From Kiplinger · · 1m 30s
Retirees Give Wealth Early to Avoid Tax Traps
Retirees can gift up to $19k per person tax-free this year while living to reduce estate taxes and support heirs.
In brief
Retirees can gift up to $19k per person tax-free this year while living to reduce estate taxes and support heirs. Retirees can give up to $19,000 per person tax-free this year without triggering gift tax filings. Originally reported by Kiplinger.
Retirees Hold $124 Trillion Wealth
Older generations hold $124 trillion in assets they plan to pass on to loved ones and charity over the next two decades.
Many Wait Until Death to Give
Many retirees plan to wait until they die to share their wealth, but some are opting to give while they live.
Practical Inheritance Needs
Parents and adult children say they want inheritance funds used for paying down debt, buying homes, or securing retirement.
David Blanchett on Timing
David Blanchett, head of retirement research at Prudential, says money is more useful in a person's 40s and 50s than their 60s and 70s.
Tax Benefits of Early Gifts
Retirees can gift up to $19,000 per recipient in 2026 without triggering gift tax filings or dipping into their lifetime exemption.
Appreciated Stock Gifts
Retirees can gift appreciated stock to charities or heirs to avoid capital gains tax on the stock's growth.
Direct Payments Avoid Probate
Direct gifts eliminate probate court delays and legal complications after a donor passes away.
Pam Krueger on Balance
Pam Krueger, founder of Wealthramp, says retirees should not give too much and end up broke.
The one thing
Retirees can give up to $19,000 per person tax-free this year without triggering gift tax filings.
