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Giving a gift to family members through estate planning

There are many families in the Kent area who enjoy giving gifts to family members each year. The gift of money is a smart way to ensure loved ones receive a gift while reducing a person's estate and gift taxes. There are many reasons why giving loved ones money while you are still alive is a good idea.

Giving money to family members is something that many people enjoy doing while they are still alive. Besides the tax advantages, there are other good reasons to give away money. These monetary gifts improve the lives of loved ones now and not at some time in the future which is yet to be determined. Plus, the giver gets to see how the money is spent and that may impact how gifts are given in future years. It can be a good way for the beneficiary to learn how to manage money instead of waiting until they receive a lump sum inheritance. Giving these gifts at the beginning of the year can lower a person's tax bracket. A person may also be able to exploit the annual gift tax exclusion. By giving property or money at the beginning of the year, it will most likely go up in value by the end of the year, but the gift tax exclusion only takes into account what it is worth on the date it was given. This allows a person to give more shares tax free. A person can also give tax free in unlimited amounts to education expenses and medical care.

Giving money to family is a wonderful gift. There are good reasons to give this money at the beginning of the year that may make sense for a family. Regardless, giving these gifts while still alive can be a fulfilling and gratifying activity. An estate plan can include the traditional will and trust, but can also incorporate charitable giving or family giving.

While many families engage in charitable giving, some families may find giving to family before they die can also be a good idea. These gifts can be enjoyed immediately and can help loved ones with their day-to-day expenses or to fund a special house, vacation or other memory.

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