Estate and Gift Tax Valuations

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Critical to the proper implementation of any gift and estate plan is the valuation of the business. Valuations for this purpose need to be proper, not only to ensure that the goals of the business owner are achieved, but also to withstand the rigorous review of the Internal Revenue Service and Tax Courts.

The professionals at Strategic Valuation Group have prepared hundreds of appraisals for estate and gift tax purposes, and we have successfully defended our value conclusions when challenges have arisen.

This success has been driven by the following key factors:

• We are experts in our field. While many in the financial community claim to be "experts" in business valuation, the tax authorities carefully review an appraiser's credentials and the resulting work product. In choosing an appraiser, look for those who possess the highest level of professional credentials and who specialize in business valuation, as opposed to those who only occasionally perform this type of work. True experts are those who are active in their profession, attending and speaking at conferences, and who participate in professional associations. The professionals at Strategic Valuation Group possess the most senior business valuation credentials--those that carry the highest requirements for achievement. We also hold leadership positions in our profession, both locally and nationally, and have been recognized for this expertise.
• Our reports are well written, exemplify our expertise, and satisfy the Internal Revenue Code's requirements for triggering the Statute of Limitations.
• We are actively involved in estate planning professional societies and are committed to staying current on case law and related valuation theory.
• We have experience in defending our appraisals to the IRS - from providing initial consultative support to legal counsel to active involvement in depositions and trials.

Other Things to Consider in Estate and Gift Valuation Planning

Regarding the values assigned to securities and/or assets subject to various planning transfers, the IRS may assess penalty taxes on estates that undervalue assets for estate and gift tax purposes. These taxes can be minimized and penalties are less likely to be levied when a valuation has been performed in good faith by an independent appraiser. Another key, however, is to have a thoroughly written, documented and defendable appraisal report prepared by a competent professional appraiser to establish a "reasonable basis" for the valuation.