Chapter 17 of Business Succession Planning deals with estate tax considerations of succession planning. For obvious reasons it is a survey of issues, among them are the following:
1. Whether by creating an enforceable market for the shares of a corporation a buy-sell agreement will establish the value of a deceased shareholder’s shares?
2. Can certain redemptions of corporate shares be taxed as a dividend?
3. Will certain transfers contemplated by a buy-sell agreement be treated as a gift under § 2703?
4. What provisions are required in a buy-sell agreement (such as lifetime restrictions and having an obligation to purchase) for an enforceable market for the shares?
5. Does the agreement price have to relate to fair market value of the corporation at the time of death?
6. What are the circumstances required to show the existence of a valid business purpose for the agreement and other requirements of § 2703(b)?
7. What is the effect of a buy-sell agreement on the estate tax marital deduction?
8. What is the appropriate use of § 2032, allowing an alternative valuation date?
9. What are the considerations in using the provisions of § 6166, permitting the payment of estate taxes in installments?
10. Is it possible to fix values on shares for gift tax purposes or for purposes of the generation-skipping tax on lifetime transfers?
11. In buy-sell agreements with insurance funding, will insurance be included in the estate of the insured under § 2042?
