Share the Wealth

If you’re doing fairly well or even very well financially, you might want to give back to the people who have given to you. After all, those with good wealth management plans in place usually have plenty of funds left over to do with what they wish. When you give large financial gifts, however, it’s important to remember that, in most cases, you’re required to pay taxes on those gifts. While it’s tempting to do your giving “under the table,” there’s a better, less-risky way to go about giving gifts without paying exorbitant taxes. In fact, there are actually quite a few ways that you can get around high gift taxes.

One thing you may be able to do, if you don’t mind giving your gift posthumously, is to make a special provision in your will that makes your gift tax free. You can do the same thing—create provisions—and give a tax free gift through your trust as well. There is also the opportunity to give one large gift per year; that one gift can be excluded from the gift tax, though there is a limit—$14,000—on how much you can give.

To learn more about these and other loopholes for giving tax-free gifts and about wealth management in general, contact Platinum Financial Associates of Naperville.