Justices to hear estate tax dispute over shareholder's life-insurance policy - SCOTUSblog

After a hearing another high-profile dispute over abortion access, the justices will return to the bench on Wednesday to consider a routine practice in estate planning for closely held corporations. To help keep the business in the family upon the death of a shareholder, businesses frequently purchase a life insurance policy on the life of an aging shareholder. Then, when the shareholder dies, the corporation uses the proceeds of that life insurance policy to purchase the shares from the shareholder’s estate. That way, the remaining shareholders (often family members) will own the company without having to come up with money out of pocket to purchase the shares.

scotusblog.com     Mar 25, 2024