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If you are married and have grown children, the best and most popular way to avoid estate taxes is probably through an AB Trust, or a marital life trust. In an AB Trust, the spouse put their property in a trust, and when one spouse perishes, his or her share of the property goes to the children. However, the surviving spouse still gets the right to use the trust for the rest of his or her life. Then, when the second spouse perishes, the entire trust goes to the children outright. In this situation, probate taxes can be avoided.

However, AB Trusts can be tricky because they control the property sometimes for many years after the first spouse has deceased. For instance, if one spouse perishes, and the surviving spouse lives for 30 more years and remarries during the interim, or even has additional children, the assets of that AB Trust still fall according to the rules of the trust when the first spouse has perished.


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