5 Ways to Maximize and Protect Your Assets

The fact of the matter is, the government is pretty tenacious about collecting money, and even death won't provide a safe haven from the tax man. That's why it's critical to start estate planning now, especially if you have people you want to take care of after you're gone.

Here are two strategies for estate planning:

Charitable Trusts
One popular estate planning device is the charitable trust, or charitable remainder trust. In essence, this is a device that allows you--rather than the government or other taxing authority--to control whom your assets work for after you pass away. And the good news is, despite the implication of the name, you can make the beneficiary of the trust be your kids, your spouse, or anyone you choose, along with a charitable organization such as a church, school or hospital. As the saying goes, charity begins at home.

Setting up a charitable trust is a fairly simple procedure, and although they can come in several different forms that your financial planner can more extensively detail for you, they all have similar features. Basically, all you need to do is pay a visit to your attorney. He or she will draw up the paperwork, which then creates the trust out of assets you irrevocably place into it and names anyone you wish as beneficiary.

Living Trusts
Living trusts are very similar to charitable trusts. Again, you'll need a lawyer to create one. You can also serve as the trustee, deriving income from and managing your assets for the benefit of a third party (such as your kids). The big selling points for living trusts are that they make your estate safe from sometimes expensive probate fees, keep the property that is transferred out of the public record, and are less likely than a will to be challenged.

3. Write up a Pre-Nup

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