Experienced, Reputable Denver Lawyers

Experienced, Reputable Denver Lawyers

Attorneys at Beem & Isley P.C.

Evaluating the options for gifting in estate planning

On Behalf of | Aug 1, 2023 | Estate Planning And Probate

There may be many individuals who feel it vital to explore every available option when preparing a strategy to preserve wealth and provide for the needs of their loved ones. In some cases, the option of gifting assets to children or grandchildren could be appealing but some might have questions about how best to approach such a path. Evaluating the options for gifting via estate planning could help individuals in Colorado prepare to develop a strategy that focuses on protecting their preferences and the interests of their heirs. 

Examples of gifting options 

Those who are weighing the possibility of gifting may benefit from knowing that there are yearly and lifetime limits to how much a person can gift without incurring tax fees. Amounts that do not exceed such limits might be tax-free transfers. Experts also indicate that payments made directly to health care providers and educational institutions may also be another way to gift without incurring tax fees and similar types of gifts might not count toward yearly and lifetime gifting limits. 

Those who wish to help their kids or grandkids seek a higher education may also benefit from exploring what a 529 College Savings Plan might have to offer. Trusts may also be a viable path for lifetime gifting and there are numerous types of trusts, each of which may provide its own set of possible benefits. Whether one wishes to gift cash or assets to loved ones, or both, seeking advice in carefully evaluating all available options could prove essential to helping a person prepare to make informed choices. 

Addressing the options 

Those who have questions about their available options for gifting via estate planning could consider speaking with an attorney prior to choosing a path. An attorney in Colorado can help a client prepare to evaluate every available option and provide insight into the possible advantages and disadvantages of each in turn. Such advice could be essential to helping a person prepare to make informed decisions while creating a strategy for gifting that aligns with his or her preferences and interests.