Tax Hacks of the Rich, And How You Can Use Them
A Sophisticated Three-Part Framework for Slicing Your Tax Bill, Generating Lucrative Wealth, and Cementing a Lasting Legacy
Hello Dear Friends!
Max here, excited to welcome you on this journey into the world of advanced tax strategies. Think of our exploration as following a treasure map—each turn and twist could uncover new ways to keep more of your hard-earned wealth. Fasten your seatbelts (and grab your shovel); there’s plenty of gold to discover on the road ahead!
Modern-day entrepreneurs often endure frustratingly high taxes while struggling to piece together scattered entities, multiple bank accounts, and piecemeal estate documents. Meanwhile, affluent individuals routinely deploy an elegant, cohesive strategy that intertwines business structures, asset-holding vehicles, and estate planning tools to ensure dramatic tax savings and better protection for generational wealth. Below, we’ll explore an advanced version of that strategy, updated with fresh data and considerations for 2025.
We’re going well beyond surface-level tips, so don’t be alarmed if you see references to lesser-known legal or tax maneuvers. The point is to give you the blueprint the wealthy actually use.
Why a Three-Part Framework?
At its core, the “three-part framework” integrates:
A foundational legacy instrument (e.g., a revocable living trust).
A well-structured vehicle for your active business income.
A dedicated plan for owning passive investments (LLCs, retirement accounts, and more).
When these components function in tandem, you gain:
Reduced legal exposure: Properly separating your operations from your personal and investment assets.
Optimized tax outcomes: Leveraging deductions, pass-through advantages, strategic retirement contributions, and more.
Simplified estate transitions: Bypassing probate, ensuring privacy, and controlling how your heirs inherit property.
2025 Tax and Legal Landscape
As of 2025, many provisions from the Tax Cuts and Jobs Act (TCJA) remain intact—though some are set to expire or change by 2026. Estate exemptions are still historically high (hovering around $12–$13 million per individual), but this figure may roll back by nearly half in 2026 if Congress doesn’t act. SALT (State and Local Tax) deduction limitations persist for business owners, but certain states continue to enact “SALT workaround” pass-through entity taxes. It’s a dynamic environment, and this comprehensive system is one of the best ways to keep up with legislative shifts.