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It was two minutes to 4:30 p.m., and my 3 1/2 hour seminar — on how to transfer all of your wealth to your family — was almost over.

“Okay, just one more question,” I said into the microphone, letting the 150 business owner audience know that the how-to-beat-up-the-IRS-legally show was about to end.

What a last question though!

“Irv, how come you explained in 3 hours what my CPA and lawyer haven’t done in years? Eliminate my estate tax. What do you do that’s different and how do you do it?”

The seminar (like this column) was designed to explain the many tax strategies necessary to transfer your wealth — intact and tax-free — to your family and to answer questions like which strategies to use, when, why and how to put them together to develop a wealth transfer plan to keep the IRS out of your pocket.

Two minutes! I needed at least 10 minutes to answer the question.

Since I was the last speaker, the audience agreed to stay a bit late. It took me a moment to collect my thoughts before answering.

First, I explained that the secret is not knowing the tax law and dozens of sexy sounding tax-saving strategies. That’s the technical stuff. It’s available to all who can read… but sounding off about your knowledge of the strategies (what the typical advisor does) sells. Big time. Whether at a seminar, in a tax column or an eyeball-to-eyeball meeting with your CPA or lawyer. Like the sizzle of a steak — sounds good and smells good for the moment. But in the long run, the quality of the steak is what counts and that — just like a quality tax plan — takes time and a lot of preparation.

Ready? Here’s the difference and more importantly, how we get it done. (Never thought anyone was interested.) Every estate plan — no matter how small or big — goes through a three-stage system. In the first stage we gather the necessary written information: financial statements and tax returns for the business and the business owner, a family tree and all documents that affect the business owner or IRS (for example, wills, trusts and a buy-sell agreements.) The information is analyzed and used to start the planning meetings: usually two to four conferences on the phone. The initial purpose of the conferences is to list three specific sets of objectives: for the client (and his/her spouse when married), the business and the family (typically, the children and grandchildren.)

The financial data and objectives are used to start the system’s second stage: designing the exact plans to meet the client’s objectives. Typically, there are four plans for each client: a lifetime tax plan, a retirement plan, a business transfer plan and a wealth transfer plan (includes an estate or death plan.)

All the plans must dovetail. Each plan must satisfy these two requirements: (1) be understood by the client and (2) accomplish the predetermined objectives (for example, maintain my lifestyle for as long as I live; control my business and other assets; treat the children fairly.)

No, I don’t do all the work. My network (knowledgeable and experienced professionals) of experts does. For example, a network lawyer does the necessary documents (almost every money-saving strategy requires a separate document.) Business valuations are done by a valuation expert. An insurance specialist analyzes your existing policies and knows how to build tax-free wealth using the IRS’ money. Other experts or specialist in the network are called in if needed. I’m just not smart enough to know everything a network of professionals can know. My job is simply to coordinate all aspects of the plans. Once everything is done, we ask the client to submit our plan to their advisors (usually their lawyer and/or CPA) for review and suggestions. (Rarely is a change required.)

The third stage of the system is really a test. We determine that your entire wealth (whether you are worth $3 million, $30 million or more or less) will go to your family all taxes paid, if any. So, for example, if you are worth $10 million the entire $10 million — every dime of it — to your family; $15 million, then all $15 million to your family. Well, you get the idea.

Reread the above paragraph. If your tax plan (or plans) does not meet the above test, you must get a second opinion. Don’t be fooled by the temporary glitter of one or more tax strategies that does not accomplish all your objectives and also effectively eliminate the loss of estate taxes to the IRS.

One more thing: (really another question that came up in the session after the seminar.) The best estate plan is not really complete unless it includes a comprehensive lifetime plan. Remember, you ain’t dead yet. An easy way to put it is your plan should encompass “How to make it” (your lifetime plan) and “How to keep it” (your estate plan.)

Part of the lifetime plan is how to safely invest your excess funds (whether in your IRA, your business or your personal name) without market risk and yet get a high rate of return. Life settlements (LS) is — hands down — the investment of choice for most of my clients. The big guns — companies like the insurance giant AIG or Warren Buffett’s Berkshire Hathaway — have been profiting with LS for about 20 years.

A public company (sells on the NASDAQ) has been in the LS business for 16 years and has opened LS for little-guy investors. The average annual return, over that 16-year period, has been 15.83 percent. Because LS are not subject to stock market risks, interest rates or other external forces, they have become the darling of conservative investors. Minimum investment is $50,000 for a qualified investor.

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Irv Blackman is a certified public accountant and lawyer who specializes in estate planning, business succession and asset protection. Contact him at Blackman@EstateTaxSecrets.com or call 417-9732. His Web site is www.taxsecretsofthewealthy.com.