Real Estate Planning
One way of minimizing estate taxes is to use the gift tax. Gifts of up to $10,000 per year do not generate any taxes. Note that estate taxes do not come into play unless you have assets greater than $650,000 (the estate tax exclusion for tax year 1999).
A revocable living trust can provide three benefits.
* It provides financial protection in case you can no longer manage your affairs (such as if you were in a coma).
* The trust can function as a will, bypassing probate.
* It can be linked to a pour-over will to provide privacy in the distribution of your estate