Jeepster -

By theory, your comment "Unless your family net assets (not the leveraged) are more than 5 millions, you do not need consider using trust to legally avoid tax" is correct but there still reasons to set up trust. 

Assume you have $3 mil (many of landlords here do have $3 mil or will have $3mil) and the new exampt amount is still $2 mil, without trust, the aset will go through probate. For AZ law, the probate process for $3 mil is about 6 months (less asset takes shorter time) and your beneficiaries need to pay the $480,000 estate tax, they have to liquidate the asset regardless of stock market or housing market condition. That is, they may have to sell stocks/properties at low price unwillingly.

The other key reason to have trust is if your kids are minors. It doesn't matter how much asset you have, they can't access to the $$ during the probate process (all your checking accounts/brokerage accounts will be frozen on the date beneficiaries report the death). I have a client who has $5 mil+ asset not including rental and her kids have to borrow $$ to pay for utility bills. Also, some of you may put minors as life insurance policy beneficiariese; again, they can't access to the $$ until they are adults (defined by each state). 

Always, consult with attorney and it's time to "preserve" the asset for most of us in the case either alive or dead :>)

Happy New Year!