10 Updates

Should I Gift Money To My Children Now Or Later?

Apr 23 2014, 11:19am CDT | by

Your financial legacy is a reward for a lifetime of hard work and financial success. Many affluent Americans want to give their children money, but aren’t sure about whether to make a living gift or...

Filed under: news

 
 
 

13 weeks ago

Should I Gift Money To My Children Now Or Later?

Apr 23 2014, 11:19am CDT | by

Your financial legacy is a reward for a lifetime of hard work and financial success. Many affluent Americans want to give their children money, but aren’t sure about whether to make a living gift or leave money in their estate. This leads to the question: Should I give my children money now or later?

Robert: One of the benefits of making gifts during your lifetime is that you can help your children with important milestones like the purchase of a house, car, or a college education. You also get to enjoy seeing the impact your gift has on the life of your loved ones.

Thomas: There are also some practical advantages to living gifts. If you are concerned about your children’s financial skills, you can control how your money is spent. Payments made directly to a qualified educational institution may be tax deductible, making funding an education a potentially tax-savvy move.

Robert: On the other hand, if you’re worried about running out of money during your lifetime, you may be better off leaving your children an inheritance. It’s important to understand the tax implications of giving cash or assets to your children. Under 2014 tax rules , you are allowed to gift as much as $5.34 million to someone other than your spouse without incurring taxes. However, this exclusion amount will also be applied to your estate.

Thomas: Keep in mind that you can also gift up to $14,000 per person in 2014 without adding to your lifetime exclusion amount . This means that, jointly, you and your spouse could give each of your children a total of $28,000 completely tax-free. A financial advisor can help you understand the financial and tax implications of monetary gifts.

Robert: If you’re concerned about how your children may spend your money after you’re gone, you can set up a trust in order to control how the money is invested and disbursed to them. Unlike custodial accounts, trusts don’t ever need to be handed over to the control of the beneficiaries.

Thomas: Trusts are a great way to help ensure that your wishes are followed after your death, but I often caution my clients against trying to exert too much control from beyond the grave. Life is full of unforeseen events and you don’t want your children to suffer financially because of decisions you made long before.

Conclusions: Ultimately, the decision about whether to leave your children money now or later depends entirely on your financial and family circumstances. If you want to enjoy seeing your hard work benefit your children, then gifts during your lifetime make sense. If you’d rather keep your money until you no longer need it, leaving money in your estate may be a smarter option. One of the benefits of working with a financial advisor is that we can help you design a plan to meet your current financial needs while leaving an enduring legacy for tomorrow.

Securities and advisory services offered through SII Investments, Inc., member FINRA, SIPC and a Registered Investment Advisor.  Fross and Fross Wealth Management and SII Investments, Inc. are separate companies.  SII does not provide tax or legal advice.

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told tod ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

Newcastle United Training Session
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken int ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammud ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states la ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

6 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 mil ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

6 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk S ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involvi ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan B ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway ( ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

47 killed in Taiwan as plane makes botched landing (Roundup)
Taipei, July 23 (IANS) Forty-seven people on board a Taiwanese TransAsia Airways plane were killed in a failed emergency landing in the island county of Penghu Wednesday, Taiwan's transportation authority has confirmed.
 
 
47 killed in Taiwan plane's botched landing
Taipei, July 23 (IANS) Forty-seven people on board a Taiwanese TransAsia Airways plane were killed in a failed emergency landing in the island county of Penghu Wednesday, Taiwan's transportation authority has confirmed.
 
 
51 killed in Taiwan plane emergency landing
Beijing, July 23 (IANS) At least 51 people were killed and seven others injured when a passenger plane with Taiwan's TransAsia Airways made an emergency landing on the outlying island county of Penghu Wednesday, media reported.
 
 
High salt ups heart disease risk in diabetics
Tokyo, July 23 (IANS) People with Type-2 diabetes have more to add to their list of dietary restrictions as researchers have found that a high salt diet may double their risk of developing cardiovascular disease.
 
 
 

Latest from the Network

Mobile Wallet May Launch With iPhone 6
Apple already has hundreds of millions of credit cards on file with the help of iTunes, although now they are hoping to move into the mobile wallet world with the help of major credit card companies.Earlier this year...
Read more on Apple Balla
 
Atletico welcome back Cardoso, hints at Torres's return
Madrid, July 24 (IANS) Atletico Madrid president Enrique Cerezo says he is delighted that Portuguese midfielder Tiago Cardoso has made a U-turn to re-sign with the club while at the same time dropping a big hint that...
Read more on Sport Balla
 
Apple On An Acquisition Rampage
When the fiscal year began in 2013, there was no telling what Apple would be up to for 2014. The company has been staying incredibly busy, though, and they have purchased more companies than ever in the past nine months...
Read more on Apple Balla
 
Mutilated bear gets new lower jaw in Mexico
Mexico City, July 24 (IANS/EFE) A team of surgeons and veterinarians in Mexico implanted a titanium lower jaw in a bear that was mutilated, an official said. The bear, named Invictus, underwent surgery Sunday and...
Read more on Politics Balla
 
Brazilian president exonerated in probe of refinery deal
Brasilia, July 24 (IANS/EFE) Brazil's federal audit tribunal has said that President Dilma Rousseff bore no responsibility for state-controlled oil giant Petrobras's ultimately disastrous acquisition of a US refinery...
Read more on Politics Balla
 
Frenchman Mathieu beefs up Barca defence
Madrid, July 24 (IANS) French central defender Jeremy Mathieu was all set to fly out to Peru with Valencia when the La Liga club sealed a deal with Spanish giants Barcelona, invoking the buyout clause in the 30-year-...
Read more on Sport Balla
 
Contador rules out Vuelta return
Madrid, July 24 (IANS) Spanish cyclist Alberto Cotador has confirmed that he will be forced to pull out of this year's Vuelta de Espana (Tour of Spain) cycle race as a result of the injury he suffered recently in the...
Read more on Sport Balla
 
iPhone Sales Set New Records
The iPhone is the life-force behind Apple after they announced another stellar quarter in 2014. In the third quarter, Apple sold 35.2 million iPhones, which is up 13 percent from the previous year.While that number is...
Read more on Apple Balla
 
Blake to miss rest of the season after surgery
Kingston (Jamaica), July 24 (IANS/CMC) Former world 100m champion Yohan Blake will miss the remainder of the season after undergoing surgery in Germany to repair a damaged hamstring muscle. The Jamaican sprinter...
Read more on Sport Balla
 
Can't think of anything better than coaching Germany: Loew
Berlin, July 24 (IANS) Contrary to expectations that he would retire after the World Cup triumph, Joachim Loew will see out his contract and lead Germany into the Euro 2016. This was confirmed by the coach in an...
Read more on Sport Balla