I recently read a great blog post from my Wealth Counsel colleague in Colorado, Martha Hartney. The blog post was a fictional letter from one ex-spouse to the other regarding estate planning for their children. I was so impressed by Martha’s thoughts I wanted to pass along a few here, as well as a few of my own.

I was working the other day on what I thought was a “minor” repair in or bathroom. Eight hours later and having already spent more than I expected I was faced with the prospect of bringing in a professional to “fix” my do-it-yourself (DIY) project. I had all the right tools, but what I lacked was the experience and know-how to complete the project correctly. This caused me to reflect on the oft asked DIY question when it comes to estate planning.

In considering whether or not to start a new business there are a host of questions you should ask yourself in determining whether it is a good idea and whether or not you have the right stuff to pull it off. However, once the decision is made to move forward, too many with great ideas and great skills fail because they did not take the time to put the businesses legal and financial framework in proper order.

In a first marriage most, if not all of the assets are held jointly and the couple often has the same estate planning goals. But planning for a blended family is different. . . .In blended families, estate planning methods relied upon in a first marriage can actually undermine planning objectives.

Many clients use beneficiary designations, and for good reason. Some significant assets, including life insurance policies, IRAs, retirement plans and even bank accounts, allow a beneficiary to be named. It’s free, it’s easy, and, when the owner dies, these assets are designed to be paid directly to the individual(s) named as beneficiary, outside of probate. But that is not always what happens.

March 31, 2012 marked the seventh anniversary of the death of Terri Schiavo, the 41-year-old who succumbed after her feeding tube was removed as part of a very public legal battle between her husband and parents.

Last year Ohio abolished its estate tax, joining the 28 other states that do not impose such a tax at death. Indiana's legislature recently passed by big margins a bill to phase out its death tax by 2021, and Governor Mitch Daniels signed it this week. Heated debates are going on in Tennessee and Nebraska over the issue. Even in Oregon taxpayer groups are attempting to put an initiative on the November ballot to abolish the death tax, and polls show it could win.

Most parents want to ensure that at least some of their assets will pass to their children. However, with blended families absent good estate planning, there is no guarantee that their children will inherit their assets.

In a great story from the Wall Street Journal we are reminded again of the importance of well thought out and clear planning. See: Testing Donor’s Intent, 350 Years Later.

On February 13, 2012, President Obama released his fiscal year 2013 budget proposal for the fiscal year beginning October 1, 2012. This budget contains several long-standing proposals – as well as some new ones – that would impact estate planning significantly.

Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee has added a provision to The Highway Investment, Job Creation and Economic Growth Act of 2012 that will reduce the value of inherited IRAs.

With the $5.12 million per person exemption from federal estate tax ($10.24 million for married couples), most of the estate planning “talk” recently has been on the planning opportunities available to affluent families. However, the need for estate planning remains for everyone. A recent Forbes article suggests “common sense” guidelines for determining the extent one needs an estate plan.