You can give to loved ones or charities before you die.
You have the assets to provide for both.
How should you do this?
According to a recent WMUR article titled “Money Matters: Lifetime non-charitable giving,” you do not have to wait until you die.
You can include lifetime giving as part of your estate plan.
What are the benefits?
A last will and testament allows you to provide instructions for who gets what when you die.
Although a last will is an effective tool, giving inheritances as gifts while you are alive allows you to be in active control.
If you want your giving to remain private without creating a trust, lifetime gifts would be a good alternative.
It can have tax advantages.
Strategic planning can help remove assets from your future taxable estate.
Gift taxes are not taxable as income to the recipient.
Although property and capital gains taxes may apply, especially if you give an asset that has appreciated in value during your ownership.
As the donor, you may have to pay federal or state transfer taxes on the gift or generation-skipping taxes, but the gift could reduce your estate and save you in future taxes.
Certain gifts are exempt from federal gift tax considerations.
These include gifts for education or medical expenses paid directly to the institution on behalf of the recipient.
As you plan, remember the federal annual gift tax exclusion allows you to give $15,000 each to an unlimited number of recipients.
Does lifetime giving sound appealing?
Discuss your wishes with your experienced estate planning attorney.
Reference: WMUR (April 18, 2019) “Money Matters: Lifetime non-charitable giving”