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A Living Trust that gives full “outright” ownership of the inherited assets to the beneficiaries (which is exactly what most trusts do), needlessly exposes them to the claims of ex-spouses, creditors, lawsuits, the government and estate taxes.
The court will decide, or you will decide.
Many individuals are under the impression that their will alone is sufficient to avoid probate. Unfortunately, a will is simply an expression of your wishes and must go through some kind of court process before the assets can be distributed to the heirs.
This depends on the type of tax, the asset and the value of your estate.