By: Dr. Tamara Patzer
In brief: A New Orleans tax attorney explains why New York families with business interests face a dense web of tax, estate and ownership questions, and how a coordinating structure helps. The feature uses state income thresholds, the 2026 federal estate exclusion and the book’s rule that estate taxes are solved by ownership planning.
New York is expensive to live in, to do business in and to leave wealth from. That combination makes planning more valuable here and more complicated. Todd M. Villarrubia, a New Orleans tax and estate attorney and the author of Entrepreneurial B.E.A.S.T. Mode™, argues that the answer is not a cleverer tactic. It is a single plan that every adviser can see. “The real power lies not in individual strategies, but in their coordinated application.”
How high is the bar to reach the top 1 percent in New York?
Higher than most people assume, and yet closer than many expect. SmartAsset’s 2026 state study estimates that it takes about $959,562 of income to reach the top 1 percent in New York. That is a figure for income, not net worth, and the method behind it matters, so readers should open the source itself before drawing conclusions about their own position.
The book makes the broader point that the threshold is lower than the public imagines: “However, the reality is that the threshold for being in the ‘top 1% of America’ is lower than many believe.” In a state with high prices, a family that crosses it may not feel rich. It may feel stretched. That feeling can hide how much exposure it carries.
What federal numbers frame a New York plan?
Two are worth keeping in view. The first is the federal estate tax exclusion. For 2026, the IRS lists a basic exclusion amount of $15,000,000 per person. Many families fall below that figure, but a business owner with a growing company, real estate and life insurance can approach it faster than expected, and state rules may apply on top of the federal ones.
The second is the net investment income tax. The IRS describes a 3.8 percent surtax that applies to certain investment income when modified adjusted gross income exceeds $200,000 for single filers, $250,000 for married couples filing jointly and $125,000 for married couples filing separately. A sale, a dividend stream or a rental portfolio can trigger it. Whether it applies depends on facts that only a professional can sort out, so families should seek legal and tax advice.
Why does the way assets are valued matter so much?
Because the estate tax does not care how much cash a business throws off. As the book puts it, “Estate taxes are calculated on fair market value, not cash flow.” A closely held company or a building may be worth a great deal on paper while paying modest distributions. The family may then face a bill that its cash flow cannot easily meet.
This is where ownership comes in. The author writes, “Estate taxes are not solved by income planning; they are solved by ownership planning.” Who owns what, in which entity, with what rights, shapes the value a tax authority will see. That is a question for the attorney, the accountant and the valuation professional together, not for any one of them alone.
What goes wrong when advisers work in separate rooms?
Conflicts that no single adviser notices. The book gives a typical example: “The estate attorney might structure a generation-skipping trust that conflicts with the family’s planned liquidity event.” The trust and the sale are each sensible. Together, they may undo each other.
New York families often have more advisers than most, because the market for them is deep. More advisers mean more handoffs. Each handoff is a chance for a fact to be lost. A family that holds a single quarterly call, with all advisers present and one agenda, closes most of those gaps at modest cost.
What does a coordinating structure add in practice?
A map, a calendar and a convener. The map shows every entity, account and policy. The calendar shows every filing, renewal and meeting. The convener makes sure the right people see both. The author describes the benefit this way: “The answer lies in establishing a family office, which not only manages assets but also simplifies complexity.”
Not every New York family needs a full office. A smaller household might give the role to its lead attorney and one annual strategy meeting. The test is whether someone is responsible for the whole, with time to do it.
How should a family begin?
Start with a one-page inventory. List the entities, the owners, the accounts, the policies and the documents, with the date each document was last updated. Then write down the next three decisions the family faces, such as a sale, a gift or a change of residence. Bring both pages to the next meeting with the advisers and ask each one how the decisions affect the others.
The book frames the stakes in terms of structure and tax: “The wrong structure or a missed exemption can turn a lifetime of compounding into a government windfall instead of a family legacy.” Not every family will face that outcome. Those who do usually did so because no one was looking at the whole.
What about moving away from New York?
Residence changes carry their own consequences, and a move does not automatically move the plan. Documents written for one state may not fit another, and ties to the old state can persist. Anyone considering a move should seek legal advice before acting, and should ask the advisers to update the plan at the same time.
Common questions
Does a high-cost state mean a family office is required? No. It means coordination is worth more, and the form it takes can be modest.
Is the federal estate exclusion the only number that matters? No. State rules, ownership structure and valuation can matter as much, and they change. Seek legal advice about your own facts.
Who should convene the advisers? A lead attorney or a trusted coordinator, with the family’s agreement. The important thing is that one person has the job.
Sources
- SmartAsset, Income Needed to Be in the Top 1% in Every State (2026)
- Internal Revenue Service, What’s New: Estate and Gift Tax
- Internal Revenue Service, Topic no. 559, Net Investment Income Tax
About the author. Dr. Tamara Patzer is a publisher and former newspaper editor. She was on the staff of The Charlotte Sun when it was named a 2005 Pulitzer Prize finalist for its Hurricane Charley coverage.
About the source. Todd M. Villarrubia is an attorney with an LL.M. in Taxation and a Juris Doctorate. He is an Accredited Estate Planner, a Board Certified Expert in Estate Planning and Administration, and a Fiduciary Investment Advisor Representative. He is the author of Entrepreneurial B.E.A.S.T. Mode™. Wealth Planning Law Group, 101 W. Robert E. Lee Blvd., Ste 404, New Orleans, LA 70124. Phone: 504-982-8207; email: todd@lawealthplan.com; website: https://lawealthplan.com/?utm_source=newsanchored&utm_medium=ny-weekly&utm_campaign=family-office
Disclaimer: Sponsored feature written on behalf of Todd M. Villarrubia. This article is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. Results vary.
