Many closely held businesses have shareholder buy/sell redemption agreements. These agreements are critical to maintaining business continuity when a key shareholder exits the company. When the ...

Closely held businesses routinely use life insurance to fund buy-sell obligations when an owner dies. The logic is simple: the company or surviving owners need liquidity to effect redemptions or ...

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In a unanimous decision, the Supreme Court ruled for the IRS and against a taxpayer arguing that life insurance proceeds reduced the value of a family business for estate tax purposes. In the life ...

Discover how a cross-purchase agreement protects businesses by allowing partners to buy a departing partner’s shares, ensuring smooth transitions and business continuity.

In today’s complex business landscape, advisors play a vital role in guiding business owners through critical transitions, and succession planning is paramount among business owners’ concerns. While ...

A recent Supreme Court decision could have a major impact on the structuring of buy-sell agreements for closely held companies and the way life insurance is used to fund such arrangements. This week, ...

On June 6, 2024, the U.S. Supreme Court issued a unanimous opinion on a closely held business valuation case that will have significant impact on many family and closely held businesses. Connelly v.

Succession planning for closely held business owners has always carried estate tax risks, but the Supreme Court's 2024 decision in Connelly v. United States has made those risks more costly (to the ...

Life insurance proceeds, typically paid directly to a beneficiary, are not generally subject to income tax as they're seen as reimbursement for a loss. However, exceptions do exist. For instance, if ...