No matter what your financial worth, it is important to have a basic estate plan in place to ensure your family and financial goals are realized after your death. An estate plan is tailored to fit each individual. The components vary depending on the complexity of the estate. However, a typical plan includes a will, assignment of power of attorney, living will or healthcare proxy and perhaps a trust. Regardless of how your estate plan is structured, it is important to understand both the federal and state tax laws governing your estate. These laws are continuously changing. For example, the federal estate tax exemption - the amount you may leave to heirs free of federal tax - has been rising gradually and will hit $3.5 million in 2009. Meanwhile, the top estate tax rate is coming down. The estate tax is scheduled to phase out completely by 2010. It is a complex law made more complicated because it sunsets at the end of 2010. Between now and then, Congress may pass other measures that either extend provisions in the Act or eradicate them. This results in complicated estate planning for people with sizeable estates and having a trusted, competent estate-planning team is essential to avoid paying unnecessary estate and death taxes. We work with our clients, their attorneys and financial advisors to formulate an estate plan which will communicate our client’s wishes while reducing the tax burden.