Poor estate planning may lead to which of the following consequences?

Poor estate planning can result in the inability to pay off final income tax with sufficient cash. This outcome occurs when arrangements are not made to ensure that there are sufficient liquid assets available upon death to cover any outstanding tax obligations. When an individual passes away, their estate is responsible for settling any taxes owed before the remaining assets can be distributed to beneficiaries.

Without proper planning, individuals may leave behind assets that are illiquid (such as real estate or personal possessions) instead of liquid assets (like cash or cash equivalents) that can easily fund these liabilities. This can lead to a situation where the estate may be forced to sell assets at an inopportune time or may not be able to fully settle debts, ultimately impacting the financial legacy left for heirs.

In contrast, the other options relate to positive outcomes or actions taken with effective estate planning, such as establishing a trust fund, safe asset distribution, and creating a financial plan for heirs, which all contribute to better management of estate assets and responsibilities.