The paper offers guidelines for estate planning, defined as the art of arranging one's affairs to best care for loved ones while, at the same time, minimizing transfer costs. An understanding of the basics of estate planning is essential if one is to provide for the future of a severely handicapped child. Definitions are given for federal estate tax, gross estate, and taxable estate; and procedures for calculating gift taxes are reviewed. Wills are considered in terms of legal aspects and estate administration, methods for execution, and suggestions for parents of a retarded child. Aspects of trusts are examined; topics include elements of a trust, types of trusts, and powers and duties of trustees. Life insurance is another useful estate planning device that is addressed. Areas mentioned are types of policies, settlement options, tax considerations, and practical uses. Annuities are covered in a final section. Particular emphasis is given to annuities under qualified retirement plans. (SW)