When working on an estate plan, it is common for people to focus on inheritances and where assets should go after they pass away. This is not the only way to plan for the future, as an estate attorney in Cherry Hill, NJ, like from Klenk Law, can explain. You can integrate gifting into your estate plan too. Gifting is just as simple as it sounds. It is the act of giving assets to others while you are alive.
Save on Estate Taxes
When you gift, you can save on estate taxes. While this is more common for larger estates, if you pay gift tax on property transfers it is cheaper than paying estate taxes after a person dies. The reason that it saves money is that gift taxes are exclusive. Estate taxes, on the other hand, are not. When you gift, you pay the taxes and then that asset is out of the estate and hence the estate taxes will be lower than they would have been with the asset still included.
Keep it Simple
Estate planning can be complex. Every state has its own rules and regulations regarding wills and trusts. If you want to transfer assets to loved ones, it can be a complicated process. If you have a will, then your loved ones will have to go through probate court to receive their inheritance. They may also need to hire a lawyer to go through the process. When you gift, it is a more simple property transfer. It is a lot easier to transfer assets to others when you are still alive than to have it passed on afterward.
Enjoy the Gifting
When all of your assets are included in your will or a trust, then you will not be able to see what type of joy those assets bring your loved ones. For instance, if you have an art collection that one of your children loves, wouldn’t it be nice to see his or her reaction to receiving it? If you want to pay for college tuition, you can see the look of surprise on your loved one’s faces. You can enjoy the gifts that you give.
An estate plan does not have to be solely about inheritances. Gifting can be incorporated into an estate plan easily. If you need help with your estate plan, set up a consultation with an estate planning lawyer. He or she can help you decide which options are best for you and your lifestyle.