CVA Valuation for Tax and Estate Planning Benefits
CVA offers 35+ years of objective, fact-based, and extensively researched valuations for tax and estate planning.
Tax Liability Mitigation
We apply defensible discounts to significantly reduce the taxable value of gifts and estates.
IRS Compliance & Protection
Our qualified appraisals meet all IRS standards to avoid costly undervaluation penalties.
Optimized Wealth Transfer
Accurate FMV establishes a favorable “step-up in basis” for beneficiaries’ future tax savings.
Family Conflict Prevention
Independent valuations ensure an equitable distribution of assets, minimizing heir disputes.
Our Process
Our process is designed to be transparent and compliant with the rigorous standards of the IRS. We combine market data with professional appraisal standards to deliver reports that protect your assets and withstand scrutiny.
Meet Jeff Ulrich
Opportunities in Gift and Estate Planning
The evolving economic landscape and shifting tax laws create unique opportunities for sophisticated estate planning. Strict compliance with the IRS is paramount, especially as legislation regarding estate and gift tax continues to transform the regulatory environment. Under §170(f)(11)(C), any non-cash asset donation exceeding $5,000 requires a formal appraisal from a qualified professional to ensure the deduction is valid. For founders and executives of private companies, integrating IRC Section 409A valuations into your broader estate strategy is essential to ensure that equity transfers and option grants are executed at Fair Market Value, protecting stakeholders from significant excise tax penalties.
Comprehensive Asset Valuation and 409A Capabilities
CVA provides expert valuation services for the transfer of family wealth, non-cash charitable contributions, and executive compensation compliance. Our specialized team handles the valuation of complex closely-held stock—including common, preferred, and convertible-preferred equity—while performing rigorous discount studies for lack of control, marketability, and built-in capital gains. We extend our expertise to IRC Section 409A compliance, providing independent “Safe Harbor” valuations for private equity and deferred compensation plans. Every analysis is designed to ensure that the transferor receives fair and adequate compensation for property rights surrendered, providing a defensible foundation for intellectual property, real estate, and personal property appraisals.
Why Partner with CVA?
Now, more than ever, families, corporations, and their tax advisors need to engage qualified valuation professionals who deliver trusted results. With more than 35 years of providing valuation services related to estate and gift tax planning, CVA has the expertise you need. Our independence of audit or other attest services, rating agencies, and investment banks makes us thoroughly objective; we have no conflicts of interest. We are a “Qualified Appraiser” as defined by the IRS, and we provide well-supported analyses that withstand IRS and judicial scrutiny. Our consultants have the experience needed to value all types of company stock, tangible assets, and intangible property that may be transferred or donated to a trust, Family Limited Partnership, charitable organization, or another form of business or business entity.
FAQs
How do you ensure the accuracy of a valuation for IRS purposes?
Accuracy is ensured by following the IRS definition of Fair Market Value (FMV) and utilizing “qualified appraisers” with verifiable credentials. We adhere to Revenue Ruling 59-60 for business interests and USPAP standards for real estate, providing a documented, independent analysis that can withstand an IRS audit.
Why is a "qualified appraiser" necessary for my estate plan?
The IRS mandates that appraisals for complex assets be performed by professionals with specific education and experience. A report from a qualified appraiser ensures “adequate disclosure,” which is required to start the three-year statute of limitations for an IRS audit.
What is a "Step-up in Basis" and how does the valuation affect it?
When an heir receives an asset, its cost basis “steps up” to the Fair Market Value at the time of the owner’s death. An accurate valuation is vital because this new basis determines the capital gains tax the beneficiary will pay when they eventually sell the asset.
Why is a 409A valuation important for my estate plan?
If your estate includes stock options or equity in a private company, the IRS requires these to be valued at Fair Market Value (FMV). A 409A valuation provides a “Safe Harbor” that protects the value of those assets and prevents the recipient from facing an immediate 20% excise tax on the transfer.