The Eight "Essentials" of Sound Estate Planning…

by Bob Carlson, Investment U Research

Mention "estate planning" and most people expect a discussion about discrete topics and strategies. Ones that might be difficult to grasp. Or ones that only apply to those rich and famous folks Robin Leach profiled.

I promise we're not going to have one of those discussions.

Instead, let's take a step back and look at the broader picture. After all, there are concepts and strategies common to every successful estate plan.

Based on my 25-plus years of experience, I've compiled a list of eight "essentials" for you to consider. And they apply whether you're drafting a new estate plan or reviewing an existing one. So let's get to it…

Estate Planning Essential #1: Change and Flexibility

Last year, there was no estate tax, though there was a gift tax. Now there's both.

On the plus side, it's not nearly as invasive as it was back in the 1970s. Instead, as SavingToInvest.com reported, "The taxable estate exemption thresholds will be $5 million (from $3.5 million in 2009) for an individual or $10 million for a couple for both estate and gift-tax levies, with a top tax rate of 35% for estates above these levels.  These extensions are only for 2 years and will expire at the end of 2012."

Because these are subject to change within such a small time frame, employing a professional to help you navigate the ins and outs of this law might very well be advisable.

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