Congress has considered the permanent repeal of estate taxes. But, to put a new spin on a quote from the literary great Mark Twain, "The reported death of estate taxes may be greatly exaggerated." Why's that? There are two main reasons.

First, while the estate tax exemption is currently $2 million - scheduled to gradually rise to $3.5 million by 2009 and be repealed in 2010 - current law reverts the exemption back to $1 million in 2011. Anything above that amount will be subject to federal estate taxes that could erode your estate by up to 55%. This fluctuating state requires that you plan carefully and regularly. Second, and more importantly, estate taxes are just one part of the estate planning puzzle.

With an estate plan, you take charge of your assets today and provide for the efficient transfer of your wealth tomorrow - according to your wishes. That's why important first steps are to have a qualified legal professional draft a will. Some people also create a living trust, which is a private, legal document that allows the "grantor" (the trust's creator) to control and distribute assets as desired (both while alive and after death), maximize the use of federal estate tax exemptions, and sidestep the potentially cumbersome probate process. Also, there are a number of other wealth transfer mechanisms that may be in order depending on your situation.

It doesn't take long to reach the $2 million exemption when you factor in the equity in your home and your (and your spouse's) retirement plan assets and the proceeds of any existing life insurance policies. If you're concerned about how estate taxes might erode the financial legacy you're hoping to leave behind or would like to pass on additional wealth to future generations, there are some strategies you can employ to help meet your objectives.

For example, many individuals purchase additional life insurance to fund potential estate taxes. Depending on how policy ownership and beneficiary arrangements are structured, it's possible for heirs to receive policy proceeds free of estate taxes and use the money to pay any estate taxes.

The bottom line is that the need for estate planning will never go away - even if estate taxes are one day repealed. As with all legal and tax matters, be sure to consult with qualified legal and tax professionals.

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