Beneficiary of Unintended Consequences
September 9, 2021
October is National Financial Planning Month
October 4, 2021
Many estate plans include a program of making lifetime gifts. So, is it sometimes better to distribute Lifetime gifts have the potential to offer important rewards and benefits.
Here are some you may want to consider:
May reduce probate costs and taxes
Lifetime gifts, especially of income-producing assets, can potentially reduce the size of your estate. A smaller estate may mean decreased probate costs and may also reduce or eliminate income and estate taxes.
Avoids uncertainty
Lifetime gifts can be assets that will go to those you intend, for instance, your children or grandchildren, and not a former spouse or creditors. On the other hand, a will could be challenged or creditors’ claims could take precedence over your wishes.
Protects privacy
Lifetime gifts are private. Only you, the recipients, and possibly the tax authorities, need to know the details. By contrast, what goes through probate is a matter of public record.
Gives pleasure
Making gifts during your lifetime allows you to experience the pleasure of seeing your loved ones enjoy them. It may also give your heirs the benefit of the assets when needed most.
