How does a Living Trust save on Estate Taxes?
Currently, if the net value of your estate when you die is more than $1,500,000.00 federal estate taxes of up to 50% must be paid. If you are married, a living trust will allow you and your spouse to pass on up to $3 million tax-free to your beneficiaries, saving hundreds of thousands of dollars in estate taxes plus thousands of dollars in probate costs. Similar tax planning can be done with a trust in a will, but you do not avoid probate. A living trust also makes a great base for additional tax planning, including ways you can give to a charity or foundation so that both of you benefit.
