Core Insights - The article discusses the complexities of estate planning for high-net-worth individuals, particularly regarding the decision between capital gains tax on dynasty trusts versus estate tax on personal accounts [2][4][6]. Group 1: Estate Planning Considerations - Dynasty trusts allow assets to be excluded from estate tax calculations, but beneficiaries face significant capital gains taxes upon sale [2][4]. - Transferring stocks back to a personal account can utilize the step-up rule, avoiding capital gains tax but incurring a 40% estate tax [2][4]. - The decision-making process involves various factors, including the size of the inheritance, asset appreciation, and potential changes in estate tax exemptions [4][6]. Group 2: Financial Implications - A hypothetical scenario suggests that if stocks are valued at $20 million, children may pay more in capital gains tax than in estate tax [6][7]. - The federal estate and gift-tax exemption for 2025 is projected to be $13.99 million per person, or $27.98 million for married couples [7].