Estate & Gift Tax Valuation Services

Estate and Gift Tax valuations must meet strict requirements promulgated by the Internal Revenue Service in the Internal Revenue Code, Regulations and other rule based pronouncements.

The standard of value or the definition of value for Internal Revenue Service purposes is Fair Market Value. FMV is defined as the theoretical value at which a property would change hands between a willing buyer and willing seller, with both parties having reasonable knowledge of the relevant facts. The consideration given is cash or a cash equivalent implying the notion of marketability or liquidity.

Over the years the Service has challenged many appraisals of business interests including challenges to an appraiser’s determination of discounts or adjustments to value for lack of control and lack of marketability. It is imperative then that the business appraiser have a thorough understanding of the underlying theory and support for these adjustments.

BVA’s valuation reports are prepared to support our valuation methodologies and procedures, meet the appropriate IRS standards for “Qualified Appraisal” and “Qualified Appraiser,” and embrace the standards of appraisal reporting under the American Society of Appraisers, the Uniform Standards of Professional Appraisal Practice and the American Society of Certified Public Accountants – Business Valuation Reporting Standards.

Our valuation analysis is rigorously applied using commonly accepted valuation methodologies, current empirical data, and a questioning attitude. Our valuation reports are designed to withstand intense scrutiny and present sustainable and defensible positions.

Our Estate and Gift Tax valuation services have been used in the following instances:

  • Estate Tax Planning & Compliance
  • Gift Tax Planning & Compliance
  • Fractional Interest Valuation – Tenant-in-Common Interests for example
  • Sales of interests to Family Members
  • Intellectual Property Transfers or Sales
  • Stock Options, Warrants and other equity interests
  • Non-Voting Stock of S Corporations
  • Sale to a GRAT or Intentionally Defective Trust
  • Valuation for Life Insurance / Key Man Planning and Funding
  • Valuation for the transfer of Family Limited Partnership (FLP) or LLC Interests
  • Valuation of a minority interest in a family controlled enterprise
  • Lottery Tickets, Structured Settlements and other unusual payment streams
  • Preferred Stock, Convertible Preferred Stock and Paid-in-Kind (PIK) securities
  • Debt Instruments issued by Private Companies

Representative Engagements

  • Retained to value Preferred Stock (PIK security) of a highly leveraged plastics manufacturer (revenues over $200M) in Florida.
  • Valued the control value of a nationally recognized franchisee in the Washington D.C. area having limited ability to sell franchise to other parties.
  • Valued four entities owning over 120 real estate properties located within a mile of each other – adjustments to value included an absorption adjustment, lack of control and lack of marketability.
  • For transfer purposes, valued the Listerine brand name royalty stream.
  • Valued non-voting stock in a New York pharmaceutical company with over $25M in revenue.
  • Determined the value of a structured settlement for estate tax purposes (Los Angeles/Pittsburgh).

BVA welcomes inquiries about our services. Contact Brentmore Valuation Advisors online, email us at EdP@BrentmoreAdvisors.com, or call 860.519.5648.

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