Estate liquidity planning doesn’t need to be difficult.

Whether it’s unsettled business interests, a passed-on mortgage, or unaccounted tax; poor estate planning can impact you.

But there are ways to navigate it. That’s why we’ve come with some helpful tips for estate planning.

When to Consider an Estate Sale

The most common liquidation scenario happens when seniors are looking to downsize. We often see elderly people wanting to simplify by selling the contents of their homes. This occurs regardless if they are moving into an assisted living facility or not.

Another common scenario is we see estate sales is when someone dies. In this case, it is the executor or the deceased’s relatives who will need to tackle the liquidation.

There are also a number of other reasons why a family would consider liquidating their estate. These typically include – divorce, debt, and downsizing.

Taxes to be Mindful of

When a loved one dies, homes are able to be passed on to a spouse tax-free. However, if someone plans to pass the property on to a child, it may be taxed as a ‘gift.’ Being unprepared to cover this could have horrible repercussions.

That’s because, if the family is unable to pay, it could lead to an abatement. An abatement occurs when there is not enough money from an estate to cover its liabilities.

This means that things like property, gifts, money (or what’s remaining of the estate) need to be reduced until it’s exhausted and able to cover the debt.

When to Hire Professional Help

An estate sale is so much more than simply selling stuff. You want someone in charge who knows what they are doing. Someone who has experience in the business with prior knowledge of auctions, buying, and selling vintage goods or appraisals.

Plus, given how delicate the subject of liquidations can be, you want someone who is sensitive and able to handle the difficult emotions that go along with it.

That’s why we suggest looking for a professional who specializes in the appraisal, pricing, and selling of estates. Professional liquidators will work in your best interest to ensure your family gets the most money possible.

They will also tackle the logistics of the sale including the cleaning, organizing, marketing, and advertising to buyers.

Professionals are also held to the highest industry standards by the American Society of Estate Liquidators and the National Estate Sale Association. So, if the liquidator you are interested in working with is not a member of these, you might want to reconsider.

Understanding Objectives

An estate sale can be overwhelming. To prevent emotion from taking over it’s important to determine what your intention is with the sale.

If the intent is to quickly declutter for a move, then the entire goal of the project should be to clear out the home as quickly as possible.

However, if the goal is to get as much money as possible, consider taking more time to connect with the right buyer.

Regardless of what you decide, if you are handling this matter a as family it is important to speak with one another to identify what the goal is and how you all will reach it. This prevents disagreements and side-tracked projects.

Whether it’s debt, downsizing, death, or divorce – estate liquidity planning is best done with a professional. A professional, like us at A.P Accounting & Tax Services. We’re familiar with the laws and can help you through this difficult time.

Whether you’d be interested in learning more, or knowing what services would benefit you, give us a call at 407-328-5001.

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