Introduction
Estate planning is most effective when it begins before a life event, liquidity event, or legislative change forces action. In my work with business owners and families, I’ve seen time and again how early valuations provide clarity and open the door to thoughtful planning. I’ve also seen the dark side – sadly, too often – when a lack of planning results in a business and family thrown into turmoil stemming from an unanticipated life event. I recently reviewed the Goldman Sachs 2025 Year-End Planning Opportunities report, and one of the strongest messages echoed what I see every day: families benefit profoundly from understanding the true value of what they own.
Valuation Creates a Baseline for All Planning Decisions
Before establishing trusts, making gifts, or updating an estate plan, families should understand the starting point: the current value of their assets. This is especially true for privately held businesses, real estate portfolios, illiquid investments, and entities with complex ownership structures.
As an example, we’ve recently worked with several family business owners who were considered making major gifts to their beneficiaries. Once we completed their business valuations, it became clear the businesses’ values were considerably different than expected—opening the door to planning opportunities that had not even been considered. Many owners assume they know roughly what their business is worth, but informal estimates can be off by millions.
Armed with this information, families and advisors can:
• Determine gift amounts that are sustainable and prudent
• Identify opportunities to transfer appreciating assets sooner
• Anticipate liquidity needs for future generations
• Balance wealth among children or beneficiaries
Without guidance regarding asset values, planning becomes guesswork.
Valuation Supports Conversations Among Advisors
Estate planning involves a team: attorneys, CPAs, wealth advisors, and sometimes business valuation experts and real estate appraisers. When all professionals share a common valuation baseline, they can collaborate more effectively, reduce inconsistencies, and streamline the planning process. As valuation professionals, we work alongside estate attorneys and CPAs to ensure families have accurate, objective data before making long-term decisions.
This coordinated approach helps:
• Identify the best assets for gifting or trust funding
• Structure ownership to protect long-term value
• Avoid unintended consequences in financial or legal structures
Valuation ensures all advisors are speaking the same language.
Conclusion
The most resilient estate plans are those built on accurate information and clear financial insight. Professional valuation provides the foundation families need to make informed decisions, transfer wealth strategically, and preserve their legacies with confidence. In a world where financial landscapes and family dynamics evolve, business valuation remains a timeless, essential tool for thoughtful estate planning. Don’t wait for a life event to force the conversation—consider whether your current plan still reflects the true value of your holdings and your long-term intentions.