Closely Held Business Buy-out Arrangements Should be Reviewed Immediately in Light of the Recent Connelly Case
Practitioners should inform clients with buy sell redemption agreements about the recent Connelly v. IRS, No. 21-3683 (8th Cir. 2023) that held that corporate owned life insurance had to be included in the value of the company. This recent case requires that buy-sale agreements, buy-out agreements, ownership of life insurance to be used in buyouts must all be reviewed.