Latest / The High Net Worth Podcast with Fexingo: Wealth Management, Tax Strategy, and Affluent Finance
How Ultra-Wealthy Families Use Blocked Income Trusts for Tax Deferral
Episode 59 dives into the blocked income trust, a niche structure that allows ultra-wealthy families to defer taxes on carried interest or concentrated compensation for years—even decades. Lucas explains how a fictional hedge fund manager named Alex uses a blocked income trust to spread his $50 million carried interest payout over 15 years, reducing his top marginal rate from 40.8% to an average of 28%. Luna questions the IRS scrutiny and the 2017 tax law changes that capped deferral periods. The hosts also discuss how this strategy compares to the more common deferred compensation plans used…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.