Though estate planning is often part of the news when a celebrity's death occurs, it is not just something that only the ultra wealthy need to plan for. People from Boston and across the country should have an estate plan prepared.

At the time of his death, Apple founder Steve Jobs had a net worth of $7 billion. Without proper estate planning, he could have lost $2.5 billion to taxes. Imagine losing that amount to the government and not being able to pass it on to those you love. A similar percentage may be cut from your estate if you do not plan accordingly.

Many do not have an estate plan, and the reason they do not is because they keep delaying doing it. Remember, an estate plan is for the beneficiaries. Creating such a plan designates who gets what, and it may be impossible for them to get it without a directive, depending on the circumstances.

Other mistakes arise when a health care proxy is introduced. Massachusetts has a health care proxy document that is only two pages long. It determines who makes decisions for someone once they become incapacitated. Be sure to share your wishes with another person. If one has filled out a proxy form in the past, it's important to remember to update it. If it hasn't been updated after a divorce or death, it could mean that someone undesirable is now in charge of major health decisions.

Another reason to share beliefs is because family members may make different decisions. For example, whether or not to continue treatment if one has become unresponsive is always a thorny issue. Hard decisions such as this may cause a loved one to panic, asking medical professionals to resuscitate the love one, even if that was not the original plan. How to handle situations like this can be made part of a health care directive.

Source: Mansfield Patch, "5 Vital Estate Planning Mistakes You May be Making," Steve Davis, Jan. 17, 2012