News & Analysis as of

Survivorship

Husch Blackwell LLP

Unanimous Supreme Court Determines Company-Owned Life Insurance Increases Fair Market Value

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On June 6, 2024, the Supreme Court held 9-to-0 in Connelly v. United States that company-owned life insurance increases the company’s fair market value for estate tax purposes, and the company’s obligation to redeem a...more

UB Greensfelder LLP

The U.S. Supreme Court’s Decision in Connelly Impacts Estate Tax Valuations of Closely Held Businesses

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The Supreme Court’s recent decision in Thomas A. Connelly et al. v. United States has significant implications for certain closely held business owners. The decision is important especially for those with, or planning to buy,...more

Farrell Fritz, P.C.

Beware of Company-Owned Life Insurance - Connelly v. United States

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On June 6, 2024, the Supreme Court unanimously decided the case of Connelly v. United States, which concerned the valuation of a business with company-owned life insurance. In this case, two brothers were the sole...more

Bressler, Amery & Ross, P.C.

Adverse Estate Tax Impact when a Redemption Agreement is used to Purchase Deceased Shareholder’s Shares

In the recent case, Connelly v. United States, 602 U.S. (2024) (slip op.) the U.S. Supreme Court unanimously ruled that life insurance proceeds received by a closely held corporation which is used to fund the redemption of a...more

Bond Schoeneck & King PLLC

Life Insurance and Tax Implications

Amidst many recent sharply divided decisions, the United States Supreme Court (SCOTUS) on June 6, 2024 issued a rare unanimous ruling in Connelly v. United States, which addressed estate tax considerations relative to...more

Rivkin Radler LLP

BEWARE: Redemption Agreement Funded with Corporate-Owned Life Insurance

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On June 6, 2024, in the case of Connelly v. United States, the United States Supreme Court determined that corporate-owned life insurance proceeds used to redeem a decedent’s shares in the corporation must be included when...more

Warner Norcross + Judd

Connelly v. United States Decision Affects Life Insurance for Closely Held Business Owners

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On June 6, 2024, the United States Supreme Court issued its opinion regarding Connelly, as Executor of the Estate of Connelly v. United States. This final decision will directly impact all closely held business owners that...more

Perkins Coie

Supreme Court Clarifies Estate Tax Consequences for Closely Held Company

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The Supreme Court of the United States issued an important ruling on June 6, 2024, clarifying the federal tax consequences of certain succession plans for closely held businesses. The Court held in Connelly v. United States,...more

Burns & Levinson LLP

Client Advisory: Valuing Closely-Held Stock for Estate Tax Purposes | Connelly v. U.S.

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Connelly v. United States involved determining the fair market value of a closely-held corporation for purposes of estate taxation. A corporation, owned by two brothers, was obligated to buy back the shares of the first to...more

ArentFox Schiff

US Supreme Court Affirms the Eighth Circuit’s Decision in Favor of the Government Concerning the Estate Tax Treatment of Life...

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In Connelly v. US, 602 US ___ (6/6/2024), the US Supreme Court affirmed a decision of the US Court of Appeals for the Eighth Circuit in favor of the government concerning the estate tax treatment of life insurance proceeds...more

DarrowEverett LLP

Buy, Sell, Pay Taxes: SCOTUS Decision Places Its Own Premium on Buy-Sell Insurance

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All U.S. closely held businesses just received a warning from the highest court in the land that they should review their succession plans (or else risk a higher tax bill for the estates of their owners). On June 6, 2024, the...more

Charles E. Rounds, Jr. - Suffolk University...

Incorporating into a trust instrument a nonjudicial mechanism for effectuating on an ongoing basis the wishes of the deceased...

There is much to commend in O’Brien, Proposing a Model Antilapse Clause, 48 ACTEC L. J. 257 (2023), particularly its flagging of the doctrinal and practical flaws in Uniform Probate Code §2-707, which would apply the...more

DarrowEverett LLP

Time to Step Up? Florida’s Community Property Trust Act Worth A Look

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Unknown to many Floridians, Florida enacted the Community Property Trust Act which went into effect on July 1, 2021, and established the ability to convert non-community property into community property. The community...more

Robins Kaplan LLP

The Robins Kaplan Justice Report - Vol. 17, No. 2

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Minnesota Passes Survivorship Bill, Expanding Justice for Victims of Medical Malpractice and Wrongful Death - On May 20, 2023, Minnesota became the last state to pass a Survivorship Bill, expanding the damages that...more

Fox Rothschild LLP

Is a Gift a Gift if You Don’t Know You Got it?

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The issue of gifting comes up with some frequency in family law cases. Generally, gifts from third parties that are not subsequently commingled are exempt from equitable distribution. Parties also make gifts to children and...more

Dickinson Wright

Gantt V. Harris County: How Death Does Not Dismiss A Tchra Case Under The Texas Survivorship Statute

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The Texas Commission on Human Rights Act (“TCHRA”) was enacted to “provide for the execution of the policies of Title VII of the Civil Rights Act of 1964 and its subsequent amendments.” Tex. Lab. Code § 21.001. Accordingly,...more

Fox Rothschild LLP

Equity Overcomes The Law In A Land Title Case

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First, foremost, the case decided on October 12, 2022 is non-precedential, leaving the bench and bar to debate whether it matters.* But, the decision in Nally v. Nally, 163 EDA 2022 is going to make the real estate community...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Yours, Mine and Ours: Estate Planning for a Blended Family

When William Shakespeare wrote “What’s mine is yours, and what is yours is mine,” he likely was not thinking about a blended family. Blending families offer a myriad of challenges, one of which is how the spouses’ assets will...more

Burns & Levinson LLP

How Ancestry Kits Upend Estate Plans and Create Estate & Trust Litigation

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Continuing the Smith and Alexander family saga, this blog focuses on the interesting and not-uncommon twist of Stevie Jenkins surfacing and believing to be half-siblings with Twyla and Randall. Tiffany Bentley’s blog last...more

Weintraub Tobin

With Right Of Survivorship – Or Perhaps Not?

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In advising clients regarding the rights afforded to joint tenants on a bank account, most practitioners would say that the agreement with the financial institution generally would control, with the surviving joint tenant...more

Holland & Hart LLP

Ric Ocasek’s Personal Representative Is In For a Bumpy Ride

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On September 15, 2019, Ric Ocasek, singer, songwriter, and guitarist of The Cars, died in his Manhattan residence. He was found that morning by his wife, Paulina Porizkova, a supermodel and celebrity in her own right, as she...more

Farrell Fritz, P.C.

Joint Accounts – Who Gets the Account Upon Your Death?

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An account that is titled in your name and that of your child “with right of survivorship” passes to your child upon your death “by operation of law.” That is, your Will does not control the disposition of this account. When...more

Cranfill Sumner LLP

Understanding Trusts: Do you need one? What are the? How do they work?

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One of the most common questions clients ask is whether they need a trust. While they are usually seeking a “yes” or “no” answer, as with most legal questions, the correct answer usually is, “It depends.” The answer depends...more

Vedder Price

TCPA Case Law Review (Vol. 5)

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Since our last TCPA update at the end of August, the biggest news has obviously been the Marks v. Crunch case. But that was not the only meaningful case decided in the last month or so. Decisions continue to roll in on...more

Manatt, Phelps & Phillips, LLP

Sixth Circuit: Death, Taxes and TCPA Claims

A Telephone Consumer Protection Act (TCPA) claim survives the death of the plaintiff, the U.S. Court of Appeals, Sixth Circuit has ruled, declaring the statute is “remedial” in nature and not penal....more

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