The Gifting of Shares in Estate Planning

Hello this is Troy Patton of Patton Valuations Network.

Last time I mentioned that we use eight different valuation methods to create a business valuation so if you’re speaking with your clients, you can make sure they do not just think their business is worth some "rule of thumb."

Today I want to briefly touch on Gifting Of Shares In Estate Planning.

This is an often overlooked tax planning and as accountants we often do not approach our clients with this opportunity as we see it as difficult to understand.

It is actually quite simple. Taking the different business valuation methods, there are additional discounts an Owner can take when gifting part of their company.

If an owner passes away with the ownership of a business, the heir does not get any discounts when valuing their interest in the business.

However, if the Owner gives a minority interest in the business they own while they are alive, an additional discount of nearly 20% can be taken when gifting shares to their heirs.

This can not only save the estate in probate fees and state inheritance taxes which may start at a low level of worth, but also estate taxes when the estate becomes larger than the exemption currently allowed.

That’s it on Gifting Of Shares In Estate Planning.

I hope these last 3 audio emails you’ve listened to give you a basic comfort level for discussing business valuations with your clients.

If you haven’t done so already, it’s always good business to start communicating to your business clients that you are performing business valuations if they are in need of one.

We’ve identified 9 different scenarios where your clients may WANT or NEED a business valuation. In the next several emails I’ll touch on these briefly and send you MARKETING MATERIALS that you can use, modify and duplicate to communicate that you perform business valuations.

Next time I’ll start talking about the 9 different scenarios you’ll run into with clients where they may want or need a business valuation.

If you want to listen to this information in audio, just click on the link and it will take you back to the audio postcard.  Congratulations again for joining our Business Valuation network. This is Troy Patton and I’ll talk with you soon.

How To Start Your Business Valuation Process:

Our process consists of only a few steps to start a valuation for your client:

1. You contact us to find our how much to charge for the valuation. Let us know the industry, why the valuation is needed, and the size of the company.

2. We will prepare and send an engagement letter to your client from our firm which they will sign and send back to us with payment in advance.  This takes the risk and conflict of interest out of your hands and off your E&O Insurance.  (This is how 98% of our valuations are prepared. The others we prepare are for firms who want their name on the valuation.)

3. Complete the input forms for the valuation (we will provide them to you) and then you email them back to us.

4. We will complete the valuation and email a copy of it to you for review before we issue the report to the client.

5. You get paid.  It's that simple.

Patton Business Valuations becomes your outsourced partner for business valuations where we prepare the valuation, deliver it to you to present to your client (or deliver it directly to your client if you prefer) and you make nearly $800 to $1,200 for a few hours of work.

Our standard pricing is just $2400 for a Divorce valuation, $3000 for Buy/Sell and $3600 for an Estate valuation.  For any other type, just email me at tpatton@pattonvaluations.com or call me toll-free at 800-800-1776.

Call our offices at 800-800-1776 if you have any questions or if you have another client in need of a Business Valuation.