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Supreme Court Sides with IRS on Taxation of Shareholders' Life-Insurance Proceeds
SCOTUSblog 
June 7, 2024 "The case presented a routine estate-planning device for those corporations, which commonly purchase life insurance policies on the principal shareholders. With the proceeds of such a policy, the corporation can purchase the shares of a dying shareholder from the shareholder's estate, ensuring that the corporation remains in the hands of the original family.... The problem here is what to do with the value of those life-insurance proceeds, which flow into the corporation immediately after death." [Connelly v. IRS, No. 23-146 (S. Ct. Jun. 6, 2024)] |
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