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Is probate and
estate taxes related?
Not really. Some
Financial Professionals believe if your estate is less than $600,000 you
probably do not need a Living Trust. From a federal estate tax
perspective they are right. They are often wrong on the probate process.
Why?
Estate taxes are
calculated on the net estate; whereas, probate fees are calculated on
the gross estate. Avoiding probate through the use of a Living Trust
does not eliminate any Estate Taxes due. Not having any Estate taxes
does not prevent you from going to probate. Estate Taxes and Probate are
two separate matters.
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