Do I Need to Worry?
You may think estate planning is only for the wealthy. Actually, if you have assets worth more than $600,000, estate planning may benefit your heirs. That's because generally taxable estates worth in excess of $600,000 may be subject to federal taxes, which can be as high as 55% of the taxable estate.

Adding up your own assets can be an eye-opening experience. By the time you account for your home, investments, retirement savings and life insurance policies, you may find yourself in the over-$600,000 category.

Even in estates of less than $600,000, estate planning may be necessary to be sure your intentions for disposition of your assets are carried out.

Taking Stock
The first step in estate planning is to inventory everything you have and assign a value to each asset. Here's a list to get you started. You may need to delete some categories or add others.

* Residence
* Other real estate
* Savings (bank accounts, CDs, money markets)
* Investments (stocks, bonds, mutual funds)
* 401(k), IRA, pension and other retirement accounts
* Life insurance policies and annuities
* Ownership interest in a business
* Motor vehicles (cars, boats, planes)
* Jewelry
* Collectibles
* Other personal property

Once you know the value of your estate, you're ready to do some planning. Keep in mind that estate planning is not a one-time job. There are a number of changes that may call for a review of your plan. Take a fresh look at your estate plan if:

* The value of your assets changes significantly.
* You divorce or remarry.
* You have a child.
* You move to a different state.
* The executor of your will or the administrator of your trust dies or becomes incapacitated, or your relationship with that person changes significantly.
* One of your heirs dies or has a permanent change in health.
* The laws affecting your estate change.