June 2024

JUDICIAL DEVELOPMENT

Supreme Court Affirms IRS Position Regarding Life Insurance Owned by a Closely Held Corporation

On June 6 the Supreme Court of the United States unanimously ruled in favor of the IRS in an estate tax challenge (see Connelly v. United States). As a result, the Supreme Court determined that life insurance proceeds received by a company on the death of a shareholder must be included in determining the value of the company’s shares for estate tax purposes.

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