There’s a misconception that estate taxes affect only wealthy people whose assets are plentiful. Certainly, such individuals should carefully review their estate planning options and establish their plans accordingly. In fact, many people aren’t aware that they may be subject to estate taxes.

Why is this the case? After all, if your estate is worth less than $2 million, your heirs don’t have to pay federal estate taxes—although they still may have to pay inheritance or estate taxes at the state level.

The clincher is that you may believe you know the value of your estate, only to find out it’s worth more than you realize. When you start figuring your assets’ total value, you may discover that they quickly add up to a rather impressive—and perhaps surprising—amount.

Consider the assets you may already have: savings accounts and investments; life insurance death benefit; personal property including your home, car, furniture, appliances, and high-tech equipment; and vested portions of retirement plans, including 401(k)s, IRAs, defined benefit and defined contribution, and profit sharing plans. Assets you hold in joint name with another may be included in full—not just half. The monetary value of such possessions can reach the $1.5 million threshold more quickly than you might imagine. And once your estate exceeds that amount, your beneficiaries will be required to pay federal estate taxes that, depending on the size of your estate, can run 45 percent. Add to that any appreciable state taxes that may be levied and here’s the result: without estate planning, your heirs could be left with substantially less than you anticipated.

If you’ve done the calculations and determined your estate is already more than $1.5 million or is quickly approaching that magic amount, several estate planning tools can help you begin minimizing your tax consequences.

During your lifetime, you have the option of gifting up to $12,000 per year to individuals you choose, even if those individuals aren’t family members. Each half of a married couple has the further advantage of being able to gift $12,000 per year to the same person. Other gifts, such as birthday or holiday presents, given to the same individual during the year should be included in the $12,000 total.

While gifting is a valuable estate planning tool, it should be done only after you’re certain you have adequate resources to take care of your present and future well-being.

Establishing trusts also helps to protect your estate. A married couple sometimes split their jointly owned property into two separate trusts, often referred to as “his and her trusts.” Using this method helps bring the value of each estate down, thereby reducing or eliminating estate taxes.

Gifting and trusts can be used separately or together in implementing your estate plan. Creating that plan is a very private process. Personal trust advisors at a financial institution and attorneys and accountants with trust and estate planning experience will help you explore your options and custom-design a plan that’s best for you. TPW