There may be many parents who spend years planning and saving for the future and they may have their preferences as to how they wish to distribute these assets among their kids. Some parents in Georgia may even wish to explore their available options with which to provide for the needs of their children by gifting money. While estate planning may offer options to help achieve such goals, there may be a variety of topics to address before deciding on a path.
One of the first topics to address regarding similar endeavors may pertain to the amount one is allowed to gift each year without incurring tax fees. According to experts, one may be able to gift up to $15,000 in one year without triggering potentially devastating tax penalties, and the lifetime limit for gifting sits at $11.7 million. This limit is individual, which means that two parents could gift a child this amount every year, up to $30,000 in one year altogether.
It could also be helpful to note that simply giving money to the children might not be the only path available. Parents may have the option to provide for the needs of their kids through methods such as issuing gifts in installments or creating a trust. Parents who wish to help their children pursue higher education could also consider exploring the possible benefits of a 529 plan.
Choosing the best path
While it might not be uncommon for many parents to wish to gift funds to their children via estate planning, knowing how best to approach the process can seem an intimidating concept. Fortunately, this isn’t something a person has to face alone and by speaking with an attorney for guidance in carefully evaluating all their available options. In doing so, parents in Georgia could obtain much-needed insight into creating a gifting strategy that aligns with their needs and the interests of their children.