856.795.6026
  807 Haddon Avenue,
Haddonfield, NJ 08033
Phone: 856-795-6026
Fax: 856.795.4911
 

In This Section:

 


 

Search Our Site:


From Our Newsletters:

THE JUDGE WOULDN’T IGNORE THIS “ROUNDING ERROR”

June 2017 | Issue 86 Background Constellis Group,  Inc. is a private security firm.  In December 2013, the Company formed an Employee Stock Ownership Plan (“ESOP”), which purchased 100% of Constellis’s voting stock.  Wilmington Trust NA was named Trustee of the ESOP.  Less than a year after the ESOP was created, the ESOP sold all […] More...

NEW JERSEY COURT USES VALUATION DISCOUNT TO PUNISH “BAD BOY”

March 2017 | Issue 85 Introduction Richard and Steven Parker are brothers who ran a flower business in Scotch Plains, New Jersey.  Richard is the President of Parker Interior Plantscapes (“PIP”), which installs and services plants and flowers in commercial settings.  Steven is the President of Parker Wholesale Florists (“PWF”), which is a garden center.  […] More...

Dell Appraisal Spawns a Multitude of Valuation Approaches

February 2017 | Issue 84 Introduction A Delaware Chancery appraisal case involving computer company Dell Inc. gave rise to a multitude of valuation measurements.  It is instructive to see how the court sorted through them in coming up with its final appraisal conclusion.  The case is In re Appraisal of Dell Inc., 2016 Del. Ch. LEXIS […] More...

Join Our Mailing List...

View our Library...

 

 
 

Estates Valuations

A major activity of Hempstead & Co. is preparing valuations for estate and gift tax and estate planning purposes.  The estate tax system of the US levies estate, gift and generation-skipping taxes on the basis of the fair market value of the assets in the estate.  When these assets include an interest in a closely-held business, it is necessary to prepare a valuation of the business interest in order to determine the tax due.

The business interest being valued can be a controlling interest in a corporation or partnership, or a minority interest. A properly-prepared appraisal report comprehensively addresses all of the relevant factors that go into determining value, including assets, liabilities, income and cash flow.  Hempstead & Co. carefully considers all elements relevant to the value, including the selection of the most appropriate valuation approach.  We also give careful consideration to the application of various valuation discounts for elements such as lack of marketability and lack of control.

We have extensive experience in providing valuation advice in the formation of family limited partnerships and similar vehicles, and have dealt widely with the special discount issues these valuations entail.