Transcript:
This is money talks with Chad Olivier, sponsored by Olivier Group.
Hi. I’m Chad Olivier, certified financial planner and CEO with Olivier Group. If you’re considering whether to gift assets to your heirs during your lifetime or after your passing, there are a few key factors to keep in mind. First, gifting during your lifetime can reduce the size of your estate, which might be important if you’re concerned about estate taxes.
Some questions you should ask yourself are, do you own a business you want to transfer to the next generation? Do you have rapidly appreciating assets or real estate in a booming market? Are you financially secure enough that you don’t need these assets for current expenses? If you answered yes to any of these, it might be time to consider gifting. Remember, the annual gift tax exclusion allows you to give up to eighteen thousand dollars per individual, or thirty six thousand dollars for a married couple without incurring any federal gift taxes.
Keep in mind, you can gift that amount to anyone you want to, and you do not have to file a gift tax return.
Also, the recipient does not have to pay taxes on that gift.
So an example of this is, you and your wife want to gift a maximum gift exclusion amount this year to your five adult children and their five spouses.
So that is a total of ten people that you’ll be gifting thirty six thousand dollars each, making a total gift of three hundred and sixty thousand dollars this year. There will not be any taxes due on either side of this transaction.
Before making any decisions, consult with your certified financial planner and ask questions like, should I start transferring wealth now or wait? Can I afford to gift assets without jeopardizing my financial security?
And which assets make the most sense to gift? If you’re worried about how your heirs will handle the money, establish clear goals. For example, you may want to see your heirs use these funds for education or charitable giving. So before you make the gifts, communicate these goals clearly and monitor their progress. If you need help tailoring gifting strategies that aligns with your goals and financial situation, reach out to us on our website at olivier group dot com, and one of our certified financial planners will work with you on your plan so that it is both effective and meaningful. And that’s why money talks, the planning case.
This has been money talks with Chad Olivier.
