Leaving a roadmap for estate executors.

Minimizing estate taxes by shrinking the gross estate.

Beating the estate tax clock by providing sufficient estate liquidity.

Making plans for the management of a person's assets if he or she becomes incapacitated, but does not die.

One often overlooked aspect of estate planning is leaving a written plan for our executor or personal representative to follow. After all, it's up to that person to inventory assets, contact insurance companies, pay creditors and taxes, and see that whatever is left is distributed as intended.

While reducing the ultimate size of our gross estate is far from the only consideration in preparing an estate plan, it is important for most high net worth tax payers and their families.

Federal estate tax generally must be paid in cash within nine months of death. In some states, inheritance taxes are due immediately. At the same time, interest begins accruing if the tax is not paid within the time allowed. Thus, proper liquidity planning actually means more than just having enough ready cash to pay taxes and estate settlement costs — it also means having funds available soon enough to meet IRS and state filing deadlines, and avoiding additional estate shrinkage.

Advance planning is necessary in case we are ever incapacitated and unable to make our own decisions. Appointing a Durable Power of Attorney for health care decisions — called a Health Care Proxy in some states — is wise. Also, giving someone a Durable Power of Attorney for finances prevents a court from appointing a Guardian or Conservator to manage our financial affairs, if necessary. Although a Durable Power of Attorney can be revoked by simply tearing it up, it is not something to be handed out without serious consideration.