But while you'll save on probate, you should pay to have a qualified professional establish a living trust. Estate laws are complex and vary from state to state, so get a specialist to make sure your trust is set up correctly. And if your estate is large, a living trust won't help you with taxes. Wise and diligent investors are likely to see their total assets increase in value in the coming years, pushing the tax-free limit. In almost every case, you can plan around them.
People end up paying just because they're unaware of their options.
One of the easiest options is sharing the wealth while you're still around. This generosity can reduce an estate's value, and possible tax, substantially. Grandma can do the same, doubling the amount of the estate's value that won't be taxed. In addition, estate holders can pay unlimited tuition and health care expenses for anyone without incurring any tax. Sometimes, though, giving away assets to reduce an estate is not a pleasant exercise.