Insufficient capital can cause problems in the payment of estate taxes.

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When an individual dies, their estate may be subject to federal and/or state estate taxes. If the estate does not have sufficient liquid assets to cover these taxes, it may be necessary to sell assets or borrow money in order to make the payments. This can cause problems for heirs and beneficiaries, as it may result in a reduced inheritance or the need to sell assets at unfavorable prices in order to raise the necessary funds.

Insufficient Capital Can Cause Problems in the Payment of Estate