One of the most difficult—and most important—decisions parents make during the estate planning process isn't about money.

It's deciding who would raise their children if the unthinkable happened.

No parent likes to imagine a future where they are no longer there to care for their children. But naming a guardian in your estate planning documents gives your family guidance during an incredibly difficult time and allows you to express your wishes to the court.

If you have minor children, choosing the right guardian is one of the most valuable gifts you can give them.

Estate taxes are separate from probate expenses and final income taxes. Probate costs may often be avoided through proper estate planning tools, such as a revocable living trust, while final income taxes apply to any income earned during the year of death. Estate taxes, however, are a separate matter that can significantly impact the value of an estate passed on to loved ones.

Federal estate taxes can be substantial. Currently, assets exceeding the federal estate tax exemption are taxed at a rate of 40%, and these taxes are generally due within nine months after death. Because estate taxes must typically be paid in cash, families may be forced to sell real estate, business interests, or other valuable assets to satisfy the tax obligation. With proactive planning, however, many families can reduce or even eliminate estate taxes altogether.

As people get older, they often need to rely on others for various kinds of help and are more likely to suffer from Alzheimer's disease or other forms of dementia. Consequently, as people age, they are more vulnerable to being financially taken advantage of, sometimes even by people they trust. A recent study by AARP estimates that financial exploitation costs adults aged 60 and older $28.3 billion annually.[1] Fortunately, there are some proactive steps that can be taken to prevent financial abuse before it occurs. In addition, older people and the family members and friends acting on their behalf have protective and remedial actions available if they discover that financial abuse has occurred.