Sources for Estate Liquidity
Free CFP Exam lesson in Estate Planning. 15 min read, ~2,205 words.
An ILIT delivers immediate, income-tax-free cash outside the gross estate, the strongest proactive tool, but requires Crummey powers and three-year survival for transferred policies. Section 303 allows tax-efficient corporate cash extraction (sale treatment, not dividend) when stock exceeds 35% of adjusted gross estate. Section 6166 converts an immediate tax bill...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- G.58
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