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How can gifting benefit you and your family?

On Behalf of | Sep 24, 2020 | Firm News |

Throughout the year and particularly at the end of the year, many wealthy households choose to write checks for friends and family members. Often, these gifts may be around $15,000 dollars per person. 

Gifting can be a crucial tool in estate planning, and it is easily done for those who have available funds and expect to be subject to estate taxes. Annual gifts in that amount can be transferred without any tax effect and may lower your eventual estate taxes. At the same time, the gifts provide financial assistance and support to those who matter to you.

Gifts Lower Estate Taxes

Many wealthy Americans fear that estate taxes will cause a major reduction in the amount they will be able to pass on to those they want to benefit. It is possible to reduce the size of your estate while you are alive by gifting. You can gift current assets, particularly if you gift assets that will grow in value. This can reduce the total value of your estate measured at the time you die, and thus the taxes to be paid.