Gifting Inheritance Before Death
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Many people believe the only way to leave money or property to an heir is to do so in a will which the heir won’t receive until the individual dies. This is, of course, the most common means by which people pass on their possessions to their loved ones but it is not the only means of doing so.
As was discussed last week
, gifting can take many forms and can be done while the grantor is alive. It was also discussed last week that a cash gift can not exceed $14,000 per year. If it does, both the grantor and receiver will have tax liabilities.
In addition to tax implications, there are other advantages to giving gifts while the grantor is still alive. First of all, the grantor can see the person enjoy the gift. Whether the gift is a car or a vacation, the grantor receives the joy of seeing their loved one enjoy the gift. Second, this also allows the grantor the opportunity to see how the gift is being used and advise accordingly. Maybe a cash gift was given and the receiver takes a lavish trip to Las Vegas. Now the grantor can adjust the will accordingly so the receiver is not able to squander any further gifts.
This time of year people think about gifts and their loved ones. Whatever you decide to do and however you decide to make gifts, make sure you take into account all possible implications. The best way to do so is to schedule an appointment with one of our knowledgeable attorneys today. Mention this blog post and schedule an appointment before the end of the year and you’ll receive a 50% discount on the initial consultation as our gift to you!