An "estate" consists of all the property a person owns or controls, regardless of if it is in his or her sole name, held through a partnership, in a joint ownership arrangement, or through a trust, as well as all other monies, which would be generated on the person's death, such as through life insurance.

The laws governing estate planning pertain to the following:

• Real property (land) and things attached to it (houses, buildings, barns, etc.)
• All businesses (sole proprietorships, partnerships, LLC's, corporations, joint ventures, and the goodwill) and business interests (inventory, tools and equipment, accounts receivable, and other business property)
• Powers of appointment (the right to direct who gets someone else's property)
• Life insurance and annuity contracts, pension benefits, IRAs, 403(b)s, etc.
• All debts and obligations owed to others
• All claims you have against others, such as those resulting from personal injury lawsuits

Federal gift and estate tax law allows each taxpayer to transfer a certain amount of assets, free from tax, during his or her lifetime or at death. Certain gifts, valued at $10,000 or less, can be made and are not counted against this amount. The specific amount of money that can be shielded from federal estate or gift taxes is determined by the federal unified tax credit. The credit is used during your lifetime when you make certain taxable gifts, and the balance, if any, can be used by your estate after your death.

A skilled estate planning lawyer can guide you through the nuances of the law and the various taxes that can be leveled against you upon death, including federal estate taxes, state estate taxes, inheritance taxes, etc.