Why would someone want to set up a Trust if doing so cannot avoid all federal estate taxes?
Because you can reduce or avoid probate after death (taking the information on a Decedent’s Property Owned at death before a judge in each state the decedent owned property), specify who might serve as your guardian if you become incapacitated, more privacy because the trust is less likely to be publicly litigated, and offer much greater protection of your assets from the creditors of people who’d like to have your money at death. With a living trust, if you’re going through a divorce, for example, you can set it up so your spouse cannot renounce it and seize 1/3 to 1/2 of your estate as a matter of law. If you’d like your son who has huge college loans to pay off receive the money without interference by creditors, the trust is also a better option.
