Gift & Estate Tax Valuation

Estate planning is the process of arranging, managing, and distributing assets to subsequent generations in such a way to ensure that the donor’s wishes are fulfilled, their loved ones provided for, and their financial goals met after their passing. Assets may be transferred when the donor is still alive or when the donor has passed away, with any transfer occurring while the donor is still alive being referred to as a “gift.”

Any asset that is transferred through the gift or estate process must be assigned a value for gift tax or estate tax purposes. Many types of assets transferred in the gift and estate process, including closely-held businesses, business ownership interests, complex securities, debt, and intellectual property assets, are not easily tradable and as such do not have a readily available market value. Thus, a qualified business appraisal to determine the fair market value of the asset in question is essential to any gift or estate transaction or planning process.

Estate planning advisors, which include attorneys, tax accountants, and wealth managers, play a crucial role in assisting individuals and families in formulating strategies for their long-term financial objectives. When the estate plan involves transferring closely-held businesses, business ownership interests, complex securities, debt, and intellectual property assets, it is essential to rely on a qualified appraisal that can withstand IRS scrutiny.

The complexities associated with succession planning and gift and estate tax reporting requirements can make it challenging to get the valuation right. Recent tax reform has increased the likelihood of IRS audits of gift and estate tax returns and the financial consequences of the IRS rejecting the appraisal can be severe.

To effectively address these challenges, it is crucial to partner with a qualified valuation advisor who can be a guide throughout the process and who can support and defend the valuation opinion should an IRS audit ever arise.

Each of our gift & estate tax valuations undergo a rigorous multi-stage quality control process to ensure absolute accuracy. In addition, we regularly review and incorporate insights from the latest tax court cases and research into our valuations to adhere to the most up to date best standards and practices for tax valuations.

All of our gift & estate tax valuations in accordance with Uniform Standards for Professional Appraisal Practice issued by the Appraisal Foundation, the Business Valuation Standards issued by the American Society of Appraisers, and the American Institute of Certified Public Accountants Statement of Standards on Valuation Services. In addition, all of our reports meet the requirements for a “Qualified Appraisal” as defined by the Internal Revenue Service.

Each member of our gift & estate tax valuation team has significant experience performing gift & estate tax valuations. In addition, prior to joining Vista Peak, members of our gift & estate valuation team held leadership positions and served as the practice leaders of the gift & estate tax valuation practices at nationally recognized valuation firms.

Furthermore, Vista Peak has a strong commitment to continuing education for all of its valuation professionals with team members regularly attending gift & estate valuation trainings, conferences, and seminars. Many members of our leadership team hold the Accredited Senior Appraiser designation from the American Society of Appraisers and meet the definition of a “Qualified Appraiser” as defined by the Internal Revenue Code.