Gifting, whether for charitable purposes or to family, often raises questions like “how much am I permitted to gift?” or “what are the tax consequences of gifting?” Other significant questions include whether you can afford to gift, how much, or whether gifting could result in your being denied government benefits in later years.
Assuming you are comfortably situated and have provided adequately for emergencies such as long term care, you might look at gifting either as a way of moving assets out of your estate or passing some of your wealth to your children before you die. Charitable giving during lifetime can also be a satisfying way to benefit organizations and causes you support. If structured correctly gifting can sometimes result in tax benefits and also allow you to see your gift in action. Before you go you might take great satisfaction in knowing your gift has brought relief and happiness to others. Here are some questions you might ask.
There is no one size fits all for gifting. Get professional help if you need it.
Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.