Valuation Services

Accurate, defensible business valuations for the three scenarios where getting the number right matters most. Built for Texas estate planning professionals.

Most Requested

Estate Tax Valuation

When a business owner passes away, the IRS requires a fair market value determination of all business interests as of the date of death. This valuation directly affects the estate tax liability, and a poorly done valuation can mean significant tax overpayment or IRS challenges with penalties.

ETG provides thorough, IRS-compliant valuations that include applicable discounts (lack of marketability, minority interest) and follow Rev. Rul. 59-60 and established methodologies recognized by the IRS and Tax Court.

Typical Engagements Include:

  • Closely-held business interests (LLCs, S-Corps, partnerships)
  • Family limited partnerships (FLPs) and holding companies
  • Community property business interests (Texas-specific)
  • Professional practices (medical, legal, accounting)

What You Get

  • 1

    Comprehensive Valuation Report

    Full narrative report with methodology, analysis, and conclusion of value, following Rev. Rul. 59-60

  • 2

    Discount Analysis

    Supportable discounts for lack of marketability and minority interest, documented for IRS scrutiny

  • 3

    IRS-Ready Documentation

    Meets all requirements for Form 706 filing and potential audit defense

Gift Tax Valuation

Lifetime transfers of business interests, whether to family members, trusts, or charitable organizations, require qualified appraisals to establish fair market value for gift tax reporting.

A proper valuation ensures adequate disclosure on Form 709, starts the three-year statute of limitations on IRS review, and provides a defensible position if the IRS questions the reported value. Without adequate disclosure, the statute of limitations remains open indefinitely.

Common Scenarios:

  • FLP and LLC interest transfers to family members
  • Annual exclusion gifts of business interests
  • Charitable contributions of business interests
  • Intergenerational wealth transfer planning

Post-OBBBA Planning Reality

The One Big Beautiful Bill Act (signed July 2025) permanently set the federal estate and gift tax exemption at approximately $15 million per individual ($30 million per married couple), indexed for inflation. The sunset uncertainty is over.

For estate planning attorneys, this means a new planning landscape: clients who deferred decisions during the sunset debate are now ready to act, and those who made transfers under the old regime may need their plans revisited.

A qualified appraisal completed before or concurrent with a transfer provides the strongest defense if the IRS later challenges the value used on the gift tax return.

Trust Valuation

Trusts holding business interests need accurate valuations at multiple points: funding, annual accounting, distributions, and termination. The fiduciary duty of trustees demands reliable numbers.

ETG provides valuations for a wide range of trust structures, ensuring compliance with both tax requirements and fiduciary obligations. In the wake of Connelly v. United States (2024), many attorneys are restructuring buy-sell agreements funded through trusts, creating new valuation needs.

Trust Types We Support:

  • Grantor Retained Annuity Trusts (GRATs)
  • Spousal Lifetime Access Trusts (SLATs)
  • Intentionally Defective Grantor Trusts (IDGTs)
  • Charitable Remainder and Charitable Lead Trusts
  • Irrevocable Life Insurance Trusts (ILITs)

Fiduciary Protection

Trustees have a duty to administer trust assets prudently. An independent, qualified valuation provides critical documentation that the trustee acted in good faith and with reasonable care.

This protection matters whether you're funding a new trust, making required distributions, or preparing for trust termination.

Current Developments That Affect Your Clients

Connelly v. United States (2024)

The Supreme Court ruled that life insurance proceeds used to fund a buy-sell agreement must be included in the value of a decedent's closely-held business interest. This decision is prompting many attorneys to restructure existing buy-sell arrangements, and each restructured agreement needs a fresh valuation.

OBBBA: Permanent $15M Exemption (2025)

The One Big Beautiful Bill Act permanently set the estate and gift tax exemption at approximately $15 million per individual. With sunset uncertainty removed, attorneys are now executing plans that were on hold, creating fresh demand for qualified appraisals to support these transfers.

Heightened IRS Scrutiny of Large Estates

The IRS examines over 20% of estates with gross assets above $10 million. Accuracy-related penalties of 20% apply when valuations are found to be substantially understated. A qualified appraisal from a credentialed business appraiser is your client's strongest defense.

The Process

From initial consultation to final report, here's what to expect when you work with ETG.

1

Initial Consultation

We discuss the engagement scope, timeline, and what documents we'll need. No obligation. This call is about understanding your situation.

2

Document Collection

We provide a clear checklist of what's needed: financial statements, tax returns, operating agreements, and other relevant documents.

3

Analysis & Valuation

Our team performs the analysis using appropriate methodologies (income, market, and/or asset approaches) with applicable discounts and premiums, following Rev. Rul. 59-60 guidelines.

4

Draft Review

You receive a draft report for review. We discuss findings with you and/or your client and address any questions before finalizing.

5

Final Report Delivery

The completed, IRS-compliant valuation report. A qualified appraisal ready for filing, audit defense, or fiduciary documentation.

Need a Valuation?

Let's discuss your situation. The initial consultation is free and confidential.

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