Folks who have built substantial assets that need to be protected from unwanted and unnecessary taxes, or those who have heirs who may need special consideration or who need assistance with handling their inheritances, often establish a trust -which, when combined with their will- will ensure (as best as possible) that their estate is handled in accordance with their wishes.

If you pass away in 2007 and your net worth, including life insurance, is less than $2 million, your estate will owe no federal estate taxes. That exemption rises to $3.5 million in 2009, is eliminated in 2010 and returns in 2011 with an exclusion of $1 million, unless Congress takes action, which most financial planners assume it will.