You want to leave gifts for your heirs but you aren’t sure when to do it. Should you gift them now or leave it to them after you pass away?
Under the law this year, you are exempt from gift taxes up to a lifetime max of $5.34 million. In addition, in any year you can give up to $14,000 per recipient.
An article on The Motley Fool lists reasons for giving now:
- You get to see your heirs enjoy the money.
- You can advise them on what to do with it.
- You can stop giving them money if they aren’t spending it wisely.
- You can avoid taxes up to a certain amount.
Reasons for waiting until you pass away include:
- You may end up needing the money later on.
- You can’t change your mind.
- Your heirs might spend it more wisely when they are older.
There is no correct answer. But the article says the best gift you can give your family is for them to know you are going to be financially stable in your golden years.