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Almost all consulting clients we work with have two common objectives: (1) keep control of their business and other assets for as long as they live and (2) don’t lose any of their wealth to the IRS. Typically, they think accomplishing even one of those objectives is the impossible dream. Not true! If you know how, both objectives can be easily — and legally — accomplished.

Let’s use a simple example. You have a 14-year lease on the land and building in which you operate your business. Plus you have six six-year options. So you can control the real estate for half a century, but since you don’t own the real estate, it will never be included in your estate.

It’s a wonderful experience to watch the eyes of your clients light up when we explain how they can keep control of different types of assets, yet still legally escape the tax collector. Let’s look at the most important assets that the typical column reader owns.

Your business. Recapitalize your corporation into voting stock (say 100 shares) and nonvoting stock (say 10,000 shares). A tax-free transaction. Give the nonvoting shares to the younger generations of your family. You have absolute control (own the voting stock), but the ownership and taxable value (the nonvoting stock) is out of your estate.

Your residence. Transfer your residence to a qualified personal residence trust (QPRT). After the term of the QPRT (typically from 5 to 15 years), the residence is permanently out of your estate. During the term of the trust you continue to live in the residence just as if the trust did not exist. After the term of the trust is over, the trustee (most likely you would be the trustee) would lease the residence to you at a fair rental. More tax savings, because each dollar of rent comes right out of your taxable estate. Since your kids will be the beneficiaries of the QPRT, they will wind up with the house… tax-free. And you have control for as long as you live.

Other assets. These include all income producing and investment assets you own, for example, stocks (other than your closely held business), bonds and real estate. You transfer all these assets to a family limited partnership (FLIP). A tax-free transaction. You become the general partner (like owning the voting stock) and give the limited partnership interests (similar to nonvoting stock) to your children and grandchildren. Results: You have control but not ownership.

The above discussion only scratches the surface of how you can have your cake (control) and eat it too (conquer the tax collector). Every type of asset you own can enjoy the benefit of similar control/tax-escape strategies.

Let’s summarize: You can control every asset you own now (or acquire later) for as long as you live. Yet, you can remove that asset from your estate for estate tax purposes. How much tax will you not lose to the IRS? Using 2011 rates, $550,000 per $1 million of assets.

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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.