Did you ever wonder how some courts can arrive at a business value that seems clearly out of character with the principles of business valuation? This frequently happens in divorce cases but can happen in other cases also—for example, in an economic damages case that relies on the diminution of …
The U.S. Supreme Court unanimously decided on Thursday that life insurance proceeds received by a corporation to fund a share redemption agreement increase the corporation’s estate tax value. The Court ruled that the corporation’s obligation to redeem shares did not reduce its value (Connelly, No. 23-146 (U.S. 6/6/24)). This ruling …