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Here’s another example of what can happen if you don’t take Principle 9 seriously: Paul Van Ekert* was a 57-year-old rancher from Utah. In preparation for retirement, Paul decided to meet with an insurance planner to determine what he would owe in estate tax upon his death. The planner explained to Paul that his total risk would be $222,000 and that if he purchased a life insurance policy, would be covered by the policy at his death. He was advised by a new practicing attorney in the area to hold off on the coverage until the policy could be further examined, so Paul declined the coverage and sent the insurance planner on his way. About nine months later he died suddenly without having taken care of the life insurance. His two boys, who had ranched with him and helped Paul successfully run the business, were forced to sell the ranch to cover outstanding debts and to meet the IRS’s tax requirement that the $222,000 in estate taxes be paid within nine months of Paul’s death. This forced a hasty sale of the ranch at a greatly reduced price to a neighbor
who came forward as a buyer of the property. The loss to Paul’s family was tremendous, both financially and emotionally. In less than a year the boys lost not only their means of support, but the legacy that Paul had wanted to pass onto his sons. Today, the two boys are working as hired hands for the new owner of the ranch. If Paul had taken the life insurance policy, his two sons would have kept the family ranch going and had a wonderful inheritance to pass on to their own children.

Now let’s summarize how much you can save in taxes if you take the
time to understand and apply Principle 9:
• Accumulation Stage: Taking advantage of the Schedule C tax
system and looking for viable ways to write off business, travel,
and other expenses can generally save you a minimum of $2,000
per year in taxes.
• Conservation Stage: By organizing properly, using the right forecasting tools, and investing wisely, you will be able to cut taxes
on the growth of your investments up to 50 percent.
• Distribution Stage: By organizing your estate, preparing wills,
protecting assets through living trusts and other tax sheltered
programs, you will be able to eliminate almost all inheritance and estate taxes in most cases, and at the very least pay only a
fraction of the costs.

Although taxes can be the source of much fear and frustration, they
need no longer tear through the fabric of your financial life and weaken your accumulated wealth. Besides the value of getting your spending and borrowing under control using Principles 1, 2, 3, and 4, knowing the rules about taxation (Principle 5), keeping on top of the changes (Principle 6), and getting organized so you can see exactly how you will be taxed (Principles 7 and all go a long way towards grasping the power of Principle 9. If you’re still paying more taxes today than you need to now is the time to change. Commit today to make Principle 9 a part of your life!

Because understanding taxation is such an important part of Money
Mastery, we have devoted not only this chapter, but six additional chapters in Part II of this book to this important topic. Part II, “Tax Strategies,” will help you understand in even greater detail how to take advantage of all the “good” tax laws. We strongly encourage you to explore, through Part II’s step-by-step approach, how to legally pay the least amount of taxes possible. It’s easier than you think to get this important part of your financial life under control. “Tax Strategies” makes it easy. Stop cheating yourself
out of thousands of tax deduction dollars. After discovering the power of Money Mastery Principle #10 found in Chapter 10, turn to Part II and learn the secrets that will change the way you pay taxes forever!

Taken from : Money Mastery “10 Principles That Will Change
Your Financial Life Forever