Estate Planning and Gift Tax

Valuation and Appraisal Services for Estate Planning

Appraisals play an important role in your estate tax strategy.

Business Appraisal and Your Estate Plan

An estate planning business valuation for privately held businesses is essential when considering gifting, estate settlement and Internal Revenue Service (IRS) reporting of an estate or gift transactions.

The goal of estate tax planning is to provide liquidity and continuity of the business. Throughout the process, it is essential to document the market value of the assets. While this is fairly straight forward to marketable or publicly traded securities, a thorough and well-documented analysis is required for illiquid or closely held assets.

The following are examples of the type of entities, interests, and situations where a business appraisal may be needed:

Family limited partnership and limited liability companies, including entities holding real estate, marketable securities, or closely held common stock
Gifting of closely held stock and partnership/LLC interests
Buy-sell and shareholder agreements
Life insurance planning and funding
Creation of non-voting stock for gifting purposes

Examples

FLP’s
GRAT’s
Trusts and LLCs
Probate
Other

Discounting

Family limited partnerships (FLPs), limited liability companies (LLCs), and other types of entities have been a popular estate planning tool for years. Aside from the business purposes of such entities, such as centralized management and protection of assets from creditor claims, they also may offer tax advantages through valuation discounts. The most common discounts applied are for a Discount for Lack of Control (“DLOC”) and Discount for Lack of Marketability (“DLOM”). Because these discounts have such a large impact on overall valuation (often ranging from 20% to 40% of the overall value), a proper and well documented valuation report is critical in order to bear scrutiny.

Our Work

Quantive works with estate planning attorneys, wealth advisors, CPA’s and other estate planning professionals in order to help achieve their client’s goals. Our valuations are guided by sound theory and appropriate precedent rulings such as IRS Revenue Ruling 59-60. In addition our reports comply with the professional standards as promulgated by the National Association of Certified Valuation Analysts (NACVA).

What We Work On:

409(a) Appraisals

Issuing options or equity compensation? Quantive performs appraisals for 409(a) reporting requirements.

Exit Planning

Thinking about retirement? Planning for a sale? A business valuation typically is the starting point of any sound exit planning process.

Litigation Support

We provide litigation support for shareholder disputes, lost profits, shareholder oppression, commercial litigation, and various other reasons.

Buy-Sell

Quantive provides a business valuation in support of buy-sell agreements, to include buy-ins and buy-outs, as well as shareholder disputes.

Estate and Gift

We perform company valuations in support of various gifting strategies, as well as in support of probate requirements.

SBA Loans

A core part of our practice is preparing business appraisals for SBA loans, as required by the SBA SOP.

Selling a Business

Your company is probably your largest asset. A business valuation for selling a company just makes good sense.

Buying a Business

Smart entrepreneurs routinely retain Quantive to understand price early and gain a roadmap for impending price negotiations.

Ready to get started?

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