Our Services
Business Valuations for Tax & Estate Planning
At Beacon Advisors, we provide valuations that help business owners minimize tax burdens, plan generational transfers, and build estate strategies that protect both family harmony and financial security.
Why Valuations Matter in Tax & Estate Planning
Taxes and estate planning are unavoidable realities for business owners. The decisions you make today about ownership transfer, succession, and wealth distribution can shape your legacy for decades to come. A professional business valuation is at the center of these decisions. Without one, you risk tax inefficiencies, disputes among heirs, or missed opportunities to preserve wealth.
Tax compliance
Revenue agencies often require valuations for gifting, estate freezes, or transfers of ownership.
Wealth preservation
A valuation ensures you don’t overpay taxes on inflated assumptions or underpay and trigger audits.
Family fairness
Valuations help allocate business interests fairly among heirs or beneficiaries.
Succession clarity
Provides a baseline for planning management or ownership transitions.
Litigation avoidance
Defensible valuations reduce the risk of tax authority challenges or family disputes.
Common Situations Requiring Valuation
There are several common situations that demand a formal valuation.
1. Estate Freezes
Transferring future growth to the next generation requires a defensible valuation at the freeze date.
2. Gifting of Shares
When gifting ownership, tax authorities require fair market value to determine gift taxes or capital gains.
3. Succession Planning
Valuations help owners transfer shares to family or management in a tax-efficient manner.
4. Trust Transfers
Moving business interests into trusts requires a valuation to establish tax bases.
5. Death of a Shareholder
Valuations determine estate tax liability and help executors distribute assets fairly.
6. Corporate Restructuring for Tax Purposes
Mergers, divisions, or reorganizations often need valuations to comply with tax regulations.
Challenges Business Owners Face
Complex tax laws
Constantly changing rules make compliance difficult.
Family dynamics
Succession and estate planning often spark emotional conflicts.
Timing pressures
Tax events such as shareholder deaths or sudden exits create urgency.
Audit risk
Authorities scrutinize valuations closely to prevent underreporting.
Generational equity
Balancing fairness between active and non-active family members is tricky.
Our Approach at Beacon Advisors
We provide valuations that are accurate, defensible, and aligned with your tax and estate goals:
Regulatory compliance
Our valuations meet Canadian CRA and U.S. IRS requirements.
Tax expertise
We collaborate with tax advisors to ensure valuations support broader planning strategies.
Estate sensitivity
We handle family dynamics with discretion and professionalism.
Audit defensibility
Our valuations are prepared to withstand tax authority scrutiny.
Strategic insight
We help you align valuation outcomes with your succession and estate objectives.
Practical Applications for Business Owners
Estate Freeze
A founder freezes shares and issues growth shares to children. Our valuation establishes the correct baseline for CRA or IRS compliance.
Gifting Shares to Family
You want to gift part of your business to your children. A valuation ensures fair reporting and minimizes disputes.
Succession Transition
You plan to transfer ownership to a management team while keeping family members as passive shareholders. A valuation ensures fairness and tax efficiency.
Trust Planning
Placing shares in a family trust requires valuation to determine tax basis and protect future distributions.
Shareholder Death
When a shareholder passes away, valuations help executors calculate estate tax and divide assets fairly among beneficiaries.
Benefits of Professional Valuations in Tax & Estate Planning
Tax efficiency
Reduce liabilities by ensuring accurate valuations.
Audit protection
Avoid penalties or challenges from tax authorities.
Family harmony
Ensure fairness among heirs or beneficiaries.
Clarity
Provide transparency for succession and estate decisions.
Wealth preservation
Protect and maximize value across generations.
1. Initial Consultation
- Identify tax or estate planning objectives.
- Coordinate with tax advisors, estate planners, and legal counsel.
2. Data Collection
- Gather financial statements, ownership structures, and trust or estate documents.
3. Valuation Analysis
- Apply market, income, or asset approaches as required.
- Adjust for minority or control interests, restrictions, or discounts.
4. Draft Report
- Provide preliminary findings for review by advisors and family stakeholders.
5. Final Report Delivery
- Deliver a defensible valuation suitable for tax filings or estate execution.
- Provide summaries tailored for both professional advisors and family members.
Frequently Asked Questions
Do I need a valuation for estate planning if I’m not selling my business?
Yes. Tax authorities require valuations for estate freezes, gifts, or transfers even if no sale occurs.
What happens if the CRA or IRS disagrees with my valuation?
Independent valuations reduce this risk. If challenged, our detailed reports support your position.
How often should I update valuations for estate planning?
It depends on your situation, but typically every 2–3 years or when major changes occur.
Can valuations reduce estate taxes?
Yes. Accurate valuations prevent inflated tax liabilities while ensuring compliance.
Will the valuation process involve my family members?
If desired. We can provide summaries for heirs to promote transparency and fairness.
Why Business Owners Choose Beacon Advisors
Cross-border tax expertise
We support U.S. and Canadian tax compliance.
Trusted with sensitive matters
We manage family and succession issues with professionalism.
Audit-ready credibility
Our valuations are recognized by tax authorities.
Comprehensive planning
We work seamlessly with accountants, lawyers, and estate planners.
Long-term support
We advise through the entire succession and estate planning journey.
Get in touch
Do not leave your family’s financial future to chance or risk unnecessary tax liabilities. With Beacon Advisors, you gain valuations that ensure compliance, preserve wealth, and support smooth succession.