Living Trust FAQ
An introduction to living trusts -- a popular way to avoid probate.
What is a living trust?
Why should I make a living trust?
How does a living trust avoid probate?
Is it expensive to create a living trust?
Is it a hassle to hold property in a living trust?
Is a living trust document ever made public, like a will?
Does a living trust protect property from creditors?
If I make a living trust, do I still need a will?
» Can a living trust reduce estate taxes?
Can a living trust reduce estate taxes?
A simple probate-avoidance living trust has no effect on taxes. More complicated living trusts, however, can greatly reduce the federal estate tax bill for people who own a lot of valuable assets.
One tax-saving living trust is designed primarily for married couples with children. It's commonly called an AB trust, though it goes by many other names, including "credit shelter trust," "exemption trust," "marital life estate trust," and "marital bypass trust." Each spouse leaves property, in trust, to the other for life, and then to the children. This type of trust can save up to hundreds of thousands of dollars in estate taxes, money that will be passed on to the couple's final inheritors. To learn more about tax-saving trusts, read Tax-Saving AB Trusts.
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Quicken Willmaker Plus can create a living trust or an AB trust for you. If you need to update your other documents, Quicken Willmaker Plus also contains wills, financial powers of attorney, and health care directives (living wills).
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