$300K Mistakes & Step-Up Secrets: What CPAs Know About Wealth Transfer | Nancy Phillips, CPA

How do you protect your wealth—and your family—from unnecessary taxes, infighting, or outright disaster?

In this episode, host Matt Templeton sits down with veteran CPA Nancy K. Phillips, who brings more than 35 years of experience in estate tax, trusts, and inheritance planning. Nancy has helped families untangle multi-generational estates, testified in IRS disputes, and trained other CPA firms in how to handle the most complicated trust and estate issues.

From heartbreaking family feuds to brilliant planning strategies, Nancy shares the real-world stories and critical tax insights that every family and advisor should hear. If you want to avoid costly estate mistakes and learn how to build a smarter transfer plan, this episode is for you.

📄 Show Notes:

Guest: Nancy K. Phillips, CPA
Host: Matt Templeton
Episode Title: $300K Mistakes & Step-Up Secrets: What CPAs Know About Wealth Transfer
Bio: Nancy Phillips has spent over 35 years in tax, accounting, and estate services. She started her practice in 1985 and has trained other CPA firms on trust and estate tax work. A recognized expert witness, she advises families, trustees, attorneys, and wealth planners across Texas.

📌 Episode Highlights & Timestamps:

• [00:01:00] Nancy’s background: from Big 8 accounting to leading complex estate tax work

• [00:02:00] Shocking estate mistakes: handwritten wills, no wills, and two wills signed on the same day

• [00:04:30] What is a Family Settlement Agreement—and how it overrides your will

• [00:06:30] When siblings fight over heirlooms and figurines: how emotion ruins estates

• [00:10:00] “I can’t get my sister out of Mom’s house”: eviction battles in inheritance

• [00:11:00] Nancy’s family strategy: drawing addresses from a hat to avoid fractional real estate chaos

• [00:14:00] How to fairly divide household items without family drama

• [00:16:00] The step-up in basis rule explained—why dying with real estate is often smarter than gifting it

• [00:17:00] Real-life horror story: a $200K tax bill from selling property one month too early

• [00:21:00] Using 1031 exchanges, DSTs, and REITs for smart real estate transfer (featuring Nancy’s personal experience)

• [00:26:00] Estate tax thresholds, gift tax exemptions, and advanced gifting through FLPs

• [00:29:00] How to gift minerals, stocks, or real estate smartly—and avoid carryover basis traps

• [00:32:00] Why you shouldn’t dump 10 properties in one year: tax bracket strategies for widows

• [00:34:00] The hidden cost of having 60+ accounts: how to simplify your finances before you die

• [00:37:00] The trap of illiquid partnerships—and what to do if you inherit them

• [00:38:00] Should you tell your kids what you have? When and how to include them in financial conversations

• [00:41:00] Training the next generation: why Nancy took her son to closings starting at age 13

• [00:43:00] Who Nancy helps: estate attorneys, trustees, family offices, and clients with complex assets

💡 Key Takeaways:

• Dying with real estate often beats gifting—it allows heirs to reset the tax basis and avoid depreciation recapture.

• Handwritten or DIY wills cause chaos and court battles; hire a professional to draft it right.

• Family Settlement Agreements can override a will—usually after bitter infighting.

• Gifting early can erode future tax advantages; beware of carryover basis when transferring assets pre-death.

• Consolidate accounts and track assets clearly to avoid confusion, lost wealth, and excessive fees.

• Talk to your heirs before death—especially if they’ll be in charge. Waiting until after you pass often causes tension or lawsuits.

📞 Connect with Nancy Phillips:
📧 Email: NancyKPhillipsCPA@DallasTXCPA.com
📞 Phone: (214) 361-2444
🌐 Website: www.nkphillipscpa.com

📬 Contact Matt for Estate-Smart Real Estate Planning:
📧 Email: matt@templeton.realestate
📱 DM us for help with wealth transfer, 1031 exchanges, property inheritance, or time-of-death valuations