Estate Tax and Planning Basics
The federal estate tax exemption is $13.61 million per person (2024). Married couples can effectively double this through portability. Estates below the exemption pay no federal estate tax, but some states have lower thresholds.
Trust vs. Will
A revocable living trust avoids probate (saving 2-7% of estate value) and provides privacy. An irrevocable trust can also reduce estate tax exposure by removing assets from your taxable estate, but you give up control.