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Eighth Circuit Decision Creates Uncertainty as To the Effect on Company Value of Company-Owned Life Insurance Acquired to Fund a Share Redemption Obligation Introduction: Business owners often enter into agreements amongst themselves giving options, or imposing obligations, to purchase one another’s company equity interests (whether shares of stock of a corporation, or units of businesses…

From 2012 through 2020, US business owners and investors enjoyed relative price stability. During that period, the annual rate of inflation (as measured by CPI-U) increased within the relatively narrow range of .1% (2015) to 2.4% (2018), with the annual increase over this period averaging 1.6%. Then came 2021 and the end of the relatively…