Gift & Estate Tax ValuationsPDF
Valuation Advisory Services
HCVT’s Valuation Advisory Services professionals provide valuations with a market-based analysis, coupled with quantitative and qualitative considerations. We assess the financial, strategic and operational aspects of a business and perform a valuation tailored to a specific purpose, use, and reporting need. We specialize in serving closely-held business owners and understand the challenges associated with valuing assets that are illiquid and lack market-based comparisons. Our valuations help business owners mitigate risk by providing conclusions of value that are objective and supportable.
Gift and Estate Tax Valuations
Transferring wealth in a tax efficient manner is one of the many challenges facing owners of closely-held businesses. Estate planning professionals provide guidance in establishing trusts, estate planning, charitable giving and gifting, and asset valuations. One critical element to successful wealth transfer is an objective and supportable valuation based on proven valuation methodologies and IRS guidance. Valuation at the time of wealth transfer must be at fair value. The valuation team at HCVT has assisted business owners to realize their estate and gifting goals by providing third-party objectivity and a value that is based on the facts at the time of the transfer of the underlying asset or interest. Having proper estate documents and a valuation will help to mitigate the risk of an estate incurring undervaluation penalties. Equally important, valuations are needed to determine the lifetime value of gifts as well as commence the statute of limitations on certain non-cash transfers.
Each valuation project is unique. We begin our engagements with understanding the purpose of the valuation, the subject interest, definition and premise of value. As the assets of closely-held businesses are generally illiquid, we utilize market and economic data, modeling tools, valuation industry guidelines, and relevant discounts to determine value. Our team has extensive experience in the valuation of complex business interests.
We work collaboratively with estate planning advisors in providing valuation guidance for optimal estate planning, and valuation opinions when needed, under any time constraints. The following are representative valuation engagements involving complex gift and estate tax situations:
• 15+ year retrospective valuation of an interest in the commercial real estate to establish cost basis.
• General partner’s GP (carried interest) and LP interest in a private equity fund.
• Large interest in a thinly-traded public company with substantial trading and forfeiture restrictions.
Trust & Estate Tax Practice
HCVT’s Trust & Estate Tax practice provides comprehensive consultation and compliance services for high net worth individuals and families. Our team works in a collaborative manner with our clients’ other financial advisors to help ensure that the value of assets are preserved, and wealth is transferred in a tax efficient manner. Our services include:
• Review of estate planning documents
• Fair value opinions
• Preparation of federal and state estate, gift, fiduciary, and exempt organization income tax returns
• Representation before the IRS and state taxing authorities
• Structuring of trusts
• Evaluation of generation-skipping transfer tax issues
• Multi-generational planning
• Business succession planning
• Education of future beneficiaries regarding wealth preservation across multiple generations
• Counseling of fiduciaries regarding administration of trusts
About Daren Mesrobian, Principal | Valuation Advisory Services
Daren leads HCVT’s Valuation Service practice and has over ten years of experience providing valuations and financial advisory services to closely-held businesses, public companies, and individuals. He has addressed complex tax valuation matters for businesses in all phases of the business cycle from start-up to rapidly growing, and mature businesses seeking a liquidity event. He has extensive experience providing valuations for estate planning, gift and estate taxes, and charitable contributions. Throughout his career, he has provided valuations (equity, debt, and hybrid securities), solvency and fairness opinions, and other advisory services to public, private and ESOP clients in connection with mergers and acquisitions, strategic alternative assessments, recapitalizations, leveraged buyouts, going private transactions and capital-raising activities to hundreds of clients in a range of industries. Connect with Daren at firstname.lastname@example.org.
HCVT provides tax, audit and assurance, business management, and mergers & acquisition services to private companies, closely-held businesses, public companies and high net worth individuals and family offices. The team consists of over 585 members, including over 100 partners and principals. The firm serves its clients from eight offices in Southern California and offices in Northern California, Ft. Worth, Texas and Park City, Utah. The firm is highly specialized and focuses on specific industries and market niches.