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Is it better to give away money now or upon death?

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John Van't Land
John Van't Land
28 days ago

Another option would be to help your grandkids to start saving. Suggest that they take some of their earnings from their after school job and open a Roth IRA in a zero finance charge Index Fund (such as at Fidelity) and offer to gift them that amount after they make the deposit (their parent(s) will need to help them set up the account). Maybe for the next $1000 you could give them 50% or so. It will teach them the importance of long term investing and watching their investments and will be a lifelong lesson and be one of the best gifts they will ever receive.

Boomerst3
Boomerst3
29 days ago

It’s a personal choice, if you have the money to give. If you wait until you die to pass it on, your kids may already be retired. The need is greater while your kids are raising their own children, buying a home, paying for daycare and education, and other ancillary expenses associated with raising a family.

BenefitJack
BenefitJack
1 month ago

As soon as you can afford to do so , or maybe sooner. We are passing funds along since retirement, but we were spending ~$50,000+ a year in the eight prior years on education so both could go where they wanted, study what they wanted and graduate debt free.

white43@charter.net
white43@charter.net
1 month ago

RWW

My wife and I have a daughter with disabilities and we give at least the currant max each year so yes we feel its best to give early

Mike Drak
Mike Drak
1 month ago

Personally I think it best to give assistance when a person really needs it provided that it does not jeopardize your own retirement.

Rick Connor
Rick Connor
1 month ago

This is a tough one, for many of the reasons already discussed. I’m all for giving as soon as possible, especially if you can help your children and grandchildren. The challenge is how do you know if you have enough for possible LTC care. It’s something I plan to keep looking at.

Kristine Hayes
Kristine Hayes
1 month ago

This is a subject I have no experience with. I’ve never inherited–or been otherwise gifted–any money. I have no idea if I’ll ever feel financially comfortable enough to part with any of my money before I die.

If I do find myself sitting on a sizable pot of money, I suspect I’d find great joy in seeing it put to good use by any number of charity organizations I would support.

Don Southworth
Don Southworth
1 month ago

Why wait? Giving away money is one of the most fulfilling things we can do. Do it now so you not only get the joy it gives (for you and others) but also to see the good it can do now.

John Yeigh
John Yeigh
1 month ago

I feel it is definitely best to give money away now as you control it, are possibly able to see the impact, and likely to receive positive feedback.
Two reasons to wait are to be able to drip money out more tax efficiently over time and to retain sufficient money for your own personal needs.

Last edited 1 month ago by John Yeigh
R Quinn
R Quinn
2 months ago

Now with caution. I have been giving more in the last few years than normal. On the other hand, I want to make 100% certain if any form of LTC is needed for me or my wife, or both, the money will be there and we will never be a financial burden on our children. If the worst does not occur, they will still receive the money. My children will be in their fifties and later with children in college So need might be greater later than sooner

Mike Zaccardi
Mike Zaccardi
2 months ago

There’s something to be said for being timely with it. For me, I’ve always thought I should leave pre-tax money to charity (since they won’t pay taxes), Roth money to older heirs (10-year withdrawal requirement, no taxes owed), and after-tax money of highly-appreciated stocks/funds to any heirs (step up in basis, no income tax owed). But it’s not all about the numbers, and you can use annual gifting to reduce your estate value without paying taxes, and that is good since you can see your loved ones enjoy the money. What’s more, you can use charitable donation bunching and QCDs do give in a tax-smart away while you are alive.

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