"The idea is that you give it when they need it most. Ten to fifteen thousand a year that can be used for college, student loans, or a down payment on a house is worth more to them now than a lump sum later."
"Any gifting strategy that does not threaten that foundation is financially viable. Any strategy that does is not, regardless of how much you want to help."
A couple with $3.9 million faces a decision on whether to gift money to their adult children or retain it for future use. Adult children are under financial pressure due to daycare costs and rising home prices. Gifting smaller amounts now can be more beneficial than a lump sum later. The couple's retirement security relies on a sustainable income generated from their assets, and any gifting strategy must not threaten this financial foundation. The current tax context allows for significant gifting without estate tax implications.
Read at 24/7 Wall St.
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