Most individuals in Louisiana and elsewhere may have their own ideas and preferences concerning how they wish to distribute assets to their children. In some cases, parents may feel inclined to simply gift money to loved ones, and there may be various methods with which to achieve such goals. However, there may be certain estate planning rules to consider prior to distributing gifts and failure to take the necessary precautions could prove detrimental.
Gifting considerations
When it comes to gifting money to one’s kids, the process might not be as simply as handing over high amounts of cash with no consequences. Experts indicate that there are laws that govern how much a person may gift each year and over one’s lifetime before encountering potentially costly tax penalties. According to experts, the yearly limit for gifting sits at around $15,000, while the tax exemption for lifetime gifting is $11.7 million.
Reports also indicate that there are various methods through which parents might gift money to their children. These methods may include transactions such as gifting cash, transferring investments or even implementing a trust fund. 529 plans are another form of gifting in which parents could allocate funds to help pay for a higher education. As rules and regulations regarding each option may differ, knowing the options and what to expect from each in turn could prove integral.
Gifting guidance
Individuals who wish to gift money to their children but remain uncertain how best to safeguard their interests in the process could find it helpful to speak with an estate planning attorney for advice. An attorney can work toward answering all a client’s questions and concerns and assist in developing a strategy that aligns with his or her interests and needs. Such guidance could prove integral to helping a person in Louisiana make informed choices about all the available options at hand.