Our estate planning clients often ask about transferring assets to their children during the client’s lifetime rather than at death. One of the important factors to consider in making this decision is the income tax basis of “gifted” versus inherited property. Here’s a link to a short article explaining some of the basics of Estate Planning and Income Tax Basis.
Obviously, there are considerations in addition to income tax basis when making decisions to gift property or assets during your lifetime. Several of those considerations are mentioned at the conclusion of the article.
Clients sometimes desire to benefit not only family members but also charitable organizations. There are a number of creative estate planning tools that utilize gifting strategies to accomplish both tax efficiencies and charitable or philanthropic goals.
© Karen S. Hindson, Hindson & Melton LLC October 15, 2013