We gift several thousand $ each year to our 2 children (ages 40 & 32) in the form of VTI shares with their embedded capital gains from our taxable accounts.
Whenever they need the money they may sell them & pay the capital gains Tax.
We understand children will get a full step up when ever I & DW pass & not pay any capital gain taxes.
While giving with a warm hand vs cold one is thought to be better as the impact now is greater, it does come with the cost of taxes for them.
How do you gift, your thoughts ?
Whenever they need the money they may sell them & pay the capital gains Tax.
We understand children will get a full step up when ever I & DW pass & not pay any capital gain taxes.
While giving with a warm hand vs cold one is thought to be better as the impact now is greater, it does come with the cost of taxes for them.
How do you gift, your thoughts ?