Estate Costs

How Will You Pay Estate Costs?

Estate Planning Isn’t Just For the Wealthy

Having a thorough estate plan doesn’t mean you won’t have settlement costs.  If you need to pay estate costs, here are some options:

Use Cash

While cash can be used, it’s unlikely there will be sufficient cash available when needed.  Generally it is impractical to keep large amounts of cash on hand.

Liquidate Assets

Assets may have to be liquidated below their fair market value.

Borrow Money

Borrowing also presents certain drawbacks.  For example, will there be a willing lender available when the money is needed?  Also, the loan will have to be repaid with interest.

Pay in Installments

If an estate contains business or farm assets, those assets may qualify for deferred installment payments under Internal Revenue Code (IRC) Section 6166.  However, there are certain pitfalls when selecting this method of payment.  The Internal Revenue Service can place a lien on the business and a missed payment can cause the entire deferred estate tax, plus interest, to become due immediately.

For more information or a customized quote, contact a life specialist at 1.800.396.5993 or email us at

*States have power to levy death taxes.  Right to levy those is governed by state law.  The state looks at two factors: the estate owner’s domicile at death and the location of the property the estate owner owned at death.