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Chapter Sixteen
Estate Planning
Contents
Introduction
Working With a Lawyer
Wills
Trusts
Living Trusts
Other Estate Planning Assets and Tools
Changing Your Mind
Special Considerations
Death and Taxes
Probate
Where to Get More Information
Introduction
ESTATE PLANNING IS PLANNING FOR DEATH. We're all a little squeamish about
death, especially when we're the ones involved. This discomfort can lead to procrastination
that might account for the fact that only about two out of every five Americans have a will.
The fact that so few Americans have a will is ironic. We spend our lives working hard to
earn enough money and property to make the lives of our children and spouses, friends and
business associates happier, wealthier, and more secure than our own. And, yet, most of us
fail to do the one thing that's essential to make sure those we care about receive the fruits of
our labor--we fail to plan for them because we fail to plan our estates.
Estate planning pays real dividends--in results achieved, in dollars saved, and, most
importantly, in security and peace of mind. Moreover, estate planning doesn't have to be
expensive, traumatic, or, even especially time-consuming. Estate planning often saves money
by reducing taxes and the expenses of death. It saves time by speeding the process by which
property passes from you, at your death, to your family, friends, or anyone else you want to
have it. Finally, estate planning allows you to make the crucial decisions about the disposition
of your property and the care of your family. In a very real sense, estate planning makes you
the boss.
This chapter answers, in non-legal terms, commonly asked questions about estate
planning. Keep in mind that the rules governing estate planning, wills, probate, and trusts are
determined by state law, which means that the principles discussed in this chapter may not
apply in your state. Similarly, the costs of estate planning vary depending on such factors as
where you live, the nature of your estate, and your particular needs. As you begi