No. 23-146October Term 2023Decided Jun 6, 2024
Connelly v. United States
In a unanimous decision, the Supreme Court held that life insurance proceeds used by a closely held corporation to redeem a deceased shareholder's stock must be included in the corporation's fair market value for federal estate tax purposes.
Case status
- Current stage
- Decided
- Latest event
- Decision released Jun 6, 2024
- What it's about
In a unanimous decision, the Supreme Court held that life insurance proceeds used by a closely held corporation to redeem a deceased shareholder's stock must be included in the corporation's fair market value for federal estate tax purposes. The Court determined that the corporation's contractual obligation to redeem the shares is not a liability that offsets the value of those insurance proceeds.
Question presented
Should the proceeds of a life insurance policy taken out by a closely held corporation on a shareholder in order to facilitate the redemption of the shareholder’s stock be considered a corporate asset when calculating the value of the shareholder’s shares for purposes of the federal estate tax?
- Case path
United States Court of Appeals for the Eighth Circuit / Decision released Jun 6, 2024
- Area
Business and Regulation
Documents
Related cases
Grounding
- Grounding
- Primary-source trail available.
- Note
- Plain-English explainer. Official filings and opinions remain authoritative.
- Checked
- Mar 30, 2026
- Method
- Methodology