If a large legacy
tax bill arose,
where would the cash come from?

01｜CASH

Cash: immediate, but inefficient over long periods

Cash, deposits and money-market funds are the most direct and predictable sources of liquidity. Yet holding a very large cash balance for years creates opportunity cost and exposure to inflation.

02｜LIQUID ASSETS

Equities, bonds, funds and gold: easy to sell, but asset value is not available net cash

These assets are relatively liquid, but their value depends on market timing. Depending on the jurisdiction, post-death gains, capital-gains tax, income tax, commissions or other transaction costs may also apply.

An asset’s stated value is not the same as the net cash available after liquidation.

03｜PROPERTY & COLLECTIBLES

Property, art, jewellery and collectibles: valuable does not mean immediately liquid

Property requires valuation, a buyer, negotiation and transaction time. Art, antiques, jewellery and watches may also require authentication, auction fees and a discount to estimated value. A painting appraised at RMB 10 million may not generate RMB 10 million next month.

04｜BUSINESS & IP

Private companies, PE, patents, copyright and brands: valuable, but more complex

Private-company shares may be affected by valuation, shareholder agreements, transfer restrictions and control. Patents, copyright, trademarks and other IP depend heavily on commercialisation. These may be long-term stores of value, but poor emergency tax reserves.

05｜FINANCING

Why did the real estate case use financing first?

The £10 million UK estate included property, investments and private-company shares, all of which had theoretical value. A rushed sale, however, could have sacrificed price or control. The executor arranged a probate bridging facility of about £3.9 million to meet roughly £4 million of inheritance tax and related expenses, then sold the property after probate on a less pressured timetable while retaining the business shares.

Financing separated the deadline to pay from the decision of when to sell.

06｜INSURANCE

Insurance: building a separate cash channel in advance

Insurance can create contractual liquidity after a covered event without requiring the family to sell its existing core assets at that moment. Payment conditions, timing, amounts and legal or tax effects remain subject to the contract and applicable jurisdiction.