He describes three stages in the average person's financial lifetime. In the first stage, most folks work to pay off debt, followed by the second stage in which their assets in land, equipment and livestock grow. In the third stage, building a retirement portfolio takes precedence.

“The third stage is the transition phase. This is when most folks begin trying to decide who will get the assets and a strategy for getting those assets to them, as well as providing for the security of the surviving spouse,” Lethert says.

Most estate planning typically tends to occur in the second half of the middle stage of a professional career, he adds.

“Most folks don't think about estate planning at all in the first stage. You're probably still heavily in debt and, for the most part, you have sufficient life insurance to serve as a replacement for the income lost with the death of the primary wage earner.”

Once you've decided to act, the hardest aspect of estate planning is developing a list of your assets and liabilities, Lethert says.

“It's the hardest part because it's boring,” he adds. “Many ranchers are interested in ranching and may not like dealing with a lot of numbers, but you need to know what you have, how it's titled, and what you owe,” he says.

Next, get good advice. “Force yourself to read articles on the topic; there's a lot available. Attend one of the many estate-planning seminars sponsored by financial institutions.”

His third step is to ensure you have the right documents in place. This is where it's important to employ trained professionals.

“At least have a will, the right kind of will that fits your circumstances — whether you have a young family or you have a large net worth — and make sure it's drawn up by a professional. No one should ever draw up his or her own will,” Lethert says.

Financial advisor Hoffman agrees.

“The first thing most everyone should do is have a will drawn up, especially if they have kids,” he says. “And I would recommend using a board-certified estate attorney because the laws are very complicated and it's worth it to utilize someone who's on top of it.”

He cites the case of a young married father of an 18-month-old child who purchased a $200,000 life insurance policy designating the benefit be split between his wife and child.

“After he was killed in a car accident, his wife had to spend $4,000 in legal fees to get herself named as the guardian because an 18-month-old can't legally manage assets and his estate didn't spell out a guardian,” he says.

Essentially you have an estate if you own anything. It includes the obvious personal assets, such as your home and money, and not-so-obvious assets such as the value of term-life insurance, says Cole Ehmke, University of Wyoming Extension specialist.

Writing in “Passing it on: An estate planning resource guide for Wyoming's farmers and ranchers” (read it at http://ces.uwyo.edu/PASSINGITON.asp), Ehmke says that, before drawing up estate transfer documents, identify everything you own and its value so that you know what you have to work with. That includes cash and money in checking and savings accounts, investments in mutual funds, stocks and bonds, etc. Include assets in taxable accounts and those in tax-deferred accounts such as IRAs and other retirement savings plans. And don't forget your residence and household property, land, vehicles, machinery, livestock, etc.

“Too many farmers rely on a balance sheet prepared by a lender, which often values assets too conservatively,” Hoffman interjects. He says it's important that assets be evaluated accurately in order to be provide sufficient protection for the overall estate.

Once your asset list is completed, figure what you owe, Ehmke says. This would include your mortgage, unsecured credit such as balances on credit cards or charge accounts. And don't forget to include any other unpaid bills, such as dentist and utility bills, telephone charges, etc.

The next step is to construct a personal balance sheet in order to arrive at a net worth. You may learn your estate is much larger or smaller than you anticipated. Your net worth statement will serve as the base for financial planning and estate transfer decisions. It also allows you to gain insight into your personal financial position, Ehmke says. A few questions to ask yourself might include:

• Do I have adequate emergency funds?

• Did I discover any surprises, such as excess debt or forgotten assets?

• Is my insurance coverage adequate to cover the value of my property?

• Are my invested assets working for me to increase my net worth?

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