[WSBAPT] Small Business Valuation

Thu Apr 9 12:06:35 PDT 2015

My practice has always been to just value the assets assuming that the business died with the decedent and has no value. I have had a number of probates where dad has a significant amount of tools and may have had a handy man or construction type business that was a sole proprietorship and not earning much in the years prior to death - as far as I am aware nobody has come back against my office or my PR's because we didn't document the value of the business properly. If someone is taking over the business then perhaps the decedents CPA (or one of the PR's choosing) could do one with minimal expense based on the past cash flow. It seems that there is minimal risk to the PR for moving forward without a business appraisal given the limited value of the business, but I am curious if others disagree. Is the concern the IRS or that a relative wants to take over the business and other heirs will contest the value assigned upon distribution?

Patrick J. GallowayAdvance Legal Services, PLLC1920 N. Pittsburgh Ste. D-3Kennewick, WA 99336 (509) 851-7884  www.alsnorthwest.com This E-Mail message and any documentation accompanying this transmission may contain privileged and/or confidential  information and is intended solely for the addressee(s) named above.  If you are not the intended addressee/recipient, you are hereby notified that any use of, disclosure, copying, distribution, or reliance on the contents of this E-Mail information is strictly prohibited and may result in legal action against you.  Please reply to the sender advising of the error in transmission and immediately delete/destroy the message and any accompanying documents.  Thank you.

From: cyfield at rockisland.com
To: wsbapt at lists.wsbarppt.com
Date: Thu, 9 Apr 2015 11:18:16 -0700
Subject: Re: [WSBAPT] Small Business Valuation

Does anyone have any suggestions on how to value a small sole proprietor business for probate purposes that has less than a $1,000 worth of tools of the trade and less than $20k/year in gross revenue?  Given its small size, and that of the estate in general,  we’d like to avoid the expense of getting a full blown business appraisal if possible. Thanks in advance, Cy  Cyrus W. Field, Attorney at Law (admitted in Washington and Oregon)phone: 360-472-1223 Mail: POB 367, Shaw Island, WA 98286 Office: 640 Mullis St. Friday Harbor, WA******************************************************************The information contained in this e-mail message, including attachments, may be privileged, confidential and protected from disclosure. If you are not the intended recipient, any dissemination, distribution or copying is strictly prohibited. If you think you have received this e-mail in error, please e-mail the sender at cyfield at rockisland.com and destroy or delete the original and any copies.   
_______________________________________________
WSBAPT mailing list
WSBAPT at lists.wsbarppt.com
http://mailman.fsr.com/mailman/listinfo/wsbapt 		 	   		  
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20150409/a2811a74/attachment.html>