Estate planning is the process of transferring assets, money, and property to subsequent generations. Assets can be transferred when the donor has passed away or is still alive. When the donor is still alive, the transfer is referred to as a “gift.”

Any assets transferred in the gift & estate process must be assigned a value for tax purposes. Many of these assets do not have a readily available market value, which means the market value must be derived from other means. Valuations for gift & estate purposes are similar to other tax-related services where the fair market value of the asset in question must be determined.

The Purpose

Gift & estate planning valuation ensures assets are valued appropriately. Undervaluing assets can lead to significant tax penalties. Penalties are less likely to be levied if a valuation has been performed by an independent third-party valuation firm. Assets transferred in the gift & estate process that may require an independently performed valuation may include the following:

Trigger Events

  • A gift exceeds the minimum threshold
  • Shares in a private company
  • Financial instruments traded in an illiquid market

Scalar’s Services

Scalar has performed hundreds of gift and estate valuations for individuals and companies. Scalar assists taxpayers and their advisors throughout the gift & estate transferring process. No matter the client, asset, or purpose, Scalar understands each client’s unique situation and applies the appropriate methodologies to calculate the most precise value.