Do revocable trusts avoid estate taxes?

No. A revocable trust does not avoid estate taxes although it may avoid the expense of going through the probate process if your assets pass under a will instead of a trust. The trust’s assets will still be part of a decedent’s estate for estate tax purposes. Married couples can defer the payment of estate taxes by using revocable trusts which contain what is known as  a “credit shelter trust” (also known as a by-pass trust.)

Posted in: Estate Planning and Elder Law