A trust is therapeutic for estate planning for those who have considerable amounts of property. By establishing a specific living trust known as an A-B Trust, an individual can lessen amount of taxes paid significantly. For example, in 2012, the present estate tax is $5.12M with a cap at 35% the actual $5.12M. In an A-B Trust with any passing their assets with their one kid, they would designate half the fund to the surviving spouse and the additional half towards the kid. The surviving spouse and the small child will then each be given a tax break of $5.12M giving a sheltered total of $10.24M from estate taxes. Once the surviving spouse passes, then his/her half is giving to the young child who will probably be subject 1 $5.12M tax break. Unlike a trust, a will however can only have a tax break of $5.12M.

As an exclusive wealth management advisor, I have been helping clients from both sections. Those who have accumulated considerable wealth would like to hang on to it