My estate is large enough to owe taxes when I die. Could I avoid federal estate taxes by granting my wife and two adult children 50%/ 25%/ 25%, respectively, through a revocable living trust, rather than setting up an AB irrevocable trust?

A basic revocable living trust does not reduce estate taxes one red cent; its only purpose is to keep your property out of probate court after you die. Nor can you accomplish this trick by creatively juggling the percentages of your property each family member will receive.

The AB trust -- which is revocable as long as both you and your wife are alive -- may in fact be just what you want. It avoids taxes by leaving property to your children, but allowing your surviving wife to use it (and any income it produces) during her lifetime. That way, she does not legally own the property, and it is not subject to estate tax at her death.