For most people, the $5 million federal tax exemption will help preserve the bulk of their assets for their estate. But that does not necessarily mean that you should neglect to prepare an estate plan. The exemption is currently set to expire in 2013. Assuming you outlive the exemption your estate may be facing a different tax environment. In addition, even if your estate is not subject to the estate tax, it is important to ensure that your will and beneficiary designations are in order to properly execute your wishes.

Considering your estate plan can include updating the list of beneficiaries for bank, brokerage firm and retirement accounts. As well as company benefit plans and insurance policies. Many people have either not determined their beneficiaries or haven't updated the list in some time. Not having beneficiaries listed in an estate plan can result in needless hassles and delays in distributing assets to loved ones left behind.

For example, in one recent instance, an updated beneficiaries list could have prevented an ex-spouse from claiming one individual's pension and life insurance after his death, despite not wanting to leave anything to his ex-spouse. The children of the deceased fought an unsuccessful court battle against the ex-spouse who did finally end up taking control of the assets.

Divorce is not the only time when beneficiary lists need to be updated. Any change in circumstances should be reason enough to consider making changes to the estate plan. Married couples that have each other listed as beneficiaries with right of survivorship may wish to consider adding secondary beneficiaries to the estate plan if they wish to ensure their assets will be shared beyond a surviving spouse in the event one dies.

As there are important considerations that must be evaluated along with forms to be completed, obtaining the services of professional estate planner is highly recommended.

Source: Wall Street Journal, Smart Money "Make This Estate Planning Move Now," BILL BISCHOFF, Aug. 10, 2011