Business Succession Planning After Connelly

A case decision handed down on June 6, 2024, by the United States Supreme Court, Thomas A. Connelly, in his Capacity as Executor of the Estate of Michael P. Connelly, Sr., v. United States, 602 U.S. **** (2024), may change the succession planning landscape. More specifically, based on the Court’s decision, entity redemption buy-sell plans may become a less attractive option for business owners due to guidance on how life insurance is treated when calculating fair market value for estate tax purposes.