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

In this episode of Estate Planning with Fexingo, Lucas and Luna explore the Spousal IRA—a powerful but underused estate planning and retirement tool. They anchor the discussion to the 2025 contribution limit of $7,500 per year, explaining how a non-working or lower-earning spouse can build their own retirement savings using the working spouse's income. The hosts walk through real-world eligibility rules, the difference between traditional and Roth spousal IRAs, and how this strategy complements broader estate planning goals like dynasty trusts and asset protection. Lucas shares a concrete example of a couple in their 30s maximizing contributions over two decades to create over $500,000 in tax-advantaged savings. They also touch on the SECURE Act 2.0 changes effective 2025 that allow surviving spouses to treat inherited IRAs as their own. The episode closes with a forward-looking question about whether lawmakers should raise catch-up contribution limits for spousal IRAs. Perfect for listeners who want to ensure their non-working spouse isn't left behind in retirement planning.

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This episode of Estate Planning with Fexingo explains how a Spousal Lifetime Access Trust (SLAT) can lock in today's low interest rates for decades. Lucas and Luna walk through a concrete example: a couple transferring $5 million into a SLAT when the applicable federal rate is just 2.4 percent. They show how the trust can leverage that low rate to minimize gift taxes, provide income to the non-grantor spouse, and shelter future growth from estate taxes. The hosts also cover risks like divorce, the grantor's death, and the 'reciprocal trust' trap. Perfect for listeners who already understand basic trusts and want a deeper strategy for rate-sensitive planning.

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Episode 28 of Estate Planning with Fexingo dives into the self-settled asset protection trust (SAP Trust) — a powerful but often misunderstood tool for high-earning professionals. Lucas and Luna explain how a surgeon in Texas used a Nevada SAP Trust to shield $2 million in personal assets from a malpractice judgment, while still retaining access to the trust income. They break down the three key requirements: irrevocability, independent trustee, and spendthrift clause. They also compare the 19 states that currently allow domestic self-settled trusts, with a focus on Delaware, Nevada, and South Dakota. The episode explores why SAP trusts don't protect against future creditors (only pre-existing ones) and how they differ from traditional domestic asset protection trusts. Listeners learn the practical steps — from choosing the right jurisdiction to funding strategies — and the hidden tax traps, including grantor trust rules and the five-year look-back period under bankruptcy law.

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Lucas and Luna explore how spousal IRAs allow non-working or lower-earning spouses to build retirement savings in their own name, leveraging the working spouse's income. They walk through the contribution limits, income thresholds, and the key difference between traditional and Roth spousal IRAs. The hosts also discuss how this strategy fits into broader estate planning by ensuring both spouses have independent assets, which can simplify inheritance and reduce tax burdens. Specific examples include a scenario where one spouse stays home to care for children and another where one spouse works part-time. Lucas breaks down the 2025 contribution limits and the phase-out ranges for Roth eligibility, emphasizing the retirement benefits even if one spouse has no earned income.

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Lucas and Luna explore the charitable remainder trust (CRT) — a powerful estate planning tool that lets you donate appreciated assets, avoid capital gains tax, and receive a steady income stream. Using a concrete example of a donor with $500,000 in Apple stock, they walk through how a CRT works, the two main types (CRAT vs. CRUT), and why it's particularly attractive in mid-2026 with the S&P 500 near all-time highs. They also discuss the charitable deduction rules, the 10% minimum remainder requirement, and common pitfalls. Perfect for listeners who want to combine philanthropy with smart tax and income planning.

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Lucas and Luna explain how a Spousal Lifetime Access Trust (SLAT) works as an estate planning tool for couples with assets over $5 million. They walk through a case study of a tech executive in 2026, showing how a SLAT can freeze estate tax liability while preserving spousal access to the gifted assets. The hosts discuss the key features: grantor trust status, Crummey withdrawal powers, and the risk of 'reciprocal trust' doctrine. They also compare SLATs to traditional credit shelter trusts and clarify why the 2026 estate tax exemption cliff makes this a timely topic. The episode includes specific numbers: $13.61 million exemption per person in 2026, potential drop to $7 million in 2027, and how a SLAT can lock in the higher exemption today. The conversation stays grounded in real-world application, avoiding theoretical fluff.

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In this episode of Estate Planning with Fexingo, Lucas and Luna dive into the Grantor Retained Income Trust (GRIT), a powerful but lesser-known strategy for transferring wealth while retaining income. They walk through a concrete example: a 65-year-old founder with $5 million in closely held stock who wants to pass appreciation to heirs without triggering gift tax. Lucas explains how the GRIT works—transferring assets into an irrevocable trust while retaining annual income for a set term—and why it's particularly useful in today's low interest rate environment, referring to the IRS Section 7520 rate at 3.2%. They compare it to similar tools like the Grantor Retained Annuity Trust (GRAT) and Qualified Personal Residence Trust (QPRT), highlighting where GRITs still have advantages despite tax law changes. The episode also covers risks: if the grantor dies during the term, the full asset value comes back into the estate. Luna questions the practical feasibility for business owners, and they discuss valuation discounts and family dynamics. This is a focused, numbers-driven conversation that leaves listeners with one concrete takeaway: a GRIT can freeze the taxable value of an appreciating asset at today's rate, making it a smart bet for high-net-worth families with patience.

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Episode 23 of Estate Planning with Fexingo tackles the Spousal IRA — a largely overlooked retirement strategy for couples where one spouse does not have earned income. Lucas walks through the specific IRS rules: a working spouse can contribute to a separate IRA in the non-working spouse's name, up to the full annual limit, as long as combined earned income covers both contributions. The episode anchors on a concrete scenario: a couple where one spouse earns $120,000 and the other stays home. Lucas explains how this can build tax-deferred wealth, then shifts to how the Spousal IRA fits into a broader estate plan, including beneficiary designations and trust planning. Luna adds a caution about income limits for Roth contributions. Tune in to learn why this move can add hundreds of thousands of dollars to a family's retirement nest egg and why it belongs in your estate conversation.

#SpousalIRA #RetirementPlanning #EstatePlanning #WillsAndTrusts #IRA #RothIRA #NonWorkingSpouse #TaxDeferredGrowth #BeneficiaryDesignation #TrustPlanning #WealthTransfer #Finance #PersonalFinance #RetirementSavings #FexingoBusiness #BusinessPodcast #LucasAndLuna #EstatePlanningWithFexingo

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In Episode 22 of Estate Planning with Fexingo, Lucas and Luna dive deep into the Irrevocable Life Insurance Trust (ILIT) — a powerful estate planning tool that removes life insurance proceeds from your taxable estate. Using a concrete example of a $2 million policy, they walk through how the trust owns the policy, pays premiums via Crummey powers, and distributes tax-free cash to beneficiaries. The hosts explore the three-year look-back rule for transfers, the role of the trustee in premium notices, and a cautionary tale about an unfunded ILIT that lapsed. If you have a life insurance policy or are considering one for estate planning, this episode provides a clear, actionable blueprint for keeping death benefits out of the IRS's reach. Plus, the hosts explain why a properly structured ILIT can fund estate taxes or provide liquidity without triggering probate.

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Episode 21 of Estate Planning with Fexingo dives into the dynasty trust—a powerful tool designed to pass wealth across multiple generations while minimizing estate taxes and protecting assets from creditors. Lucas and Luna explore how the trust works, the rule against perpetuities and its repeal in many states, and a concrete example: a $5 million trust established in 2025 that could grow to $50 million over 50 years, tax-free. They also discuss trade-offs like the generation-skipping transfer tax, the importance of choosing the right jurisdiction (e.g., Delaware, South Dakota, Alaska), and why a dynasty trust isn't for everyone—but for families with long-term vision, it's the ultimate legacy vehicle. No fluff, just practical insights for listeners thinking beyond their own lifetime.

#DynastyTrust #GenerationalWealth #EstatePlanning #TrustLaw #WealthTransfer #Finance #PersonalFinance #Inheritance #AssetProtection #GSTTax #RuleAgainstPerpetuities #SouthDakotaTrust #DelawareTrust #AlaskaTrust #EstateTax #FexingoBusiness #BusinessPodcast #LegacyPlanning

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