Gifting and Estate Planning in Current Economic Conditions

Business owners and investors across the U.S. are hopeful that the recent market downturn will be temporary and that a recovery will soon follow, supported by the passage of the CARES Act and recent improvements abroad. 

Those individuals and families that were planning on making gifts of ownership interests in privately held businesses or partnerships and LLCs that own publicly traded stock can still fulfill their gifting plans. The recent lower asset values, combined with applicable minority interest discounts for lack of control and lack of marketability may allow families to transfer wealth out of their estates while using less of their lifetime gift exemption compared to last year and the upcoming economic recovery.

SP&H has the expertise to prepare valuations and discount studies that can withstand scrutiny and help facilitate transfer of wealth.

Recent Clients:

Valuation of Minority Interests in Family-Owned Business

As part of the estate planning process, SP&H was retained to determine the fair market values of minority interests that will be gifted to the children of a family-owned business. SP&H’s valuation analysis was critical to the business’ succession planning.

Discount Studies for Partial Ownership Interests and Tenancies In Common

SP&H was hired to determine the appropriate discounts for lack of marketability and control for partial ownership interests in five real estate partnerships as well as two tenancy-in-common interests. SP&H’s discount analyses were instrumental in determining the fair market value of the interests in the estate.

Beyond Family Businesses, SP&H's Recent Large Estates Include:

• Aerospace pioneer, film producer, film director and entrepreneur; Estate Net Worth: $2.5 billion

• Southern California real estate developer and investor; Estate Net Worth: $300 million

• Northern California real estate developer and investor; Estate Net Worth: $150 million

• Founder of major private equity firm in Southern California; Estate Net Worth: $120 million