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Estate Planning: Basic ObjectivesDid you know that if you don't have a Will, your State has made one for you? It is called the statutory system of intestate distribution, and you may or may not agree with the State's disposition of your property. To make your own decisions regarding your property, you need to consider estate planning. There are three basic objectives in estate planning: (1) Implementing personal decisions; (2) Ease of administration; and (3) Reduction of Taxes. Each of these three steps is discussed below. 2
Implementing your Personal DecisionsIn the personal area, the principal objective is to make sure that property passes at the time of death to the intended person, and in the proper manner. In some cases, if is sufficient to leave assets outright to intended beneficiaries. In other cases, it is desirable to control how the property goes to those persons, through the use of trusts. A trust is simply a device where a trustee will carry out your instructions regarding disposition and administration of gifted property. The trust enables you to control disposition after time of your death. 3
Ease of AdministrationEase of administration is accomplished by utilizing title and beneficiary designations so as to simplify the procedure by which property passes to those intended to receive it. To the extent that court proceedings can be avoided, such a a formal probate, administration is greatly simplified and made less expensive. 4
Reduction of TaxesWe are concerned with minimizing death taxes that would be imposed at the time of death, and in deferring taxes as well. We are concerned with minimizing income taxes that would have to be borne by the beneficiaries of the decedent's estate. This involves planning to maximize use of estate tax exemptions that are available as well as reducing the size of the taxable estate at time of death. Income tax planning involves planning for maximum basis adjustment for appreciated assets plus the use of income-shifting techniques to reduce the tax rate on income earned. Timing of distributions and comparison of trust and estate rates to individual beneficiaries' rates is part of this. 5
Coordination of Titles in the Finished PlanAn essential part of estate planning is funding trusts, to assure the benefits are enabled. You want to coordinate the title and beneficiary designations to assure the complete implementation of the plan. Title to assets must be examined to make sure of consistency and reviewed with the instrument's tax allocation clause in mind; otherwise, your intended heirs may find out they are paying the estate taxes on someone else's gift. Likewise, insurance and retirement plan beneficiary designations must be examined for the same purpose. Additional ResourcesWhen you are ready to proceed with estate planning, ask your investment advisor, accountant, banker or other trusted professional for two names of estate planning attorneys in your community, then chat with those people. See if you feel comfortable talking with them. You can also find qualified people through Internet research and bar associations; just make sure that you select someone who does estate planning, probate and trust work as their primary practice area, and not as an adjunct to a general practice. Get a written fee estimate in advance, and a signed engagement letter. Related Questions1 Attorney answers: 
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