Estate and Gift Tax Valuation

" Temporary cease we sit down now they say nothing in life absurd and but. I'd get his tax is our next guest combines both of those things lance hall is the co founder and president. -- F and B opinions of debt and taxes you guys have a lot but in the office live that life."

" What's exciting feel to be in right now on excuse me for -- laryngitis that. This is so good they even got -- so much right and that one of the -- one of the great things about the estate taxes this. It's not affected by the economy people are still dying and so it's been still good for business so what exactly do you do that at ten. Well essentially when you pass away will take Michael Jackson's estate for example somebody needs to go in value that music library what is that worth. And then federal government -- its attacks off the value of that."

" So we've seen some footage of inside and for example Michael Jackson's home that looks like. What could be kind of a mess in there how do you do that heady go through and talent isn't taken at temple -- state analysts say if celebrities to say how long with something like that take the value."

" them it may take three or four months stood to value a lot of research testing going to the valuation a lot of question and answers. When the difficult things is. When you have a large music library you can determine what that value is that what is the value. Michael Jackson's persona for sure overnight in the future. And so those -- the more difficult aspects of that valuation."

" And with the shifting economy -- mean how does that change would be had to change some as a valuations as you've seen this recession change as -- visit. Things maintained there other price I."

" Well what's really interesting is. We we have a client who passed away in January and he -- a lot of auto dealerships. You can imagine that timeframe with nobody buying cars auto dealerships are worth very much -- And so it was if you will that was a great to have time to diets and to really lowers the value of that estate. For the taxes that family or that that this he has to pay as I absolutely out and then the other thing about it is during this. Downturn from basically September 19 on word you've heard talk from the -- how high the mix -- the volatility. The greater the volatility in the greater the discount for lack of marketability so I have privately held assets that are minority interest home. There's are ready market for that. Given the volatility that time frame the empirical data really show is very substantial discounts for lack of marketability which lowers the value further and."

" Other centers and know that there is an intersection there was the index is there anything people can do it yet you know you're an expert -- in just to prepare or the -- in your field that you like offer some of our viewers."

" Oh absolutely one of the simplest things can do is to. Take the value take your assets of which you have control over. And reduce it to a minority interest so -- have between million dollar company worth one million around a 100% of them. If I can get my ownership interest down to 49% 48% that I no longer own can have control shall I have. What are called valuation discounts lack of control lack of marketability. But we give you quick example. XYZ is publicly traded let's pretend sure it's valued ten dollars a share what is that ten dollars represent they represented minority interest. But it also represents a very liquid market. What if somebody wanted to come along by XYZ and by control they're going to pay a premium for that we see that all the time in the marketplace they -- thirteen dollars a share. What happens -- is -- Helen have a hundred shares of XYZ to minority interest in -- you were six dollars a share. So in many ways you can choose whether you want to be paying estate taxes thirteen dollars a share or six dollars a share and a lot of the estate planning is done. To transfer assets while you're alive so they die with minority interest."

" And that's -- the sounds like that there's some things you can do to prepare but -- businesses goofy guys over. And FNV. No matter in the economy that that is correct and interest will thank you so much appreciate you coming and honest about that can -- advice won't. Thanks for having me on particularly good luck with the Larry Jack thank you."