[VIDEO] The Paulson Decision: Are Heirs Liable for Unpaid Taxes?

The Paulson Case and § 6166

Did you know that heirs can face personal liability for any unpaid taxes?

In this new episode of The Quick Connect, Lina Storm, MMSD Director of Sales Enablement, discusses a recent court of appeals case, United States v. Paulson, which held that personal liability is imposed with respect to unpaid estate taxes on those who receive estate property.

In this case, the estate qualified to use a Section 6166 election, which allows an estate – for which the business represents more than 35% of the estate – to defer the payment of estate taxes over a 15-year period. The heirs exercised the election and then defaulted on the payments.

Quick Tip: Find out why life insurance is critical to use in combination with, or as an alternative to, estate planning for a business owner.