Education
The Truth About Discounts: They’re Not Dirty, They’re Necessary. What Fiduciaries Must Understand About Valuation, Taxes and Risk Management
Marc M. Stern (Private Client Services) and Julia Haye (Litigation) will co-present at the Professional Fiduciary Association of California (PFAC)'s 31st Annual Educational Conference.
Session Description:
Discounts can trigger confusion—or even conflict—in estate and trust administration. However, in reality, discounts aren’t loopholes or creative accounting. They’re grounded in economic principles that experienced fiduciaries must understand to properly value assets, report taxes, and manage risk.
In this informative and accessible session, Marc and Julia team up to explain why discounts exist, how they should be applied, and how fiduciaries can use them responsibly and defensibly. The presentation will cover:
- Why discounts reflect real-world limitations such as lack of marketability and lack of control
- IRS expectations and common discount issues in estate and gift tax audits
- Impact of discounts on income tax basis, planning decisions, and fiduciary reporting
- How valuation discounts influence sales, buyouts, and refinancing transactions
- How to anticipate and mitigate disputes—before they escalate
- When to bring in a valuation expert and how to collaborate effectively
With perspectives from tax planning, administration, and litigation, this session equips fiduciaries with the insight they need to navigate valuations confidently and avoid common pitfalls that lead to conflict or liability.
