Opportunity for Gifting and Estate Planning in Current Economic Conditions

Individuals 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 in 2020 of ownership interests in partnerships and LLCs that own stock in public and private businesses can still fulfill their gifting plans. The recent lower assets values, combined with applicable minority interest discounts for lack of control and lack of marketability may allow families to transfer assets out of their estates while using less of the lifetime gift exclusion.

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

SP&H Experience

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.

A Partial List of Our Larger Estate and Gift Tax Clients:

• 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.

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

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