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Temporary cease we'd sit down now they say -- in life absurd and but.
I'd -- -- tax is our next guest combines both of those things Lance hall is the co-founder and president.
-- F and -- opinions of death 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 but.
This is so good they've been talking so much right -- that one of the group 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 -- Well essentially when you pass away we'll take Michael Jackson's estate for example somebody needs to go in value that music library what is that worth.
And then -- federal government -- based attacks off the value of that.
So we've seen some footage of -- for example Michael Jackson's home there looks like.
What could be kind of nestled there how do you do that heady go -- and talent isn't taken at temple -- state -- let's say celebrity's estate how long was something like that -- to value -- -- them it may take three or four months stood to value a lot of research testing going to the valuation a lot of questioning.
When the difficult things is.
When you have large music library you can determine what that value is that what is the value.
Michael Jackson's persona for sure -- -- in the future.
And so those -- the more difficult aspects of that valuation.
And with the shifting economy still I mean how does that change -- -- had to change some as a valuations as you've seen this recession change as well or does it.
Things maintain there other price I.
-- it's really interesting is.
We we have a client who passed away in January and -- -- a lot of auto dealerships.
You can imagine at that time frame with nobody buying cars auto dealerships are worth very much -- And so is if you will that was a great to have time to died -- it really lowers the value of that estate.
For the taxes that the family or that that this he has to pay.
-- absolutely out and then the other thing about it is during this.
Downturn from basically September 19 on word you've heard talk -- the vixen how high the -- -- the volatility.
The greater the volatility in the greater the discount for lack of marketability so -- private we 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 -- 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 -- -- -- your field that you like to offer some of our viewers.
Oh -- absolutely one of the simplest things you can do is two.
Take the value take your assets which you have control over.
And reduce it to a minority interest so why have between million dollar company worth one million around a 100% of it.
If I can get my ownership interest down to 49% 48% and I no longer own can have control so I have.
What are called valuation discounts lack of control lack of marketability.
But we'll give you quick example.
XYZ is publicly traded let's pretend -- its value ten dollars a share what is that ten dollars represented 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 gonna pay a premium for that we see that all the time the marketplace and they -- thirteen dollars a share.
What happens -- swayze is -- Helen have a hundred shares of XYZ to minority interest in -- -- -- were six dollars a share.
So in many ways you can choose whether you -- -- be paying estate -- at 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 that you die with minority interest.
And that's mob its sounds like that there's some things you can do to prepare but -- businesses goofy guys over.
At F and V.
No matter in the economy that that is correct -- -- -- thank you so much appreciate -- and honest about that can -- advice won't.
Thanks for having me on appreciate -- good luck with the Larry Jack thank you.
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