Whether you want to secure the financial future of your children or leave the bulk of your assets to your faithful Chihuahua, having a solid estate plan in place can guarantee that your money goes to the right heirs.

Uncle Sam Is Not a Relative
Did you invite Uncle Sam to your 4th of July barbecue or Christmas dinner? Then why let the federal government get more than its fair share of your estate?

Under the current estate tax you can leave your heirs $3.5 million tax free. If you're married, you and your spouse can leave a total of $7 million that is exempt from federal taxes. Estates valued higher than that would be taxed at 45% according to the Wall Street Journal. Another way to save on taxes is to give gifts of up to $13,000 annually tax free. Those gifts can be to kids, cousins, friends, or the kooky inventor up the street. .

Picassos and Condos
Consider establishing a trust if you have a net worth of at least $100,000 and a good portion of your assets are in real estate, art, or a business. Other situations that make setting a trust a smart idea include:

• If you don't want your estate to be paid directly to irresponsible heirs when you die or you don't want them to get it all at once.
• You want to make sure your spouse is taken care of but also want your children to receive part of your estate.
• You want to make sure a disabled relative is provided for but don't want him or her to be disqualified from receiving government assistance.

Types of Trusts
A trust is a trust is a trust, right? Wrong. Consult with an attorney to put together the right trust for your situation. A revocable living trust will cover most of your assets and would include a provision to include any assets that aren't in the trust at the time of your death. Among the type of trusts you might consider is a generation-skipping trust that allows money to be transferred to grandchildren or other beneficiaries at least two generations from you.

Qualified personal residence trusts allow you to remove your home from your estate. You could give it to your kids but you won't have to ask their permission to paint the walls red or build that barbecue pit in the backyard. Credit shelter trusts allow married people to avoid estate taxes when passing money to heirs, while giving their spouse rights to the assets in the trust.

Establishing a basic trust costs about $1,600 to $3,000, according to CNN Money. Having an appropriate trust and a solid estate plan can minimize the family strife, ensure that your wishes are carried out, and keep Uncle Sam's big hairy paw out of your pocket.