A family limited partnership valuation is the appraisal of FLP interests for gifting, estate reporting, or sales. Appraisers analyze underlying assets, control rights, transfer restrictions, and marketability to determine discounts (DLOC/DLOM). A well-supported valuation enables tax-efficient transfers and defends discounts under audit. Coordination with attorneys and CPAs ensures documents reflect economic realities.

Before gifting LP interests, advisors arrange valuations that reflect restrictions and lack of control. Reports inform gift-tax returns and future transfers. Accurate valuations guide equalization planning among heirs and help size insurance needed to offset taxes if the senior generation dies earlier than expected.