Section 6166

Liquidity to meet the estate tax burden can present a challenge for the estate of the owner of a closely held business.

The opportunity to defer some estate taxes and then pay it in installments through the use of a tax election under Internal Revenue Code Section 6166 can be quite useful given the right circumstances.

Life insurance can offer a way to enhance those benefits considerably, and more importantly provide an excellent stand-alone source of liquidity WITHOUT the limitations that usually apply to the Section 6166 election beloved by so many CPAs.

For an insight into how Life Insurance may work well in combination with, or as an alternative to the Section 6166 election we urge you to consider each of the following: