Although you may be aware of the 2010 estate tax repeal, and the scheduled re-instatement in 2011, you may not be aware of other aspects of estate planning still in effect that are extremely important to consider.

· Create a will. The will is one of the only ways you have to ensure your assets are distributed to the people you deem worthy. Without a will, your state’s laws will determine the distribution of your assets for you.

· Create a living will, medical power of attorney, and financial power of attorney. A living will defines which life-saving medical procedures you want or don’t want in the event that you are incapacitated. Medical power of attorney states which person you want to make medical decisions on your behalf, while a financial power of attorney stipulates who will make financial decisions, should you become unable to do so.

· Don’t forget about the annual gift tax exclusion. The best strategy to save estate taxes is to give (tax-free) up to $12,000 a year to each beneficiary you choose. This amounts to $24,000 a year with your spouse, given jointly to each of your children, grandchildren, or anyone else, without incurring a gift tax.You can also make unlimited gift tax-free payments for another person’s tuition (tuition only, not room, board, suppliesor books) or unreimbursed medical bills, without it counting towards the payer’s lifetime gift exclusion, as long as such payments are made directly to the institution and not the recipient.

· Consider lifetime giving. If you have sufficient funds to live on, you should consider a lifetime giving strategy, rather than waiting until your death to begin passing on your estate. This strategy has a few advantages: you can remove appreciating assets, such as common stock, from your estate. Also, if the gift is taxable, the money you use to pay the tax is also removed from your estate, reducing future estate taxes.

Designating where your assets go once you have passed is a difficult concept to consider, but it is extremely important that you seize the opportunity to plan this yourself, rather than allowing others, including the government, to decide for you.

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