Estate liquidity is the cash available to pay taxes, debts, and administration costs without forcing quick sales of illiquid assets. Liquidity planning identifies sources such as life insurance, credit lines, or asset sales to meet deadlines and preserve value. Without liquidity, estates may sell businesses or real estate at discounts under time pressure.

Advisors quantify expected estate tax and expenses, then secure life insurance or other liquid assets to avoid fire-sale discounts. Coordination with business valuations and buy-sell terms ensures cash is available when due, not after assets must be sold.