Many people traditionally reserve most of their gifting for their legacy. However, a proactive approach to gifting allows you to start building that legacy today. As the saying goes, “It’s better to give with a warm hand than a cold one.” Giving generously while you’re alive can be more meaningful and impactful. This strategy offers several advantages: You can witness the effects of your generosity, maintain greater control, support loved ones when they need it most and potentially reduce income, gift and estate taxes.
Because gifting objectives vary, your strategy should be part of a comprehensive financial plan that considers your liquidity needs, portfolio allocation, income tax optimization and estate planning. For many, building a legacy through lifetime gifting can be more beneficial than waiting to bequeath assets after passing.
