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

Lucas and Luna explore the concept of a perpetual trust, a powerful estate planning tool that can minimize estate taxes for multiple generations. They break down how a trust designed to last forever—often structured as a dynasty trust in states that have abolished the rule against perpetuities—can shelter assets from estate taxes, creditors, and divorce. Using the example of a hypothetical $10 million estate, they walk through the tax savings over three generations: roughly $4 million in estate tax savings compared to leaving assets outright. They also discuss the trade-offs, including loss of control and the need for a corporate trustee. This episode offers a concrete look at how ultra-wealthy families use perpetual trusts to preserve wealth indefinitely, and what considerations apply for high-net-worth listeners.

#PerpetualTrust #DynastyTrust #EstateTax #EstatePlanning #WealthTransfer #RuleAgainstPerpetuities #DelawareTrust #SouthDakotaTrust #TrustLaw #TaxStrategy #GenerationSkippingTax #CreditorProtection #FamilyWealth #Finance #FexingoBusiness #BusinessPodcast #LucasAndLuna #EstatePlanningWithFexingo

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In this episode of Estate Planning with Fexingo, Lucas and Luna break down the mechanics of an Irrevocable Life Insurance Trust, or ILIT. They explain how wealthy families use this tool to keep life insurance proceeds out of their taxable estate, potentially saving hundreds of thousands in estate taxes. Lucas uses a concrete example: a $5 million policy that would otherwise trigger a 40% estate tax. They walk through the three-year lookback rule, the role of the trustee, and why the insured cannot retain any incidents of ownership. Luna asks the practical questions: who should serve as trustee, what happens if you need to change beneficiaries, and can you borrow against the policy? They also touch on the Crummey power notice requirements and how an ILIT interacts with portability. By the end, listeners understand why an ILIT is a cornerstone strategy for high-net-worth estate plans. No prior legal knowledge needed; just a clear, conversational deep dive into one of the most effective estate tax avoidance tools.

#IrrevocableLifeInsuranceTrust #ILIT #EstateTaxPlanning #LifeInsuranceTrust #TrustLaw #WealthTransfer #EstatePlanning #Finance #Business #FexingoBusiness #BusinessPodcast #CrummeyPower #IncidentsOfOwnership #ThreeYearLookback #Trustee #EstateTaxExemption #Portability #HighNetWorthPlanning

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In this episode of Estate Planning with Fexingo, Lucas and Luna dive into the charitable remainder trust (CRT) — a strategy that lets you donate assets to charity while receiving an income stream for life. They walk through a real-world example: a retiree with $500,000 in highly appreciated stock who wants to sell, avoid capital gains, and boost retirement income. Lucas explains how a CRT can defer the gain, provide a 6% annual payout, and generate a charitable deduction — all while eventually benefiting a cause you care about. The hosts compare the CRT to a direct sale, showing how the trust can nearly double the annual cash flow in the early years. They also discuss the two main flavors: the charitable remainder annuity trust (CRAT) and the charitable remainder unitrust (CRUT), highlighting when each makes sense. If you're charitably inclined and sitting on low-basis assets, this episode offers a concrete roadmap to give smarter and keep more.

#CharitableRemainderTrust #CRT #CRAT #CRUT #EstatePlanning #TaxStrategy #CharitableGiving #CapitalGains #RetirementIncome #WealthTransfer #Finance #Podcast #FexingoBusiness #BusinessPodcast #LucasAndLuna #TaxDeferral #Philanthropy #TrustPlanning

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Episode 96 of Estate Planning with Fexingo explains how a family limited liability company (LLC) can centralize asset management, protect heirs from creditors, and reduce estate tax through valuation discounts. Lucas and Luna walk through a hypothetical example: a $10 million real estate portfolio contributed to a family LLC, with the parents gifting minority membership interests to their children over time. They discuss the IRS rules around valuation discounts, the importance of having a legitimate business purpose, and common pitfalls like the step transaction doctrine. This episode gives listeners a concrete strategy for passing wealth efficiently to the next generation without losing control.

#FamilyLLC #EstatePlanning #AssetProtection #ValuationDiscounts #EstateTax #WealthTransfer #LLC #BusinessSuccession #IRS #GiftTax #MinorityInterest #LackOfMarketability #FexingoBusiness #BusinessPodcast #Finance #LucasAndLuna #EstatePlanningWithFexingo #Episode96

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Episode 95 of Estate Planning with Fexingo dives into the nongrantor trust—an estate-planning tool that moves assets completely out of the grantor's name, offering powerful creditor protection and income-shifting opportunities. Lucas and Luna walk through a real-world example: a successful surgeon facing a malpractice lawsuit who transferred $2 million into a nongrantor trust two years before a claim arose. The trust paid her beneficiaries 4.5% annually while the assets grew tax-deferred inside the trust. They explain the key distinction from grantor trusts (which are ignored for income tax purposes) and the 'five-and-five' power (the beneficiary can withdraw up to $5,000 or 5% of trust assets each year without triggering estate inclusion). Also covered: why you must give up control of the trust to get the protection, how the trust's own tax bracket creates a planning puzzle (the highest trust bracket kicks in at just $14,450 of income in 2026), and why fees matter—a trust with $1 million and a 1% annual fee costs $10,000 a year. The nongrantor trust is not for everyone, but for high-net-worth clients with liability exposure, it's a critical option.

#NongrantorTrust #EstatePlanning #CreditorProtection #AssetProtection #TrustLaw #WealthTransfer #TaxPlanning #IrrevocableTrust #BeneficiaryControl #FiveAndFivePower #MalpracticeProtection #HighNetWorth #Finance #FexingoBusiness #BusinessPodcast #EstatePlanningWithFexingo #TrustPlanning #WealthManagement

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In this episode, Lucas and Luna walk through a concrete case: a married couple in their 40s where one spouse earns $180,000 and the other stays home with two kids. They explain how the working spouse can contribute to a spousal IRA for the non-earning partner, effectively doubling their household retirement savings by up to $14,000 per year in 2026. Lucas breaks down the IRS spousal IRA rule, the income limits, and the Roth vs. traditional decision. Luna asks whether the strategy works for couples who file taxes separately, and Lucas clarifies the income phase-outs. They also explore how a spousal IRA interacts with a solo 401(k) for a side business, and why the strategy is especially powerful when the working spouse maxes out their own 401(k) first. Tune in for a practical, numbers-driven look at a simple but often overlooked retirement planning tool.

#SpousalIRA #RetirementPlanning #IRA #RothIRA #TraditionalIRA #MarriedFilingJointly #IRS #RetirementSavings #PersonalFinance #WealthBuilding #Finance #FexingoBusiness #BusinessPodcast #EstatePlanningWithFexingo #LucasAndLuna #TaxStrategy #Solo401k #HouseholdFinance

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Private foundations are often portrayed as tools for the ultra-wealthy, but Lucas and Luna break down how a mid-seven-figure charitable fund can actually make sense for families looking to pass on values along with assets. They walk through the annual 5% distribution requirement, the difference between a private foundation and a donor-advised fund, and why foundation status can extend your estate planning horizon by decades. Using the example of a hypothetical $5 million foundation, they show how a family can give $250,000 per year, hire a part-time administrator, and avoid both income tax and estate tax on the growth. They also cover the deductibility limits—30% of adjusted gross income for cash gifts to a foundation versus 60% for a public charity—and explain why the extra paperwork might be worth it for donors who want control over grants, investment strategy, and successor board members. If you have ever wondered whether a private foundation belongs in your estate plan, this episode gives you the concrete numbers to decide.

#PrivateFoundation #CharitableGiving #EstatePlanning #Philanthropy #DonorAdvisedFund #TaxStrategy #FamilyWealth #WealthTransfer #IRS #Form990PF #ExciseTax #BoardOfDirectors #Grantmaking #LegacyPlanning #FexingoBusiness #BusinessPodcast #Finance #PersonalFinance

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Lucas and Luna break down the Qualified Personal Residence Trust (QPRT), a little-known estate planning tool that lets you gift a second home to your heirs while living in it rent-free for a set term. They walk through a real-world example: a $1.8 million lake house in Vermont, gifted to a QPRT with a 10-year term. If the grantor outlives the term, the house leaves the estate at a fraction of its value for tax purposes. They cover the key risks — what happens if you die during the term, or if the house is sold — and compare QPRTs to other strategies like GRATs and outright gifts. By the end, you'll know whether a QPRT belongs in your plan. No hot takes, just the math.

#QPRT #QualifiedPersonalResidenceTrust #EstateTax #WealthTransfer #VacationHome #SecondHome #GiftTax #IrrevocableTrust #GrantorTrust #EstatePlanning #Finance #PersonalFinance #WealthManagement #Inheritance #IRS #Section2702 #FexingoBusiness #BusinessPodcast

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Episode 91 of Estate Planning with Fexingo dives into testamentary trusts—trusts created inside a will that allow you to put conditions on an inheritance. Lucas and Luna walk through a real scenario: leaving $500,000 to a young adult but controlling when and how they access it, from age milestones to performance triggers. They discuss tax implications, creditor protection, and the difference between a testamentary trust and a living trust. If you've ever worried that a lump-sum inheritance would do more harm than good, this episode explains how a testamentary trust can delay distributions, incentivize education or career milestones, and still keep assets inside your estate plan. Concrete example: a 25-year-old beneficiary who receives one-third at age 25, one-third at 30, and the final third only if they complete a college degree or hold a full-time job for two years. The hosts also talk about the drawbacks: probate costs, lack of flexibility after death, and the need for a reliable trustee. No fluff, just a clear, specific guide to a powerful estate planning tool.

#TestamentaryTrust #InheritancePlanning #EstatePlanning #WillAndTrust #ConditionsOnInheritance #Probate #Trustee #BeneficiaryControl #AssetProtection #TaxPlanning #Finance #PersonalFinance #EstateTax #WealthTransfer #FamilyWealth #FexingoBusiness #BusinessPodcast #EstatePlanningWithFexingo

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Episode 90 of Estate Planning with Fexingo tackles the estate-tax trap that catches married couples when one spouse is not a U.S. citizen. Lucas and Luna walk through the mechanics of a Qualified Domestic Trust (QDOT) — why the unlimited marital deduction vanishes for non-citizen spouses, how a QDOT defers the estate tax until the surviving spouse's death or withdrawal, and the real-world trade-offs between principal and income. They use a concrete example: a $12 million estate with a British citizen spouse, comparing the outcome with and without the trust. The episode also covers the trustee requirements, the annual reporting obligations, and the 35-percent tax on early principal distributions. By the end, listeners understand why a QDOT isn't just a paperwork fix but a strategic bridge between U.S. tax policy and international family wealth.

#QualifiedDomesticTrust #QDOT #EstatePlanning #NonCitizenSpouse #MaritalDeduction #EstateTax #InternationalWealth #TrustLaw #EstateTaxExemption #WealthTransfer #SpousalTrust #TaxDeferral #FexingoBusiness #BusinessPodcast #Finance #EstatePlanningWithFexingo #LucasAndLuna #July2026

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