Tax Reduction Podcast
Introducing your host, Boris Musheyev, CPA. In this podcast Boris debunks the tax code by teaching you simple and effective tax strategies, so you can keep the most of what you make. His mission is to help you cut taxes and build wealth using the power of proactive tax strategies. Every episode you will gain a better understanding of how the tax code is designed to be in favor of money-making entrepreneurs like yourself.
🆓 Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know: https://bit.ly/podcast7writeoffs
☎️ Schedule your FREE Tax Advisory Session: www.TaxPlanningCall.com
Tax Reduction Podcast
Episode 38. Use Trusts to Pass Down Wealth Tax-Free
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.
I've put together this FREE resource for you:
7 Write-Offs Every S-Corporation Business Owner MUST Know
🆓 Download FREE PDF here: https://7taxwriteoffs.com/?el=podcast&htrafficsource=buzzsprout
Ready to start saving money on your taxes?
☎️ Schedule your FREE Tax Advisory Session: https://taxplanningcall.com/?el=podcast&htrafficsource=buzzsprout
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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 ...
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 you what is an estate tax, so you really have a better understanding what is really an estate tax. And the second part we'll talk about estate planning and what is a trust. How are trusts used to help you do some estate planning for yourself?
Speaker 2:Welcome to the Tax Reduction Podcast for Money-making entrepreneurs with Boris Mushaev. Boris has helped entrepreneurs across the United States collectively save millions of dollars in taxes with the power of tax planning and advisory. The only way you, the business owner, can save money on taxes is by using proactive tax strategies, and this podcast is all about saving you money on taxes. Boris will share with you in-depth and easy to understand tax reduction strategies that you can implement in your business within 30 days or less. Let's jump into today's episode.
Speaker 1:Hey, my name is Boris Mashaif. I'm a CPA and a tax strategist. I actually work with a lot of business owners throughout the country that are making a million dollars or more in their business and I save them throughout the country that are making a million dollars or more in their business, and I saved them hundreds of thousands of dollars on taxes, and I've realized there's a need for the same business owners to know about estate planning, and this is why I'm making this. I also have a lot of free resources for you below in the 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 that your children can pay less taxes in the future when they inherit your stuff.
Speaker 1:All right, so let's talk about estate tax. What is really an estate tax? This thing is so bad like I get chills even talking about it, so I'm going to give you an example to put it in perspective, okay? So before an example, I actually want to introduce you to something that is called an exemption, a lifetime exemption. So you, as an individual, have a lifetime exemption of $13.61 million. Let's just say $14 million. That means throughout your life you can gift things to your children, family members or whoever. That may be up to $14 million, with no tax consequences. Okay, so that is called lifetime exemption. $14 million, that means, hey, go ahead and knock yourself out, make gifts, whether you want to gift a real estate to your children, you want to gift your business to your children, to your wife, to your family member, whatever it is up to $14 million, that's what you can do. That is called lifetime exemption. A lot of people don't use up their lifetime exemption. They actually die with their lifetime exemption of $14 million.
Speaker 1:So now let's take an example and I'll show you how bad this estate tax is. Let's use an example. Let's say you're a dead business owner. You have no cash, right? You're 80 years old, you're like dying and this is like so bad to say, but you got no cash. But you own real estate. That real estate is worth $20 million.
Speaker 1:Okay, so we're using an example. You're not leaving any cash, you only got real estate. Let's just say this is the assets $20 million. So when you pass away, this $20 million would go to your children, correct? Not so fast. $20 million minus $14 million of your lifetime exemption, $6 million is left over. There is going to be an estate tax on that $6 million. That's right. That means your estate is going to have to pay tax before anything is given out to your children. But there is no cash in your estate, what do you do? Your estate will be forced to sell some of the assets. That's right. Forced to sell some of the assets to satisfy that tax before anything is given out to your children. Ladies and gentlemen, welcome to what I call the death tax. It is also referred to as an inheritance tax or an estate tax to make it look so nice. It's really nasty.
Speaker 2:If you have a tax preparer and you do not have a tax advisor, the only way you can save money on taxes is by using proactive tax planning strategies that only a tax advisor can give you. Bora's put together a free PDF for you, the business owner Seven tax write-offs every S-corporation business owner must know. In this PDF you can find seven tax strategies that you can start using in your business to instantly start saving money on taxes. Click on the link in the description below for a free download.
Speaker 1:Okay, so now let's talk about how can you do some estate planning. By the way, I always say if you're a successful business owner, you do not have a tax advisor. Get yourself a tax advisor, because the only way you can pay less in taxes now and less taxes your children will pay in the future is if you get yourself a tax advisor. And if you've got an accountant that's just putting the right numbers in the right boxes, you are overpaying its taxes. All right, let's talk about trusts. How can trusts actually help you with estate planning? So think of it this way, and I'm talking about specifically irrevocable trusts, right? So we're not talking about living trusts, we're talking about irrevocable trusts. And why are they such a powerful tool for estate planning? So remember that example that I told you about real estate and it is worth 20 million dollars at the time. That, for example, if you pass away, right? So if you bought that real estate, let's say when it was two million dollars I'm just going to use a very simple example. Right, you bought this plot of real estate. You're like, oh, this area is going to boom and this real estate is going to be worth $100 million, 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 going to open up a trust, which is generally they're referred to as dynasty trust. Okay, you're going to open up a trust and you're going to gift that real estate to that trust. Now, that trust is now going to observe this real estate and this real estate is going to be owned by this trust. But again, ladies and gentlemen, don't take just this and run with it. Definitely speak to your tax advisor and you should have an estate planning attorney on your team to be able to do this. All right, so, again, this is just purely for educational purposes. Now, again, what you're going to 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 your estate does not, end up paying any estate taxes. But you've got this trust and this trust has beneficiaries and you can make stipulations in this trust. My beneficiaries, that are, my children, can get these assets distributed to them, not distributed to them when they reach a certain age. Or you know, like, hey, if my children get married, something like that. You can make it up as you go, but definitely speak to your tax advisor. But estate planning is so important because I just work.
Speaker 1:I'm currently working with a client that has a super wildly successful business and they're building an app and this app is going to be a phenomenon, right, like it's going to be amazing, and based on the valuation right now I mean not right now, excuse me based on the future valuation this app could be worth hundreds of millions of dollars, right? So, like all, right, I'm like let's take a step back for a second. This app is worth nothing because it is in a development stage, but it could be worth many, many millions of dollars of taxes. So we got connected with an estate planning attorney. Remember, you always want to have a tax advisor working together with you, and estate planning attorney or financial advisors whoever you have, because tax advisors know exactly what type of questions to ask and hopefully you've got the right tax advisor, okay. So I'm like, hey, let's get with the state planning attorney. I'm like, hey, this client has this asset that may boom and looks like this could be a big hit great. So now there's planning involved to make sure that we use this information right. We use excuse me, we use this planning to put this asset, this app, into a trust so we can do proper estate planning.
Speaker 1:So when the person does pass away my client passes away the estate is less than $14 million, because if her estate is less than $14 million, there's no estate tax and you can do this practically with any asset that you own. Again, do it with the help of your tax advisor, of course. So, again, that could be your real estate. That could be your new businesses that you started, or certain businesses that are going to do very, very well and be valued very, very high Certain businesses. You can transfer that interest into your trust, protect it so that when your children inherit it, you don't have to pay any estate tax. All right, I hope this was super helpful. Now that you understand what is an estate planning, you understand the importance of estate planning and how your children can actually keep what you give them. Thanks so much.
Speaker 2:That's it for today's episode. Be sure to check out the description below for some free tax reduction resources that Boris put together for you. If you're ready to work with a tax advisor on your tax planning, be sure to schedule your call by heading over to wwwtaxplanningcallcom. That's wwwtaxplanningcallcom. And be sure to subscribe to our podcast to be notified when the next strategy is released.