Estate Liquidity

The Liquidity Problem

When a person dies, taxes and other costs must be paid in cash within a short period following the date of death. If arrangements haven’t been made to anticipate them, these expenses can severely deplete an estate intended to remain intact for the heirs.

Expenses cropping up as a result of an estate owner’s death can add up to a disturbingly long list:

  • federal and state estate taxes
  • funeral expenses
  • unpaid medical expenses
  • debts of the decedent
  • executor’s fees
  • attorney’s fees
  • court costs
  • appraiser’s fees
  • costs of insuring and otherwise protecting estate property If the estate is short of cash, the executor may be forced to sell estate assets—often at sacrifice prices—resulting in a dramatic reduction in the wealth that was intended for the deceased’s heirs.

 

All well managed portfolios hold defensive reserves.
Harlan W. Wiese RFC LUTCF CLTC
Private Client Division Brokerage Manager
Successful people make a habit of doing what unsuccessful people are unwilling to do.
Holly L. Hullum
Private Client Division
Our firm philosophy is simple: protect assets, grow wealth & live well.
William E. Watson III
Registered Financial Consultant President General Agent
The best time to plan is before you have to. If you wait until you have to plan, you are reacting and not planning, and your options are very limited.
Stephen Hull MBA, RFC
Registered Financial Consultant
Compound interest is good, compound taxation is bad.
Ray Croff CLU ChFC RFC CAP
Registered Financial Consultant Managing Partner - Denton
The success of a financial strategy is often more dependent on its systematic nature than its rate of return.
Kurt G. Poetschke
Private Client Division