Married couples with large estates can minimize or even eliminate estate tax liability by using tax saving trusts. There are two different types: marital deduction trusts and bypass (also known as credit shelter) trusts. Both of these trusts can be incorporated into either a will or a living trust.
Thanks to the unlimited marital deduction, one spouse can leave all of his or her assets to the surviving spouse free of federal estate taxes. Marital deduction trusts allow one spouse to leave assets to the other in a trust that qualifies for the unlimited marital deduction.