ForConstructionPros.com

Irv Blackman and Brian Whitlock

Most estate tax plans are really death plans. You do the documents (typically, a will and revocable trust for him and the same for her), put them away for safe keeping, then forget about them. Someday you die and the documents are dug up and read.

What's the result? The IRS is guaranteed a big payday. On average, the family loses 41 percent of its wealth to the tax collectors. Totally unnecessary.

Let's set a new target for you to hit with your estate plan: All your wealth - every dime of it - to your family; all taxes paid in full. For example, if you are worth $3 million, then $3 million to your family; $30 million, then $30 million to your family. Stop for a moment! Think about your current net worth. Then, estimate what amount it might grow to by the time you get hit by the final bus. That future amount is what the IRS will ravage with taxes.

A real-life example (the story of Joe) is the best way to illustrate what you and your family must face when you battle the estate tax monster. Joe (age 63) and his wife Mary (age 61) are worth $11 million. Joe called me for a second opinion.

What was missing? Simply put, a lifetime plan. Burn this into your mind: No matter how fancy the will and trust, death documents cannot whip the IRS. It takes a lifetime plan that dovetails with your death plan (the typical will and trust, which is only the first step you must take to win the estate tax game).