Strategy for Maximizing Next Generation Wealth

[audreyh1]

Quote:

Originally Posted by RunningBum An additional strategy would be to gift money to your kids while you are alive. I believe the limit now is $15K per person, so you and your wife could gift each kid up to $30K, and if they are married, $60K to the couple. I don't fully understand the ramifications of exceeding the limit if you are going to be under the $11M threshold. I know that if you are going to be over that, the additional amount reduces that threshold.

The ramifications are mainly filing paperwork. Yes, it reduces the estate exemption. But it’s just paperwork if your estate is below that exemption.

[Golden sunsets]

Note the current pending legislation described here:

http://www.early-retirement.org/foru...2-a-97142.html

Assuming that some version of the bill changing RMD age and the limitation on stretch tIRA's passes, that fact might significantly change the tax effects of inheriting a tIRA.