Estate and Gift Tax Planning

The determination of fair market value is an essential component of a successful estate plan. In most cases, the estate plan will involve the transfer of a significant asset(s) from one generation to the next, typically over a period of time. If closely-held business interests or interests in family limited partnerships (FLPs) are transferred, the valuation of such assets determines (a) what percentage may be transferred in a tax efficient manner and (b) the amount of potential tax liability. Because such transfers are subject to increased scrutiny by the Internal Revenue Service (IRS), a thoroughly documented, well reasoned valuation is critical to establishing a supportable position.

At PVG, our analysts have extensive experience in preparing and supporting valuations for tax purposes. We perform extensive independent research and draw on years of industry experience to provide the most supportable, well reasoned analysis possible. Our valuations have withstood the scrutiny of the IRS and other third parties. Over the years, we have worked with a wide variety of clients including high net worth individuals, family offices, estate attorneys and other advisors on complex estate tax matters.

The following are some of the tax related issues we assist our clients with:

• Valuations of closely held businesses interests and FLPs in support of gift or estate tax returns
• Valuations of securities donated to a charity
• Valuation of common stock for stock option issued to employees - Nonqualified deferred compensation – Sec. 409A
• Determination of built-in gains tax – Subchapter S and Sec. 382