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United States banking and finance

Connelly v United States

602 U.S. 521 (2024)
JurisdictionUnited States
CourtUS Supreme Court
Year2024
StatusBinding authority

Summary

Life insurance proceeds received by a corporation to fund a stock redemption must be included in the corporation's value for federal estate tax purposes, increasing the decedent's share value.

Key Principle

estate tax; life insurance proceeds payable to corporation for stock redemption increase value of decedent's shares

Area of Law

tax

Related Cases

Commissioner of Taxation v Consolidated Media Holdings Ltd (2012) 250 CLR 503

Statutory interpretation in tax law requires ascertaining meaning from text, context and purpose; beneficial construction favouring taxpayer is not appropriate.

Federal Commissioner of Taxation v Consolidated Media Holdings Ltd (Statutory Construction) [2012] HCA 55

Tax legislation is construed by giving words their ordinary meaning in context; legislative purpose resolves ambiguity but cannot override clear statutory language.

Aid/Watch Inc v Commissioner of Taxation (2010) 241 CLR 539

An organisation engaged in political advocacy and law reform can qualify as charitable, as generating public debate on matters of public interest satisfies the public benefit requirement.

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