The use of life insurance to fund cross-purchase agreements with life insurance: The Supreme Court provides guidance in Connelly v. United States.
In June 2024 the U.S. Supreme Court issued a unanimous opinion in Connelly v. United States (U.S., No. 23-146, Opinion 6/6/24). The case addressed the valuation of a closely held business and will significantly impact estate planning for many family and closely held businesses. The corporation held insurance on the life of a shareholder with the expectation that the proceeds would be used to fund an obligatory buyout of that person’s equity interest. The Court held that the existence of the obligation could not be used to reduce the value of the entity. The Supreme Court’s ruling resolves a conflict between the 8th and 11th Circuit Courts of Appeals.
This program was sponsored by ABA Section of Real Property, Trust and Estate Law's Joint Legal Education and Uniform Laws Group. Recorded on September 10, 2024.
The content of this program does not meet requirements for continuing legal education (CLE) accreditation. You will not receive CLE credit for this program.
