When you planfor your estate, much of it involves planning where and to whom assets are togo after you pass. But some people want to see their plans of giving startbefore that time so that their loved ones can enjoy their generosity before theend. So how do you begin moving the estate within your own lifetime?
A recent article in Forbes titled â€œBest Ways To Give Your Heirs Money WhileYou're Alive,â€ explored this subject.
The short answer is â€œgivingâ€while you are living. However, there are certain limitations to giving, largelybecause 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 yourlifetime gift/estate tax exemption to its greatest effect.
To make already complicated mattersa bit more complicated, donâ€™t forget there also are taxes based on to whom youare 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 greatbenefit to those on either end â€“ the givers and the receivers. Seek qualifiedprofessional counsel in advance to ensure that all is done according to Hoyle.
For more information on this and otherestate planning subjects, contact IdahoEstate Planning and schedule aconsultation. Remember,good planning is no accident.