Would A Living Trust Help Me?
The main purpose of a living trust is to avoid probate of the assets
in the trust. While many promoters of living trusts tout their use in
reducing estate taxes, in truth the existence of the trust itself has
absolutely no effect on the estate taxes to be paid. However the
trust can utilize other benefits of the tax law, in order to achieve
estate tax savings. However any estate tax savings could have been
just as easily achieved without having a living trust in place.
Since the cost and advisability of going through probate will vary
with the laws of your state and your individual circumstances, it
would be wise to get a second opinion before agreeing to a living
trust simply to avoid probate. If you own assets that are physically
located in more than one state, such as a vacation home in a different
state, a living trust to avoid the expense of probate in the second
state may be advisable. Speak to your attorney to discuss this issue
in your specific situation.