• Up-to-date.
• Preferably executed under the laws of your state of residence.
• Appropriate for the needs of you and your heirs.

What you should include in your will
There's much information you can include in a will. Besides determining who, when and how people will inherit your possessions, a will can:

• Name the administrator of your estate.
• Appoint guardians for your minor children.
• Make special, charitable bequests.
• Create trusts.
• Reduce estate expenses.

Important: If you don't have a will or another complete estate strategy, state laws dictate to whom your assets are distributed. State intestacy laws may not transfer your assets as you would desire. According to a February 2000 research survey conducted by the Life Insurance Marketing & Research Association, an estimated 70% of Americans don't have an estate strategy. If you're in that statistic, please take time to have a will prepared.

Writing your own will without an attorney
It's possible to write your own will, but many people unintentionally make confusing or unclear statements, which only cause greater legal involvement in the end and increase expenses. An attorney can simplify the process for you, make sure it meets all legal requirements, and make sure your will is a comprehensive document that meets your objectives.

Reviewing your will
Reviewing your will with an attorney is something you should do if there's a major change in your life such as:

• Moving from one state to another
• Getting married or divorced
• Inheriting assets
• Having children or grandchildren

Life changes may alter how or to whom you want your possessions distributed. If you simply have a change of heart about your will, by all means change it. Make sure your changes meet all necessary legal requirements. An attorney will be able to assist you.

Living will/ health care agent form
Everyone should seriously consider executing an advance health care directive such as a living will or health care agent form. It can be critical in communicating your desires regarding health care and life support in the event you are unable to communicate your decisions at a later date.

Durable power of attorney
Everyone should consider a durable power of attorney. This document authorizes another person to act on your behalf should you be unable to handle your own affairs.

Simple Wills vs. Credit Shelter Wills

Simple will	Credit shelter will
Passes all assets to the surviving spouse.	Passes assets when the first spouse dies in two directions: the surviving spouse and a trust for the benefit of the surviving spouse and the children.
Uses only the unlimited marital deduction.	Uses a partial marital deduction when the first spouse dies.
Uses only one applicable credit amount when the surviving spouse dies.	Uses two applicable credit amounts—one at each spouse's death.
Will not help reduce potential estate taxes upon the surviving spouse's death.	Can help reduce potential estate taxes upon the surviving spouse's death.

What is the unlimited marital deduction?
Assets transferred to the surviving spouse may use the unlimited marital deduction. It allows assets to pass to the surviving spouse free from federal estate taxes. Although passing property under the unlimited marital deduction can eliminate federal estate taxes at the first death, this approach could increase estate taxes when the surviving spouse dies. Inflation may increase the value of estate assets, thus subjecting them to higher taxes at the second death.

What is the applicable credit amount?
The applicable credit amount is available to each person for gift and/or estate tax purposes. Listed below is a breakdown indicating the amount of your taxable estate that can pass at death to your heirs without having to pay federal estate tax and the applicable credit amount. After 2003, the amount that can be passed during life free of gift tax will be frozen at $1 million.

Year	New Applicable Exclusion Amount for Deathtime Transfers	Applicable Credit Amount
2002	$1 million	$345,800
2003	$1 million	$345,800
2004	$1.5 million	$555,800
2005	$1.5 million	$555,800
2006	$2 million	$780,800
2007	$2 million	$780,800
2008	$2 million	$780,800
2009	$3.5 million	$1,455,800
2010	Estate & GST Tax Repealed	$1,455,800
2011*	$1 million	$345,800

* A "sunset" provision is included in the Tax Relief Act of 2001. Essentially to comply with budgetary rules, all provisions of the act that are in effect after December 31, 2010 will cease to apply unless there is a vote to retain the law. If there is neither a vote to retain the law nor another change in federal estate law, the old tax rules in effect in 2001 would return on January 1, 2011. The future of the federal estate tax law is uncertain.