectives are also available through the firm's Webinars and Videos library.

Frequently Asked Questions

My investable assets are $4 million, but I feel like my estate is much larger. Am I right? 

Yes. Your estate includes investment accounts, real estate, business interests, retirement accounts, life insurance, and other assets. A $4 million portfolio alongside a $5 million home and other holdings can produce an $18 million estate. Estate planning, gifting strategy, and trust structures all operate on total estate value, not the investment account alone.

Is it always better to gift appreciated assets during my lifetime rather than leave them to heirs? 

Not always. Gifts carry your original cost basis to the recipient. Inherited assets generally receive a stepped-up basis to fair market value at death, per IRS Publication 551. For highly appreciated assets, leaving them in the estate can be more tax-efficient than gifting, depending on estate size and the heir's tax situation.

What is a charitable remainder trust and who is it right for? 

A CRT accepts appreciated assets, can defer capital gains on their sale within the trust, provides income to the donor for a set period or lifetime, and transfers the remainder to charity, along with a partial charitable deduction at funding. It's most appropriate for families with large appreciated positions, meaningful charitable intent, and an income need. It's irrevocable and carries compliance costs, so it's not for everyone.

How does the Net Investment Income Tax affect a Palm Beach family's investment decisions? 

The NIIT adds 3.8% to investment income for households with MAGI above $250,000 married filing jointly. Combined with the 20% long-term capital gains rate, the effective federal ceiling on long-term gains is 23.8%. Portfolio decisions including rebalancing, concentrated stock sales, and real estate transactions should all account for this.

What's the difference between a QCD and a regular charitable donation from an IRA? 

A QCD sends money directly from the IRA to a qualifying charity without the distribution counting as income. A standard donation requires taking a taxable distribution first. The QCD excludes the amount from AGI entirely, protecting IRMAA thresholds and Social Security taxation in ways an itemized deduction cannot.

Does Florida residency reduce what my estate owes at death? 

Florida has no state estate tax, and the federal exclusion is $15 million per individual in 2026. Most families won't face exposure, but for Palm Beach households with large real estate, business interests, and retirement accounts, the total estate can cross the threshold. The federal question still requires active coordination.

How do I evaluate a wealth management firm that claims to serve high-net-worth families? 

Ask how they handle concentrated positions, estate coordination, and tax planning specifically, not whether they offer those services. Request Form CRS and Form ADV Part 2A at Investor.gov. Ask whether CPAs and financial planners work together on the same accounts. The answer tells you more than any marketing language will.