Many people believe (or are told) that a Revocable Living Trust can reduce estate taxes.
This is a very common estate planning myth. A Revocable Living Trust does not reduce your estate taxes. The main purpose of a Revocable Living Trust is to avoid probate, plan for disability/ incapacity and to protect your privacy.
A married couple can incorporate other Trusts such as A-B Trusts into their trust-based or will-based estate plan to reduce their estate taxes, but only the trust-based estate plan can avoid probate, plan for disability/ incapacity and protect their privacy. A will-based estate plan does not provide these protections.
