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

Episode 80 of Estate Planning with Fexingo unpacks the net gift strategy—a powerful technique that shifts the gift tax burden from the giver to the recipient. Lucas and Luna walk through a concrete example: a parent gifting $1 million in stock to a child, and how structuring it as a net gift cuts the parent's tax liability by over $200,000. They explain the mechanics, the IRS formula, and why this matters in the current gift tax exemption environment (as of mid-2026, the exemption is set to drop in 2026). The hosts also discuss when net gifts backfire—like if the recipient can't afford the tax—and how to pair it with a Crummey power trust. A must-hear for anyone planning large lifetime transfers before the exemption sunsets.

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In this episode, Lucas and Luna explore the slayer rule, a legal principle that prevents a murderer from inheriting from their victim. They discuss the rule's origins, state-by-state variations, and a key case: In re Estate of Mahoney (Michigan 2019), where the court applied the rule to a beneficiary who caused the decedent's death by reckless driving. The hosts also cover how the rule interacts with trusts, insurance policies, and joint tenancy, and what estate planners should advise clients to include no-contest clauses. Finally, Lucas shares why the show stays ad-free and where listeners can support it.

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Most trusts are either rigid or too loose. Enter the beneficiary controlled trust, a hybrid that lets the beneficiary serve as trustee while protecting assets from creditors, divorce, and estate taxes. In this episode, Lucas and Luna break down how the structure works, using a real-world example of a $3 million inheritance from a family business sale. They walk through the trust document's key provisions: the distribution standard, the independent trustee requirement for tax filings, and the 'trust protector' clause that can replace trustees. They also discuss the trade-off: control versus creditor protection, and how this trust type is increasingly popular in states like Nevada and South Dakota that have abolished the rule against perpetuities. By the end, you'll understand why this trust is often called the 'have your cake and eat it too' estate planning tool.

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Episode 77 of Estate Planning with Fexingo dives into the total return trust—a modern approach that lets trustees invest for total return (growth plus income) rather than being forced into low-yield bonds to meet an income distribution requirement. Lucas and Luna walk through a real case: a trust that held $2 million in a 60/40 portfolio, generating 2% income but 8% total return. Under a traditional trust, the beneficiary would get only $40,000 a year; with a total return trust using a unitrust payout of 4%, they receive $80,000—doubling their cash flow without depleting principal. The hosts explain how state adoption of the Uniform Principal and Income Act enables this flexibility, how trustees calculate the unitrust amount, and why this matters for families who want both growth and reliable distributions. Essential listening for anyone creating or inheriting a trust in 2026.

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Lucas and Luna break down the charitable remainder trust—a powerful estate planning tool that lets you donate assets to charity, receive income for life, and claim a tax deduction now. Using the real case of a 68-year-old retiree with $1.2 million in highly appreciated stock, they walk through how a CRAT works, the 10% minimum charitable remainder rule, and why the payout rate matters. They compare it to selling the stock outright and paying capital gains tax. Luna challenges whether the numbers work for younger donors, and Lucas explains the annuity version vs. the unitrust version. The episode also covers how to name a charity, the required annual tax filings, and the common mistake of picking too high a payout rate, which can cause the trust to fail the IRS test.

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Episode 75 of Estate Planning with Fexingo explores the disclaimer trust — a powerful estate planning tool that lets your beneficiaries decide, after you pass, whether to accept or disclaim inherited assets into a separate trust. Lucas and Luna walk through a real-world example: a $5 million estate where the surviving spouse can disclaim part of the inheritance to reduce estate taxes, while still accessing income from the trust. They explain how the disclaimer trust works alongside the marital deduction, the nine-month deadline under IRS Section 2518, and why this strategy offers flexibility no other trust can match. Perfect for listeners with estates approaching the federal exemption threshold who want to keep options open for their heirs.

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In this episode of Estate Planning with Fexingo, Lucas and Luna explain how a Qualified Terminable Interest Property trust, or QTIP trust, can provide for a surviving spouse while controlling where the remaining assets go after the spouse dies. They walk through a real-world scenario: a blended family where the husband wants his wife to have income for life but wants the principal to eventually go to his children from a first marriage. They discuss the trade-offs of mandatory income distributions, the role of the executor's election on the estate tax return, and why a QTIP is not the same as a general power of appointment trust. If you've ever wondered how to balance spousal support with legacy goals in a second marriage, this episode gives you the specific trust structure that does exactly that.

#EstatePlanning #QTIPTrust #QualifiedTerminableInterestProperty #SpousalTrust #BlendedFamily #MaritalDeduction #EstateTax #IrrevocableTrust #TrustPlanning #WealthTransfer #LegacyPlanning #SecondMarriage #ExecutorElection #IncomeForLife #RemainderBeneficiary #Finance #FexingoBusiness #BusinessPodcast

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In this episode of Estate Planning with Fexingo, Lucas and Luna dive into the Charitable Lead Trust (CLT), an estate-planning tool that lets you donate income to charity for a set number of years while passing the remaining assets to your heirs at a steep tax discount. Lucas explains how a CLT differs from the more common Charitable Remainder Trust, using the example of a donor who funds a CLT with $5 million in appreciated stock: the trust pays 5% annually to a community foundation for 20 years, and the remainder passes to the donor's children with virtually no estate or gift tax. Lucas walks through the net-present-value calculation that determines the taxable gift — roughly $2.1 million in this case — and why high-net-worth families often use CLTs in years when interest rates (the 7520 rate) are low. Luna asks about flexibility: what if the donor dies during the trust term? Lucas explains that a CLT is typically irrevocable and the charitable payments must continue, but a properly structured CLT can still remove the assets from the donor's estate for estate-tax purposes. The episode also touches on why CLTs pair well with the current elevated exemption under the Tax Cuts and Jobs Act — a window that may narrow in 2026. The conversation ties naturally to listener support: Lucas notes that if you've found value in these deep-dive episodes, you can support the show at buy me a coffee dot com slash fexingo — no pressure, just a way to keep episodes ad-free. The episode closes with Lucas reflecting on a 2024 case where a CLT saved a family $1.8 million in estate taxes while funding a local scholarship fund.

#CharitableLeadTrust #CLT #EstatePlanning #TaxStrategy #Philanthropy #WealthTransfer #Finance #FexingoBusiness #BusinessPodcast #IrrevocableTrust #GiftTax #7520Rate #TaxCutsAndJobsAct #EstateTaxExemption #CommunityFoundation #AppreciatedStock #NetPresentValue #LucasAndLuna

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Episode 72 of Estate Planning with Fexingo: When a spouse dies, the surviving partner faces a critical decision about the deceased's IRA. Lucas and Luna walk through the spousal rollover option versus the 'inherited IRA' treatment, using a real example: a 68-year-old widow with a $340,000 traditional IRA from her late husband. They explain the tax implications, the required minimum distribution differences, and why the SECURE Act changed the rules for non-spouse beneficiaries but not for spouses. If you've ever wondered what happens to a retirement account when the owner dies — and how to keep the tax deferral alive — this episode gives you the concrete steps and the key deadline (one year from death) you need to know.

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Episode 71 of Estate Planning with Fexingo explores the qualified disclaimer, a legal tool that lets a beneficiary refuse an inheritance and redirect it to another heir without gift or estate tax consequences. Lucas and Luna break down the nine strict IRS requirements for a valid disclaimer, using the real-world example of a surviving spouse who disclaims half of a $12 million IRA to keep the family business intact. They discuss timing rules, partial disclaimers, and common pitfalls like accepting benefits before disclaiming. If you're navigating blended families, massive retirement accounts, or a sudden windfall, this episode explains how a strategic 'no thanks' can save millions in taxes and preserve family harmony.

#QualifiedDisclaimer #EstatePlanning #Trusts #Wills #Inheritance #IRS #EstateTax #GiftTax #Beneficiary #IRA #FamilyBusiness #BlendedFamilies #TaxStrategy #FexingoBusiness #BusinessPodcast #Finance #WealthTransfer #DisclaimerTrust

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