At Last, a Valid Way To Value S Corps

The Delaware Chancery Court has developed a unique approach to an appraisal issue that has dogged estate and gift tax valuations of subchapter S corporations ever since a string of controversial Tax Court cases earlier this decade. In Delaware Open MRI Radiology Associates, P.A. v. Kessler,¹ the Chancery Court takes direct aim at the Tax Court's repeated acceptance of a methodology that significantly overvalues interests in S corps. The court also presents a cogent