For the past several years, the federal estate tax exemption has been rising — from $1.5 million in 2005 to $2 million in 2008, with an increase to $3.5 million scheduled in 2009.

In 2010, the estate tax is scheduled to be completely repealed. Unfortunately, unless Congress acts, the estate tax reprieve will expire after one year, and the exemption will return to $1 million in 2011.

Regardless of what happens in the next several years, it is imperative to have an estate conservation strategy. Taking an inventory of your assets is a good place to start. Before you can decide what to bequeath to your heirs, charities, and so on, you need to know the size of your estate. Your estate comprises your accumulated wealth such as investments, business interests, retirement accounts, and real estate, minus any liabilities.

After you use this worksheet to get a rough estimate of your total estate, you can concentrate on strategies that will help preserve assets for the next generation.

This material was written and prepared by Emerald Publications.
© 2008 Emerald Publications