Plan annual withdrawals from a liquid estate-tax reserve while accounting for investment return and annual cost inflation. The calculator estimates the first withdrawal, total five-year funding, and remaining reserve. It can help test liquidity assumptions for insurance proceeds, cash, or a dedicated account without predicting the actual tax due.
Year n need = first withdrawal × (1 + cost growth)ⁿ⁻¹. Ending reserve = (starting reserve − actual withdrawal) × (1 + return).
The schedule tests whether an earmarked liquid reserve can meet a growing five-year withdrawal need.
The reserve is not the estate tax liability. Actual timing, valuation, settlement expenses, and investment liquidity may differ.
A $500,000 reserve with an $80,000 first withdrawal, 3% annual cost growth, and 4% annual return is reduced by each withdrawal before growth is applied.
Enter only liquid funds earmarked for the modeled estate-tax and settlement costs.
No. It schedules withdrawals from a reserve based on the annual need you enter.
Each annual withdrawal is subtracted first, then return is applied to the remaining reserve.
Yes. The cost-growth input compounds the withdrawal amount each year.
The calculator limits withdrawals to available funds and reports the resulting ending balance.
| Input | Schedule effect |
|---|---|
| Starting reserve | Available liquid pool |
| First withdrawal | Year-1 funding need |
| Cost growth | Raises later withdrawals |
| Return | Applied after each withdrawal |