A great way to save your family the cost and hassles of probate court proceedings after your death is to create a revocable living trust. It's takes about the same work as writing a will, and allows everything to go to your heirs after your death, without the costs and time delays associated with probate court. While you're alive, you can revoke or change your trust anytime, and it has no effect until you die. You can do the same thing, in 29 states, with securities. If you own enough property to be affected by federal estate taxes, consider a tax-avoidance trust, as well.
Most estates are never subject to tax, but if estate tax does kick in, it can kick in big.
One way to reduce estate tax is to give away property before your death. If you don t own it, then it can t be taxed. Still, an annual gifting plan can reduce the size of even a big estate, especially if you have a covey of kids and grandkids. Another way to cut taxes is to create certain kinds of trusts. Couples often create one known as the AB trust, the most common trust.