Family estate planning is often thought of as a post-humous planning for your wealth. Last Will and Testaments and Trust agreements are considered the primary method for passing your assets to your loved ones. People use this method to ensure that their loved ones rightfully receive what is theirs. However, there is another option and one that can give you a phenomenal amount of joy while you are still alive. Giving while you are living is a great option to add to your estate planning documents. Giving during your lifetime can prove to have a plethora of benefits, beyond simply financial benefits.
That Warm Fuzzy Feeling
Have you ever had that warm fuzzy feeling inside your heart from doing something good? That feeling is called an intrinsic reward. Happy feel-good chemicals are released in your brain making you feel good all over for doing something unselfishly for the benefit of another person. Giving while living can result in the feeling of an intrinsic reward. By giving to a family member while you are still alive, you get to share in the enjoyment of helping them make a down payment on their first home, or paying off student loans. Sharing a sense of financial security with your loved ones is a feeling that very few people have an opportunity to experience. Giving while living can be a very fulfilling experience for anyone.
Keep It Simple
Keeping it simple can save money, and provide a sense of reassurance. Giving while living can keep administrative costs at bay. If you will physical property to a beneficiary after your death, they may incur probate court costs with a property transfer. If you gift the property while still living, you can keep it simple and out of probate court. Transferring property or assets to people while you are still living can be very beneficial and cost-effective. Simplicity can be a huge benefit when estate planning.
Consider Taxes
Taxes need to be considered. While working with your estate planning attorney, they may also be able to advise you on anticipated tax liabilities. Gift taxes and estate taxes may need to be considered in your estate plan. Asset appreciation can also be a factor when considering tax liabilities. Lifetime gift or a trust can be a benefit if you anticipate that the asset will have a significant increase in value.
Your Legacy
A philanthropic gift can be another way to create a living legacy. Non-profit groups, colleges or universities, hospitals, parks and recreation areas are all great opportunities to collaborate with and build a lasting personal legacy. By committing to a multi-year gift to an organization while you are still living, you can establish a relationship with the organization for a personal lasting memory. It is proven that philanthropy promotes overall well-being and happiness. Gifting to an organization while still living is an opportunity to enrich the lives of others while ensuring your legacy.
Working with an estate planning professional can help you to determine what are the best opportunities for you to give while still alive. Most importantly, they can help you identify opportunities to keep it simple while providing you with the most benefit.
