>>Has anyone looked into an 'A/B Trust'? <<Am currently setting one up. These appear to be highly useful vehicles for maximizing the use of the FET exemption for both husband and wife. (currently about $650K each, rising to $1M each in a few years) But it appears to me that variations in state laws make it almost imperative to use a knowledgible attorney to set one up. For example, in California I discovered that because we were holding property title (in both real estate and brokerage accounts) as Joint Tennants with Right of Survivorship, this would have caused some loss of the step up in basis for appreciated property. The mortgage lenders/title companies/discount brokers don't tell you that. We should have held title as Community Property. (The A/B trust takes care of those issues.) I have heard that other Community Property states are different. So you need someone well versed in local legal requirements. Setting this up was also a excellent checkpoint on ensuring that we have properly set up beneficiary's, guardian plans, powers of attorney etc. in the event of disability or a "premature passing."So I say look into it, but with a good estate attorney. (Arrgg, did I just recommend using a lawyer? The horror....)--BobI'm not an attorney, don't play one on TV, hate 'em all except for the ones I know, and this is not legal advice. YMMV Add other disclaimers here.