NY Times: Don't Let the Tax Tail Wag the Estate Planning Dog

A recent New York Times article discussing the uncertainty of the Estate Tax environment provides some important reminders about opportunities that currently exist for saving on taxes.  Perhaps more importantly, however, the last few paragraphs of the article reminds us that sometimes, in an effort to "stick it to the IRS," we can sometimes get carried away and allow the tax tail to wag the estate planning dog.  In other words, estate planning can and should be about much more than simply avoiding taxes.  Although tax planning is a valid, and often important aspect of estate planning, the human legacy that we leave to our family members is often far more important.  

While there may exist great tax benefits by allowing family members to inherit wealth outright, free of any sort of restrictions (like a trust, for instance), such unfettered control of large amounts of wealth can frequently do far more harm than good to those receiving it.  This is why it is so important to discuss your estate planning goals with a trusted and experienced legal advisor who can point out many of the hidden "human" traps that unsuspecting individuals can fall into when designing an estate plan.  

Tax minimization should never be the sole consideration when planning your estate.