360° Coverage : Should I Gift Money To My Children Now Or Later?

2 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

 
 
 

21 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
2

3 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

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

Malaysian official slams article on MH370 pilot
Kuala Lumpur, Sep 20 (IANS) Malaysian Foreign Affairs Minister Anifah Aman Saturday slammed an article claiming that Malaysia Airlines flight MH370's pilot, Captain Zaharie Ahmad Shah, caused the aircraft to disappear when he committed suicide.
 
 
Monali Thakur ecstatic to win best actress award in Washington
Mumbai, Sep 20 (IANS) She's more known for her singing. But Monali Thakur of "Sawaar loon" fame, who has shown her acting talent with a hard-hitting performance as a child prostitute in Nagesh Kukunoor's "Lakshmi", is presently ecstatic about winning the best actress award at the recently concluded Washington DC South Asian Film Festival.
 
 
Societal stress worsens domestic violence in same-sex couples
New York, Sep 20 (IANS) The additional stress of being a sexual minority has exacerbated domestic violence episodes among same-sex couples compared with opposite-sex couples, new research says.
 
 
New biosensor to diagnose cancer in a jiffy
London, Sep 20 (IANS) An ultra-sensitive biosensor made from the wonder material graphene has been used to detect molecules that indicate an increased risk of developing cancer.
 
 
 

Latest from the Network

Malaysian official slams article on MH370 pilot
Kuala Lumpur, Sep 20 (IANS) Malaysian Foreign Affairs Minister Anifah Aman Saturday slammed an article claiming that Malaysia Airlines flight MH370's pilot, Captain Zaharie Ahmad Shah, caused the aircraft to disappear...
Read more on Ad Balla
 
Asian Games: Indian women's tennis team through to quarters
Incheon, Sep 20 (IANS) The Indian women's tennis team advanced to the quarterfinals by beating Oman 3-0 in the first round of the 17th Asian Games at the Yeorumul Tennis Courts here Saturday. Prarthana Gulabrao...
Read more on Sport Balla
 
Free British hostage, clerics appeal to IS
London, Sep 20 (IANS) Two clerics from Britain have made a direct appeal to the Islamic State (IS) to free British hostage Alan Henning. In a YouTube video, Shakeel Begg, Imam at Lewisham Islamic Centre in south...
Read more on Politics Balla
 
Monali Thakur ecstatic to win best actress award in Washington
Mumbai, Sep 20 (IANS) She's more known for her singing. But Monali Thakur of "Sawaar loon" fame, who has shown her acting talent with a hard-hitting performance as a child prostitute in Nagesh Kukunoor's "Lakshmi", is...
Read more on Celebrity Balla
 
Societal stress worsens domestic violence in same-sex couples
New York, Sep 20 (IANS) The additional stress of being a sexual minority has exacerbated domestic violence episodes among same-sex couples compared with opposite-sex couples, new research says. Same-sex couples may...
Read more on Celebrity Balla
 
New biosensor to diagnose cancer in a jiffy
London, Sep 20 (IANS) An ultra-sensitive biosensor made from the wonder material graphene has been used to detect molecules that indicate an increased risk of developing cancer. The biosensor has been shown to be more...
Read more on Business Balla
 
Asian Games: Indian men's badminton team knocked out
Incheon, Sep 20 (IANS) The Indian men's badminton team lost to South Korea 0-3 in the pre-quarterfinals of the 17th Asian Games at the Gyeyang Gymnasium here Saturday. Doubles pair of B. Sumeeth Reddy-Manu Attri,...
Read more on Sport Balla
 
Asian political parties conference begins in Sri Lanka
Colombo, Sep 20 (IANS) Representatives from 32 Asian countries have gathered here for the 8th General Assembly of International Conference of Asian Political Parties (ICAPP) aimed at looking for new ways to promote...
Read more on Politics Balla
 
Asian Games: Judoka Channa loses in pre-quarters
Incheon, Sep 20 (IANS) India's Navjot Channa lost his pre-quarterfinal men's 60kg judo event in the 17th Asian Games, going down to Boldbaatar Ganbat of Mongolia at the Dowon Gymnasium here Saturday. The Mongolian...
Read more on Sport Balla
 
Court to hear former Italian PM's tax fraud appeal
London, Sep 20 (IANS) The European Court for Human Rights (ECHR) has agreed to hear an appeal by former Italian prime minister Silvio Berlusconi against a tax fraud conviction, media reported Saturday. Berlusconi's...
Read more on Politics Balla