The applicable estate tax exclusion increased to $3,500,000 on January 1, 2009. Unless and until Congress acts again, we will have estate tax repeal in 2010, followed by the sunset of the new law in 2011, and a return of the effective exclusion amount to the $1,000,000 level set forth under prior law. For those whose estate exceeds the estate tax exclusion amount and is thus subject to estate taxes, the tax burden is huge. With proper planning, the tax owed at your death can be substantially reduced or eliminated entirely. One of the most common strategies for married couples for reducing or eliminating the burden of estate taxes involves setting up Revocable Living Trusts which incorporate tax-wise Family Trusts, which allow married couples to take advantage of the estate tax exemption for both spouses, if a viable funding strategy is also established. Some of the other more common strategies include establishing annual giving plans and establishing life insurance trusts. Some clients will use various charitable giving strategies, and others will carefully plan large lifetime gifts, frequently involving specific trust designs. To find out what estate tax planning strategies would be available and beneficial for you and your family, please contact our office to schedule a consultation with an estate planning attorney.