As shared in the previous blog post, sentiment is one of the primary reasons and factors that should always be considered when passing on assets to future generations. The second in this four-part series is liquidity.
A liquid asset refers to any asset that can be changed to cash quickly with little influence on the price that would be received for that asset. If your estate mostly is comprised of mostly hard assets then the heirs may need to sell them at a reduced price in order to come up with the cash needed
in order to pay off your debts, especially the estate tax.
Tangible assets like cars and art or other kinds of valuable personal property can be challenging for an heir to sell immediately and receive full and fair market value for. These can also be challenging from an administrative perspective. Thinking about this can be important for preparing your estate plan.
Liquid assets are often the easiest kind of assets to pass on to family members. The more assets you are able to liquidate, the easier you’ll make this job for your family. Set up a meeting with your estate planning attorney to talk more about liquid assets and how more complicated assets like a home can be challenging for heirs to sell quickly in the event that no one wants to stay in the home.
Ready for a consultation with a New Jersey estate planning attorney? Set up your meeting today.