How will your assets be taxed?

All property owned by you at your death is subject to estate taxation (both probate and non-probate assets). Even property you no longer own may be pulled back into your estate. (What Are Estate Taxes?)

Generally, although you will pay estate taxes only on amounts above the applicable exclusion amount at your death (e.g., up to $1 million as of 2006) that are not given to your surviving spouse (unless your spouse is a non-U.S. citizen) or charity, you must plan for the payment of these taxes.

Since federal estate tax rates begin at 18% and increase for 55%, for larger estates that means the major beneficiary of your estate could be the federal government, not your heirs. Proper planning, therefore, is vital, and because the tax laws are complex, you should consult your legal, financial, and estate planning advisers.

ESTATE PLANNING QUESTIONNAIRE: Effective estate planning requires that all relevant information concerning your personal, family and financial situation be assembled. This form as been prepared to aid you in organizing that information. If insufficient space is provided for any information, please include it on a separate sheet.