Show Notes
Episode #19 – This episode discusses the U.S. Supreme Court’s decision in Connelly v. United States, which significantly impacts how buy-sell agreements and corporate-owned life insurance are viewed for federal estate tax purposes. The core of the ruling is that life insurance proceeds payable to a corporation, even if earmarked for stock redemption, are considered corporate assets and increase the company’s valuation, subsequently raising the deceased shareholder’s estate tax liability. This means a redemption obligation does not offset the increase in value from the insurance proceeds. The article emphasizes that business owners must re-evaluate their buy-sell agreement structures, particularly regarding […]
