There are various ways. In most states that base their death taxes on the federal estate tax, steps that avoid federal tax also avoid state tax. If your state imposes some other kind of death tax, your professional advisor can help minimize the state tax by actions specifically adapted to that tax. The government long anticipated this one. There are, however, a few exceptions to this rule.
Any property given to a tax-exempt charity avoids federal gift taxes.
And money spent directly for someone's medical bills or school tuition is exempt as well. Inc. All Rights Reserved.