Posted over 10 years ago Passing inheritance to future generations I have to disagree with some of the info posted here on Bigger Pockets about this topic. Here is my view. You really can take it all with you or rather leave it all for future generations. It really isn't the mystery that most people try to make it out to be. DISCLAIMER---I'm not a CPA, attorney, or EVEN a college grad. Just the smartest, most knowledgeable, well versed real estate guy you'll ever know.(I was actually called that by an acct friend of mine once!)tic. There are a lot of estate planning things you can do.Of course, if you don't own real estate or a business, don't worry. You won't have any assets that the govt. will still want!! I say that jokingly, but truthfully. 1/3 of the people 2 years ago were worth less than zero! They had a negative net worth. If you added up their assets and deducted liabilities, they had a negative net worth. If you took the HOME equity that people had out of the equation, the % of negative net worth people jumped to 2/3! Well, guess what has now happened? Most have lost their home equity and now the number of those with net worth below zero is 50%. SO, I stand by my previous comment that if you're in the majority, you don't need to worry. Do your own calculations and see if you need the rest of this blog.If you do need or think you'll need some advice, here is what one couple did... My wife and I have a first to die trust. First spouse to die has assets divided into 3 trusts. One for surviving spouse in a survivors' trust, one for an exemption trust of the deceased up to exempt amount, and the balance to a survivor trust . These eventually work their way down to a generation skipping trust that is an IRREVOcable trust for asset protection. It has to be irrevocable or it may be attached by creditors. You can be forced to change the terms and be subject to creditors in a REVOCABLE trust. Attorneys love those kind, because they make big bucks defending your butt. We set this up for the benefit of grand kids and future generations.There are certain requirements for them to qualify for a portion of the funds. The funds may only be used for certain items and they can't have any convictions for drug or alcohol related incidents. I don't want my hard earned money going up someones' nose. This is all in an irrevocable family trust for their benefit. My wife and I trade turns being the trustee. This trust, by way of the trustess is the actual owner of all interests of all LLCs we have, so those are not touchable either. There is even a Poison Pill provision, but if you want to know what that is, PAYan estate attorney to tell you. If he doesn't know what it is, he isn't a good estate attrny and you need to find a new one, imo.This is a GST or generation skipping trust. I purposely skipped my 6 kids. I've tried to teach them about money, entrusted them with money and taught them what they need to do to provide for their families. Some of them have learned these things. Some haven't. Well, if they haven't learned them and put them into practice, what do you think the odds are they've taught my grand kids how to handle money? Nil!! So, this gives my grand kids a leg up that they may not have learned from their parents.It skips some of the estate costs and taxes. There are other tricks of the trade as Will said to begin the process. There are nice 1031 deals that you may delay the tax consequences literally for ever. You can refi real estate to pull all the equity out to enjoy tax free. Lots of ways to NEVER pay income taxes, or estate taxes,imo.My wife DID make me purchase a substantial life insurance policy (term) to pay any significant portion of the estate taxes that may be owed. That was so the estate would not be reduced by the tax man before it did some good for the youngins.I"M NOT AN ATTORNEY, but paid a ransom for this info. I avoid the taxes by just not selling, and continue the growth of the estate, pass much of it on with no taxes and leave a legacy for future generations. My wife and I direct it, but have no liabilities to lawsuits etc. We also live an enjoyable life, travel a lot, give some away and look in the mirror each day and feel good.This has been a fun experience and we continue to have fun ones which we readily share on a daily basis. Rich in FL.