When you plan
for your estate, much of it involves planning where and to whom assets are to
go after you pass. But some people want to see their plans of giving start
before that time so that their loved ones can enjoy their generosity before the
end. So how do you begin moving the estate within your own lifetime?
A recent article in Forbes titled “Best Ways To Give Your Heirs Money While
You're Alive,” explored this subject.
The short answer is “giving”
while you are living. However, there are certain limitations to giving, largely
because of a screen of taxation. You want to duck under the gift tax itself, most
likely, which means giving less than the annual exclusion (i.e., currently
$14,000 per child). In addition, you may want to consider leveraging your
lifetime gift/estate tax exemption to its greatest effect.
To make already complicated
matters a bit more complicated, don’t forget there also are taxes based on to
whom you are giving. For example, there is the generation-skipping transfer tax
and, with certain assets, the kiddie tax.
To be sure, lifetime wealth
transfers can be a great benefit to those on either end – the givers and the
receivers. Seek qualified professional counsel in advance to ensure that all is
done according to Hoyle.
(June 18, 2013) “Best Ways To Give Your Heirs Money While