Estate Liquidity

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• ESTATE LIQUIDITY

How to Plan for It
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What Is Estate Liquidity?
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LIQUIDITY refers to the availability of the value
of an asset
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Cash, for example, is a liquid asset because you
can readily access and spend it
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Real property, on the other hand, is not a
liquid asset because its value cannot be
immediately accessed
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Probate
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Your estate will likely go through probate
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Your estate assets that are part of the probate
process will remain secured, and inaccessible to
beneficiaries, until the completion of the
probate process in most cases
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Trusts
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Certain types of trusts are not included in the
probate process at all
Assets held by the trust are also not tied up in
probate
You can also appoint yourself as the trustee of a
trust and appoint a spouse/adult child/parent as
the successor trustee
If you become incapacitated your successor
trustee takes over management of the trust
automatically
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Joint Ownership, POD, and TOD Accounts
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In Missouri, only real property title as joint
tenants with rights of survivorship provides
liquidity
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PAYABLE ON DEATH and TRANSFER ON DEATH are used
for financial accounts and securities
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POD and TOD allow designation of a beneficiary
who automatically becomes the owner of the
account upon death of the account holder
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Life Insurance
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Life insurance proceeds are not included in the
probate of your estate which means the funds can
be distributed immediately to the beneficiaries
of the policy
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Funeral Planning
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Although people prefer not to think of it from a
financial perspective, DEATH CAN BE EXPENSIVE
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Creating a funeral and burial plan and arranging
for funds to cover the expenses ensures that your
loved ones are not saddled with the task of
funding your funeral and burial
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Learn More About Estate Liquidity in Missouri
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