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There are a number of techniques and estate planning tools that may be utilized to reduce or eliminate federal estate tax. Some of these include the unlimited marital deduction, gifting, and trusts. The use of life insurance may also be considered to provide the cash needed at death to pay federal estate taxes. “A will takes effect only when you die,” says Kristi Mathisen, a CPA and estate planning attorney at the Seattle wealth management firm of Laird Norton Tyee. “A living trust takes effect when you execute it and begins to operate when you transfer assets to it. So if a person who makes a will becomes disabled, Will documents are state-specific to ensure their validity. In addition to a will, you can create a host of other estate planning documents through Willing, including a living will, durable power of attorney, transfer on death deed, and revocable living trust. While this will maker doesn’t offer legal support, 5 Key Estate Planning Tools Five key tools can work together to help you plan your estate. Wills. Trusts. Powers of attorney. Living will. Life insurance.
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