How Do I Value an Estate or Gift / Divide Timber Property?

For some, timberland may be a large portion of their portfolio or estate value such that it becomes critical that valuation, gifting and division be dealt with expertly. How do you make sure family timberlands (or gifts thereof) are properly valued or assure that there is equity in a division of property?

Value an Estate

When estate tax laws, federal and state income tax considerations, business matters, and family dynamics are combined with the inherent complexities of timberland valuation, it is easy to make poor decisions and mistakes. Attempting to “do it yourself” or engaging less than competent appraisers or advisors can lead to costly missteps when dealing with estate-related issues of a timberland ownership. Poor property information can lead to incorrect estate appraisals or inequitable division of a property. How can your property be accurately valued or divided if you do not understand what you really own?

Estate planning and the valuation process should be approached carefully and with a thorough awareness and familiarity with the factors that can be unique to each case.

Factors like:

  • The pros and cons of forming a Family Limited Partnership, Limited Liability Company, or other ownership structures
  • A good, up-to-date forest inventory with accurate timber inventory data
  • Inventory data should be properly used as part of a reliable valuation process by a timberland valuation expert that understands land values and timber values and how they interact together to create total asset value
  • If there are FLP shares or membership interests, these must be valued separately from the underlying asset

FRC understands and appreciates the complexities (and even the potential emotional aspects) that can be associated with estate matters and divisions of family timberlands. We have a notable track record of reporting to, and contesting, the IRS on timberland estates of significant size. We also have a history of helping families successfully navigate estate planning, transition, and valuation issues for their timberland.

Schedule a meeting with one of our valuation experts and let’s discuss your estate planning needs.

FRC will assure that all the variables are considered, and your property is appropriately valued for estate tax and / or planning purposes, or for a fair and equitable division of your property. Let us work with you to ensure that your legacy is honored and protected, and your timberland assets are appropriately valued, transferred, and well- managed for years to come.

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