Supreme Court to Resolve Split Over Estate Tax Valuation

The Supreme Court agreed to consider a dispute involving the proper method for determining the value of hard-to-quantify life insurance payouts and whether they are considered corporate assets for the purpose of determining the federal taxable income of an estate.

The case granted Wednesday involves a closely-held corporation owned by two brothers. Following the death of one of the brothers, the estate and the IRS disagreed over the stock’s proper value—a split that is reflected in the intermediate federal appellate courts.

The petition was filed by Thomas A. Connelly, the executor of the estate of Michael P. Connelly, who is ...