Hey there! I’m Tony Leonardi, CFP® and author of A Smarter Way to Retire, recording magically while I’m in Florence, Italy, where I’ve been vacationing with my family. We’ve marveled at Michelangelo’s David, the Uffizi Gallery, Il Duomo, and Ponte Vecchio, savoring the food and wine. Check my Instagram (@TonyLeonardiCFP) for trip highlights! But today, let’s focus on legacy and estate planning—crafting a plan as enduring as a family heirloom.
Why Legacy Planning Matters
Legacy planning helps to ensure your wealth benefits your family or charities, not the IRS, in a smooth, orderly, and tax-efficient way. With the 2025 gift tax exclusion at $19,000 per recipient and an estate tax exemption near $14 million per person, strategic planning minimizes taxes and probate costs. Since becoming a CFP® decades ago, I’ve seen the estate tax exemption change eight times—averaging every five years—from $600,000 to today’s $14 million. A client with a growing family business faced a 40% estate tax hit, nearly forcing a sale, but planning reduced it by 20% and saved the family business from the taxman.
Beyond Taxes: Control and Efficiency
Legacy planning isn’t just for the wealthy—it’s about control. Without a plan, probate or taxes could erode your wealth. Consider: Do you want assets protected from a child’s divorce? Will you sell a business tax-efficiently or pass it to your kids, ensuring fairness for those not involved? Our AI-powered smart planning software models scenarios to align your legacy with your goals—selling, gifting, or philanthropy.
Five Proven Strategies
- Annual Gifting: Gift $19,000 per person tax-free in 2025. A couple gifting $38,000 yearly to their kids cut their estate by $190,000, saving $76,000 in taxes.
- Trusts: Revocable trusts avoid probate. A $7 million estate client saved $250,000 using a living trust.
- Charitable Trusts: A $500,000 charitable remainder trust saved $100,000 in taxes while supporting a cause.
- Roth Conversions: Converting $100,000 annually to a Roth IRA reduced RMD taxes by 15% for heirs.
- Life Insurance in Trust: A $1 million policy in an irrevocable trust kept proceeds tax-free, saving $400,000.
Combine these for maximum impact—a couple saved over $1 million using gifting and trusts.
Craft Your Legacy
Work with a CFP® and estate attorney. I act as your architect, evaluating your portfolio and goals, using smart software to highlight weaknesses and design an optimized plan for your attorney to draft. Book a complimentary consultation at LeonardiFamilyWealthcare.com/assessment or grab my free ebook at LeonardiFamilyWealthcare.com/ebook. A client recently saved $150,000 maximizing gifting.
Take Action
Build a lasting legacy with a plan. Follow us on Instagram (@TonyLeonardiCFP) and Facebook (Leonardi Family Wealthcare). Subscribe on Spotify, Apple Podcasts, or YouTube, and leave a review. Next week: diversification strategies. Plan smart, retire happy—ci vediamo!