The DOL Comes Down Hard on ESOP Trustee

On June 2, 2014 the U.S. Department of Labor (DOL) reached a $5.25 million settlement with GreatBanc Trust Company (GreatBanc). It was alleged that GreatBanc, as trustee to the Sierra Aluminum Company Employee Stock Ownership Plan (ESOP), allowed the plan to purchase stock from Sierra Aluminum’s co-founders and top executives for more than fair market …

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In Federal Tax Court Your Report Is Your Testimony

The level of detail and the manner of explanation in a valuation report for tax compliance purposes is extremely important as the report serves as the expert’s direct testimony in Federal Tax Court. It’s interesting to observe the important steps that families take to protect their assets – hiring top wealth management teams, tax consultants, …

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Quantifying the Lack of Control Discount

Should business appraisers rely more on implied rates of return when quantifying minority discounts? A thought provoking webinar was sponsored by the American Society of Appraisers (ASA) on March 25, 2014. Presenters Eric W. Nath and Bruce A. Johnson encouraged appraisers to place much more emphasis on factors that would be considered by “real world” …

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Buy-Sell Agreement: Part II

Value is addressed in the Buy-Sell agreement. It can be a fixed price, a formula to determine value, or a process to determine value. A fixed price is perhaps the easiest to understand and the most at risk of rewarding one party at the expense of another. It may be a reasonable measure of value …

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