Long-term tax planning allows you to earn income for decades on taxes by deferring tax liability. We work to defer tax liability, so you start paying taxes on that income later in life when you normally are earning less and being taxed at a lower rate. Time also helps with gifting by allowing the donor to transfer wealth annually, which reduces their taxable income and enables financial resources to be shifted to anyone they wish to receive that gift. There are annual limits on gifting, which is why having time to implement a strategy can be a very effective wealth retention tool.