Estate Planning Isn't Just for the Wealthy

You're taxed when you earn money, taxed when you spend money, and taxed on gains when you invest the money you have left over! And if you're not careful, you'll be taxed again -- when you die!

You may think estate planning is only for the wealthy. Think again. Under current law, the first $2 million of assets in an estate is exempt in 2007-2008. By 2009, that minimum jumps to $3.5 million. The estate tax is scheduled to be abolished completely in 2010. But don't bet your estate on that happening, as Congress struggles to find money.

It's quite likely that law will "sunset" in 2011 -- and the estate tax will go back to the pre-2001 level of $1 million. When you add up the value of your home, your retirement account, and even your life insurance benefits if you own your own policy, you could easily be paying huge taxes to both state and federal governments, if you die without an appropriate plan.

Estate planning is not all about money. A lot of planning involves making sure that whatever assets you do have are given to the people you want to have them. Titling assets in joint tenancy, or naming beneficiaries for your retirement plans, will not solve all those potential problems. ...