Our Services

Many estate planning professionals have clients whose personal wealth includes an ownership interest in a private business which is of considerable value. The primary estate planning objectives of such individuals include providing for liquidity for themselves and their heirs, providing for the continuity of the business, and minimizing federal estate and gift taxes and state inheritance taxes. A well-reasoned, accurate, and supportable business valuation is a necessity when addressing the planning options available to the business owner, especially when striving to preserve the client’s wealth in the face of high transfer taxes.

Estate Planning

Estate tax planning needs vary along with the then-current tax laws.

While recent changes in exemption amounts reduces the number of estates that would be subject to estate taxes, it is important to keep in mind that state-level estate taxes can vary from the federal rules, and that these rules can revert back in the future.

It may be advantageous to increase the transfer/gifting of business interests while the exemptions amounts are high.

Estate Tax Needs

Upon the death of an interest-holder in an entity, there is often the need to have that interest appraised as part of the process of settling the estate.

There may be a need to complete the analysis for the filing of forms to if an estate tax is due. Estate taxes may be owed at both the federal and state level. With changes in federal estate tax amounts, the decision as to whether or not an appraisal is needed is best made between the business owner, their accountant and their attorney.

Even if there is no estate tax due, it is beneficial to have a determination of the value of the decedent’s interest to establish the then-current value, for purposes of portability and to establish a stepped-up basis in the assets for the beneficiaries of that ownership interest.