News & Analysis as of

Stock Redemption Life Insurance Internal Revenue Service

Tucker Arensberg, P.C.

Business Owner's Guide: Use of Life Insurance for Buyouts

It is typical to have provisions in the governing documents for your company which contemplate the death and buyout of the owners. Most often, those buyout obligations are funded by the purchase of a life insurance policy on...more

Dinsmore & Shohl LLP

Connelly Decision: Supreme Court Rules Company-Owned Life Insurance Must Be Included in Estate Valuation

Dinsmore & Shohl LLP on

A recent Supreme Court decision means that owners of closely held companies with company-owned life insurance policies should take extra precautions to avoid an unexpectedly large estate tax bill from the IRS....more

Lathrop GPM

Supreme Court Confirms Life Insurance Proceeds Received by Corporation Increase Estate Tax Value of Decedent’s Shares

Lathrop GPM on

The June 6 unanimous ruling by the United States Supreme Court in Connelly v. United States creates a significant change for closely held businesses planning to utilize life insurance proceeds to fund buy-sell agreements....more

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

Value of Stock Included Life Insurance Proceeds Intended for Redemption of Stock

The Eighth Circuit Court of Appeals recently affirmed the decision in Connelly vs. United States, holding that the fair market value of stock in a closely-held corporation, for purposes of valuing that stock held by a...more

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