Understanding your worth is important to preserve your assets for your heirs. Estate planning is not just about minimizing taxes, it gives you control over how your assets are to be passed down to your heirs. A clear and concise plan is crucial, which means you need a well-executed valuation.
Estate and gift taxes are levied by the federal government on property transfers from one person to another at death (estate tax) or while the giver is alive (gift tax). Several states also impose estate taxes.
It is vital to value a business or other property that may be needed for estate planning purposes to determine the probable amount of estate or gift taxes as an aid in planning prior to the death of a business owner. Valuation of a business, business interest or other property owned by the estate of a deceased person is often necessary to prepare and file an estate tax return.
A third-party valuation expert should be included with the following:
VRC's professionals are practiced in DLOC, DLOM and built-in gains. We can create retrospective studies to establish the tax effect of divestitures, along with audit support and testimony as needed.
At VRC, we work with business owners, taxpayers and their advisors, families, estate planning attorneys and wealth managers to document the transition of ownership in privately held companies and partnerships. Our gift and estate tax-related valuation services include:
- Business enterprises, including family limited partnership (FLP) and limited liability company (LLC) interests
- Capital stock, including common stock, preferred stock and debt
- Complex securities, derivatives, stock options and warrants
- Tangible and intangible assets
Our experts are practiced in discounts for lack of control, lack of marketability and built-in gains, and can create retrospective studies to establish the tax effect of divestitures, along with audit support and testimony as needed. Our valuations prepared for gift tax purposes meet the IRS’ Adequate Disclosure Rules, which require that a gift is reported and meet certain requirements in order to start the three-year Statute of Limitations. Otherwise, the IRS may revalue the gift at any time in the future.