A Common Myth. Some people believe that avoiding the federal estate tax is the key purpose for making a Living Trust. They argue that since Living Trusts save taxes for married persons with estates valued above the estate tax exemption, there is no reason to create a Living Trust if one does not expect to exceed the exemption amount. The amount a person can leave to heirs without estate tax is $5.34 million for 2015, indexed annually for inflation. Because that exemption can be doubled for a married couple under the new “portability” law, some people argue that a trust is not called for unless you have an estate worth at least that amount. (For more explanation of how Living Trusts save estate taxes for married couples, see the section below entitled “How a Living Trust Helps Save Federal Estate Taxes if You Have a Taxable Estate.”). Learn more by downloading!
Zimmer Law Firm
Estate Planning & Elder Law Attorneys
