The Cash Flow Clock: For Retirees - Book - Page 42
The Cash Flow Clock
Some may not care if their beneficiaries have to pay taxes. While that is
understandable, they may be missing something more important. If we have
an estate that will be left to our family members, they will likely use the
assets in the estate to pay those taxes. They will not be using their money to
do so. Even though it is no longer our name on the tax return, it is still our
money that is going to the government. It doesn’t really matter who pays the
taxes. When the tax is paid is what determines how much tax is paid. We
repeat this multiple times in this book (and every day to our clients) because
it is so important to remember. Our goal is always to reduce how much of
our assets are given to the government, at least as much as legally possible.
Sometimes that requires paying more taxes now in order to reduce how
much tax is paid overall. A Tax Forecast can help us decide what is best for
us.
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