CASE STUDY
Estate-planning transfer: $11 million simplified, $4.07 million appraised.
A USPAP-compliant fair market value opinion of oil and gas interests transferred from an LLC to an irrevocable trust — compared with a simplified 10% flat discount.
The challenge
A high-net-worth client transferred oil and gas interests from an LLC to an irrevocable trust. The accounting team’s simplified 10% flat discount model estimated $11,000,000.
What Whipstock did
A USPAP appraisal using per-well decline-curve analysis and the supporting file — geology, lease terms, operating expenses, price decks, and development risk — with market-supported production forecasts.
Fair market value conclusions used for taxable gift and estate reporting can move with methodology. Actual tax results depend on the full facts, exemptions, and review. This is not tax, legal, or financial advice.
SIMPLIFIED ESTIMATE
$11,000,000
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WHIPSTOCK APPRAISED VALUE
$4,072,478
Mineral interests $3.79M · Working interests $0.28M
Illustrative gift-tax math at 40% on the difference is $2,771,009. That figure shows how methodology moves reported value. It is not a promised savings.
THE DOCUMENT
Read the write-up as a PDF.
CASE STUDY · PDF
Estate-planning transfer — USPAP appraisal
Identifying names and legal descriptions removed. Method and numbers remain.
