Estate
Planning
Estate Planning
Planning for the future is essential for protecting a family’s wealth and after-tax net worth. Top estate planning professionals refer their most important family business clients to us because they know they can count on Adamy for a rock-solid, independent valuation.
Services
- Valuation of closely-held equity interests for gifting, trusts, and related-party transactions
- Valuation of equity interests in family limited partnerships and LLCs
- Studies of discounts for lack of control and lack of marketability
- Valuation of closely-held equity interests for estate tax filings
- Expert witness services on valuation in probate proceedings
Estate Planning Trusted Advisor
– Alan Lakein
“Planning is bringing the future into the present so that you can do something about it now.”
While nothing can prevent an audit, our estate and tax valuation reports are designed to minimize the likelihood of an IRS challenge.
WHAT IT IS
While the laws and regulations affecting the generational transfer of wealth within families are subject to unpredictable changes, one thing has remained constant: the need for such transactions to be based on a reliable, independent valuation.
WHY IT MATTERS
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.
HOW WE DO THIS WELL
We take a multi-layered approach to building a solid valuation designed to withstand IRS scrutiny. Key elements of this approach are:
Highly-trained valuation experts
Strictly adhere to widely-regarded professional standards
Apply standard, generally-accepted methodologies
Incorporate insight from latest court cases and research
As part of our core commitment to developing our people, we invest heavily in the training and continuing education for our valuation professionals. Most of our valuation professionals have achieved the Accredited Senior Appraiser (ASA) designation from the American Society of Appraisers. The ASA has the most rigorous requirements of any valuation credential.
All of our estate planning valuations comply with the Uniform Standards for Professional Appraisal Practice issued by the Appraisal Foundation, the American Society of Appraisers Business Valuation Standards, and the AICPA’s Statement of Standards on Valuation Services. Our reports also meet the requirements for a Qualified Appraisal as outlined in Section 170 of the U.S. Internal Revenue Code.
Consistency and familiarity are subtle, but key elements in establishing credibility.
When a reviewer sees a valuation prepared by an ASA, in compliance with USPAP and SSVS, and using standard methodology, they know it is unlikely that they will find serious issues. In contrast, when the reviewer encounters a valuation using unconventional or outdated methodologies, prepared by a non-credentialed analyst, without compliance to professional standards, they expect there is a high likelihood of finding issues. Faced with limited resources, the rational response is to focus on the reports with the greatest chance of finding issues.
The tax and government policy landscape is always shifting.
As key issues are addressed in tax court, regulatory updates, and IRS guidance, the valuation community responds with new research and methods. Through our continuing education and engagement in the estate planning and valuation communities, we are regularly updating our tools and methods to remain on the forefront of the profession to better serve our clients.
For this reason, we believe it is important to stay on top of current developments in the tax treatment of transfers of closely-held entities among family members.
To this end, our professionals are engaged in the estate planning and valuation community on an ongoing basis. We participate in discussions of relevant case law developments at ASA conferences. We attend the Heckerling Institute on Estate Planning, and we engage with local and regional estate planning councils.
The End Result
A solid valuation for the next generation to continue the legacy of your family business.
