Deferring estate taxes under IRC § 6166

Kimberly Leach Johnson(partner, Naples office, Quarles & Brady LLP) & Amalia Levit Todryk(associate, Milwaukee office, Quarles & Brady LLP) have recently published their article entitled Planning for the Payment of Estate Taxes for Illiquid Estates Owning Real Estate — The Code § 6166 Deferral, Prob. & Prop., March/April 209, at 33.

Here is an excerpt from their article:

A client with a taxable estate that consists largely of an interest in a closely held business that owns real estate needs to plan for liquidity or arrange the assets to take advantage of the Code § 6166 election to defer the payment of estate tax. * * * During these tough economic times and with the possibility the a new administration will increase estate tax rates and lower the estate tax exemption, advisors need to work with their clients to plan for the payment of estate taxes.  Borrowing money from a bank is not the option it used to be.  Code § 6166 is a tool that clients can take advantage of with proper planning.