Supreme Court Stock Buyback Case Could Mean Big Estate Tax Bills

A pair of conflicting circuit court decisions regarding estate taxes and company stock valuations are slated to clash at the Supreme Court, after the court agreed to weigh in on the dispute.

The outcome could have big implications for how companies and estates plan for the transfer of control after a shareholder dies—and on the size of the tax bill paid by the estate.

At issue is a case the Supreme Court on Wednesday agreed to hear, Connelly v. United States, involving a closely held corporation owned by two brothers. Following the death of one brother, the estate and the ...