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  • Writer's pictureJose Roman

Gift Giving and Estate Planning

Updated: Mar 30, 2023

By: Jose Roman

When most people think about estate planning, they often focus on creating a will or trust to pass down their assets and property after they pass away. However, gift giving can also be an important aspect of estate planning. In this blog post, we will discuss the benefits of gift giving in estate planning and what you need to know to ensure that your estate plan includes appropriate gifts.

What is Gift Giving in Estate Planning? Gift giving in estate planning involves transferring assets or property to your beneficiaries during your lifetime, rather than after you pass away. Gifts can be made in many forms, including cash, real estate, stocks, or personal property. When making a gift, the donor gives up ownership and control over the gifted asset or property, and the recipient assumes ownership and control.

Benefits of Gift Giving in Estate Planning There are several benefits of gift giving in estate planning, including:


1. Tax Savings: One of the most significant benefits of gift giving is the potential for tax savings. Gifts made during your lifetime can help reduce the size of your estate and lower the amount of estate tax that must be paid after you pass away. Additionally, gifts may be subject to lower tax rates than if they were passed down through your estate. 2. Control: By making gifts during your lifetime, you can maintain more control over how your assets and property are distributed to your beneficiaries. This can help ensure that your wishes are carried out and that your assets are used in a way that aligns with your values. 3. Avoiding Probate: Gifts made during your lifetime can also help avoid the probate process, which can be time-consuming and expensive. By transferring assets or property directly to your beneficiaries, you can bypass probate and ensure that your beneficiaries receive their gifts more quickly. 4. Emotional Benefits: Finally, gift giving in estate planning can provide emotional benefits. It can be a way to show your love and appreciation for your loved ones and ensure that they are provided for during your lifetime.


Considerations for Gift Giving in Estate Planning If you are considering gift giving in your estate planning, here are some important considerations:


1. Tax Implications: While gifts can provide tax savings, it is important to be mindful of tax implications when making gifts. Gifts over a certain value may be subject to gift tax, and there are also potential capital gains tax implications to consider. 2. Asset Protection: When making gifts, it is important to consider asset protection. Gifts made directly to beneficiaries may be vulnerable to creditors or other legal claims. You may want to consider placing assets in a trust to provide additional protection. 3. Family Dynamics: Gift giving can sometimes create tension or conflict within families. It is important to consider family dynamics and potential reactions when making gifts. You may want to communicate with your beneficiaries about your intentions and ensure that gifts are made in a fair and equitable manner. 4. Financial Planning: Finally, it is important to consider your own financial planning when making gifts. You should ensure that you have enough assets and resources to support yourself during your lifetime and that your gifts do not jeopardize your own financial security.

Gift giving can be an important aspect of estate planning, providing tax savings, control, and emotional benefits. However, it is important to consider tax implications, asset protection, family dynamics, and financial planning when making gifts. Working with an experienced estate planning attorney can help ensure that your gifts are properly structured and aligned with your overall estate planning goals.


Don't wait until it's too late - start planning your estate today with our help. Contact us to schedule a consultation and let us help you protect your assets, minimize taxes, and ensure that your wishes are carried out. Your future and your loved ones' future are too important to leave to chance - let us help you create a comprehensive estate plan that gives you peace of mind. Contact us today!

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