It’s well known that as a CPA, you play a crucial part in ensuring that your clients' businesses operate smoothly and efficiently. This includes reviewing operating agreements to identify potential risks and opportunities.

In light of the recent Supreme Court decision in Connelly v. United States (2024), we urge you to reach out to all of your business-owner clients with entity redemption buy-sell agreements and review them immediately.

What Was the Ruling?

In summary, the Court ruled that life insurance proceeds used to fund buy-sell agreements increase the corporation's value, potentially leading to a higher estate tax burden than anticipated. This has significant implications for business succession planning.

Why is This Important?

• Unexpected tax liabilities: The Connelly case highlights a potential pitfall in existing buy-sell agreements. The increased value could lead to unexpected tax liabilities for your clients' estates.
• Structuring for success: A well-structured buy-sell agreement can minimize tax implications and ensure a smooth business transition.

Want to Know More?

As a COCPA Silver Preferred Partner, Integrated Partners is offering Society members a free white paper detailing the facts of the Connelly Case and the critical need for business owners to have a current estate plan.

SEND ME THE FREE WHITE PAPER.

The Integrated CPA Alliance

Integrated Partners is known for helping CPAs increase their revenue by enhancing the value that they provide to their most important clients. Through its CPA Alliance Program, Integrated Partners has pioneered a model for coordinated planning between financial advisors and CPAs. 

To learn more about the alliance program and our partnership with the COCPA, email John.Pastore@integrated-partners.com or visit the COCPA Member Savings Program.