CHICAGO – Hiding thousands of dollars inside a book may be a clever way to foil burglars. But it's less than ideal estate planning – especially when you don't tell anyone what you've done.

Ted Sarenski, a financial planner in Syracuse, N.Y., tells the story of one such case to remind people to get organized about estate plans and not keep them secret from loved ones.

It seems an elderly Pennsylvania man hung on to so many personal items that it took his children a year to go through the clutter after he died. His many books were targeted for charity or the garbage.

Then a book popped off a shelf, and money fell out. By the time his kids went through the others, they tallied up about $15,000.

"People do strange things with documents and cash," says Sarenski, who's also an official with the American Institute of Certified Public Accountants. "Give that next generation an idea they might find some hidden treasure, if that's what you're doing."

Sharing your plans is possible only after you make them, of course. The end of the year provides an ideal time to finally get in gear on estate planning, a task that's important but generally languishes on the bottom of to-do lists – if it's there at all.

Here are some essential priorities to focus on concerning estate planning:

Many people think of an estate plan as something for when you're elderly or on your deathbed. But everyone needs one. It is a way to manage and protect your assets while you are alive, as well as a way to conserve and control their distribution after your death.

"No one really wants to think about estate planning," says Donna Morgan, an estate planning attorney at Mayer Brown in Chicago. "But it's much more pleasant to think about when you're in good health. You can make better decisions and not be so upset by the issues when it all seems so theoretical and academic."

Check that your beneficiary designations are correct on your work pension plan, life insurance policy, 401(k), IRA or other retirement accounts.

Failing to update them is perhaps the most common error in estate planning. Ex-spouses or parents who have died remain listed all too often, leaving money to go where it wasn't intended. Your children or siblings may get what your deceased parents would have. But you probably don't want a probate court and state law to decide how it's divided.

Putting an extra name on an account is a similar mistake. When an elderly parent puts a child on a financial account for convenience, the child can take what's left when the parent dies. Account titling takes precedence over a will or trust so, in this case, siblings might be left without an inheritance.

"These mistakes can cost you and your beneficiaries a lot of money," says Leonard Wright, a San Diego accountant.

The hardest decision for many couples is naming a guardian for their minor children – his parents, her parents, a sibling, friends? It's a weighty request to make, and not being chosen could cause hurt feelings, too. So frequently, couples do nothing.

Don't dodge a decision with such important consequences.

"You can always change your choice in the future, but don't get frozen," Morgan advises. "It's better than having nothing in place."

Free legal information about guardianship can be found at Nolo.com.

A will directs the distribution of your assets after you die. If you have kids, don't make the common mistake of assuming they will work things out. It's more likely that lawyers will.

State law decides how assets are divided and who gets what if you die without a will. In most states, the surviving spouse gets only a third to a half of the estate, and the rest goes to your children or otherwise to any living parents.

Hiring a lawyer to write your will costs at least several hundred dollars, but may be worth it to avoid a much costlier process that could take months to resolve your estate otherwise. For simple estates, an online will may be enough. Go to LegalZoom.com or Nolo.com to find out about basic wills that can cost under $100.

Get an advance directive. Often used synonymously with "living will," an advance directive is a legal document that allows you to specify how you want to be cared for if you become so ill or incapacitated that you're unable to make decisions about your health.

Create one that incorporates a health care power of attorney, which specifies whom you want to act on your behalf.

You don't have to pay for a lawyer to do this. Caring Connections, a program of the National Hospice and Palliative Care Organization, offers free downloads of the advance directive or living will form for each state at www.caringinfo .org/stateaddownload.

Many people name siblings or their children as the executor of their will but don't discuss what they have. As with the hidden cash, don't force your heirs to sort through your home hoping to locate all your holdings and financial records.

Make sure all important documents are readily available, along with contact information for attorneys and advisers. Consider compiling a notebook that details bank accounts, IRAs, insurance policies and the like. Then let your executor(s) know.

Set yourself up for tax-free income in your retirement – consider converting from a traditional IRA to a Roth IRA. A new rule that goes into effect in January will allow people making more than $100,000 to do so for the first time.

The argument for doing this includes getting taxes out of the way now instead of later, when many think rates may be higher. The money in a Roth IRA also will grow tax-free. And you aren't required to withdraw the money starting at age 70 ½ , as with a traditional IRA or 401(k); you can just let it continue to grow. That can help keep retirement savings flush until they are needed, and allow you to possibly pass along a nest egg to your heirs.

There are a few simple questions to ask yourself as you prepare your estate plan:

•What are your assets, and what is their approximate value?

•Whom do you want to receive the assets – and when?

•Who should manage your assets if you can't, either during your lifetime or after death?

•Who should have the responsibility for the care of your minor children if you become incapacitated or die?

•If you can't take care of yourself, who should make decisions on your behalf about your care and welfare?

SOURCE: MEG Financial Inc.