This material is for information purposes only. There are a number of advantages for a single person to establish a living trust before that person's death. The person can avoid probate and also avoid the possible future need for a conservatorship if he or she becomes incapacitated. This tax is based on the assets owned by a person at the time of death. Any assets passing to the spouse are exempt, regardless of value, provided the spouse is a United States citizen.
All assets passing to a qualified charity are also exempt.
If a person is not married, the establishment of a living trust does not save or reduce these taxes. The federal government taxes all of the assets in the trust as well as all of the assets the person owns outside of trust. The State of California has abolished the California Inheritance Tax. This is a legal proceeding designed to validate the person's will and designate the person or persons who receive the assets. Such a procedure takes approximately 9-12 months.