Considering the case’s potential impact on estate taxes, manufacturing company owners should consult their estate planning advisors.
Are you the owner or co-owner of a manufacturing company? If so, you should be aware of a recent U.S. Supreme Court ruling that may impact your estate planning strategies.
The case — Estate of Connelly — involves the valuation of shares for estate tax purposes when life insurance is used to fund share redemption agreements.
What the case means for privately held companies
The Connelly case highlights complexities involved in valuing ownership interest in privately held companies for estate tax purposes. The central question the court addressed was whether the obligation of a corporation to redeem shares should be considered a liability decreasing the shares’ value.
Learn more about the court case
Looking for more details on this ruling? Check out our recent article for more information on how this might impact your business and estate planning.
How CLA can help with estate planning for manufacturers
Considering the case’s potential impact on estate tax calculations, business owners should consult their estate planning advisors. Tax advisors in particular can review entity owner agreements in light of the court decision.
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