Estate planning is based on the principle that our wealth transfer system is confiscatory, that federal estate and gift taxes can be voluntary, and that, with the right planning in place, the cost and inconvenience of estate settlement can be reduced or virtually eliminated during a taxpayer's lifetime. Thus, one of the ultimate goals of estate planning is the careful blend of various tools and techniques into a coordinated estate plan designed to prevent the needless loss of assets — in effect, disinheriting the IRS.

While clients must be advised to consult their personal legal or tax advisers for guidance regarding specific situations, anyone with at least $3,500,000 in assets may have a federal estate tax liability at some point. State death taxes are also an issue. In fact, high net-worth retirees may want to take a long, hard look at state inheritance and death taxes before deciding where to establish their legal residence in retirement.

An estate is the total of an individual's possessions, including real estate, business interests, securities and personal property at death. Certain exclusions apply to portions of a person's property owned jointly with someone else, including a spouse or business partner. Even so, it adds up quickly.

Problem: In an inflation-prone economy like ours, even people of modest means who never considered themselves wealthy enough to need estate planning, can be in for a shock when they see how exposed their estates may be. The more people exceed the likely federal $3,500,000 exemption amount (subject to changes in tax law), the more they benefit from estate planning as their assets continue to grow.

The same is true (and then some) for "boomers" who stand to inherit a share of a projected $6 trillion to $10 trillion from their parents' generation over the next 20 years. This phenomenon will come and go, but before then our fiscally strapped government will continue to find ways to catch and ride this one-time, financially lucrative age wave.

Solution: Estate planning is not just for the rich. Anyone who owns a business; is married; and/or has children/grandchildren or offspring from previous marriages; has a favorite charity, special medical needs — or dependents who do — needs an estate plan to be sure their assets are distributed as intended.