How to overcome your estate planning blues: "it takes time, costs money, raises difficult family issues, and revolves around something most of us do not want to think about—death."

Life insurance is another valuable estate planning tool. As with trusts, it can serve many purposes, including helping to pay for estate taxes, providing income to heirs or charities, or ensuring equalizing financial assets to heirs who won't run the family business.

Before you make final decisions on estate planning strategies, particularly those that are expensive and complicated to change, consider talking it over with those affected by your estate plan. This includes your heirs, the executor of your estate, any trustees of trusts (who themselves may be heirs), and professional financial advisors. Such discussions can help minimize potential misunderstandings or family feuds over the estate settlement.

An American Association of Retired Persons study found that one in five people over the age of 50 has experienced family conflict over inheritance issues. When people understand why you have decided who is to receive the vacation home or who will run the family business, and what you will do for those who won't inherit these properties, they may be more accepting of the estate plan. Feedback from heirs also may suggest plan modifications.

One planner recalls an 80-year-old woman who had an attorney draw up the documents to pass all her wealth on to her grandchildren, skipping over her five children. Although the woman claimed she had spoken about her plans with her children, the planner recommended that she talk to them again to probe their true feelings more deeply. After she did, she revised her plans, gifting to her grandchildren while she was alive and leaving her estate to her children.

Estate planning isn't fun, but it is essential, regardless of the size of your estate. The excuses we tell ourselves for not doing it are many and convincing. It takes time, costs money, raises difficult family issues, and revolves around something most of us do not want to think about--death.

Do the people you love a favor--leave them a well-planned, well-organized estate.

David Yeske is president of Yeske and Company, San Francisco, and chairman of the Financial Planning Association, Denver, Colo.

COPYRIGHT 2004 Society for the Advancement of Education
COPYRIGHT 2004 Gale Group