Estate Planning Myth #1

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.

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