WILLS
TRUSTS
POWERS OF ATTORNEY, DIRECTIVE TO PHYSICIANS, AND AGREEMENTS
COMMUNITY PROPERTY AGREEMENTS
OTHER MECHANISMS
Life insurance provides liquidity to an estate when needed for the payment of taxes, administrative fees, and creditors to avoid forced liquidation of other estate assets. It affords budgeting through current costs of premiums instead of having to keep a large quantity of assets liquid at all times. Thus, preventing the quick sale of property at less than fair value, sale of highly appreciated assets (resulting in additional income or capital gains tax), or the sale of family assets of high sentimental value.