Estate Planning Isn't Just for the Wealthy

• Pour-over Will: This document simply says that any assets you own that are not titled in the name of your trust (perhaps your car, or your daily checking account) are moved into your trust at your death.
• Irrevocable Life Insurance Trust: Unlike the Living Trust, this trust is used to hold title to your life insurance policies, allowing the proceeds to go to your beneficiaries, without becoming part of your taxable estate.

  Important: Have the trust purchase a new policy on your life, assuming you are still insurable. And remember there is a two-year contestability provision on that new policy. If you transfer an older policy, and die within two years, it could be brought back into your estate.

• Health Care Power of Attorney: Name someone you trust to make medical decisions when you are incapacitated.
• Living Will: The "pull the plug" document expresses your wishes about being kept alive in a vegetative state.

There are other kinds of trusts that can be used to protect marital assets, and to distribute your wealth to future generations. But you need expert advice to work through this process.

Don't Do It Yourself!

Estate planning is not a do-it-yourself proposition. Because state laws vary, and because you won't be around to fix things when mistakes are finally discovered, you need expertise that can't be found in online forms and sample documents. But you can learn enough to save some money on professional legal fees.

Here are a few ways to find a qualified estate planning attorney:

• The Web site of the National Directory of Estate Planning, Probate, and Elder Law attorneys. You can search by city and state.
• While estate planning is definitely not only for older people, this elder law Web site provides excellent information, and a searchable directory of qualified attorneys.
• The Web site of the National Academy of Elder Law Attorneys has an excellent searchable database of estate planning attorneys.
• The Web site of estate planning author David T. Phillips (Estate Planning Made Easy) offers a free booklet -- "The 10 Most Common Estate Planning Mistakes." Phillips also provides a complete estate planning analysis -- not the plan, just the personal analysis and suggested strategies -- for $200, as well as a referral to his national network of estate planning specialists. The booklet and analysis will help you organize your thoughts, and understand what your own attorney is suggesting.

No one knows when fate will step in. Your only defense is to be prepared. Phillips says it best: "Procrastination is dangerous to your wealth!" And that's The Savage Truth.

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