The purpose of Estate Planning is to reduce the tax burden of a person's estate in regard to the Estate Tax.  As of 2009 an estate must be over 3.5 million dollars per person or 7 million dollars per married couple.  This is a very fluid tax with the limits changing from year to year, and with each swing in political power.

The use of trusts are widely used to help reduce tax liability.  For example, in order for a couple to combine their estate tax limits an AB Trust is often used.  Also, a common way to remove life insurance from the calculated value of an estate is an Irrevocable Life Insurance Trust.

For most people in the U.S. this kind of planning is not necessary as their estates don't reach these limits.  But for those who do have large estates, estate planning can mean hundreds of thousands of dollars.  With the recent shift in political power expect to see changes regarding the upcoming estate tax laws. 

CiB is ready to help fund any insurance needs that might help reduce tax liability.  We also can provide you with a recommendation for finding a qualified estate planning attorney in your area.