Many people think they don¡¯t need an estate plan.\r They relate the term to tax planning and feel that\r their estate is not big enough to bother. They \r therefore think estate planning has nothing to do \r with them.

But estate planning is more than a method to avoid\r or reduce estate taxes. Many young families might \r be surprised to learn they should think about estate \r planning now.

Right now there is an effort to abolish or confine \r estate taxes to only the very wealthy. Of course, \r Congress changes the tax laws constantly, so there \r can be no guarantee that this trend will continue.

Be even a normal working class couple with a home, \r two cars, money in retirement or 401K plans and \r maybe the start of a college for their children can \r have a surprisingly large estate. So even if estate \r taxes don¡¯t apply today, they may in the future.

Estate planning can be used to distribute your \r taxable estate in such a way that taxes are \r minimized. There are all sorts of ways to do this \r and, if you are wealthy enough, your financial \r planners and attorneys should be working together \r to do this for you.

For the rest of us, estate planning is less involved \r with taxes and more with who inherits your estate; \r who cares for your minor children; how you feel \r about life support measures; or who will control \r your affairs if you are unable to.

Your estate is all you possessions ¨C savings, home, \r car, investments etc. If you have a will, your \r estate will be distributed according to your wishes. \r If you don¡¯t, they will be distributed under state \r intestate laws.

You would have to check the laws in your state, but \r there could be cases that if you die without a will, \r your parents would inherit your property, not your \r wife or your money could go to distant cousins and \r not to your lifelong companion.

So the first reason for a will is to have your property\r distributed according to your wishes. If you want to \r leave your money to the Salvation Army and not your son,\r this is the way to do it.

Many parents use estate planning to try to rein in their \r out-of-control children. They may provide for a bequest \r that starts at an age when the child has hopefully matured,\r say 35. Or they may make provisions that if their daughter\r is divorced, no money would pass to the ex-husband.

More commonly, grandparents use estate planning tools to \r provide for all or part of their grandchildren¡¯s¡¯ college \r education or choose to bypass their family and leave their \r money to their favorite charity.

Or a business owner could pass his business to his partners\r or employees in order to keep the business running.

A common use of estate planning is to name subsequent \r beneficiaries. For example, your spouse would inherit your \r art collection on your death and on her death it would go \r to a museum.

Another reason for estate planning through a will is to \r appoint guardians for minor children or disabled relatives \r you are now caring for. If you are leaving a bequest in \r your will or the proceeds of an insurance policy (which is \r generally not part of your estate) to a minor or person \r unable to look after his own affairs, you also need to \r appoint someone to manage, conserve, invest and dole out \r this money for the care of the minor or incapacitated person.

If you are ill or facing the prospect of losing your ability \r to control your own affairs, you can use estate planning \r techniques like a durable power of attorney, property \r transfers or adding a trusted friend or relative as joint \r owner of your property and bank accounts.

You can also provide for a living will, directing how far \r you want life support measures to go if you are terminally \r ill.

So estate planning is more than leaving your grandmother¡¯s \r watch to your daughter.

The proceeds of most life insurance policies and jointly held\r property with rights of survivorship are not generally part of\r the probate estate. Many people believe that they can use \r these devices instead of a will.

However, only the specific property held jointly is transferred \r to the surviving owner. For example your house would be transferred, \r but not any of your separately held investments.

Also problems arise if there is concurrent death, e.g an auto \r accident that kills the husband and wife.

There can also be adverse tax consequences to passing your property this way.

They are so many different situations and methods of estate planning, it is best left in the hands of a professional, in this case an estate lawyer working alone or in conjunction with your financial planner.

Simple wills are not expensive and can be drawn with the help of advice books or computer software programs.

But if you have to go beyond simple, hire the right professionals.

Estate planning is a complex field. If you have more than a house, \r car and banking account that you want your wife to get on your \r death, you should consult a qualified estate planning attorney.

Chris Cooper is a retired attorney. Aided by his wife Aileen, who has an MBA in Finance they endeavor to provide personal financial planning advice. For personal finance and debt management articles, visit http://www.credit-yourself.com