The 65-Day Election for Estates and Trusts
Section 663(b) can allow certain distributions made within the first 65 days of a new tax year to be treated as though made on the last day of the prior tax year.
What Matters Most
The election is not the same thing as the separate 65-day estimated-tax allocation under §643(g) and Form 1041-T.
Timing Can Shift a Distribution Back One Tax Year
A valid §663(b) election can treat qualifying distributions made during the first 65 days of a new tax year as paid on the last day of the prior year. The election can affect DNI and beneficiary K-1 reporting.
Do Not Confuse Two 65-Day Rules
The §663(b) distribution election is different from §643(g), under which qualifying estimated tax payments may be allocated to beneficiaries using Form 1041-T.
Why Professional Help Can Matter
Fiduciary taxation often depends on the governing document, ownership, timing, distributions, elections, fiduciary accounting, and state law. A qualified tax professional with actual estate-and-trust experience can help coordinate those moving pieces so requirements are fulfilled and unintended consequences are less likely.
Not Sure What Your Situation Requires?
Reviewed by Owen Arnoff, EA, NTPI Fellow
Reviewed: October 2026
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