Being a great attorney isn’t just about knowing the law; it’s about challenging it, interpreting it, and seeking clarity where ambiguity resides. At AEGIS Law, we take immense pride in the work of our attorneys. The recent endeavors of two of our attorneys, Mary Devereux and Bo Devereux, underscore this commitment.
Redefining Corporate and Tax Law Boundaries
Mary and Bo have taken a monumental step by filing a petition for a writ of certiorari to the United States Supreme Court, highlighting an intricate crossroads between corporate and tax law.
Here’s a quick overview:
Closely held corporations frequently set agreements that necessitate the redemption of a shareholder’s stock following their death. This ensures that the business remains closely held. To financially support this redemption, these corporations often buy life insurance on the said shareholder. The pivotal question being presented to the Supreme Court is:
“Should the proceeds from a life insurance policy, purchased by a closely held corporation on a shareholder to aid the redemption of the shareholder’s stock, be deemed a corporate asset when determining the value of the shareholder’s shares under the purview of the federal estate tax?”
The Broader Implications
While this question might appear technical to some, its ramifications span wide. Its implications touch the very core of how business owners and insurance companies operate. If the court grants certiorari and inclines toward considering life insurance proceeds as a corporate asset, it could significantly impact the calculus of stock values, estate tax obligations, and the dynamics of shareholder agreements, particularly after a shareholder’s demise.
Pioneers at the Forefront
The journey that Mary and Bo have embarked upon isn’t just a testament to their work but also embodies the spirit of our law firm. We believe in pushing boundaries, seeking clarity, and laying down markers for others to follow.
As we eagerly await the Supreme Court’s decision to hear this landmark case, one thing is sure: regardless of the outcome, if they do, the narrative around closely held corporations, their shareholder agreements, and federal estate tax is set for a defining moment.
Keep an eye on our blog as we bring you updates and deeper insights into this potentially game-changing legal saga. At AEGIS Law, the future of law is not just observed; it’s shaped.
