For centuries, wealthy families have used precious metals as a cornerstone of generational wealth transfer. Unlike paper assets that can become worthless overnight, or business interests that may not survive leadership transitions, gold and silver have maintained their value across empires, wars, and economic upheavals.
Today, incorporating precious metals into your estate plan requires understanding tax implications, ownership structures, and transfer strategies. This guide covers everything high net worth individuals need to know about building a precious metals legacy.
Why Include Precious Metals in Your Estate?
Timeless Value
Gold has been valuable for over 5,000 years. Unlike company stock, real estate in changing neighborhoods, or currencies that can be devalued, precious metals maintain purchasing power across generations. What you leave to your children will still be valuable when they leave it to their children.
Easy Division Among Heirs
Unlike a family business or real estate that can create conflicts, precious metals are easily divisible. You can allocate specific coins or bars to each heir, or simply divide the total value. This reduces family disputes and simplifies estate administration.
Global Liquidity
Heirs can convert precious metals to cash anywhere in the world. If children move abroad or face unexpected needs, gold provides immediate liquidity regardless of local banking situations or currency restrictions.
Protection from Creditors
In many jurisdictions, physical precious metals held in certain trust structures can provide protection from creditors. Consult with an estate attorney about asset protection strategies specific to your state.
Tax Considerations for Inherited Precious Metals
The Step-Up in Basis Advantage
When heirs inherit precious metals, they receive a "stepped-up" cost basis equal to the fair market value at the date of death. This means all appreciation during your lifetime is never taxed. If you bought gold at $400/oz and it's worth $4,400/oz when you pass, your heirs' cost basis is $4,400—not $400.
| Scenario | Your Cost | Value at Death | Heir's Basis | Tax on $4M Gain |
|---|---|---|---|---|
| If You Sell | $400,000 | $4,400,000 | N/A | ~$1,120,000 |
| Inherited | $400,000 | $4,400,000 | $4,400,000 | $0 |
This step-up basis makes precious metals excellent assets to hold until death rather than sell during your lifetime. The 28% collectibles tax rate that would apply if you sold is completely avoided through inheritance.
Estate Tax Consideration
While heirs receive the step-up basis benefit, precious metals are still included in your taxable estate for estate tax purposes. For 2026, the federal estate tax exemption is approximately $13.6 million per person ($27.2 million for married couples). Estates exceeding this threshold face 40% federal estate tax. Consult with an estate planning attorney for strategies to minimize estate tax exposure.
Ownership Structures for Estate Planning
Direct Personal Ownership
Advantages
- • Simplest approach
- • Full control over assets
- • Step-up basis at death
- • Easy to gift during lifetime
Disadvantages
- • Included in taxable estate
- • Subject to probate
- • No asset protection
- • Public record after death
Revocable Living Trust
Advantages
- • Avoids probate
- • Privacy maintained
- • Step-up basis preserved
- • Smooth transfer to heirs
Disadvantages
- • Still in taxable estate
- • Setup costs
- • Must retitle assets
- • No creditor protection
Dynasty Trust (For Large Estates)
For high net worth families, a dynasty trust can hold precious metals for multiple generations, potentially avoiding estate taxes at each generation's death.
Advantages
- • Multi-generational tax savings
- • Strong asset protection
- • Professional management
- • Control from the grave
Disadvantages
- • Complex and expensive
- • Less flexibility
- • May lose step-up basis
- • State law variations