Estate lawyers will have to reevaluate their options for reducing taxes for family businesses creating succession plans after the US Supreme Court’s decision against an estate in its stock valuation dispute with the IRS.
The high court unanimously ruled Thursday that the value of a family company, Crown C Supply Co., must include the life insurance payout made to the company after co-owner Michael Connelly died. Thomas Connelly, the executor of his brother’s estate, argued that the payout shouldn’t be included in the value because the company was using it to redeem Michael’s shares.
Estate lawyers said the straightforward opinion ...
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