Our world has two things you can always count on: death and taxes. Unfortunately, many people are unwilling to discuss end of life planning, whether it's those who are faced with health problems and their own mortality or those who will be left behind who do not want to discuss the loss of a loved one. But failing to put a plan in place to deal with this eventuality can leave your business open to serious problems, including insolvency from death taxes. When it comes to estate planning and taxes, it's vital that you take the time to determine the value of a business before the time of need so that you can plan for financial methods that will ensure the continuity of your business.
What exactly does the valuation of a company have to do with estate planning and the taxes that are incurred when a business is passed to the next generation? Quite a lot, as it happens. Business valuations provide a legal basis for the value of a company, allowing taxes to be charged based on the company's actual value instead of an incorrect estimate based on tax accounting. It also helps you determine areas where your company is strong and where it is weak, allowing you to get it into shape before worrying about passing on your legacy. By getting a valuation from business appraisal specialists, you can ensure that you have some financial means in place to deal with taxes that will fall into play at the time of death. Here's' a little more on each of these areas:
Though estate planning and taxes are a delicate subject, it's important that you look at having a quality company valuation performed to ensure that your legacy will live on after your passing. If you haven't had a chance to have a quality business valuation performed, please feel free to contact our valuation specialists to ensure you have the information you need to properly plan your estate.