Warren Buffet may have popularized the ‘giving while living’ legacy among the
super-wealthy. However, there is a myriad of advantages for those not part of the
billionaire club to pass their wealth on while alive.
The rich rewards of seeing your money put to work towards a down payment on
your child’s first home or college tuition for grandchildren can be quite gratifying.
Sharing your long-term financial visions with your heirs may influence your
progeny’s use of that money.
Both generations can benefit from the decision.
Beneficiaries can receive $15,000 annually from a parent without incurring taxes. If
you give more, it folds into the beneficiaries’ lifetime exclusion amount. The
advantage of passing it on during your lifetime means your children are less likely to
face a 40 percent federal inheritance tax once the estate passes a certain amount.
Charitable giving is another way to give while living, and you can reduce personal
taxes in the process. Setting up a private foundation ensures long-term family
involvement, and donor-advised funds allow you to donate through a parent non-
profit that manages the administration and investments.
Read HERE about the pros and cons of giving while living so that you can begin to
make the best decisions for you and your family.