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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