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

Episode 40 of Estate Planning with Fexingo: Lucas and Luna break down the Crummey trust—an estate planning tool that turns annual gift tax exclusion gifts into permanent family wealth. They walk through the 1968 Crummey v. Commissioner case that made it all possible, explain the 'Crummey power' withdrawal right, and discuss why this trust is a workhorse for high-net-worth families looking to transfer wealth without burning their lifetime exemption. Specific numbers: the $18,000 per-donee annual exclusion for 2026, and how a family of five could move $90,000 out of their estate each year. Lucas also flags the common mistake—failing to actually notify beneficiaries of their withdrawal rights, which can blow the tax benefit. Practical, specific, and rooted in real IRS rules.

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In this episode of Estate Planning with Fexingo, Lucas and Luna dive into the Medicaid Asset Protection Trust, a powerful tool for safeguarding your home from nursing home and long-term care costs. They walk through how the trust works, the five-year lookback rule, and a real-world example: a retired couple in Ohio who placed their $400,000 home into an MAPT five years before needing Medicaid. Lucas explains the difference between irrevocable and revocable trusts, why the grantor must give up control, and how the trust can bypass estate recovery. Luna asks about downsides—loss of step-up in basis, mortgage complications, and the risk of a home sale triggering capital gains. They also discuss alternatives like long-term care insurance and the 'spend down' strategy. By the end, listeners understand exactly when an MAPT makes sense and when it doesn't. This is episode 39 of Estate Planning with Fexingo: Wills, Trusts, and Passing Wealth to Future Generations.

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In episode 38, Lucas and Luna explore the Qualified Personal Residence Trust (QPRT), a powerful estate planning strategy that lets homeowners transfer a primary or secondary residence to heirs at a deep discount on the gift tax. They walk through a concrete example: a $2 million home placed in a QPRT with a 10-year retained term, a Section 7520 rate of 5.2 percent, and a resulting taxable gift of roughly $1.19 million — saving $324,000 in potential gift taxes versus an outright transfer. The hosts explain how the trust works, what happens if you outlive or die during the term, and the key trade-offs like losing the stepped-up basis. They also discuss why recent high Section 7520 rates make QPRTs especially attractive right now. No prior episode covered this specific trust structure.

#QPRT #QualifiedPersonalResidenceTrust #EstatePlanning #GiftTax #RealEstate #Trusts #WealthTransfer #TaxStrategy #Section7520 #SteppedUpBasis #Finance #EstateTax #IrrevocableTrust #Housing #FamilyWealth #FexingoBusiness #BusinessPodcast #EstatePlanningWithFexingo

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Episode 37 of Estate Planning with Fexingo explores the Spousal IRA, a powerful but underused tool that allows a working spouse to contribute to an IRA in the name of a non-working spouse. Lucas and Luna break down the 2026 contribution limits ($7,000 for those under 50, $8,000 for 50+), the key rule that the couple's combined earned income must equal or exceed the total contributions, and the five-year holding period for Roth IRAs. They use a real-world example: a couple where one spouse earns $120,000 as a marketing director and the other is a stay-at-home parent aged 42. By maxing out a spousal Roth IRA each year, that non-working spouse could accumulate over $500,000 by retirement, assuming a 7% annual return. The episode also clarifies that Spousal IRAs aren't a separate account type—just a contribution strategy—and warns against common mistakes like failing to designate beneficiary correctly or forgetting the pro-rata rule for conversions. Perfect for listeners who want to ensure both partners have retirement assets regardless of employment status.

#SpousalIRA #RothIRA #IRA #RetirementPlanning #NonWorkingSpouse #StayAtHomeParent #EstatePlanning #WealthTransfer #Finance #PersonalFinance #RetirementSavings #TaxAdvantaged #Fidelity #Vanguard #Schwab #FexingoBusiness #BusinessPodcast #EstatePlanningWithFexingo

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Episode 36 of Estate Planning with Fexingo dives into the Qualified Terminable Interest Property trust, or QTIP. Lucas and Luna walk through a real-world scenario: a $12 million estate where the first spouse wants to ensure the surviving spouse receives income for life, but the remainder ultimately passes to children from a prior marriage. They explain how a QTIP defers estate tax until the second death, qualifies for the marital deduction, and prevents the surviving spouse from redirecting assets away from intended heirs. The hosts compare QTIPs to a simple bypass trust, quantifying the potential tax savings. They also discuss the trade-off: loss of control for the surviving spouse. No prior episode has covered this specific trust, making it a fresh angle for listeners exploring blended family estate planning.

#QTIP #QualifiedTerminableInterestProperty #EstatePlanning #MaritalDeduction #BlendedFamilies #Trusts #SpousalProtection #EstateTax #WealthTransfer #Inheritance #Finance #FexingoBusiness #BusinessPodcast #LucasAndLuna #EstateTaxDeferral #SecondMarriage #FinancialPlanning #LegacyPlanning

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Episode 35 of Estate Planning with Fexingo explores standby trusts—a flexible estate planning tool that can act as a retirement safety net. Lucas and Luna break down how a standby trust works, when to fund it, and why it's an alternative to a standby irrevocable trust for asset protection. They walk through a real-world scenario: a 55-year-old professional funding a trust to shield assets while maintaining access if needed. The hosts also discuss the role of a standby trust in avoiding probate and how it differs from a traditional revocable living trust. If you're looking for estate planning strategies that combine asset protection with retirement income flexibility, this episode offers practical insights.

#StandbyTrust #RetirementSafetyNet #EstatePlanning #Finance #FexingoBusiness #BusinessPodcast #AssetProtection #ProbateAvoidance #IrrevocableTrust #RevocableTrust #RetirementPlanning #TrustFunding #EstateTax #GenerationalWealth #WealthTransfer #FinancialPlanning #Podcast #LucasAndLuna

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Lucas and Luna break down the spousal bypass trust, also known as a credit shelter trust — a powerful estate-planning tool that lets married couples double their estate-tax exemption. They walk through a concrete example: a couple with a $15 million estate in 2026. Without a bypass trust, the surviving spouse could lose half the exemption. With one, they shelter $13.61 million from estate taxes entirely. Lucas explains how the trust works, the role of the lifetime exemption (currently $13.61 million per person), and why the portability election isn't always enough — especially in states with their own estate tax like Massachusetts or Oregon. Luna brings up the key gotcha: if you move your assets into a bypass trust at the wrong time, you lose the step-up in cost basis. They also discuss who should and shouldn't use one, and how the 2026 sunset of the Trump-era exemption could make bypass trusts relevant again for smaller estates.

#SpousalBypassTrust #CreditShelterTrust #EstatePlanning #EstateTax #MarriedCouples #LifetimeExemption #Portability #StepUpInBasis #TrustLaw #WealthTransfer #Finance #FexingoBusiness #BusinessPodcast #EstateTaxExemption #StateEstateTax #IrrevocableTrust #TaxPlanning #GenerationalWealth

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Lucas and Luna tackle the most underused tax break in estate planning: portability. When one spouse dies, the surviving spouse can inherit their unused federal estate tax exemption — current exemptions total roughly $27 million per couple. Yet over 40% of married couples never file the simple IRS Form 706 to elect portability. Lucas walks through the math: if your spouse dies with a $13.5 million exemption, you can add theirs to your own, shielding $27 million from estate tax. But wait — portability only applies to the estate tax exemption, not to generation-skipping transfer tax exemptions, which are also lost if not used. A real case: a Florida couple with $18 million in assets lost $6 million in potential exemption because they missed the nine-month filing deadline. Luna pushes back: what about state estate taxes? Many states don't recognize portability, so a move from New York to Florida could save millions. They also discuss how portability interacts with credit shelter trusts, and why the SECURE Act's 10-year rule for inherited IRAs makes trust planning trickier.

#Portability #EstateTaxExemption #IRSForm706 #EstatePlanning #MarriedCouples #TaxSavings #GenerationalWealth #SpousalExemption #CreditShelterTrust #SECUREAct #InheritedIRA #StateEstateTax #FexingoBusiness #BusinessPodcast #Finance #WealthTransfer #TaxStrategy #LucasAndLuna

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In this episode, Lucas and Luna dive into the Spousal IRA—a powerful but often overlooked tool that allows a non-working spouse to build retirement savings. They walk through the mechanics: how a working spouse can contribute to an IRA in their partner's name, the income limits for 2025, and why this matters for stay-at-home parents or part-time workers. Using a concrete example of a family with one high earner and one spouse who stepped out of the workforce, they show how even modest contributions can compound into six figures over time. They also discuss the difference between traditional and Roth Spousal IRAs, the phase-out ranges for deductions, and common mistakes like missing the deadline or forgetting to file jointly. This episode is perfect for couples looking to maximize retirement savings and ensure both partners have financial independence in their golden years.

#SpousalIRA #RetirementPlanning #NonWorkingSpouse #IRA #RothIRA #TraditionalIRA #TaxPlanning #CompoundInterest #StayAtHomeParent #FinancialIndependence #RetirementSavings #MarriageFinance #WealthBuilding #Finance #Investing #FexingoBusiness #BusinessPodcast #EstatePlanning

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Lucas and Luna explore the Intentionally Defective Grantor Trust (IDGT), a sophisticated estate planning tool that lets high-net-worth individuals freeze the value of their estate for tax purposes while paying no capital gains tax on asset appreciation. They walk through a real case study: a real estate developer in Austin who transferred $5 million in rental properties into an IDGT in 2023, saving an estimated $2 million in estate taxes while continuing to pay the trust's income tax himself. The episode covers how the 'defect' in the trust actually works in the grantor's favor, the IRS's economic-benefit doctrine, and why this strategy is especially powerful with today's low interest rates (the IRS's Applicable Federal Rate is just 3.2% as of June 2026). Listeners learn the difference between an IDGT and a GRAT, and why the IDGT is preferred for long-term appreciation assets like real estate and private equity. No prior episode has covered IDGTs.

#IntentionallyDefectiveGrantorTrust #IDGT #EstateFreeze #GrantorTrust #EstatePlanning #WealthTransfer #RealEstateDeveloper #Austin #ApplicableFederalRate #InterestRates2026 #CapitalGainsTax #EstateTax #GRAT #PrivateEquity #Finance #EstatePlanningWithFexingo #FexingoBusiness #BusinessPodcast

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