It is very gratifying to create an estate plan that reduces or eliminates taxes. The federal estate tax is very expensive, and it is not the only tax your family might owe. You may also be subject to state taxes and generation-skipping taxes if you are leaving assets to grandchildren. The top rate for federal transfer taxes in 2009 is expected to be 45 percent. You will discover that, with some planning, most families can substantially reduce or eliminate this tax.