Episode 38. Use Trusts to Pass Down Wealth Tax-Free

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Most business owners have no idea how to use the lifetime estate tax exemption — or that it even exists. Right now, the IRS allows you to gift up to $14 million tax-free during your lifetime, but very few entrepreneurs or high-net-worth individuals know how to take advantage of this powerful tax strategy for their wealth.

In this podcast, I explain exactly what the federal estate tax is, how the gift and estate tax exemption works, and why failing to act now could cost your heirs millions. We’ll cover how to strategically use the $14 million estate tax exemption to transfer real estate, business assets, or investment portfolios to your children, family, or loved ones — all without triggering gift taxes or unnecessary IRS scrutiny.

I’m also breaking down how irrevocable trusts and dynasty trusts work, and how they can be used to create a rock-solid estate plan. You’ll learn how trusts reduce estate taxes, protect your wealth, avoid probate, and keep your financial affairs private.

If you're a business owner with appreciating assets, income-producing properties, or a profitable company, this is critical knowledge. You’ve worked hard to build wealth — now it’s time to learn how to pass it down tax-free using proactive estate tax planning and advanced trust strategies.

This podcast is for business owners looking to understand estate planning, federal estate taxes, and how to use trusts to protect generational wealth the smart way. Whether you're planning for retirement, thinking about business succession, or just want to stop overpaying in taxes, you’ll find actionable insights here.

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*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this ...

Episode Transcript

Speaker 1 (00:00):
All right, so I'm going to break it down for you
in two sections.
We're going to keep it super,super simple.
I am going to identify for youwhat is an estate tax, so you
really have a betterunderstanding what is really an
estate tax.
And the second part we'll talkabout estate planning and what
is a trust.
How are trusts used to help youdo some estate planning for

(00:20):
yourself?

Speaker 2 (00:21):
Welcome to the Tax Reduction Podcast for
Money-making entrepreneurs withBoris Mushaev.
Boris has helped entrepreneursacross the United States
collectively save millions ofdollars in taxes with the power
of tax planning and advisory.
The only way you, the businessowner, can save money on taxes
is by using proactive taxstrategies, and this podcast is

(00:42):
all about saving you money ontaxes.
Boris will share with youin-depth and easy to understand
tax reduction strategies thatyou can implement in your
business within 30 days or less.
Let's jump into today's episode.

Speaker 1 (00:55):
Hey, my name is Boris Mashaif.
I'm a CPA and a tax strategist.
I actually work with a lot ofbusiness owners throughout the
country that are making amillion dollars or more in their
business and I save themthroughout the country that are
making a million dollars or morein their business, and I saved
them hundreds of thousands ofdollars on taxes, and I've
realized there's a need for thesame business owners to know
about estate planning, and thisis why I'm making this.
I also have a lot of freeresources for you below in the

(01:17):
description.
Check it out, download it.
It's all for free, all for you,the business owner, to not only
pay less taxes now, but so thatyour children can pay less
taxes in the future when theyinherit your stuff.
All right, so let's talk aboutestate tax.
What is really an estate tax?
This thing is so bad like I getchills even talking about it,

(01:38):
so I'm going to give you anexample to put it in perspective
, okay?
So before an example, Iactually want to introduce you
to something that is called anexemption, a lifetime exemption.
So you, as an individual, havea lifetime exemption of $13.61
million.
Let's just say $14 million.
That means throughout your lifeyou can gift things to your

(01:59):
children, family members orwhoever.
That may be up to $14 million,with no tax consequences.
Okay, so that is calledlifetime exemption.
$14 million, that means, hey,go ahead and knock yourself out,
make gifts, whether you want togift a real estate to your
children, you want to gift yourbusiness to your children, to
your wife, to your family member, whatever it is up to $14

(02:22):
million, that's what you can do.
That is called lifetimeexemption.
A lot of people don't use uptheir lifetime exemption.
They actually die with theirlifetime exemption of $14
million.
So now let's take an example andI'll show you how bad this
estate tax is.
Let's use an example.
Let's say you're a deadbusiness owner.
You have no cash, right?

(02:43):
You're 80 years old, you'relike dying and this is like so
bad to say, but you got no cash.
But you own real estate.
That real estate is worth $20million.
Okay, so we're using an example.
You're not leaving any cash,you only got real estate.
Let's just say this is theassets $20 million.

(03:03):
So when you pass away, this $20million would go to your
children, correct?
Not so fast.
$20 million minus $14 millionof your lifetime exemption, $6
million is left over.
There is going to be an estatetax on that $6 million.
That's right.
That means your estate is goingto have to pay tax before

(03:26):
anything is given out to yourchildren.
But there is no cash in yourestate, what do you do?
Your estate will be forced tosell some of the assets.
That's right.
Forced to sell some of theassets to satisfy that tax
before anything is given out toyour children.
Ladies and gentlemen, welcometo what I call the death tax.

(03:47):
It is also referred to as aninheritance tax or an estate tax
to make it look so nice.
It's really nasty.

Speaker 2 (03:55):
If you have a tax preparer and you do not have a
tax advisor, the only way youcan save money on taxes is by
using proactive tax planningstrategies that only a tax
advisor can give you.
Bora's put together a free PDFfor you, the business owner
Seven tax write-offs everyS-corporation business owner
must know.
In this PDF you can find seventax strategies that you can

(04:19):
start using in your business toinstantly start saving money on
taxes.
Click on the link in thedescription below for a free
download.

Speaker 1 (04:26):
Okay, so now let's talk about how can you do some
estate planning.
By the way, I always say ifyou're a successful business
owner, you do not have a taxadvisor.
Get yourself a tax advisor,because the only way you can pay
less in taxes now and lesstaxes your children will pay in
the future is if you getyourself a tax advisor.
And if you've got an accountantthat's just putting the right

(04:48):
numbers in the right boxes, youare overpaying its taxes.
All right, let's talk abouttrusts.
How can trusts actually helpyou with estate planning?
So think of it this way, andI'm talking about specifically
irrevocable trusts, right?
So we're not talking aboutliving trusts, we're talking
about irrevocable trusts.

(05:08):
And why are they such apowerful tool for estate
planning?
So remember that example that Itold you about real estate and
it is worth 20 million dollarsat the time.
That, for example, if you passaway, right?
So if you bought that realestate, let's say when it was
two million dollars I'm justgoing to use a very simple
example.
Right, you bought this plot ofreal estate.

(05:29):
You're like, oh, this area isgoing to boom and this real
estate is going to be worth $100million, right?
And you're like but right now,it costs you $2 million and its
fair market value is $2 million.
And you're like, you're goingto open up a trust, which is
generally they're referred to asdynasty trust.
Okay, you're going to open up atrust and you're going to gift

(05:51):
that real estate to that trust.
Now, that trust is now going toobserve this real estate and
this real estate is going to beowned by this trust.
But again, ladies and gentlemen, don't take just this and run
with it.
Definitely speak to your taxadvisor and you should have an
estate planning attorney on yourteam to be able to do this.

(06:13):
All right, so, again, this isjust purely for educational
purposes.
Now, again, what you're goingto do is transfer that to the
trust.
And now, when you pass away,and this real estate is, in fact
, $20 million or $100 million,well, because it is outside of
your estate, you do not, or yourestate does not, end up paying

(06:33):
any estate taxes.
But you've got this trust andthis trust has beneficiaries and
you can make stipulations inthis trust.
My beneficiaries, that are, mychildren, can get these assets
distributed to them, notdistributed to them when they
reach a certain age.
Or you know, like, hey, if mychildren get married, something
like that.
You can make it up as you go,but definitely speak to your tax

(06:56):
advisor.
But estate planning is soimportant because I just work.
I'm currently working with aclient that has a super wildly
successful business and they'rebuilding an app and this app is
going to be a phenomenon, right,like it's going to be amazing,
and based on the valuation rightnow I mean not right now,
excuse me based on the futurevaluation this app could be

(07:19):
worth hundreds of millions ofdollars, right?
So, like all, right, I'm likelet's take a step back for a
second.
This app is worth nothingbecause it is in a development
stage, but it could be worthmany, many millions of dollars
of taxes.
So we got connected with anestate planning attorney.
Remember, you always want tohave a tax advisor working

(07:41):
together with you, and estateplanning attorney or financial
advisors whoever you have,because tax advisors know
exactly what type of questionsto ask and hopefully you've got
the right tax advisor, okay.
So I'm like, hey, let's getwith the state planning attorney
.
I'm like, hey, this client hasthis asset that may boom and
looks like this could be a bighit great.

(08:03):
So now there's planninginvolved to make sure that we
use this information right.
We use excuse me, we use thisplanning to put this asset, this
app, into a trust so we can doproper estate planning.
So when the person does passaway my client passes away the
estate is less than $14 million,because if her estate is less

(08:25):
than $14 million, there's noestate tax and you can do this
practically with any asset thatyou own.
Again, do it with the help ofyour tax advisor, of course.
So, again, that could be yourreal estate.
That could be your newbusinesses that you started, or
certain businesses that aregoing to do very, very well and
be valued very, very highCertain businesses.

(08:50):
You can transfer that interestinto your trust, protect it so
that when your children inheritit, you don't have to pay any
estate tax.
All right, I hope this wassuper helpful.
Now that you understand what isan estate planning, you
understand the importance ofestate planning and how your
children can actually keep whatyou give them.
Thanks so much.

Speaker 2 (09:11):
That's it for today's episode.
Be sure to check out thedescription below for some free
tax reduction resources thatBoris put together for you.
If you're ready to work with atax advisor on your tax planning
, be sure to schedule your callby heading over to
wwwtaxplanningcallcom.
That's wwwtaxplanningcallcom.
And be sure to subscribe to ourpodcast to be notified when the

(09:33):
next strategy is released.