Estate and Gift: The Complete Valuation Package (A BVR Workshop)
Unwrap all things estate and gift in this engaging session with Marissa Turrell and Carla Glass. This presentation will assume a basic understanding of business valuation, of both operating companies and holding companies, and focus on specifics related to valuing ownership interests for estate and gift purposes. Some topics will focus on issues that arise only in valuation for gift and estate purposes, such as seminal court cases on the matter, Chapter 14, working with ...
Sullivan v. Loden
In this malpractice case against an estate attorney, the attorney was denied a summary judgment. The primary issue related to the attorney’s valuation of stock of a family business that was gifted to two of the four children of the decedent. While an “equalization payment” was made to each of the two remaining children, one of these two sued the attorney for both breach of fiduciary duty and for undervaluing the stock gifted, resulting in an underpaid equalization payment.
Estate Attorney Is Denied a Summary Judgment for Alleged Incorrect Valuation of Gifts of Stock—Malpractice Case Proceeds
In this malpractice case against an estate attorney, the attorney was denied a summary judgment. The primary issue related to the attorney’s valuation of stock of a family business that was gifted to two of the four children of the decedent. While an “equalization payment” was made to each of the two remaining children, one of these two sued the attorney for both breach of fiduciary duty and for undervaluing the stock gifted, resulting in an underpaid equalization payment.
BV News and Trends April 2022
A monthly roundup of key developments of interest to business valuation experts.
A Nation Getting Older: Valuing Senior Citizen Focused Companies
Join Vanessa Claiborne to learn the latest market trends in senior living, including the impact of the pandemic on value, key valuation metrics, and the short- and long-term outlook for valuations. With discussions on both skilled nursing and senior housing, this event will assist you in practical ways. Don’t miss this distinguished event.
Nothing personal about goodwill in dental practice
In a South Carolina divorce case, the appellate court reversed the family court on the issue of personal versus enterprise goodwill.
Snyder v. Snyder
In this Pennsylvania divorce matter, the appellate court accepted the wife’s valuation of the marital business using the “gross sales approach,” despite the husband’s objection that she was not qualified to determine the value. The trial court master recommended the wife’s value be accepted. However, the appellate court finds that the trial court double counted four business assets and remanded for a redetermination of the marital estate.
Court Affirms Acceptance of the Wife’s Gross Sales Valuation Method for the Marital Business, Remands for Double Counting of Business Assets
In this Pennsylvania divorce matter, the appellate court accepted the wife’s valuation of the marital business using the “gross sales approach,” despite the husband’s objection that she was not qualified to determine the value. The trial court master recommended the wife’s value be accepted. However, the appellate court finds that the trial court double counted four business assets and remanded for a redetermination of the marital estate.
Gary Trugman shares sample valuation reports
A good selection of eight sample valuation reports is available on the companion website of Gary Trugman’s book, Understanding Business Valuation, 6th edition.
Full agenda for the AAML/BVR divorce conference
The full agenda has been posted for the National Divorce Conference, sponsored by the American Academy of Matrimonial Lawyers (AAML) and BVR.
No proof of personal goodwill in Utah divorce case
In some states, personal goodwill in a business is not part of the marital estate—but you have to have evidence that it exists.
AICPA offers free webcast on estate/gift valuations
A two-and-a half-hour webcast on estate and gift valuations is available free of charge from the AICPA.
Whatever Happened to Specific Company Risk? Accounting for Management Risk in Private Partnerships
Multidisciplinary valuation projects set many traps for the unwary. Join Dennis Webb to learn about one such trap that affects virtually every asset holding company valuation because the real property appraiser and business valuer usually don’t know what the other needs. For specific company risk, such an omission can be quite a big deal.
How to find hidden assets in divorce
Parties to a divorce may not be totally forthcoming with assets they own, so the valuation expert often has to help ferret them out.
Bostick v. Bostick
The South Carolina Court of Appeals, in this divorce case, reversed the family court and included all goodwill of a dentistry practice as enterprise goodwill includable in the marital estate. The family court had included all of the goodwill as personal goodwill not part of the marital estate. The Court of Appeals also reduced the temporary monthly alimony.
Appellate Court Reversed Decision and Treated All Goodwill as Enterprise Goodwill Includable in the Marital Estate
The South Carolina Court of Appeals, in this divorce case, reversed the family court and included all goodwill of a dentistry practice as enterprise goodwill includable in the marital estate. The family court had included all of the goodwill as personal goodwill not part of the marital estate. The Court of Appeals also reduced the temporary monthly alimony.
15 Cautionary Areas to Review in ESOP Valuations
Business valuation practitioners perform private-company equity appraisals for many applications including gift/estate tax planning, transaction opinions, and financial reporting; yet ESOP valuation assignments present complex challenges. Not only is the purpose of the appraisal unique, but the particular client, an ESOP trustee (acting as a fiduciary), also has many ESOP-specific disclosures and requirements. A well-developed ESOP valuation report may not simply achieve the appraisal prescription set forth in Revenue Ruling 59-60 or USPAP compliance. Join ...
Erickson v. Erickson
The Court of Appeals of Utah in this divorce case affirmed the trial court’s decisions regarding the value of the wife’s business and the exclusion of the wife’s rebuttal witness. The primary issue on appeal was whether the business value included personal goodwill and whether personal goodwill was an appropriate issue in Utah for this business, veterinary pharmaceuticals. The court also affirmed the trial court’s exclusion of the wife’s rebuttal expert.
Appellate Court of Utah Affirms Judgment of Business Value Despite Assertions the Value Included Personal Goodwill
The Court of Appeals of Utah in this divorce case affirmed the trial court’s decisions regarding the value of the wife’s business and the exclusion of the wife’s rebuttal witness. The primary issue on appeal was whether the business value included personal goodwill and whether personal goodwill was an appropriate issue in Utah for this business, veterinary pharmaceuticals. The court also affirmed the trial court’s exclusion of the wife’s rebuttal expert.
Preliminary agenda out for 2022 AAML/BVR National Divorce Conference
Want to learn how to value and divide intellectual property caught up in divorce?
BV News and Trends February 2022
A monthly roundup of key developments of interest to business valuation experts.
Appellate court KOs discount for trapped-in capital gains taxes
In a Louisiana case, a dissenting shareholder was withdrawing her shares in a company and the valuation of her interest was in dispute, so a trial was held.
New book on valuing fractional interests
For almost 25 years, valuing fractional interests involving real estate has been the specialty of Dennis A. Webb (Primus Valuations).
Sponsorships available for the AAML/BVR National Divorce Conference
Want to reach out to divorce attorneys?
Details start to emerge about the Prince estate valuation
One of the tricky assets to value in the Prince estate was the rock star’s name and likeness.