The last several years have seen an unprecedented level of wealth transfer transactions, including interests in privately held operating companies.

 

Effectuating those transactions so close to the end of the year when it involves a complex appraisal, such as a privately held business, can be problematic.

 

Depending upon when a valuation project is started, there may be insufficient time to obtain a robust and reliable appraisal prior to year-end.

Many practitioners will employ the use of defined value gift clauses, which in effect, allow for a gift to be made prior to receiving the appraisal.

For more information on our thoughts on the use of defined value gift clauses, please visit our website using the link below.

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Our thanks to MPI.

Learn more about Use of Defined Value Gift Clauses and MPI, please click.

About MPI
MPI (Management Planning Inc.) is a business valuation, litigation support, forensic accounting and M&A advisory firm providing valuations for a variety of tax, financial reporting, litigation and other business applications, as well as corporate advisory services to business owners and their representatives.

MPI has over 80 years of experience preparing Business Valuations for estate and gift tax planning and estate tax administration matters. MPI’s work product is used as the foundation for succession planning strategies implemented by advisors for numerous types of businesses and assets. MPI has decades of experience presenting and defending its work product to IRS agents and engineers at the initial audit and appellate levels. Our valuation conclusions have withstood scrutiny under audit and been accepted as filed at a high rate, which has the effect of helping clients avoid the perils and costs of tax court or ongoing tax disputes with the IRS.

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