Sources for Estate Liquidity

Free CFP Exam lesson in Estate Planning. 14 min read, ~2,065 words.

Bottom Line. An ILIT provides immediate, income-tax-free cash outside the gross estate, the most effective proactive liquidity tool. 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 into a 14-year installment plan at...

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