In Connelly V. United States (U.S. No. 23-146, June 6, 2024), the Supreme Court holds that a company's contractual obligation to purchase shares does not offset its value.
The ruling affirms a corporation’s contractual obligation to redeem shares is not necessarily a liability that reduces a corporation’s federal estate tax value. Because life insurance proceeds affect a company’s fair market value, they impact the value of company shares.
Read the full summary of the Supreme Court case.
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