If you’re thinking about giving your children their inheritance early, you’re not alone. Studies suggest that these days, nearly two-thirds of people over the age of 50 would rather pass their assets to the children early than make them wait until the will is read. It can be especially satisfying to fund our children’s dreams while we’re alive to enjoy them,
When considering how to leave assets to adult children, the first step is to decide how much each one should receive. Most parents want to treat their children fairly, but this doesn’t necessarily mean they should receive equal shares of your estate. For example, it may be desirable to give more to a child who is a teacher than to one
Most parents want to make sure their children are provided for in the event something happens to them while the children are still minors. Grandparents, aunts, uncles, and good friends sometimes want to leave gifts to beloved young children too. Unfortunately, good intentions and poor planning often have unintended results. Don’t make these common, expensive mistakes. Instead, here’s how to both
American families only have until midnight of December 31, 2012 to pass along assets amounting up to $5.12 million without fear of being taxed by Uncle Sam. Couples can give a combined gift of up to $10 million to their children – tax free. For wealthy families, this is a golden opportunity that should not be missed and an online article
A recent Wall Street Journal article reminds us that amidst all the questions and speculations regarding the fate of the tax laws in 2013, there is still one effective and simple tax benefit that is not set to expire by the end of year: the “annual gift exclusion”. This exclusion enables one to give a gift of up to $13,000 per
The article Is It Time to Panic About the Gift Tax Yet? by Kelly Greene was posted on the November 16, 2011 online edition of the Wall Street Journal. It advises people to act now in order to take advantage of the $5 million lifetime gift-tax exemption before Congress amends the limit again. The article also includes three recommendations from a white
This article titled “How Volatility Eases Estate Planning” was in the September 06, 2011 online edition of the Wall Street Journal. Families with taxable or potentially taxable estates (think $5M and up…) should consider reviewing this article in considering advanced planning ideas while asset values and interest rates are low and estate and gift tax laws are favorable. Estate and gift
Is Now the Time to Give Away the Business? This Wall Street Journal article from the excellent “You’re the Boss” blog describes how the new 2010 tax laws concerning estate and gift taxes have created an excellent opportunity for some business owners to transfer large chunks of their businesses to family members without incurring estate or gift taxes. The previous lifetime