About this episode
Jill unpacks one of the most misunderstood estate-planning tools: the irrevocable trust. Using a real-world scenario, she explains how transferring assets too soon can backfire, especially when it comes to capital-gains taxes. If you’ve ever wondered whether your trust is helping or hurting your long-term plan, this episode will help you make sense of what you really need (and what you don’t).What You’ll Learn in This Episode:Revocable vs. Irrevocable Trusts. How control, flexibility, and tax treatment differ between the two.When to Use an Irrevocable Trust. Situations where it can protect family assets or reduce future estate taxes. The Probate Myth. Why using an irrevocable trust just to “avoid probate” may cause more trouble than it prevents.Creditor & Divorce Protection. How spendthrift provisions can shield beneficiaries from creditors (and ex-spouses)Medicaid’s 5-Year Look-Back. What really happens if you transfer assets into a trust too close to applying for long-term-care assistance.Tax Traps in Lifetime Gifts. Why giving property during life can trigger large capital-gains taxes that could have been avoided through inheritance.The Unified Estate & Gift Tax Exemption. Understanding how today’s historically high federal estate and gift tax exemption, about $14 million per person in 2025, works, and why most families won’t owe estate or gift tax.Stepped-Up Basis Explained. How inheriting assets at death can eliminate capital-gains taxes, and why “gifting early” can cost more than it saves.Practical Takeaway. Estate plans should fit you, your goals, family, and financial reality, not what your neighbor or financial advisor says everyone “should” do.Resources & Links:Episode 5: Why You Shouldn’t Worry About the Estate TaxEpisode 19: Why You Need (or Don’t Need) a TrustEpisode 20: What You Need to Know About Medicaid and Protecting Your Mom’s HouseEpisode 27: Interview with Probate Judge Andra HedrickEpisode 38: Why You Need (or Don’t Need) a WillEstate Plan Audit:
