In this episode of EWA's FIN-LYT Podcast, Matt and Ben explain why, with the federal exemption at an all time high of 15 million per person, families who expect meaningful future growth can move assets out of their taxable estate before these limits may decline. They simplify how estate taxes work and why taking action now can prevent significant future tax exposure.
They outline the key differences between revocable and irrevocable trusts. A revocable trust helps avoid probate but does not reduce estate taxes. An irrevocable trust, however, can remove assets permanently from your estate. Matt and Ben also highlight how the grantor, trustee, and beneficiary roles work together and how a grantor structure allows the trust assets to grow more efficiently over time.
The episode covers which assets belong in an irrevocable trust and which do not. Life insurance, direct indexed investment portfolios, business interests, rental properties, and high growth private investments often work best because they can appreciate outside your estate. Retirement accounts, primary residences, cash reserves, and assets with debt generally create tax or administrative issues and are better kept out.
Matt and Ben wrap up with practical examples for both high earners and already high net worth families. They explain how annual exclusion gifts and SLATs can help younger families begin planning and how those above the exemption may benefit from using their full limits now. The message is clear. Once exemption limits fall you cannot reclaim todays higher amount, and early planning can protect more of your wealth for future generations.
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