LIQUID ASSETS: TRANSFORM YOUR ESTATE PLAN AND YOUR FAMILY'S FUTURE
One of the things I have learned as an estate attorney in Columbus, Ohio is that one important goal of estate planning is easing the financial burden and emotional stress on the family of the deceased.
Any estates lawyer will tell you that proper preparation and foresight can make all the difference for your loved ones in the administration of your estate. Building liquidity into your estate plan can ensure your family will have the resources available to cover estate settlement costs, as well as any tax due. Liquidity refers to the ability to quickly and easily convert assets into cash without incurring a significant loss. Funds in a checking account are considered liquid assets, while real estate is considered relatively illiquid.
If your estate must sell illiquid assets to meet immediate cash needs, it may incur a significant loss. In addition to the financial consequences, such forced sales are often difficult for heirs, particularly if it means the loss of a family business, heirlooms, or a home.
Anticipating and planning for the following expenses can help ease the estate settlement process.
Final medical expenses
Income taxes (and any accounting fees)
Federal and state estate taxes
Estate Lawyer Fees
Be sure to consult an estate planning team, comprised of an attorney, tax advisor, and financial professional to help you develop the appropriate strategies for your situation. It’s one of the best things you can do for your heirs. You and your family will be prepared for the future, and your legacy will be carried to the next generation.