As the old saying goes, 'nothing is certain but death and taxes.' Creating an estate plan can eliminate some of the certainty of paying taxes at death. Estate planning is the process of planning for the accumulation, conservation, and distribution of an estate to effectively and efficiently accomplish both tax and non-tax objectives. Planning for the distribution of your property will potentially help you reduce estate taxes and ensure property is distributed according to your wishes.

The first step (and most overlooked) in the estate planning process is to come to terms with an uncomfortable topic: death. Understandably, your own mortality can be a very difficult subject to face; however, the best approach is to be straightforward and business like when developing a plan. Unfortunately the topic of death cannot be avoided when establishing an estate plan.

Estate planning is not only for the wealthy. In fact, people with small estates typically cannot afford to have added expenses or taxes due at death, which will result in a reduction in their estate to pass along to their heirs. For smaller estates, your plan can consist of strategies that are simple and inexpensive to implement such as having a will drafted or purchasing life insurance. If your estate is larger, the estate planning process may take on more complex and expensive strategies. Implementing most strategies will probably require you to hire a professional, which may include a financial planner, an attorney, an accountant, a trust officer, and an insurance agent.

Just about everybody needs to do some type of estate planning; however, you may specifically need planning if:

· Your estate is valued at more than $2.0 million in 2007.

· Your spouse is uncomfortable with, or incapable of, handling financial matters.

· You're a business owner.

· You have children who are minors.

· You have privacy concerns.

· You have property in more than one state.

· You intend to contribute to charity.

· You want control over health-care decisions in the event of incapacitation.

Designing a plan is a process that is unique to each estate owner. Don't be intimidated or overwhelmed by the process. Even the most complex plan can be achieved if you proceed step by step. Although making contingencies for death is not what most people look forward to, try to remember the peace of mind that comes with knowing your family will be provided for when you pass away.

Estate planning at times can get complex; so do not try to attempt it alone! Seek out advice from a trusted financial professional who is experienced in estate planning. Depending on your situation, you may need the services of more than one professional.

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