Congress is still in its ongoing debate on the tax rates for estate planning. Estate taxes went up in 2009, dropped to zero in 2010, and climbed again in 2011. On Jauary 1, 2013, estate tax rates will change once more. It is unclear at this point what the legal changes will be, but until then there are a few essentials to work with.

Individuals can exempt up to $5 million of their estate, and couples can exempt up to double that amount, or $10 million. The same holds true for gifts; up to $5 million for individuals and $10 million for couples can be exempted also before shelling out gift taxes.

It's important to have your documents in order and have an updated power of attorney for both health care and finances. The health care power of attorney lets doctors know your intent in case you are on life support, comatose, or otherwise incapacitated. The financial power of attorney gives power over your finances to a trusted individual.

Wills, such as a living will, are essential. Should you need more complex solutions for planning your estate, certain kinds of trusts can shield your assets from taxation and the lengthy probate process.

Your spouse and you can attribute up to $100,000 annually from your separate IRAs for charities. All monies donated to charity are exempt from federal income tax if you are 70 and a half years old or better. Your estate planner can show you several methods of donating to charity.

Source: AARP "A To-Do List for Estate Planning," John F. Wasik, Oct, 19, 2011