That should not be the question. With gifting, you not only benefit yourself, you potentially save future generations from a heavy tax burden. In addition to a reduction in taxes, by reducing the size of your estate, you generally reduce the amount of probate costs and legal fees if an estate has to pass through probate.
Gifting is exactly what is sounds like: giving a gift to a spouse, a family member, a friend or even a charity. It is an estate planning tool that can used to reduce the total amount of an estate to avoid taxes and probate fees. Each person can give $13,000 a year to anyone they want to tax-free. The number of people who receive a tax-free gift of $13,000 is unlimited. Married couples can combine their amount to $26,000 a year.
Gifting is mainly used by people with large estates. However, anyone can leave a charitable gift at anytime and even include a final charitable gift in their will or trust. I always suggest to my clients to leave a gift to a charity… no matter the size. Even a small gift of 1% of their total estate left to the American Cancer Society, Big Brothers/Big Sisters, American Red Cross, Salvation Army or any number of other charities can go a long way in helping to prevent disease, mentor children and care for those in need. Consult with your estate planner to find the perfect gifting avenue for you and your family
Sorry, the comment form is closed at this time.