Connelly v. U.S.: A Reminder About Corporate Owned Life Insurance - Varnum LLP
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Connelly v. U.S.: A Reminder About Corporate Owned Life Insurance - Varnum LLP
Many businesses have used corporate owned life insurance (COLI) and buy-sell agreements as key elements of their succession planning. However, it may be time to consider whether these programs are creating unnecessary risk. Although these programs generally have not been problematic in the past, a recent Supreme Court case has potentially changed the analysis. COLI is a life insurance policy owned by the company on the life of an employee, with …
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