Understanding Living Trusts®
How You Can Avoid Probate, Save Taxes and More
17. How can a living trust save on estate taxes?
If you die in 2009 and the net value of your estate (assets minus debts) is more than $3.5 million, federal estate taxes must be paid on the excess at a rate of 45%. If you are married, your living trust can include a provision that will let you and your spouse leave up to $7 million estate tax-free to your loved ones, saving up to $1,575,000 in taxes.