Gift & Estate Tax Valuation
When transferring wealth—whether through gifts during one’s lifetime or via inheritance after death—accurately valuing assets for gift and estate tax purposes is essential. The valuation must reflect fair market value under relevant tax regulations, and be defensible to tax authorities or courts.
At Synpact Consulting, we offer specialized gift & estate tax valuation services tailored to high‑net‑worth individuals, family offices, and businesses. Our approach integrates financial modeling, market and income methods, valuation discounts (lack of control, lack of marketability), and robust documentation, ensuring your valuations are audit‑ready and tax compliant.
Why Choose Synpact for Gift & Estate Tax Valuation
- Tax & Regulatory Expertise: Deep knowledge of IRS / tax code rules, Revenue Ruling 59‑60 guidelines, and local inheritance/gift tax regimes.
- Qualified & Defensible Appraisals: Reports structured to satisfy tax authorities, with full support and documentation.
- Comprehensive Valuation Methods: Income, market, and asset approaches as appropriate.
- Discounts & Adjustments: Skilled implementation of discounts for control, marketability, minority interests.
- Experience with Complex Assets & Structures: Business interests, real estate, partnerships, private equity, securities.
- Timely Delivery & Opinions: Fast turnaround aligned with estate planning schedules.
- Audit Support & Litigation Preparedness: Support for legal reviews, IRS queries, and dispute resolution.
Our Gift & Estate Tax Valuation Services
Scope & Purpose Definition
Identify assets and interests subject to gift or estate tax.
Determine valuation date (date of gift, date of death, alternate date).
Define premise of value (going concern, liquidation).
Asset Identification & Data Collection
Business interests, real property, investment portfolios, securities, intangible assets.
Financial statements, contracts, ownership rights, legal documents.
Valuation Methodologies
Income Approach: Discounted cash flows, capitalization of earnings.
Market Approach: Comparable transactions, guideline companies.
Asset Approach: Net asset / adjusted book value basis where applicable.
Discounts & Adjustments
Discount for Lack of Control (DLOC) for minority interests.
Discount for Lack of Marketability (DLOM) in private or illiquid assets.
Other adjustments: key person risk, restrictions, strategic value.
Valuation Modeling & Sensitivity
Build models with multiple scenarios.
Sensitivity analyses on discount rate, growth assumptions, multiples.
Report & Documentation Preparation
Full valuation report with assumptions, methodologies, reconciliations.
Exhibit appendices, work papers, discount rationale, comparables.
Board/estate memo, opinion letters.
Audit & Legal Support
Assist with IRS / tax authority reviews.
Provide defense, respond to queries, expert testimony if needed.
Process & Workflow
- Engagement Kickoff & Planning – Scope definition, data request, valuation date alignment.
- Data Gathering & Analysis – Collect financials, contracts, ownership documents.
- Method Selection & Benchmarking – Choose appropriate valuation methods and comparable data.
- Modeling & Discount Application – Build valuation models and apply discounts.
- Review & Sensitivity Testing – Test alternate assumptions and validate results.
- Report Drafting & Review – Prepare draft valuation report, iterate with client.
- Final Report & Delivery – Submit final report, exhibits, and opinion letter.
- Support & Defense – Help with audits, legal challenges, and stakeholder queries.
Industries & Use Cases
- Closely held businesses
- Real estate & property holdings
- Private equity & venture holdings
- Family limited partnerships / trusts
- Intangible assets, intellectual property, securities
- Lifetime gifting of business/securities
- Estate settlement and inheritance valuation
- Tax reporting for high‑net worth estates
- Succession planning and wealth transfer strategies
- IRS or tax authority evaluations and disputes
Frequently Asked Questions (FAQs)
Q: What is the valuation date in gift or estate tax valuation?
A: You use the date of the gift (for lifetime transfers) or the date of death (for estates). In some jurisdictions, an alternate valuation date (e.g., six months after death) may be available.
Q: What discounts are typically applied?
A: Discounts for lack of control (minority interests) and lack of marketability (illiquid or restricted assets) are common.
Q: Which valuation methods will you use?
A: We use a combination of income, market, and asset approaches — selecting the best fit based on the asset class and facts.
Q: How detailed is the documentation?
A: We provide full support: assumptions, benchmarks, comparables, exhibits, and reconciliation to defend the valuation.
Q: What happens if a tax authority challenges the valuation?
A: We offer audit support, respond to queries, and can provide expert testimony or mediation support if needed.
Call to Action
Planning a gift, inheritance, or estate transfer? Let Synpact Consulting provide you a tax‑compliant, defensible valuation suited to your goals. Reach out to info@synpactconsulting.com to request a quote or sample report.