Gift & Estate Tax Valuations
Effective wealth transfer planning depends on accurate valuations that support estate and gift tax reporting. As wealth grows, so does the importance of having a clear plan for how assets will be passed on—whether through inheritance or gifting. Each transfer may trigger federal gift or estate taxes, making credible estate planning valuation analysis essential to minimize exposure and ensure compliance.
At Peak Business Valuation, we provide independent, defensible gift and estate tax valuations prepared in accordance with recognized professional standards. Our team collaborates closely with attorneys, accountants, and financial planners to determine fair market value, analyze discounts for lack of control and marketability, and align valuation conclusions with each client’s estate planning objectives. A well-supported gift & estate tax valuation not only satisfies IRS requirements but also helps preserve the value of a business and its legacy for future generations.
The Importance of Asset Valuations
Since estate and gift taxes are based on the fair market value of assets, asset valuation plays a key role in estate and gift planning. It helps establish the fair market value of your property, investments, and businesses. Accurate appraisals ensure assets are reported correctly for tax purposes.
When a closely held business is part of an estate, a business valuation is especially important. Getting these appraisals done right is essential because they are subject to scrutiny by many federal agencies, including the Internal Revenue Service (IRS). If these institutions deem that the assets in question have been under- or over-valued, or that there are clerical errors in the reporting, they could levy severe penalties.
Because tax laws and valuation standards are subject to frequent changes, mistakes can occur. A professional gift and estate tax valuation reduces these risks and gives you confidence in your planning. Hiring an accredited appraisal firm will do much to mitigate these issues.
How Do Gift & Estate Tax Valuations Work?
Professional gift tax valuations can be tricky, even if you know what to look for. Peak Business Valuation helps by carefully reviewing financials, taxes, and ownership structures. This detailed analysis is essential to avoid costly mistakes and reduce tax burdens. Moreover, if you are not using an FLP or LLC, the transfer of money can trigger extra taxes. At Peak, we consider those factors alongside the gift and estate tax.
As a general partner in either of these entities, you can bypass a lot of these tax stipulations. Even so, having a professional business valuation for estate planning becomes even more essential. As is expected, the government keeps a watchful eye on estate tax returns, and by knowing the full appraisal of your estate, you can circumvent much of the grief that comes from having to deal with tax penalties.
Why Professional Valuation Expertise Matters
Accurately valuing closely held businesses—such as family-owned or small enterprises—requires deep experience and objectivity. At Peak Business Valuation, we apply multiple recognized valuation approaches, allowing us to select the methodology that best reflects the unique characteristics of each business and supports a defensible fair market value determination.
Our team also brings extensive experience in analyzing and applying Discounts for Lack of Control (DLOC) and Discounts for Lack of Marketability (DLOM)—critical factors that can significantly impact value in gift and estate tax contexts. With the proper credentials and professional designations, our valuations carry credibility in the eyes of the IRS, reducing the likelihood of challenge and ensuring we are fully prepared to defend our conclusions if necessary.
Full Measured Compliance
Our gift and estate valuations use commonly accepted methodologies that adhere to the valuation guidelines established under Revenue Ruling 59-60. We then provide the findings in a gift & estate tax valuation report that satisfies the IRS’s “Qualified Appraisal” requirements.
Let Peak Business Valuation Help
Industries for Gift & Estate Tax Valuation
With respect to gift and estate tax valuations, Peak Business Valuations has worked with the business owners in the following industries:
- Automotive
- Beverage, Brewing, and Bottling
- Consumer Products
- Construction, Design, and Engineering
- Data, Data Storage, and Cybersecurity
- Distribution Services
- Financial Technology and Payments
- Financial Sponsors and Asset Management (Private Equity, Hedge Funds, Venture Capital, Business Development Companies)
- Food Processing, Restaurants, and Hospitality
- Franchises and Other Multi-Location Properties
- Health & Beauty
- Healthcare, Life Sciences, Medical Products & Devices, and Pharmaceuticals
- Industrial Products and Manufacturing
- Media Communications, Entertainment, and Printing & Publishing
- Medical and Dental Practices
- Pet and Animal Care Industry
- Software as a Service (SaaS)
- Sports, Fitness, and Recreation
- Technology and Telecommunications
- Textiles
- Transportation, Supply Chain
- Waste Management
- Wholesale Distribution
- Automotive
- Beverage, Brewing, and Bottling
- Consumer Products
- Construction, Design, and Engineering
- Data, Data Storage, and Cybersecurity
- Distribution Services
- Financial Technology and Payments
- Financial Sponsors and Asset Management (Private Equity, Hedge Funds, Venture Capital, Business Development Companies)
- Food Processing, Restaurants, and Hospitality
- Franchises and Other Multi-Location Properties
- Health & Beauty
- Healthcare, Life Sciences, Medical Products & Devices, and Pharmaceuticals
- Industrial Products and Manufacturing
- Media Communications, Entertainment, and Printing & Publishing
- Medical and Dental Practices
- Pet and Animal Care Industry
- Software as a Service (SaaS)
- Sports, Fitness, and Recreation
- Technology and Telecommunications
- Textiles
- Transportation, Supply Chain
- Waste Management
- Wholesale Distribution
Get Started Today
With over a decade of valuation experience, Peak Business Valuation has extensive expertise in gift and estate tax valuations. Our team brings both passion and depth of knowledge across a wide range of industries and markets.
We take pride in delivering estate planning valuations that are not only accurate and credible but also thoughtfully tailored to each client’s unique situation. We often help individuals and firms navigate Discounts for Lack of Control (DLOC) and Discounts for Lack of Marketability (DLOM)—two factors that can make a major difference in the value reported to the IRS. We are happy to connect and talk through strategies for presenting these discounts effectively and structuring gifts most advantageously. Whether you’re planning for the future or preparing to transfer ownership, we’re here to help value a business for estate planning.
Contact us today to discuss your gift and estate planning valuation needs or schedule a consultation with our team.
