People often assume that minimising the amount of tax payable upon their death is the most important estate planning consideration. While important, however, it should not be the driving force behind the creation of a proper estate plan.

Comprehensive estate planning is about far more than simply ensuring that your beneficiaries are left with the bulk of your estate.

Rather, it should address a wide range of considerations, including your personal goals and expectations, as well as the needs -- both present and future -- of those who depend on you for support. A prime example is the educational needs of your minor children.

Proper estate planning can only be effected once a review has been made of your world-wide assets, including homes and their contents, any insurance policies that you hold and any pensions, share options and employment benefit schemes that you hold, or are a member of. It should address your wishes in relation to the transfer of your property, both while you are living and upon your death.

Tax is a consideration, of course.

Your professional advisers can assist with advice regarding the impact of taxes on any assets that you hold outside Bermuda. It may transpire, for example, that you are liable for US federal or state taxes, should you have assets in that country, or be what is known as a US domiciliary (i.e. you hold US citizenship, a US green card or are otherwise domiciled in the US). Those taxes would be in addition to any taxes imposed by the Bermuda Government.

Further, some businesses that operate outside of Bermuda may attract tax in their countries of operation, and this may have to be considered during the creation of your estate plan.

As you can see, estate planning involves much more than the execution of a valid Will. It may include the transfer of property or the re-organisation of your assets during your lifetime. And while it can be designed to provide monies to fund tax liabilities, it should also reflect your personal philosophy with respect to the well-being of your family (or even multiple families) and/or the management of your business affairs.

Two popular estate-planning techniques can be very problematic for you as a parent. One involves you giving property to your child, subject to your life interest, while another involves you and your child becoming joint signatories on a bank account. In the former case, the property would belong to your child but you would enjoy the right to live in the property until your death.

Careful consideration needs to be given to the potential consequences before you proceed with either course of action.

For example, there is the danger that your child's creditors may claim the value of the property in satisfaction of debts. Or the asset could be claimed as a matrimonial asset by your child's spouse in divorce proceedings.

Remember, the freedom you have to dispose of the asset is lost, and that may prove a significant disadvantage if you later need capital and income to maintain yourself in old age. Of course, you will also have given away the right to have the asset returned or to give it to another of your children.

You may also run into problems if your child signs a declaration that they hold the asset to your order, as this may bring the asset back into your estate for tax purposes. The gift to your child, or joint ownership, may even defeat the terms of your Will.

While tax will have been paid on the transfer of the property, further duty may be payable on the value of the asset if your child predeceases you, or if you die while holding a life interest. If your child dies before you, without putting their estate in order, you may have to share ownership of the asset with your child's spouse and children.

And, as incredible as it may seem at a time when you are on good terms with your child, the creation of a bank account in your joint names may lead to them withdrawing funds solely for their own use.

Estate planning is a complex topic, and a work in progress. It is important, regardless of your age or the size of your estate, and you must be prepared to review your plan regularly to take into account any changes to your personal, family or professional circumstances.

The transfer of assets during your lifetime is but one aspect of estate planning and, as I have discussed, can be plagued with negative consequences.

Happily, many creative solutions, which may or may not involve you giving up control of your property, may be crafted.

I hope you have found this introduction to estate planning useful. Future columns will focus on Wills, Enduring /Durable Powers of Attorney, Living Wills /Health Care Directives, as well as the use of trusts, insurance policies and other vehicles that may assist you in safeguarding your future and that of your family.

Attorney K. Renee Benjamin is a member of the Trusts and Estates Department of Appleby Spurling & Kempe. Copies of Ms. Benjamin's columns can be obtained on the Appleby Spurling & Kempe website at www.ask.bm. Ms. Benjamin acknowledges with gratitude the contribution of Denise Belton, Associate, Tax Department, KPMG, Bermuda.

This column should not be used as a substitute for professional legal advice.

Before proceeding with any matters discussed here, persons are advised to consult with a lawyer.