Long time clients came in for their five year estate plan review and stated that they were contemplating additional financial gifts to their children. However, they had not addressed important issues regarding this complex and emotional decision. Persons contemplating gifts should ask a few important questions, including:
- Do you have sufficient capital and resources for your life?
- Do you desire to make your children wealthy?
- How will the gift impact family members not receiving a gift?
- What do your children need and are they fiscally responsible?
- Is your estate taxable and is the asset’s value expected to increase, decrease or stay stable?
- What should be given, the asset or cash?
- Can the gift be structured to minimize estate and gift taxes?
DeAngelis Legal assisted the clients work through these questions, their objectives and desires and the clients ultimately decided against making additional gifts for a variety of reasons. Sometimes, a third-party can assist you analyze whether to make gifts and if you are proceeding, the best structure for maximizing its impact. We encourage you to discuss these gift with your financial advisor and legal team before proceeding too far down this road.
