You’re getting older and you want to leave gifts for your heirs. But when to do it? Now or after you pass away?
Under current law, you are exempt from gift taxes up to a lifetime max of $5.34 million. In addition, in any year you can give up to $14,000 per recipient.
According to an article on The Motley Fool, reasons for giving now include:
- You get to see your heirs enjoy the money.
- You can advise them on what to do with it.
- You can stop giving them money if they aren’t spending it wisely.
- You can avoid taxes up to a certain amount.
Reasons for waiting until you pass away include:
- You may end up needing the money later.
- You can’t change your mind.
- Your heirs might spend it more wisely.
There is no right answer. But the article says the best gift you can give your family is for them to know you are going to be financially stable in your golden years.
If you have questions about estate planning, feel free to call us for a consultation at (626) 696-3145.
