What is a Beneficiary Liquidity Plan?

When a loved one passes away, the last thing anyone wants to be worried about is paying for a funeral. You should have the opportunity to grieve and celebrate the life of your family member without the costs hanging over your head.

Most people have heard of Prince, popular for hits such as ‘When Doves Cry,’ ‘Purple Rain,’ and ‘Kiss.’ When Prince passed away in 2016, he was worth about $300 million. However, his family was unable to access any of his money to pay for a funeral. Luckily for them, George Lopez helped the family pay for Prince’s funeral with a generous gift of $20,000.

The sad reality is that Americans struggle with this issue every single day. Someone passes away and the family must decide how to split the costs. An average funeral can cost between $5,000 and $15,000, which can be a huge burden on families. Oftentimes, one family member pays for everything while they wait for money to transfer from the deceased. This can create friction in the family that sometimes is never resolved.

At Active Wealth, we know that there’s a better way and that better way is a Beneficiary Liquidity Plan. What if you already have a plan in place? Here’s a look at some common plans people might set up for their family:

  • Life Insurance. This includes Term Life, Universal Life, Whole Life and Final Expense
  • Bank Money. This includes checking accounts, savings accounts and CD money
  • Annuities. This includes fixed annuities, variable annuities and indexed annuities.
  • Investments. This includes stocks, bonds, mutual funds, managed money, etc.
  • Power of Attorney

What do all of those plans have common? They all require a death certificate. It can take an average of 21 days to receive a death certificate by mail. Most preparations and payments must be made before that time. With the Coronavirus pandemic, you could see even longer delays. With a Beneficiary Liquidity Plan, you can receive funds within 24-48 hours after your family member passes away. Here are some other benefits to this plan:

  • We use money that you already have – and were already planning on leaving for your family – and move it so they can access it.
  • Funds grow tax-deferred and pass tax-free to your named beneficiaries
  • The death benefit is paid out in 24-48 hours without a death certificate
  • No health qualifications
  • Policies are issued to anyone aged 99 or younger
  • You can put up to $100,000 in your plan

The application for a Beneficiary Liquidity Plan is a simple, 4-page document and policies are issued daily. By putting this plan into place, you are allowing your family to access necessary funds 30-60 days faster than without. This can relieve some of the stress surrounding planning a funeral and making other final preparations. it can also give your family the space they need to celebrate your life and your legacy.

If a Beneficiary Liquidity Plan is something that interests, we want to help you set it up. Give us a call at (770) 685-1777 or visit https://activewealth.com/consult/ to schedule your FREE consultation. This plan will allow you to leave a legacy for your family and it will give you peace of mind that they will be taken care of in the days following your passing. This truly is the final piece to your financial plan.

You can also register for our webinar on a Beneficiary Liquidity Plan by visiting https://event.webinarjam.com/channel/FundsToHeirsin24hrs.

Disclaimer: Information provided is not intended as tax or legal advice, and should not be relied on as such. You are encouraged to seek tax or legal advice from an independent professional. Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM and Active Wealth Management are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents.


Active Wealth Management is a private wealth management firm located in Atlanta, GA. Our team is passionate about educating clients in order to empower them to invest and retire successfully and we believe in managing our client’s assets actively. Active Wealth Management works with three primary groups of people; pre-retirees, retirees, and business owners.

Active Wealth Management is led by our Founder and President, Ford Stokes, and by our Senior Vice President, Brandy Seats. They aim to help clients understand their current financial situation, analyze their current portfolio, and develop a customized financial plan to accomplish their goals. If you would like more information about the firm, please visit our website, https://activewealth.com, or call our office at (770) 685-1777. You will not be passed off to another advisor. You will meet with either Ford or Brandy. You can schedule directly into their calendars at https://activewealth.com/consult/.