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Serving Central Texas Since 1967

Success Stories

An Appraisal Defended

In one of two appraisals challenged by the IRS in 25 years of practice, our appraisal of a 36% interest in a “C” corporation came up under their scrutiny. This was no surprise due to the numerous contentious issues involved including built in gains tax (the sole corporate asset was low basis ranch land), the swing vote potential of the stock and the defensibility of using Texas property tax values in an estate. Following the lead of a the estate attorney, we defended our net 54% discount of the stock (IRS discount was 24%) resulting in no change to our appraised value.

Major Tax Savings

A wealthy client in poor health was faced with a large estate tax liability upon his death. After consulting with an estate tax attorney, he transferred $6 Million of stocks and bonds to a family limited partnership. One month later he died. Using several of our well documented appraisals for sales of partnership interests before death and those owned at death, his estate was reduced by 40% saving him over $1 Million in estate tax. Both the client and attorney were ecstatic when they received a timely closing letter from the IRS.

A Wise Decision

A key employee of a company had the opportunity to purchase it from the owner for $3 million. Our evaluation of the company yielded a value equal to one-third of this amount which discouraged the employee from substantially overpaying for the business and becoming a slave to it for the remaining years of her work life.

A Dispute Resolved

In a divorce case involving a 50% shareholder in a company, opposing counsel presented our appraisal report of this interest to several CPA firms who found the value conclusion to be reasonable. Because of this, the parties settled the case at the value determined by us. Feedback from opposing counsel indicated that the professional appearance and content of the report were significant factors.

Trusted Advisor

We assisted the founder of a 25 year old trust company in determining the sales price of his business which he sold to regional trust company. Our client sold the business for the approximate value determined by us.

Keep it in the Family

Upon the advice of his estate planning attorney, a wealthy client created a three-year grantor retained annuity trust (“GRAT”) funded with a 36% interest in a family limited partnership owning privately-held, dividend paying stock with a value of  $5.5 Million. Using two of our appraisals, at inception of the trust and upon completion of the GRAT term, the client was able to pass $3.8 Million of assets to his heirs, tax free, saving $1.1 Million of estate tax.

More Tax Savings

Our client distributed shares of a thinly-traded public company to its shareholders who were required to report the value of the distribution on their personal tax returns and pay the related tax. Our valuation of these restricted shares resulted in a major discount off of the public trading price resulting in a significant tax savings to the shareholders.