The Connelly v. United States case may be one of the more consequential Supreme Court decisions we have seen for estate planning and company-owned life insurance in decades. In its unanimous ruling, the Court found that business-owned life insurance proceeds must be included when calculating the fair market value of a business for estate tax purposes — with no corresponding reduction for the redemption obligation under a buy-sell agreement.
This decision has significant implications for business owners, trustees, and advisors who have established redemption buy-sell agreements funded by life insurance. If you or someone you know has this type of arrangement, it is critical to review it in light of Connelly v. United States.
Please click the image below and learn in more detail about the Connelly v. United States decision and its implications.
