To find the right depletion plan for your situation, consider what embedded capital gains you have in your taxable accounts, the step-up in basis your heirs will receive when they inherit assets from your taxable accounts, changes in your ordinary income tax rate either due to government regulation or your changing income streams, and timing constraints, such as having to exercise company stock options within a certain period of time. Not planning for catastrophic medical expenses. For many situations, I recommend that people buy long-term care insurance to protect their portfolios against these costs. For more, read Why You Need Long-Term Care Insurance . Incomplete estate planning that leads to unnecessary costs and inconveniences.
Nobody likes contemplating death.
So think about estate planning as giving your loved ones a great gift. Trusts such as the Credit Shelter Trust or Irrevocable Life Insurance Trust can protect your estate from unnecessary taxes. For more about trusts, see Your Estate Planning Checklist, Part 1 and Your Estate Planning Checklist, Part 2 . Tell me what you'd like to see addressed in future articles. Sue reads every e-mail but cannot respond to them all.