Reasons You Might Consider Passing Some Assets to Your Heirs While Still Alive
One of the most significant benefits of estate planning is that it allows you to take control over who receives your assets and property after you pass away. However, you do not have to wait until your death to pass along money or gifts to your loved ones. You can give up to $14,000 worth of assets to an individual person each year completely tax free.
The following are a few of the most common reasons why people choose to pass down their assets long before they pass away:
- You get to see your beneficiaries enjoy their gift: Seeing how people enjoy and use the gifts you leave to them can be a gift to you in turn. You might watch grandchildren buy their first home, for example, or see your oldest child cherish a precious family heirloom. Witnessing the enjoyment for yourself can be truly priceless.
- You can have meaningful conversations: If you choose to leave behind an item that has sentimental value, you can have conversations with the recipient about why that item is so meaningful. These stories and experiences are important to pass down through the generations, as they give your children and grandchildren additional ways to remember you. When your granddaughter picks up a necklace, for example, it becomes much more meaningful if she knows you wore it at your wedding.
- You can lower your estate tax burden: Giving gifts while you are still alive — and maximizing the amount you give while still being under the gift tax cap — is a great way to minimize the amount of estate taxes you will owe. This is especially true if you are over or near the estate tax threshold.
- You can find out which items your loved ones enjoy most: Passing down some items while you are alive can give you a better idea of what other items you should leave behind in your estate plan. You might be surprised at who truly wants or appreciates certain items.
For the guidance and advice you need when providing assets and property to your chosen beneficiaries, meet with a trusted Tampa estate planning lawyer at BaumannKangas Estate Law.