Top Court Insurance Payout Review May Resolve Split, Estate Says

The Supreme Court should review an Eighth Circuit ruling that an estate must pay a $1 million tax bill on taxable life insurance proceeds because the dispute presents an opportunity to be a “perfect vehicle” to resolve a circuit conflict, an estate said in a filing Tuesday.

The estate of Michael P. Connelly said in a reply brief that reviewing a US Court of Appeals for the Eighth Circuit opinion upholding the estate’s tax bill would resolve conflicts on the tax treatment of unreported life insurance proceeds between the Eighth Circuit and decisions from the Ninth and Eleventh Circuits.

• The ...