How to Administer a Section 6166 EstateHow to Administer a Section 6166 Estate

Internal Revenue Code Section 6166 can provide significant federal estate tax deferral for estates of closely held business owners. Judicious application of IRC Section 6166 during the administration of a business owner’s estate can help to preserve the family business. Here are some of the many intricate steps required to administer a Section 6166 estate.

This article is the second of a two-part series on Section 6166. The first article, published in the April issue of Trusts & Estates, focused on lifetime planning for business owners using Section 6166.¹ We’ll use the same defined terms as we did in that article.

The 6166 Notice of Election

Section 6166 allows the executors of a qualifying estate to make one or more 6166 elections. To mak...