Gift, Estate, & Income Tax Compliance
2022 02 Value Matters

February 1, 2022

Mercer Capital’s Value Matters® 2022-02

2022 Tax Update for Estate Planners and Family Businesses

Excerpted from Mercer Capital’s Family Business Director Blog

As we highlighted previously in the Family Business Director blog, companies are beginning to batten down the hatches and prepare for stormy weather.  The risk of a recession continues to escalate, and inflation printed a new four-decade high in May 2022.  Former Fed Chair and current Treasury Secretary, Janet Yellen, appeared before Congress to answer questions regarding inflation, which she sees as staying elevated for an extended period.  Gas prices hit a nationwide average of $5 a gallon for the first time ever in the United States, and little relief is on the horizon.

The Fed expects to continue raising rates to battle inflation, and a new law was passed unanimously in the House and Senate to ban the word “transitory,” which awaits President Biden’s signature. Well, maybe the last one was just floated in committee.

All to say, companies and consumers alike are feeling the squeeze, and markets are reflecting less-than-rosy expectations. At the time of this writing, the S&P 500 was down almost 16% year-to-date, while the Russell 2000 was down almost 19%.  Outside the energy sector, stocks are bleeding red in 2022 (see Figure 1).  Lower broad market pricing translates to lower valuations for family businesses.

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When an Old Valuation Becomes a Liability
When an Old Valuation Becomes a Liability
An outdated valuation can create more risk than no valuation at all when it is quietly relied upon in governance decisions. Family businesses that treat valuation as a living discipline, rather than a fixed conclusion, reduce the risk of conflict and misalignment over time.
February 2026 | Defensible Gift and Estate Tax Valuations
Value Matters® February 2026

Defensible Gift and Estate Tax Valuations

IRS scrutiny of gift and estate tax valuations typically arises not from a single issue, but from patterns of weak support, inconsistent assumptions, or a disconnect between the rights of the interest being valued and the conclusions reached. Examinations often focus on whether discounts for lack of marketability, tax affecting for pass-through entities, projected cash flows, growth rates, and discount rates are grounded in company-specific facts and supported by relevant capital market evidence. Valuations that fail to clearly tie empirical data to the economic realities of the subject interest are more likely to invite challenge.
Mercer Capital Proudly Sponsors and Attends the ACTEC 2026 Annual Meeting
Mercer Capital Proudly Sponsors and Attends the ACTEC 2026 Annual Meeting
Mercer Capital is pleased to again sponsor the American College of Trust and Estate Counsel’s (ACTEC) 2026 Annual Meeting, taking place March 4–8, 2026, in Tampa, Florida. As a valued partner in the trust and estate planning community, Mercer Capital is proud to support this premier event, which brings together leading legal and financial professionals to explore today’s most pressing issues in trust and estate law, planning, and related advisory matters.The ACTEC Annual Meeting features an extensive program of professional seminars, committee sessions, and networking activities, hosted at the JW Marriott Water Street and the Tampa Marriott Water Street in Tampa Bay. Attendees can engage in deep dives on emerging legal trends, practical planning strategies, and peer-to-peer dialogue throughout the week.Mercer Capital’s Travis W. Harms, CFA, CPA, ABV; Timothy K. Bronza, CPA, ASA; and Thomas C. Insalaco, CFA, ASA will be attending this year. Their participation reflects the firm’s deep commitment to ongoing education and to providing thoughtful and objective valuation, tax, and advisory insight to the trust and estate community.Travis Harms is President of Mercer Capital and leads the firm’s Family Business Advisory Services Group. With deep expertise in valuation for gift, estate, and income tax planning, Travis provides strategic financial consulting and education to multi-generation family businesses, helping align financial realities with long-term succession goals.Tim Bronza serves as Managing Director of Mercer Capital’s Florida office. He brings extensive experience valuing business interests for federal gift, estate, and income tax purposes supporting sophisticated valuation assignments across corporate and fiduciary contexts.Tom Insalaco is a Senior Vice President in Mercer Capital’s Florida office. Since 2008, Tom has performed valuation analyses for a broad range of industries, assisting attorneys, fiduciaries, and financial professionals with estate planning, exit planning, and transactional valuation needs.Mercer Capital looks forward to seeing old friends and making new ones during the meeting. For more information about Mercer Capital’s Gift, Estate, and Income Tax Compliance practice, click here.

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