How to Take Full Advantage of Gifts in Estate Planning

How to Take Full Advantage of Gifts in Estate Planning

If you have an estate plan, chances are you have outlined how you would like to divide your wealth and assets among your friends and loved ones. But you can actually maximize the power of gift giving for estate planning by giving gifts while you are still alive, and have the added benefit of being able to see and enjoy its impact.

Here are a few tips that will help you maximize the power of gifts in your estate planning endeavors:

Try to give early in the year

Many people do their giving around the holidays because it is the season of giving and because it is the end of the year, so you are unlikely to be thinking about the tax benefits.

However, making gifts early in the year can lessen the impact of income-producing property. Unless you need that income, this may be a good way to minimize your tax burden.

The gift can also grow in size throughout the year as its value appreciates.

Maximize tax free gifts

Beyond the annual gift tax exclusion, there are other ways you can make tax-free gifts. Education gifts, for example, can be considered tax-free as long as they are used to pay for tuition costs.

Give a gift that keeps on giving

We already mentioned how a gift given early in the year can appreciate throughout the year. But you can also think longer term than that. For example, you can give stocks or accounts that are poised for significant long-term growth.

For more information about gift-giving strategies to maximize the impact of your generosity, contact a trusted Tampa estate planning attorney at BaumannKangas Estate Law.