Do trust instruments avoid taxes at death?

Usually not on their own, but they can help avoid them as part of an overall plan. There are many taxes and government pay traps to consider: unrealized capital gain on property like real estate and stock, property tax uncapping on real estate, required minimum distributions from 401(k) and IRA accounts, and income tax on different types of assets following the owner's death. Knowing the ground rules before transferring property in your estate planning is critical.