With Christmas just a few days away, it’s probably not a stretch to think that you may have last minute Christmas shopping on your mind. With gifting in mind, we want to quickly outline some of the benefits of investment-related gifting.
First of all, financial gifting can have both positive financial and also internally gratifying results. Gifting can be a great estate planning tool that allows you to transfer your wealth to others during your lifetime.
Another great part of gifting is that you can see the gift put to good use. Some of the non-tax related benefits include the joy of being able to see your recipient enjoy your generosity. This may be helping a child or grandchildren gain financial independence, or it could be seeing your favorite local charity put the funds to use to help those in need.
Another benefit is that you control the distribution of your property. You express how you want your property distributed after your death by executing a will. However, since you won't be around to see what actually happens (for example someone may disclaim your gift), you won't be able to react to any change in circumstances. Lifetime giving allows you to adjust your gifts to changing circumstances and, at the same time, provides the most control over how your estate is distributed.
One of the major financial benefits of gifting is the gift tax exclusion. The annual gift tax exclusion is a federal exclusion that allows you to give $14,000 in 2014 per donor to an unlimited number of recipients/charities/organizations without incurring federal gift and estate tax.
There are many advantages and benefits to gifting. Some are gratifying while others are financially beneficial. As you make your gifting plan, remember the true meaning of the season!
From all of us at Financial Concepts, we wish you and your family a very Merry Christmas!