Financial advisors and California estate planners suggest using your 2009 tax return as a guide for any changes you might be considering in 2010 and for the future.

With estate taxes likely being reenacted – at a rate of 55 percent for those estates that are worth more than one million dollars, and with changing conversion rates for Roth IRAs, now is the time to take a look at what kind of return you got (or will be getting) from your 2009 income tax.

Those in the estate planning business, including California asset protection lawyers can tell you that a lot of what you get back in the form of a tax return – if you have a 401(k) or IRA – might be tax free money you’re getting back from the federal government… so it was your money to begin with. This means you may be counting chickens that hatched a while ago. You may want to put this money into trusts or other financial vehicles to help restore what you lost, not as a way to get that flat screen you’ve been wanting.

The idea is to model your estate and other plans for your money and assets after what your 2009 reveals.

Reducing what you pay in taxes from a paycheck might be a good call for your 2010 return. It may not seem fun now, but giving less will mean you owe more next year; but receiving everything in one lump sum at the end of the year often gives people a false sense of “extra money.” In fact, a refund should be used to invest or create wealth for the future and not used for immediate shopping gratification.