My spouse and I have an estate worth about $1 million. Do we have an estate tax problem?

You certainly could have if both your estates are not properly planned. For example, many people fail to recognize that their estates will grow in value. Ask yourself this question: "What did I pay for my house 20 years ago?" Odds are it has grown at a pretty good rate. The fact is, over time property we own increases in value. If you use just half the rate of appreciation of your house from 20 years ago until now and project it into the future over the life expectancy of you and your spouse, you will very quickly see that your estate will be well in excess of $1.2 million. Remember, you must project the value over life expectancy; in most instances it will be the best measure of the value of your estate after you and your spouse die.