What steps have you taken to minimize your estate tax burden?

My husband and I each have an IRA, which we are thankfully not going to be dependent upon. So, we took our advisor’s advice and are taking only the minimum annual distribution. We are hoping that the stock market will recover before our deaths, so that the account will continue to grow—although that is looking more iffy now. Our advisor attached some instructions to our estate that our heirs should keep the IRAs in our names after we’re gone. That way they won’t have to pay taxes on the entire amount when we die.
-Nancy, 70, Lansdowne, Pa.

I have three children, and I gift them each the maximum amount each year. It’s a good way to reduce my estate. I’m a widower, but before my wife died, we would each give that amount. Unfortunately [laughs], I missed the 2010 estate tax exclusion, but I don’t know if I’d like to go that far to avoid paying taxes.
-Miles, 66, Poughkeepsie, N.Y.

After talking with our advisor, we decided to take advantage of the unified credit and give large chunks of our estate to our heirs. My wife and I were both previously married and we have seven children altogether. By giving it away, we will lower the value of our estate and there will be less taxes when we die. It sure made us feel good to hand out those six-figure checks, and judging by the screaming and hollering, our kids were pretty happy about it, too.
-Walter, 74, Titusville, Fla.