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

Lucas and Luna discuss why a properly filled-out beneficiary designation on your 401(k) and IRA can override your will entirely. They walk through the 2017 Supreme Court case Howell v. Howell, where a divorce decree said one thing but a beneficiary form said another, and the form won. They explain why beneficiary designations avoid probate, how to handle contingent beneficiaries, and what happens if you name a minor or have a per stirpes clause. Luna shares a stat: 78 percent of Americans have not reviewed their beneficiary designations in the last three years. Lucas offers a practical checklist for updating forms after major life events. The episode ends with a short, natural donation appeal tied to the value of keeping listeners informed about these often-overlooked details.

#BeneficiaryDesignation #ProbateAvoidance #EstatePlanning #HowellVHowell #RetirementAccounts #FinancialLiteracy #EstateTax #PerStirpes #ContingentBeneficiary #WillVsBeneficiary #StretchIRA #SECUREAct #DivorceAndEstate #EstateAttorneys #FamilyWealth #Finance #FexingoBusiness #BusinessPodcast

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Episode 59 of Estate Planning with Fexingo. Lucas and Luna unpack the Heirloom Trust — a specialized tool that lets families donate art, antiques, or collectibles to a trust while retaining lifetime use, removing the asset from their taxable estate. They walk through the mechanics: how a qualified appraisal sets the charitable deduction, how the trust must comply with IRS rules on access and disposition, and why this works best for items that won't be sold. A real-world example: a family's Picasso painting worth $12 million, placed in a Heirloom Trust, saves the estate roughly $4.8 million in taxes while keeping the artwork in the family's home for two generations. They also flag pitfalls — if the trust's beneficiary moves or the artwork gets sold, the tax benefits unravel. Perfect for high-net-worth families with significant personal property who want to preserve both legacy and liquidity.

#HeirloomTrust #EstatePlanning #ArtAndCollectibles #EstateTax #CharitableDeduction #QualifiedAppraisal #IRS #FamilyLegacy #ArtWealth #Picasso #Liquidity #HighNetWorth #TrustLaw #PersonalProperty #TaxStrategy #Finance #FexingoBusiness #BusinessPodcast

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Lucas and Luna explore the Net Gift Trust, an estate-planning strategy where the donee agrees to pay the gift tax in exchange for receiving highly appreciated assets. Using the example of a family-owned commercial real estate portfolio valued at $12 million with a cost basis of $3 million, they walk through how a net gift arrangement can reduce the donor's taxable estate by $9 million while the donee uses a loan against the property to cover the tax bill. They discuss the IRS's key ruling on net gifts, the importance of a qualified appraisal, and why this strategy works best when the donee has liquidity or access to credit. The episode also covers the risk of the donee defaulting on the tax payment and how a carefully drafted net gift agreement allocates liability. No prior episodes have covered this specific technique, making it a fresh addition to the show's trust-focused library.

#NetGiftTrust #EstatePlanning #GiftTax #AppreciatedAssets #IRS #Trusts #TaxStrategy #WealthTransfer #FamilyBusiness #RealEstate #QualifiedAppraisal #GenerationSkipping #Liquidity #Finance #FexingoBusiness #BusinessPodcast #Episode58 #LucasAndLuna

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In this episode of Estate Planning with Fexingo, Lucas and Luna explore the life estate — a legal tool that lets a homeowner give their house to a child or heir while keeping the right to live there until death. They walk through a concrete example: a widowed mother in Florida transfers her $500,000 home to her son via a life estate, avoiding probate but creating a capital gains tax trap when the son sells after her death. The hosts explain the 'step-up'in basis' rule, the risks of Medicaid recovery, and why a life estate is a simple, low-cost alternative to more complex trusts. Perfect for listeners considering how to balance keeping a home in the family with protecting assets from nursing home costs or property taxes. No legacy planning jargon or fluff — just straight talk on when a life estate makes sense and when it doesn't.

#LifeEstate #EstatePlanning #ProbateAvoidance #StepUpInBasis #CapitalGains #MedicaidRecovery #FloridaEstatePlanning #HomeTransfer #SurvivingSpouse #GiftTaxExclusion #EstateTax #RealEstateLegacy #Finance #FexingoBusiness #BusinessPodcast #EstatePlanningWithFexingo #WillsAndTrusts #GenerationalWealth

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In episode 56 of Estate Planning with Fexingo, Lucas and Luna explore the Total Return Trust (TRT) — a modern estate planning tool that replaces the traditional trust's duty to produce income with a flexible approach focused on total investment return. Using a real case of a $3 million trust for a widowed beneficiary, they explain how the TRT allows trustees to invest for growth without worrying about current income, using a unitrust payout (e.g., 4% of trust assets annually) to provide cash flow. They compare TRTs to GRATs and CRTs covered in prior episodes, and discuss how the Uniform Principal and Income Act (UPIA) and state laws like Delaware's support this structure. The conversation also touches on the 2026 estate tax exemption sunset and why TRTs are increasingly popular for affluent families aiming to preserve purchasing power across generations. No legal advice — just a clear, practical breakdown of a powerful but lesser-known trust strategy.

#TotalReturnTrust #EstatePlanning #TrustLaw #Unitrust #UniformPrincipalAndIncomeAct #DelawareTrustLaw #EstateTaxExemption #PortfolioGrowth #FiduciaryDuty #Beneficiary #WealthTransfer #Finance #FexingoBusiness #BusinessPodcast #EstatePlanningWithFexingo #InvestmentStrategy #Trustee #GRAT

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Episode 55 of Estate Planning with Fexingo dives into the difference between per stirpes and per capita beneficiary designations. Lucas and Luna walk through a real-world example: a family with three adult children, one of whom predeceases leaving two grandchildren. They explain why a per stirpes designation ensures assets flow to the deceased child's descendants, while per capita could accidentally disinherit them. The hosts also touch on common pitfalls, including outdated beneficiary forms at brokerages and retirement accounts, and why a simple will update can override an old designation in an insurance policy. They close with a practical checklist for listeners to review their own estate documents.

#PerStirpes #PerCapita #BeneficiaryDesignations #EstatePlanning #WillsAndTrusts #Inheritance #LegacyPlanning #AssetDistribution #FamilyWealth #ProbateAvoidance #RetirementAccounts #LifeInsurance #EstateTax #Finance #PersonalFinance #FexingoBusiness #BusinessPodcast #EstatePlanningWithFexingo

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In this episode, Lucas and Luna explain how a Credit Shelter Trust, also known as a bypass trust, helps married couples preserve their federal estate tax exemption. They walk through a specific case: a Connecticut couple with a $13 million estate, showing how without the trust, the surviving spouse could lose the first spouse's exemption, resulting in a tax bill of roughly $1.5 million. They detail how the trust works, the trade-offs around control and income, and why it's especially relevant given the 2026 exemption is set to drop from $13.61 million per person to around $7 million. Listeners will learn concrete steps to discuss with an estate attorney.

#CreditShelterTrust #BypassTrust #EstateTax #FederalEstateTaxExemption #MarriedCouples #Portability #TaxPlanning #EstatePlanning #WealthTransfer #Connecticut #EstateTaxExemption2026 #Sunset #FexingoBusiness #BusinessPodcast #Finance #LucasAndLuna #EstatePlanningWithFexingo #TrustPlanning

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Episode 53 of Estate Planning with Fexingo. Lucas and Luna break down the Charitable Remainder Unitrust with a FLIP provision — a way to donate appreciated assets, claim a charitable deduction, and receive variable income until a triggering event, at which point the trust converts to a fixed-payout structure. They walk through a real scenario: a real estate investor contributing a $1.2 million rental property, the 10% remainder rule, and how the FLIP provision solved the problem of fluctuating rental income. They also discuss the IRS actuarial tables, the 50% adjusted gross income limit on deductions, and the trade-offs versus a standard Charitable Remainder Annuity Trust. No ads policy explained at buy me a coffee dot com slash fexingo.

#CharitableRemainderUnitrust #FLIPUnitrust #CRUT #EstatePlanning #Finance #TaxStrategy #CharitableGiving #IRS #ActuarialTables #AppreciatedAssets #RealEstate #Retirement #IncomePlanning #FexingoBusiness #BusinessPodcast #EstatePlanningWithFexingo #WealthTransfer #Philanthropy

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If you have a loved one with a disability, leaving them an inheritance outright could disqualify them from Medicaid and SSI. Lucas and Luna explain how a properly drafted third-party special needs trust lets you provide for their quality of life without jeopardizing essential government benefits. They walk through the rules—what counts as a qualifying distribution, who should serve as trustee, and why a first-party special needs trust works differently when the beneficiary funds it themselves, such as with a personal injury settlement. The episode closes with a real-world caution about using informal arrangements like a 'letter of intent' versus a formal trust. Listeners also hear why Fexingo keeps these episodes ad-free and how to support that decision at buy me a coffee dot com slash fexingo.

#SpecialNeedsTrust #DisabilityPlanning #SupplementalSecurityIncome #MedicaidPlanning #EstatePlanning #TrustLaw #ThirdPartyTrust #FirstPartyTrust #PooledTrust #ABLENational #SSI #GovernmentBenefits #FiduciaryDuty #Trustee #InheritancePlanning #Finance #FexingoBusiness #BusinessPodcast

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Episode 51 of Estate Planning with Fexingo tackles a less common but critical planning need: protecting a surviving spouse who is not a U.S. citizen. Lucas and Luna break down how a Qualified Domestic Trust (QDOT) allows a non-citizen spouse to defer the federal estate tax on assets inherited from a citizen spouse. Using the case of a Canadian-born spouse married to a U.S. citizen for 15 years, Lucas walks through a $6 million estate scenario where a QDOT would save roughly $2.4 million in immediate estate tax. He explains the mechanics — the trust must have at least one U.S. trustee, and distributions of income to the spouse are tax-free, while principal distributions trigger estate tax. The episode also covers the QDOT election deadline (filed with the deceased spouse's estate tax return within nine months of death), the risk of losing the election if missed, and the 35 percent estate tax rate on principal distributions to the surviving spouse. Luna questions whether the QDOT is a deferral or a permanent solution — Lucas clarifies it defers until the surviving spouse's death, when the remaining trust assets are taxed as part of their estate. Perfect for cross-border couples and advisors navigating the marital deduction for non-citizens.

#QualifiedDomesticTrust #QDOT #EstatePlanning #NonCitizenSpouse #MaritalDeduction #EstateTax #CrossBorderPlanning #ImmigrationAndEstate #TrustLaw #IRS #TaxDeferral #UStatexecutor #SurvivingSpouse #LifeInsurance #Finance #WealthTransfer #FexingoBusiness #BusinessPodcast

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