Estate and Gift Tax Planning

Business owners and their counsel rely on us for an appraisal for their business or family limited partnership (or LLC),  in the context of gift and estate tax requirements. When transferring ownership interests in closely held entities as gifts or part of an estate, it becomes essential to determine their value. The appropriate standard of value is "fair market value," which is defined by Revenue Ruling 59-60 as "The amount at which the property would change hands between a willing buyer and willing seller, when the former is not under any compulsion to buy, and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts."

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Notably, when valuing minority interests in closely held entities under the fair market value standard, valuation discounts for lack of control and lack of marketability are commonly applied. It's important to note that these discounts are frequently subject to challenges by the IRS.

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Our team is experienced in delivering a professionally-prepared, defensible valuations in adherence to business valuation standards and guidelines. Each report offers robust support for the determined valuation, thereby minimizing the risk of disputes or challenges.