Private enterprise has proven to be one of the most powerful wealth creation tools mankind has ever devised. In the United States, philanthropy from private wealth is a huge force for community and public good. The ability of family business owners to preserve for future generations the wealth that they have built is not only important for the security and success of the family, it is also key to the continuation of this bedrock community support.

Professional estate planners, including attorneys, CPAs, and wealth advisors, provide invaluable resources to help families develop plans to support their long-term wealth management goals. When the plan involves transferring an interest in a closely-held entity, it is absolutely critical that such transactions are based on a credible valuation that will withstand IRS scrutiny.

If the taxpayer’s appraisal does not withstand IRS scrutiny, the results can be costly.