Estate liquidity planning structures funding-often with life insurance-to meet estate-settlement obligations predictably. Advisors model projected taxes and expenses, then size policies or other liquid assets accordingly. Planning considers ownership (e.g., ILIT), timing of proceeds, and coordination with buy-sell or trust provisions. Adequate liquidity protects operating businesses, preserves family assets, and reduces conflict among heirs.

Annual reviews update liquidity models for asset growth and tax changes. Advisors verify policy ownership (often ILITs), premiums, and beneficiary designations, and coordinate with trustees so proceeds arrive in time to cover taxes and expenses without disrupting operations.