Estate Liquidity Solutions

Life insurance can be a tremendous liquidity tool to pay estate taxes. Life insurance policies provide cash to pay estate taxes within a short period of time, and if structured properly, can be a very tax-efficient and tax-advantaged asset. Most life insurance policies are less expensive than any other method to pay estate taxes and can prevent other valuable assets from having to be liquidated.

Cash Option

100%
Dollars

Liquidation Option

Discounts, fees, commissions

Borrow Option

100% +
Interest

Life Insurance

Discounted Dollars

Graph depicts potential costs per million dollars of estate tax. Life insurance insurance figure based of healthy male, age 54.

Life Insurance in Estate Planning
  • Create or increase the size of an estate.
  • Fund buy-sell agreement.
  • Insure key person.
  • Estate liquidity to pay debts, administration, and taxes.
  • Cover business debts and support business.
  • Equalize bequests to children.
  • Replace gifted assets for spouse or children.
  • Provide income to spouse and family.