The IRS, Your Irrevocable Trust, and You: Why Your Kids Might Say Thank You!

Wellthi warriors, gather around for a story more twisty than your last TikTok dance trend. It’s about the tax boogeyman – IRS and its March ruling that has rocked the world of estate planning.

So, you’re thinking, “Trust? Isn’t that what my last ex had issues with?” Nope, not today! We’re talking about irrevocable trusts. These bad boys have been a favorite of families trying to protect their assets and qualify for benefits like Medicaid and VA Aid and Attendance.

Now, imagine your assets as your college GPA. If you pass them on when you’re still kicking (like selling them), you’re taxed based on the difference between the purchase price (freshman year) and selling price (graduation). It’s like going for that Dean’s list but ending up with a wicked hangover and a B- in Spanish.

But, if you pass on assets after your death, they get a step-up in basis. It’s as if your beneficiaries bought the asset at its current market value, not when you first purchased it. This skips any capital gains taxes, leaving your kids to spend their inheritance on something more fun than taxes (like vegan, gluten-free, probiotic donuts).

But how about the assets chilling in your irrevocable trust? They were in a strange limbo, neither with the original buyer nor passed on to beneficiaries. Post-March 2023, the IRS declared these assets won’t get a step-up in basis. This means more taxes for your kids, leaving less money for their avocado toast habit.

Now, if you’re anything like us, you’re wondering, “Why bother with irrevocable trust planning?” Well, remember that friend who convinced you to join that “Tough Mudder” race? It seemed painful at first but ended up saving you from a spin class disaster.

Long-term care can cost up to $10,000 a month, which is more than the entire Friends cast spent on coffee at Central Perk! Programs like Medicaid or VA Aid and Attendance can help, but you need to deplete your assets before qualifying – enter, the irrevocable trust.

The IRS ruling states that only assets not included in your estate for tax purposes at death will lose the step-up. Properly setting up an irrevocable trust can include the assets in the taxable estate at death, meaning no capital gains taxes, no estate taxes, and a tax-free inheritance for your kids!

In short, think of an irrevocable trust like your favorite mystery series: It needs careful planning and a brilliant lawyer to save the day. Remember Tom and Jane? They sold their $250,000 house they bought for $100,000. Without an irrevocable trust, their kids are stuck with capital gains tax on the $150,000 growth. With an irrevocable trust (properly worded, of course), the kids owe nada on capital gains.

So, my Wellthi warriors, strap on your financial battle armor and plan. The world may be complex, but with sound advice and our trusty Wellthi GPT by your side, your financial future can still have more wins than the current world champions. Now, who’s up for a victory dance?

Go Deeper

Trust Funds: Your Child’s Golden Ticket to a Secure Financial Future? (Wellthi)

What Is an Irrevocable Trust? (Investopedia)

What You Need to Know about a Revocable vs Irrevocable Trust in Estate Planning (Trust and Will)


Talk to a Financial Advisor at Citizens Bank

Wellthi side hustles

Fashion Your Future: Transforming Side-Hustles into a Fabulous Financial Runway

👠 The economic world is getting a style makeover! The little black dress of side hustles is now an essential accessory in your financial wardrobe, according to a 2023 survey from LendingClub and PYMNTS. They reveal that Americans are strutting a cool $52 billion a month from side jobs, with almost half of us taking up an extra gig.

👜 Like a versatile clutch that takes your outfit from office-chic to cocktail-ready, the right side hustle can amp up your earning potential. But let’s face it, in the era of Instagram influencers and gig economy, these side jobs have become the Nike of our work-life mix, complementing our primary occupation, and fitting snugly with our dynamic lifestyles.

💄 Balancing your love for your side job with the need to earn extra income can be a tricky task, akin to finding the perfect red lipstick that suits every occasion. You may love crafting your handmade knits, but if you only sell one every month, it might be time to re-think your strategy.

Did you know? By creating goals and sharing them in public with your friends and family, you’ll increase your chances of success! You can download the Wellthi app here, if you act by July 3, you could win $10,000 for just posting your financial goal in the app!

👒 Before stepping into this side-hustle fashion show, consider tax and legal implications, and ensure you’re not strutting into conflict with your employer’s policies.

👗 Want to start your hunt for the perfect side hustle? Check out “part-time” and “remote” options on job boards like LinkedIn and Indeed. Turn your living room into a runway by starting your own small business, though keep in mind, the payoff might take a few seasons.

🛍️ Now, let’s talk shop. Here are seven chic online side hustle ideas for you to try on:

  1. AI Prompt Writer: Just like that casual look you took hours to put together, getting great results from AI may look easy but it’s not. Jump into the newest job fashions by studying tutorials available for free online.
  2. Online data rater: With AI everywhere, this job is as trending as bucket hats this season.
  3. Turn hobbies into a side hustle: Like a bespoke outfit, customize your hustle to your unique skills and interests.
  4. Online tutoring: Share your knowledge and give back to the next generation. Platforms like TutorMe and Preply offer $16-$25 per hour, much like a coveted pair of vintage Levi’s.
  5. Freelance designer: Showcase your creativity with platforms like Fiverr, much like showcasing a dazzling statement necklace at a party.
  6. Online customer service or chat support: Provide a worldwide service from your living room, as flexible as your favorite wrap dress.
  7. Part-time bookkeeping: A secure remote job for smaller businesses, akin to the comfort and reliability of your favorite pair of sneakers.

🎀 In the spirit of Wellthi, remember, your financial journey is a marathon, not a sprint. Just as Carrie from “Sex In The City” took her time to choose the right Manolo Blahniks, take your time to choose your side hustle. Our goal here at Wellthi is to help you be the financially savvy boss babe you were born to be. Remember, confidence and a clear financial path are the best accessories you can wear. So, let’s step up and strut our way to financial freedom together!

Don’t forget to download the Wellthi app here, if you act by July 3, you could win $10,000 for just posting your financial goal in the app!

Go Deeper

24 Side Hustle Ideas: Make Extra Money in Your Spare Time (Shopify)

How to Turn Your Side Hustle Into Your Full-Time Job (The Cut)

Want to start a side hustle and earn extra money? Here’s how to launch a lucrative business and bring in six figures (Insider)


Talk to a Financial at Citizens Bank


Unlock Your Financial Glow-Up: Top 5 Time-Tested Investment Rules for Success

Hey there, Wellthi Fam :sparkling_heart:

Rise and shine, because, we’re about to work, work, work, work, work, but in the financial realm, channeling some Warren Buffet vibes. This week, we’re rolling out the red carpet for our top 5 investment rules.

  • Stay In Your Lane – You don’t have to outsmart the Wall Street pros. Just be consistent with your savings and let the magic of compound interest work its wonders. The key is discipline, not genius. Check out the magic here.
  • Secure Your Bag – Always be ready for unexpected surprises. Have an emergency fund to cover 3-6 months of living expenses because life loves throwing diva moments! Calculate your safety net.
  • Don’t Risk It All – You know the saying about eggs and baskets? It applies to your investments too. Diversify your portfolio to balance out the risk. Mix it up with stocks, bonds, real estate, and more. Learn how to diversify like a pro.
  • Patience Is More Than A Virtue – It’s a goldmine! In Buffet’s words, “The stock market is a device for transferring money from the impatient to the patient.” Play the long game, and watch your wealth grow. Why long-term investing works.
  • No Room For Drama – Leave emotional decisions to reality TV. Keep your cool and stay focused on your goals, no matter what the market chatter. Here’s how to keep those emotions in check.

Ready to shine bright like a diamond? Your financial glow-up is just around the corner. Let’s slay it, one savvy investment at a time.

Stay Fab, Stay Focused,

Wellthi :green_heart:

Did you know? By creating goals and sharing them in public with your friends and family, you’ll increase your chances of success! You can download the Wellthi app here, if you act by July 3, you could win $10,000 for just posting your financial goal in the app!

Go Deeper

  1. The Power of Compound Interest
    • Article: “The Role of Compound Interest In Building Wealth”
    • Link: Linked In
    • Explanation: This article goes into detail about compound interest, which is mentioned as the “magic” in the Wellthi article. It provides an in-depth understanding of how compound interest works and how it can be used to build wealth over time.
  2. Creating an Emergency Fund
    • Article: “How to Build an Emergency Fund”
    • Link: Investopedia
    • Explanation: The Wellthi article mentions the importance of having an emergency fund. This article by Investopedia provides a guide on building an emergency fund, explaining its importance and providing strategies for saving.
  3. Diversifying Investments
    • Article: “The Importance of Diversification”
    • Link: Investopedia
    • Explanation: The third investment rule in the Wellthi article talks about diversification. This article from Forbes gives insights into why diversification is vital and how it can help in minimizing risks.
  4. Managing Investment Emotions
    • Article: “How to Keep Your Emotions Out of Investment Decisions”
    • Link: Co-Operators
    • Explanation: The last investment rule in the Wellthi article talks about not letting emotions dictate investment decisions. This article by Co-Operators offers advice on how to keep emotions in check and make objective investment decisions.

Get Cash-ual: Breaking Down the Money Taboo and Unfurling Your Finance Dreams!

Wellthi fam, how do you feel about Money Talks? No, not the ’90s Chris Tucker classic (though we love a good throwback), we’re on about breaking down the hush-hush vibes around discussing our finance goals. Like that hidden stash of Christmas chocolate, it’s time to bring your financial dreams out into the open.

Cash talk is awkward – we get it. But hey, wasn’t your first TikTok dance challenge? Rip off that band-aid and crank up the money convo. You’ll be empowering yourself and others to grab the bull (or should we say, the bull market?) by the horns.

Think about your financial goals like a good Netflix series. Share ’em! The more you discuss your goals, setbacks, and triumphs, the more you enrich our app community. Plus, someone else might just recommend your next big binge – in the form of a hot financial tip.

Dare to share: By creating goals and sharing them in public with your friends and family, you’ll increase your chances of success! You can download the Wellthi app here, and act by July 3, you could win $10,000 for just posting your financial goal in the app!

Let’s be real. Finances can be as rollercoaster-ey as that last season of Game of Thrones. Share the ride. There’s comfort in knowing others in our app are on the same dragon. It’s like a big, supportive, budget-savvy friend group – but without the awkward brunch bill splitting.

Remember how you ran a little faster in gym class when your crush was watching? Same deal here. Making your goals public ups your motivation to hit them. Your success becomes the community’s success, and hey, who doesn’t love a good reason to throw a virtual confetti party?

Opening up about your finance goals is like turning the volume to 11 on your road to financial growth. Our app is here to make talking about money as normal as posting pet pics (almost). Your journey might just inspire someone else, and that’s a win we can all get behind.

Stay locked in for our next post, where we’ll drop some wisdom on how to get the most out of sharing your financial goals on Wellthi. Ready to let your finance flag fly? We thought so!”

You can download the Wellthi app here, and act by July 3, you could win $10,000 for just posting your financial goal in the app!