The US Supreme Court on Wednesday will consider whether the value of an estate’s asset—stock redeemed by a closely held business—must take into account life insurance proceeds that would increase the estate’s tax bill.
Practitioners say the outcome may hinder a business’ ability to remain closely held.
Shareholders of a closely held business may enter stock purchase agreements where, if any one shareholder dies, the survivors have the option to buy the decedent’s share in order to maintain close control of the company.
Brothers Michael and Thomas Connelly made such an agreement with their family business, Crown C Supply Co., ...
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