EP Retiree and Young Newly Retired Founder Entrepreneur Estate Plans

New Jersey Retiree & Post-Exit Founder Estate Planning Playbook

NJ-savvy planning for classic retirees and younger entrepreneurs post-exit/IPO: funded Revocable Living Trusts, CST/QTIP/Clayton + portability, SECURE-Act retirement strategy, real-estate structuring, philanthropy, and ongoing stewardship.

Retirement flips the risk profile. Paychecks stop, portfolios become “paychecks,” RMDs (Required Minimum Distributions) begin, healthcare rises, and tax brackets shift. For founders who just sold or IPO’d, concentrated equity, QSBS (§1202) history, or a big liquidity event now needs defensive structure. Meanwhile, New Jersey probate is public and creditor-first—realistically a 3–7% drag on an estate once you add executor commissions, legal/accounting fees, bond premiums, appraisals, and delay. This is when planning (and updating old plans) turns from “nice to have” into mission-critical.

We don’t sell binders. We deliver strategy → drafting → funding → maintenance so your plan works at the hospital, the bank, and the Surrogate’s office.

Acronyms

RLT — Revocable Living Trust: Private, changeable hub that avoids probate if funded.
CST — Credit Shelter Trust / QTIP — Qualified Terminable Interest Property: Married-couple tax/protection trusts, often paired with a Clayton election for flexibility at the first death.
DSUE / Portability: Deceased Spousal Unused Exclusion preserved via Form 706.
SRT — Stand-Alone Retirement Trust: SECURE-Act aware trust (often accumulation style) for IRAs/401(k)s.
HEMS: Health, Education, Maintenance, Support—protective distribution standard.
ILIT: Irrevocable Life Insurance Trust (with Crummey administration for annual-exclusion gifts).
DAF / CRT / CLT: Donor-Advised Fund; Charitable Remainder/Lead Trust (tax-efficient philanthropy).
QSBS (§1202)/83(b): Qualified Small Business Stock exclusion / election for restricted stock.

Why Retirees & Post-Exit Founders Must Act Now

Eliminate Probate Friction: A funded RLT keeps successors acting without court, preserving privacy and momentum during incapacity or death.
Capture Tax Options While You Still Can: File 706 to lock portability (DSUE); size CST vs. QTIP with a Clayton election after real values are known; consider reverse QTIP for GST alignment.
SECURE-Act Reality Check: Outright IRA beneficiaries often suffer accelerated taxation and zero protection. An SRT (accumulation) paces 10-year withdrawals, coordinates brackets, and shields inheritances.
Asset Protection For Heirs: Children’s Lifetime Trusts (HEMS + limited powers of appointment) protect from divorce, creditors, and overspending—no “dump” ages.
De-Risk Concentrated Positions: For founders/executives, use CRT to diversify low-basis stock with income; use DAF for immediate deductions and multi-year giving.
Right-Size Insurance & Liquidity: ILITs can fund estate liquidity and legacy while staying estate-tax-free when administered properly.
Real Estate That Behaves: Deed personal homes into the RLT; hold rentals in LLCs owned by your RLT; write shore-house usage/buy-out rules so siblings won’t fight.
Elder Law Timing: If long-term care is a concern, early MAPT modeling and caregiver agreements preserve options.

Your Core Build

What We Deliver...

RLT-Centered Suite
- RLT + pour-over Will; DPOA (Durable Power Of Attorney); Advance Directive/Healthcare Proxy (AD); HIPAA authorization.
- Funding ledger + confirmations (deeds, titles, POD/TOD, beneficiary forms) stored in your secure vault.
Married Architecture
- CST/QTIP with Clayton election; 706 portability filing; optional reverse QTIP for GST tax planning.
Retirement Accounts (SECURE-Act Aware)
- SRT (accumulation) as primary/contingent IRA/401(k) beneficiary; bracket modeling with your CPA/EA.
Philanthropy & Gains Management
- DAF for simple giving (one receipt, anonymous option).
- CRT to sell low-basis assets tax-efficiently and generate lifetime income; CLT where wealth transfer/leverage is the goal.
Insurance & ILIT
- In-force review; align ownership; consider ILIT for tax-free liquidity; stand up Crummey calendars and archives.
Real Estate & Entities
- Bargain & Sale Deeds to the RLT (NJ norm); rentals into LLCs owned by the RLT; insurance (home/umbrella/flood/wind) retitled; shore-house governance built into the trust.
Ongoing Stewardship
- AMP (Annual Maintenance Program): annual review, funding/beneficiary audit, minor amendments, trustee training.
- CCP (Continuing Counsel Plan): quarterly Advisor Summits with CPA/EA & CFP®/RIA; ILIT/SRT oversight, philanthropy cadence, QSST/ESBT compliance for any S-corp exposure.

Founder-Specific Layer (IPO/SPAC/Exit)

QSBS / §1202 Mapping: Preserve 1202 eligibility where possible; structure gifts/sales accordingly; pair with trusts carefully to avoid losing exclusion.
83(b) & Vesting History: Align trust design with past elections; avoid inadvertent inclusion or loss of capital-gains character.
Pre- and Post-Liquidity Stacks: Consider CRT pre-sale for minority slices; after liquidity, deploy DAF and restructure concentrated risk inside the RLT/LLC stack.
S-Corp Shares: If legacy S-corp remains, ensure QSST/ESBT pathways so trusts can legally hold shares.

New Jersey-Specific Touchpoints for Retirees

Probate Reality: Public, creditor-first, and commonly 3–7% all-in drag once you add fees, commissions, bond premiums, appraisals, and delay—avoid with a funded RLT.
Deeds: Bargain & Sale preferred for trust funding; reserve quitclaim for narrow, title-approved fixes.
Inheritance Tax: Class A (spouse/lineal) exempt; siblings, nieces/nephews, friends may trigger tax—design timing and classes accordingly.
Shore Homes: HOA approvals, NFIP flood/named-storm riders, tidelands/riparian notes; write usage/buy-out rules into the trust.

Common Mistakes We Prevent

For Entrepreneurs and Recent Retirees

Unfunded RLTs → probate anyway.
No 706 at first death → portability (DSUE) lost.
Conduit-only IRA language → forced, fast taxation to heirs.
ILIT without Crummey → gifts lose annual-exclusion treatment.
Shore house left “to the kids” with no rules → sibling wars and fire sales.
Post-exit concentration left unmanaged → tax and risk whiplash.

How We Work

Design → Draft → Fund → Maintain

DDM (Design & Discovery Meeting): Family, assets, entities, healthcare needs, philanthropy goals.
Modeling: CST/QTIP/Clayton + 706; SRT cash-flow and tax pacing; CRT/DAF side-by-sides; real-estate/LLC maps.
Draft & Sign: Cohesive documents banks and hospitals honor.
Funding: Deeds, titles, beneficiary changes, ILIT notices; upload confirmations.
Maintenance: AMP for most; CCP for HNW/UHNW and complex families.

FAQs

Do I really need to update my old will from 2008?
Yes. Laws (especially the SECURE Act) and your asset mix have changed. We prefer a new Will, and we restate/amend/replace trusts case-by-case—then fund everything.

We’re married with no kids—do we still need CST/QTIP?
Often yes. CST/QTIP/Clayton + 706 locks DSUE and lets us balance basis vs. transfer-tax goals.

Can a CRT help with my low-basis company stock?
Yes. A CRT can diversify tax-efficiently and pay you income for life, with the remainder to charity (or your DAF).

Should rentals be in my trust?
Hold rentals in LLCs for liability; your RLT owns the LLC interests to avoid probate and centralize control.

What about long-term care?
We model MAPT timing, LTC insurance, and caregiver agreements early—waiting narrows options.

Book A Strategy Call

Fund an RLT, implement CST/QTIP/Clayton with a 706 filing, route retirement to an SRT, de-risk concentrations with CRT/DAF, and put rentals into LLCs owned by your RLT—then maintain via AMP/CCP.

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Estate Planning For Retirees & Newly Retired Founders (NJ)

You’ve built the nest egg—now harden it. Update documents, reduce taxes, protect heirs, and streamline everything so wealth actually lands where you intend.