EVENT CALENDAR

On June 6, 2024, the U.S. Supreme Court issued a unanimous opinion in a closely held business valuation case that will have significant impact on many family and closely held businesses.  (Connelly v. United States, U.S., No. 23-146, Opinion 6/6/24.)  The case addressed the valuation of stock in a closely held business and held that the obligation of an entity to buy a deceased equity owner’s shares does not reduce the value of the insurance proceeds received by the entity to fund the buyout.  The Supreme Court’s ruling resolves the conflict between the Connelly case and Estate of Blount v. Commissioner, which had reached the opposite conclusion. 

Drafting trusts that will receive retirement benefits has been a challenge for estate planners, even before SECURE. And as we navigate the post-SECURE landscape, new drafting issues continue to arise. Some of those issues are helped along with new legislation – such as “SECURE 2.0” – or may have been addressed in proposed regulations (that are not yet final). One common issue is how to include charities in the estate plan when planning for retirement benefits.

It’s been more than 30 years since the Patient Self Determination Act codified the use of advance directives in hospitals and other medical facilities. While traditional advance directives still serve an important role for your clients, they do have their limitations. Many directives do not address issues of cognitive decline, a growing concern among seniors. They also do not take into consideration drastic changes in health, such as a terminal diagnosis, which can cause clients to reconsider some treatments. During this webinar, Randi Siegel, MBA, will outline innovations in advance care planning that give your clients more nuanced control over their health care. You’ll also learn about resources to help your clients discuss their wishes with their loved ones.

The Federal Trade Commission (FTC) has issued a new Rule prohibiting noncompete agreements. While this has been the subject of considerable discussion among employment and corporate attorneys, similar attention has yet to be given to this development among estate planners. The rule has a far-reaching impact on estate planning. The ramifications of how small, closely held, and family businesses that have used noncompete provisions, non-solicitation, and nondisclosure agreements will now address protecting themselves and retaining key employees and contracts must change. The valuation of companies may be significantly affected. For some family and closely held businesses, the impact of succession planning could be dramatic.