CAN I AVOID PROBATE AND ESTATE TAXES BY CREATING A LIVING TRUST?
While a living trust can be used to avoid the need to probate your estate, at least with respect to the assets held in the trust, a living trust has no impact whatsoever on estate taxes. That is because the assets you put in your living trust are still considered as part of your estate upon your death. Estate taxes are based on the value of your entire estate at the time of your death. Even people who have a living trust should have a pour-over will to address any assets that they acquired after the creation of the trust or that were simply never transferred to the trust. A pour-over will generally provides that assets held by the decedent at the time of his death be added to the living trust and distributed in accordance with the trust provisions.
