Leave yourselves enough of a financial cushion so you don’t have to depend on the full value of your investments in case of an emergency, because they may not be completely convertible to cash. Use the tax code to keep money within your family. There is nothing sneaky or even unpatriotic about trying to pay the least amount of taxes allowable. Kim and Tony had to be careful about selling their vacant lots to raise cash, because that sale was going to cost them a bundle in capital gains taxes.
Consider the impact of capital gains taxes, or any recurring taxes, on any investment you make. If you don’t, you will inconsiderately, if unwittingly, force your family into a monetary jam. It’s important to understand that a future capital-gains tax obligation reduces the effective value of a property. I had to explain that to Julie when she and Larry were dividing property before their divorce.
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