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Retirement Quick Tips with Ashley


Jun 20, 2020

This week I’m talking about the 2020 gift tax rules, and how you can take advantage of lifetime gift strategies while these options are still on the table. 

Gifting, especially during your lifetime, can be a powerful strategy to transfer wealth, business interests, property, and a variety of other assets to your family and heirs, and with the current generous gifting and estate tax rules, now is the time to gift. But gifting isn’t right for everyone, and that’s what I’m talking about today - the do’s and don’ts of gifting assets to your heirs. 

The most important consideration with lifetime gifting is to do so only when you can actually afford it. You don’t want to gift $15,000 this year to each of your kids and run the risk of those gifts jeopardizing your ability to continue to live a comfortable retirement. 

That should go without saying, but I have personally witnessed clients and friend sacrificially give to their children, even when that gift wasn’t necessary, at the expense of their own financial well-being. It’s a big no-no, so you should only gift when you can actually afford it. 

Secondly, and on a more sensitive note, it’s important to use lifetime gifts to test the waters to ensure your children will handle inherited wealth in a responsible way. 

Gifting can have a lot of negative consequences for both you and your children, so gifting should only be done when: Moral character is strong, their incentive to work isn’t compromised, and funds will not be used to fund luxurious and wasteful lifestyles. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.

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