When people talk about wealth, it often comes with flash—cars, houses, businesses, or buzzwords. But if you really want to know how financially savvy or genuinely wealthy someone is, here’s a simple test:

Ask them about their estate plan.

The Red Flag: Overcomplicated Trusts

If someone rattles off an estate plan that includes a non-grantor irrevocable discretionary complex spendthrift trust—plus a Wyoming LLC and a chain of sub-LLCs—you can be pretty sure they’re not actually wealthy. They’re just trying to sound like they are.

That kind of overly complicated structure is more about posturing than practical wealth planning. Real wealth management is usually much simpler and more grounded in time-tested tools.

What Real Wealth Looks Like in Estate Planning

Genuinely wealthy people often have estate plans that are straightforward and effective. You might hear terms like:

• A Will and a Revocable Trust – Basic, but foundational. These are the building blocks of any solid estate plan.
• A Charitable Trust – Often used to manage giving and tax strategy.
• An Irrevocable Life Insurance Trust (ILIT) – A smart way to handle life insurance proceeds outside the taxable estate.
• Grantor or Non-Grantor Irrevocable Trusts – Used strategically for tax, asset protection, or legacy planning.

None of these scream for attention, but they’re the kind of tools that high-net-worth individuals quietly use to preserve and transfer wealth.

The Takeaway

If someone’s throwing around flashy, convoluted trust jargon, they’re likely more interested in looking rich than being smart about their money. Real wealth isn’t loud—it’s structured, intentional, and often boringly effective.

So next time you’re curious whether someone’s wealth is real, skip the car talk. Ask them about their estate plan. The answer might tell you more than you think.