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 Tax Episode 19: Why You Need (or Don’t Need) a Trust Episode 20: What You Need to Know About Medicaid and Protecting Your Mom’s House Episode 27: Interview with Probate Judge Andra Hedrick Episode 38: Why You Need (or Don’t Need) a Will Estate Plan Audit: deathreadiness.com/audit — Understand what you have, identify what’s missing, and make sure it works together Connect with Jill: Website: DeathReadiness.com Email:
[email protected] Learn more about Jill’s services Subscribe to the Death Readiness Dispatch! Submit a question for Tuesday Triage Did you enjoy this episode? Share it with someone you care about. This podcast provides estate planning guidance for women and discusses real, practical issues, from caregiving, pre-planning a funeral, how to avoid probate using beneficiary designations, planning for individuals with special needs (and special needs trusts), whether you need a professional fiduciary (trustee or executor), how the estate tax works and how to preserve your legacy. Tuesday Triage episodes answer questions from listeners like you, from powers of attorney, healthcare advance directives (and whether they work when you’re pregnant), what a Last Will and Testament really is, whether you need a trust, how Medicaid works and how to have senior and elder care conversations and how to care for aging parents. Disclaimer : This podcast and all related content are for educational purposes only and do not constitute legal advice. No attorney-client relationship is established here. Use of this information without careful analysis and review by your attorney, CPA, and/or financial advisor may cause serious adverse consequences. For legal guidance tailored to your unique situation, consult with a licensed attorney in your state.
