Legal Question in Wills and Trusts in New Jersey

Distributing assets while under a 6166

When my mother died she had a house and business in her estate. There is a remaining balance of the federal estate tax to be paid for which the estate is entered into a 6166 tax lien. The question is, can the assets be distributed to the beneficiaries while under this lien or does the lien have to be paid off. The deed to the house was transferred to me and my sisters,but the stock of ownership to the business wasn't. We are concerned that the other business partner is up there in age and I know that estate can take up to 14 years to pay off the lien for which she is also the executor of this estate.


Asked on 2/28/08, 12:54 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Distributing assets while under a 6166

Until the lien is paid off, the assets that secure the lien cannot be distributed. I am presuming the taxes due are not being paid as the estate has no liquidity to pay them, and there may be no market for the stock. This is a shame, as the liability will only get higher if interest is being added all the time.

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Answered on 2/28/08, 4:45 pm


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