This article from the Dallas Morning News outlines the importance of professional estate planning. Although anyone can find a form will and fill it out to the best of their abilities, proper estate planning can also involve retitling assets, changing beneficiary designations, and choosing the right fiduciaries. Spending a relatively small sum of money now can help avoid taxes and other headaches for your loved ones after you pass away.
As the article notes, the estate tax is set to come back in 2011, and, unless the law is changed, will affect estates worth $1,000,000 and up. An “estate” for estate tax purposes includes all of your assets–real estate, bank accounts, 401(k)s, IRAs, life insurance, and more– and starting in 2011, the estate tax will affect many more people than it did over the past decade.
However, the article also points out the importance of estate planning for non-tax reasons. Even if the estate tax law is changes, it is still very important to have a will. If a person dies without a will, state law will determine who gets the person’s property. In a particular situation, that may work; but for most people, it will not. A professionally-drafted will and the right beneficiary designations will ensure that your property will pass to the people who you would like to benefit.
Although no one is quite sure what Congress will do with the estate tax this year, wills can be drafted with some flexibility to save estate taxes and work with possible changes in the estate tax law. Don’t let Congress’s indecision prevent you from making or updating your estate plan.