Many believe that having a valid Will is sufficient for estate planning. However, this article explores the critical role of estate liquidity and the potential complications that can arise when assets are not easily convertible to cash.
Many people assume that if they have a valid Will in place, their estate planning is complete. In reality, a Will is only one part of the broader estate planning process.
A Will may be legally enforceable and carefully drafted, but that does not necessarily mean the estate will be simple to administer. One of the most common difficulties encountered in administering deceased estates is not the wording of the Will itself, but rather a lack of liquidity in the estate.
Estate planning is therefore not only about deciding who inherits what. It is also about ensuring there will be enough cash available in the estate to give practical effect to those wishes.
What is estate liquidity?
