Considerations When Giving Gifts

Some people are surprised to realize how much money they have saved for their retirement through a combination of IRAs, pension plans, and traditional savings. Such people have often not considered how they would like to distribute their wealth, because they did not realize their wealth would amount to much. A recent article discusses several considerations people can make when determining how to distribute their estate.

First, remember that you can be as specific as you like about how you want your money to be distributed. For example, you can leave a certain amount of money to your children and require that they use it for travel. More and more, people are using this option to connect their children with their heritage or religion.

Another way to distribute your money is to give it to your grandchildren while you are still alive. Consider moving funds from one of your taxable accounts to a grandchild’s tax-free savings account. If your grandchild is under the age of 19, you can also set up a registered education savings account.

If you would like to see your legacy while you are still alive, consider funding a university scholarship. As wealth advisor Mike Watson explains, “Facilitating those kinds of things gives [people] a lot more satisfaction than they would get saying, ‘Here’s what I want it to look like in my will.’”

For assistance with lifetime and testamentary gifts, contact us at (626) 696-3145.

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