• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Wilcox Attorneys, PA

Wilcox Attorneys, PA an Arkansas Estate Planning & Trust Information Center

Northwest Arkansas Estate Planning Attorneys (479) 443-0062

Client Vault
  • Home
  • Our Firm
    • Our Firm
    • About the American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • News & Events
    • Speaker Connection
  • services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • Legacy Planning
    • Pet Planning
    • Secure Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Webinars
  • Practice Areas
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • Legacy Wealth Planning
      • Medicaid Planning
      • Pet Planning
      • Probate
      • Trust Administration & Probate
    • Newsletters
    • Pre Consultation Form
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
  • Blog

Making Gifts During Your Lifetime Can Add Value To Your Estate Plan

August 14, 2013 by Deb Sexton Leave a Comment

We usually think of estate planning as something that will benefit our family after we die, but there are some benefits of estate planning that will be helpful to you and your family during your lifetime. One example is what we give our children. Chances are that all of us will leave something to our children, but when, how and what we give them before we die can make a huge difference in how the gifts are treated by tax laws.

The first step to take in creating a gifting plan for your children (and even grandchildren) is to assess your own lifetime needs. It wouldn’t make much sense to give money to your children during your lifetime that they will have to turn around and use for your care as you get older. So make sure that you have a plan in place for yourself first.

There are many ways to give: outright cash, stock, college tuition, and medical care are just some examples. Each of these carries certain restrictions but also certain benefits under a carefully drafted estate plan. So make sure to consult with an estate planning attorney who understands gifting before you start the process. There are tax advantages, but done incorrectly, it can end up being a liability for you and your kids.

While cash is certainly an option as long as you feel like your children will use it responsibly, assets such as stock that can actually increase in value and possibly pay them dividends may be a better option. And if they later sell the stock at its peak, they may be able to benefit from lower taxes on it because it is not taxed at its current increased value but at the price you paid for it, possibly many years ago at a much lower price.

If you want to make gifts to younger children or grandchildren, make sure that you observe rules that could make those gifts taxable. Generally you can help pay for college tuition or medical expenses, but there are strict rules about how the gifts are made. For example, tuition must be paid directly to the school, not to the student or parents of the student.

There are many pitfalls in making gifting a part of your estate plan, but with the advice of an experienced estate planning attorney, you and your family can benefit from the gifts rather than incurring penalties for you or for them. And you will enjoy being able to see them benefit from the gifts while you are still alive, which is a gift in itself.

  • Author
  • Recent Posts
Deb Sexton
Latest posts by Deb Sexton (see all)
  • Estate Planning is Essential Whether You Are Married or Not - April 25, 2018
  • Income Tax Basis in Estate Planning – Part 2 - April 23, 2018
  • The Downsizing Generation: How to Handle a Surplus of Stuff When a Loved One Ages - April 18, 2018

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Wilcox Attorneys, PA

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Subscribe to Our Blog

Subscribe to our blog for all the latest estate planning news and updates!

Office Address

Fayetteville
2766 Millennium Drive
Fayetteville, AR 72703
Phone: (479) 443-0062

Office Address

Prairie Grove
1100 Division Street, Suite 4
Prairie Grove, AR 72753
Phone: (479) 846-6026

( By Appointment Only )

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 12:00 PM

Map

map for office
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

footer-logo

© 2023 American Academy of Estate Planning Attorneys, Inc.