How To Avoid Millions in Tax

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In this video I describe how someone with a $5m estate can save at least $2m in estate tax, while protecting assets from lawsuits against you, protecting assets and your children’s inheritance from lawsuits against them in the future, and how to protect your children’s inheritance from their potential future divorces.
The key here is to recognize the potential problem early. Know that people should be in retirement planning mode from their 20’s until their 50’s and 60’s, but once they are secure that their assets are more than sufficient to cover retirement income needs, they should put time on their side to start the estate tax avoidance planning from their 50’s and 60’s until their 70’s, 80’s and 90’s. If you wait too long to start the estate tax avoidance planning, you will not be able to get it out of your estate fast enough and take advantage of compounding rates of return to build assets outside of the estate, thus failing in your attempt to keep your estate in the family and away from government intrusion.
0:00 How To Save $2M With a $5M Estate
0:30 Start Early for Retirement Planning
1:02 Who This Video Is For
1:32 Estate Tax Overview
2:18 Estate Tax Exemption Will Be Cut in Half
3:46 Example for a $5 Million Estate
6:09 Start Early to Avoid Federal Estate Tax
7:19 Results from Planning Ahead
8:26 Retirement Planning Phases Into Estate Tax Avoidance Planning
This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.

[@daverowlands9275]

Paul - Excellent videos on estate planning. I liked the recent one on $5M estates. Could you do one on $10-15M estates. It would be interesting to see how the thinking changes. For example, if there is an IRA with PV of millions and it gets converted to Roth. And the use of GRATs, and even Dynasty Trusts. What's the approach to avoiding estate taxes at that level?

[@gilbrook]

Thanx Paul. Great as usual.

[@yungsnapz1]

Mr. Paul your info is Gold! You’ve earn a subscriber for sure! Thank you🤝

[@kwm380]

Thank you, Paul,!

[@davidbroome6437]

I enjoy his knowledge, I am from idsho thanks david

[@ellenrice7851]

Hello, how about a Family LLC holding a brokerage account (when children are all adults), rather than a Crummy trust?

[@kimwells8395]

I am so thankful I found your videos! I am dealing with my trust left to me. Now I want to make sure my husband and I start to figure out the best way to leave money for our children while protecting them just like my dad did for me and your video talks about.

[@arubajoseph]

Paul - Great video. I also watched the Crummy trust video, but it’s not clear how to protect money from potential law suits or your child divorce? Please explain….Thanks

[@baltocingel7597]

So if you have a house without a mortgage or anything owed on it. The children can just move in and keep paying the taxes and the utilities and carry on.. And that will stop the inheritance tax.. just don’t sell the house. And the future generations will always have a house to live in..

[@gregshiver5895]

Can you link the video on crummy trusts? I have watched almost all your videos and I do not remember this kind of trust. Thanks for all the great info!

[@lanzhenliu9316]

I learned a lot from you. How can I reach you out? I would like to have a crummy trust. Thank you!

[@elinoreberkley1643]

I enjoyed your video but I am going to be homeless. It was nice to learn about asset protection,

[@trytotravel4713]

What if you inherit multiple estates , and / or own estate? Do they all combine ?

[@BobPicc1]

The children would inherit the cost basis on the assets in their Crummy trust from their parents, right? So, the 40% savings in Estate tax would be partially offset by a 15% or 20% capital gain tax . . . . is that right?

[@ncrpejxi]

Crummy trust not needed if you give the $16 k now to each kid or grandkid

[@benjimenfranklin7650]

Should have would have could have !

[@darkstar7742]

Does that estate tax exception is per beneficiary or the total amount

[@art_without_borders]

Per beneficiary, I believe.

[@edennis8578]

Per beneficiary.

[@mariceldb2990]

What is that crummy trust. How does one set it up?

[@brentjessen8451]

Hi Paul you said a 20 year old saving $2000 a month. Did you possibly mean $200 . Thanks

[@toriless]

A lot of people traditionally only make 4% to 6% interest. I have done better but that is just me. However 8% is not out of line either. Housing is insane now. My area is getting 20% per year.

[@richierich440007]

At each and every interval of your exceptional Estate Planning routes to take and not to take, I keep learning more and more, while feeling way less and less knowledgeable simultaneously . As such and from being a 1000% confident that YOU sir Rabalais WILL (all pun intended) MY estate planing CEO aka attorney to help me and my family do what’s best and avoid unexpected/ unparalleled mistakes. ALSO, I love the option of retaining your God sent services by ZOOM as well. Thanks again Paul 🙏🇨🇦🇺🇸

[@kcgtr3072]

Which video does he discuss the crummey trust?

[@dpfreeman1]

Where the heck can you get 8%?

[@edennis8578]

Investment firms can be great. But it all depends on who is in control of your account. For example, my 401k gained 40% in the last year and a half. However, my coworker's 401k lost $60,000 in February alone, same investment firm. My brother had his retirement savings invested with Edward Jones here in town and it didn't gain squat. Then he moved it to another Edward Jones investment advisor who started making oodles of money for him. The skill of the Investment manager is everything.

[@ericgeorgetruckgrilling]

@@edennis8578 Picking investment firms is like picking a barber. You need to find one that knows exactly what you want and someone you trust because when they are finished usually there is no turning back.

[@knpstrr]

Index funds have been returning 13% over the last 10 years. No brainer investment.

[@qazsedcftgbhujmkolp4401]

0:50 20 year old saving $2k a month?

[@richarddameron6018]

Would it be better to give cash to children rather than appreciated stocks so at parents death, they would get step up basis

[@ericchang7706]

It depends on your estate tax situation, your kids capital gains rate, etc. If your kids can benefit today from the 0% capital gains rate and you believe you'll be subject to estate tax, it probably makes sense to gift $15k of highly appreciated stock today from them to sell. However, if you don't believe you will be subject to estate tax and your kids can't sell at the 0% rate, you kids are better off inheriting stepped-up assets. But the point of Paul's video is to keep these assets unreachable by creditors and ex-spouses. Any gift you make today to your kids won't be protected. You need to look at something like a Crummey trust to get assets out of your estate and protected.

[@abfrebello]

For those of you looking for the link to the Crummey trust video, I believe this is it. kzbin.info/www/bejne/oX-bfGZth7KFkJY

[@carolwilliams7052]

What ??? Who can save $2,000 a month ????? 😂😂😂😂😂

[@muffemod]

I was the first to comment yo!

[@sandralax8554]

Can’t you avoid the estate tax if you transfer money into an irrevocable trust in each child’s name?

[@ws775]

Congrats!

[@karencooper6634]

Anyone with millions should pay taxes and btw so should churches

[@nightdipper5178]

Taxes where paid when the money was earned why should it be taxed a 2nd time regardless of reason but especially because you passed away? The bottom 50% pay NO tax. Guess which income bracket pays the overwhelming majority of taxes. *Envy is a mortal sin.* I wouldn't bring that up but you seemed overly concerned with churches for some reason.