July 11, 2024
Connelly v. United States Training Webinar
Join our Advanced Sales Team on Thursday, July 25, for a webinar on the Supreme Court's decision in Connelly v. US and its impact on buy-sell agreements.
In a unanimous decision, the United States Supreme Court ruled that life insurance proceeds received by a corporation to redeem shares of a deceased owner are not necessarily offset by the corporation’s corresponding obligation to purchase the interest, thereby increasing the value of the corporation. In other words, even though the business has a requirement and liability to purchase the deceased owner’s shares, the life insurance proceeds designated for that purpose are still considered to be an asset of the business. This results in an increase in the value of the business for the deceased shareholder’s estate. Historically, under prior case law, the death benefit has been offset by the corporation’s liability to buy out the deceased owner’s shares.
For more on this topic –
Join the NLG Advanced Sales team as we discuss the impact of the Connelly decision, including how to leverage this case as an opportunity to check in and have a conversation with business owner clients and prospects. In addition, come and hear best practice points to consider when assisting in future buy-sell arrangements.
If you’d like to read the opinion of the court before the webinar, please check out the opinion here: 23-146 Connelly v. United States (06/06/2024) (supremecourt.gov)]
Connelly v. United States: The Impact on Buy Sell Planning
Presented by Advanced Sales Team
Thursday, July 25
1:00 p.m. ET; 12:00 p.m. CT
This ruling presents an opportunity to contact your business owner prospects and clients to discuss their buy-sell agreements.
Learn some key talking points, To Redeem or Not to Redeem – That Is the Question After Connelly
As a result of the Connelly decision, business owners should be encouraged to review the value of their business, any existing buy-sell agreement funded with life insurance, and their overall estate plan to help achieve their business, personal, and legacy goals.
- CONNELLY, AS EXECUTOR OF THE ESTATE OF CONNELLY v. UNITED STATES (2024). 23-146 Connelly v. United States (06/06/2024) (supremecourt.gov)
The companies of National Life Group® and their representatives do not offer tax or legal advice. Please encourage your clients to seek tax or legal advice from their appropriate professional advisor.
