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Category: Valuation (page 1 of 2)

Valuing the Right to Sue: An Empirical Examination of Nonprofit Agency Costs by Brian D. Galle

Brian D. Galle, Professor at Georgetown University Law Center, has made available for download his article, “Valuing the Right to Sue: An Empirical Examination of Nonprofit Agency Costs.”  The abstract reads as follows:

Do stakeholder suits against managers reduce agency costs? I examine this question using a large panel of

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Espen Robak: Holliday FLP Transfer Runs Afoul of Sec. 2036

By: Espen Robak

In Estate of Holliday, decided March 17, 2016, the IRS won a small (dollar-wise) yet meaningful victory on the Sec. 2036 retained interest issue. The case is instructive, since the facts were not particularly bad for the taxpayer. Thus, and especially in conjunction with recent cases, it … Continue reading

Expect the Unexpected: Valuation, Penalty, and Liability Issues in the Context of the Federal Estate Tax by Nikki Laing

Nikki Laing, at Capshaw Green PPLC, has made available her article,
Expect the Unexpected: Valuation, Penalty, and Liability Issues in the Context of the Federal Estate Tax.”  The abstract is as follows:

Failing to timely file the estate tax return, timely pay the estate tax, and properly report the values

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What’s It Worth? How Can an Asset Without a Market Be Valued at A Fair Market Value?

Steven K. Cannon has published his article, “What’s It Worth? How Can an Asset Without a Market Be Valued at A Fair Market Value?,” in the the Texas Tech Estate Planning & Community Property Law Journal where it is available for download. The abstract reads as follows:

When individuals die,

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Both Parties to the Billion-dollar Divorce Settlement Appealed to the Oklahoma Supreme Court

Harold Hamm, the CEO and founder of Continental Resources who called a divorce settlement of about $1 billion, is now challenging his divorce settlement with Sue Ann Arnall in Oklahoma Supreme Court. The oil tycoon whose fortune has fallen dramatically due to the fluctuation of oil price argued that the … Continue reading

Various Methods of Life Insurance Valuation

When there is a transfer of a life insurance policy, valuation of the insurance policy becomes necessary as the IRS requires a Form 712 Life Insurance Statement, which is a policy valuation as of the date of transfer provided by the insurance company, be included in the tax returns. There … Continue reading

Federal Reserve’s Survey Reveals Drop on Net Worth of American Families, and Huge Disparity Across Ethnicities

A latest research by Pew Research Center from data in the Federal Reserve’s Survey of Consumer Finances shows that the median net worth of households has dropped from $135,700 in 2007 to $81,400 in 2013, almost 40% down since the Great Recession. Besides the drop in overall American households, the … Continue reading

Espen Robak: The Whys and Hows of Valuing Life Insurance

By Espen Robak

When changing the ownership of a life insurance policy by gift or sale, many advisors report to us that their client experienced a sticker shock. As an example, an attorney called to say his client had a $20 million term policy with an annual premium of $120,000. … Continue reading

Espen Robak: Valuing Fund Carry – Consider the Market Evidence*

By Espen Robak

Pure profits interests like a carried interest of a venture fund or hedge fund – at their inception – have zero intrinsic value.1 Much like out-of-the money stock options, they either make rapid leaps in value or expire worthless: this represents a significant transfer tax planning … Continue reading

Jimenez v. Corr: Mandatory Purchase Scheme under Shareholders’ Agreement Governs

The Virginia Supreme Court in Jimenez v. Corr rules that the closely-held company’s obligation to buy back a decedent’s share under the shareholders’ agreement governs how the company stock is going to be distributed.

The decedent died with 95 shares in a closely-held Virginia company, which, according to the shareholders’ … Continue reading

District Court Orders to Enforce IRS Summons

The United States District Court for the Northern District of California ruled in a recent matter and ordered an individual to company with IRS summons, namely, to appear before the IRS, to give testimony and to produce books, papers, records or other data in an investigation of corporation tax liability.… Continue reading

In re Restivo Auto Body, Inc.: Fourth Circuit Affirms Priority of Executed Bank Trust Over IRS Tax Lien

In a most recent ruling by the U.S. Court of Appeals for the Fourth Circuit, the Court affirmed the priority of the bank’s security interest, ruling that the bank’s executed yet unrecorded security interest by deed of trust has a priority over a subsequent IRS tax lien. Restivo Auto Body … Continue reading

How Perspective Is Influenced by Money

Money subconsciously affects our life and the way we treat other people. Our judgment about how much money a man owns through our observation of his house, his car or even his phone does not necessarily match the reality. As a wealthy man with net worth of $4.2 billion would … Continue reading

Health-Care-Plan Study Lacks Up-to-Date Data

Kraiser Family Foundation, a non-profit organization specializing in health-care policy studies, recently found it hard to provide policy analysis to help enrollees shop between traditional Medicare and Medicare Advantage, due to the relatively out-of-date data. According to Kaiser, based on limited resource of data:

  • Medicare Advantage tends to be better
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Valuation Lessons From Estate of Adell by Kerry A. Ryan

Kerry A. Ryan has published her article, “Valuation Lessons From Estate of Adell,” in Tax Notes. The abstract reads as follows:

In Estate of Adell, the Tax Court determined that the correct value of a decedent’s interest in a closely held corporation was the figure reported on the original estate

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