Times Are Tough: Could Your Children Use Some Money Now?
In these tough economic times, those elderly parents who have buttoned up their estate plan to leave everything to their children and grandchildren upon their deaths may want to think about loosening the strings a little before they go and receive the added benefit of saving on estate taxes as well.
A married couple can provide a gift of $26,000 per year to a child or grandchild with no gift tax due. In 2010, the number of gifts you can give as a couple is unlimited, but it is restricted to no more than $26,000 per calendar year per married couple, or $13,000 per year per spouse.
Generally speaking, the recipient of your gift will not have to pay any federal gift tax or income tax. And it shouldn’t affect your federal income tax either.
With many adults jobless and their children struggling as well, this could be a financial lifesaver for family members who need the help now, not when you’re gone. Even if the recipient is not jobless, the extra money can help fund retirement accounts or pay off debt that will result in a much better financial life for your loved ones.
Consult a Florida estate planning attorney for more strategies on helping your family through careful estate planning.
