Estate Planning with Fexingo: Wills, Trusts, and Passing Wealth to Future Generations

Episode 119 of Estate Planning with Fexingo unpacks the irrevocable life insurance trust, or ILIT. Many people assume life insurance proceeds pass tax-free to heirs—and they do from income tax, but the death benefit can still inflate your taxable estate above the federal exemption. Lucas and Luna walk through a concrete example: a $2 million policy on a married couple with a $13.61 million estate exemption in 2026. They explain how an ILIT removes the policy from ownership, avoids estate tax on the payout, and gives the trustee control over distributions to protect beneficiaries from creditors, divorce, or poor money management. The episode also covers Crummey powers, which let you use annual gift tax exclusions to fund premiums, and the three-year lookback rule if you transfer an existing policy. No legal advice—just a clear, practical explanation of a versatile trust that high-net-worth families use to preserve wealth across generations.

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In this episode of Estate Planning with Fexingo, Lucas and Luna explore the QTIP trust—a Qualified Terminable Interest Property trust. They explain how this estate planning tool allows you to provide income for a second spouse while ensuring the principal ultimately passes to children from a first marriage. Using a concrete example of a $10 million estate, they walk through how a QTIP trust works, when it makes sense, and the trade-offs involved. They also discuss the importance of selecting a trustee carefully and how the trust interacts with the federal estate tax exemption. Perfect for blended families or anyone wanting to balance spousal support with legacy goals.

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Lucas and Luna break down the intentionally defective grantor trust, or IDGT — a powerful estate-freezing tool that lets wealthy families sell assets to an irrevocable trust without triggering capital gains tax. Lucas explains how the 'defect' actually works in your favor: the grantor pays the trust's income tax, allowing the trust assets to grow tax-free for beneficiaries. They walk through a concrete example: a founder selling $10 million of company stock to an IDGT, saving over $4 million in potential estate tax versus a direct gift. The episode also covers the key risks — the grantor must have enough outside liquidity to cover the tax bill, and if the grantor dies during the note term, the assets snap back into their estate. Perfect for high-net-worth listeners who want to transfer wealth to the next generation without burning their estate tax exemption.

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Interest rates have dropped in mid-2026, and estate planners are flocking to a tool called the Grantor Retained Annuity Trust, or GRAT. In this episode, Lucas and Luna break down how a GRAT works, why low rates make it especially powerful right now, and walk through a concrete example using a $5 million asset. They explain the IRS's Section 7520 rate, the concept of zeroed-out GRATs, and why this strategy is effectively a bet that your assets will grow faster than the government's assumed rate. If you have a highly appreciating asset like private equity or a concentrated stock position and want to move wealth to heirs with minimal gift tax, this episode covers the mechanics and the current window of opportunity.

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In Episode 115 of Estate Planning with Fexingo, Lucas and Luna dive into the spousal bypass trust — a strategy that balances protecting a surviving spouse with preserving assets for children from a prior marriage. They break down a real-world scenario where a $4 million estate uses a bypass trust to provide income for a second spouse while shielding the principal for the first spouse's kids. Lucas explains the mechanics, including the role of the federal estate tax exemption and the difference between QTIP trusts and bypass trusts. Luna raises the tension around control and trustee selection. The episode also includes a brief, natural mention of listener support that keeps the show ad-free. Perfect for anyone navigating blended family estate planning or looking to avoid the classic second marriage 'disinheritance' trap.

#SpousalBypassTrust #SecondMarriage #BlendedFamily #EstatePlanning #BypassTrust #QTIPTrust #EstateTax #TrustLaw #Inheritance #AssetProtection #FamilyWealth #EstateTaxExemption #FinancialPlanning #Trustee #Probate #WealthTransfer #FexingoBusiness #BusinessPodcast

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In this episode of Estate Planning with Fexingo, Lucas and Luna explore the Totten trust—also known as a payable-on-death bank account trust. They explain how this simple, revocable trust lets you name a beneficiary for your bank accounts without going through probate, using just one form. The hosts walk through how it works, the surprising tax treatment (including when the beneficiary might owe income tax on inherited interest), and the critical risk: if you name a minor as beneficiary without a backup guardian, the court may appoint a conservator. They also compare Totten trusts to POD designations, joint accounts, and formal living trusts. Concrete examples include a $50,000 savings account at Chase and a $200,000 money market account with two adult children as beneficiaries. Perfect for anyone who wants to avoid probate on cash accounts without the cost of setting up a full trust.

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In this episode, Lucas and Luna explore the Qualified Personal Residence Trust (QPRT), a powerful estate planning strategy that allows homeowners to transfer a primary residence or vacation home to heirs at a steeply discounted gift-tax value. They walk through a concrete example: a $2 million home transferred via a 10-year QPRT, freezing the home's value for estate tax purposes while the grantor continues living there rent-free. The hosts discuss the actuarial tables used by the IRS, the interest rate environment as of mid-2026, and the crucial survival risk—if the grantor dies before the trust term ends, the full home value snaps back into their estate. They also cover practical considerations like mortgage financing, capital gains basis, and the difference between a QPRT and a GRAT. A must-listen for homeowners with significant real estate equity looking to pass property to the next generation tax-efficiently.

#QPRT #QualifiedPersonalResidenceTrust #EstatePlanning #RealEstate #Trusts #GiftTax #EstateTax #WealthTransfer #Homeowners #IRS #ActuarialTables #GrantorTrust #Section7520 #Finance #PersonalFinance #FexingoBusiness #BusinessPodcast #LegacyPlanning

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Lucas and Luna explore directed trusts, a powerful estate-planning tool that separates investment management from trust administration. They walk through the real-world example of a tech founder who used a directed trust to keep a trusted advisor on investment decisions while handing day-to-day paperwork to a corporate trustee. The episode explains how this structure avoids the conflict between family trustees and professional trustees, and why it's especially useful for business owners and cryptocurrency holders. Specific numbers include the typical fee savings of 30 to 50 basis points compared to full-service corporate trustees, and the 2025 Uniform Directed Trust Act adoption in 20 states. Listeners learn one concrete question to ask their estate attorney: 'Can I use a directed trust to keep control of my investment strategy?'

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Episode 111 of Estate Planning with Fexingo: Lucas and Luna unpack the Crummey trust—a strategy that turns annual gift tax exclusion gifts into permanent, trust-protected wealth. Using a real-world example, they explain the 'Crummey power' notice requirement, the five-and-five rule for withdrawal rights, and how this tool complements other estate planning moves. The episode also touches on why estate planning podcasts like this one stay intentionally ad-free, with listener support via buy me a coffee dot com slash fexingo. Perfect for anyone considering how to pass assets to heirs efficiently without triggering gift tax.

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Lucas and Luna explore transfer-on-death deeds, a simple estate-planning tool that lets homeowners pass real estate directly to beneficiaries without probate. They explain how it works—a TOD deed effectively acts like a beneficiary designation for your house—and walk through a concrete example: a Florida retiree who saved her children months of court time and thousands in legal fees by filing a single piece of paper. The hosts also compare TOD deeds to joint tenancy and living trusts, noting that while TOD deeds are cheap and easy, they offer no asset protection or incapacity planning. They discuss which states allow TOD deeds (a growing list of about thirty) and warn that recent legal challenges—like a 2025 Georgia Supreme Court ruling on creditor claims—mean the tool isn't foolproof. The conversation ends with a practical checklist: confirm your state permits TOD deeds, name contingent beneficiaries, and never forget that a will doesn't override the deed. This episode is essential for any listener who owns a home and wants to keep their heirs out of probate.

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