UHY LLP, Certified Public Accountants’ Post

A recent ruling from the U.S. Supreme Court (Connelly v. United States, U.S., No. 23-146, 6/6/24) stated that the value of a family company, Crown C Supply Co., must include the life insurance payment made to the company even though the payment was used to redeem the shares of the deceased shareholder. The inclusion of the life insurance in the valuation caused the company shares to increase pushing the valuation beyond the $13.6 million estate exemption threshold, incurring a 40 percent tax.

High Court Ruling Reveals Lesson Learned On Life Insurance In Succession Planning | UHY

High Court Ruling Reveals Lesson Learned On Life Insurance In Succession Planning | UHY

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