Gifting Strategies

• One of the simplest and most effective wealth transfer strategies is to give your money away while you are alive. This strategy relieves those you care about from estate issues after you die. It also provides cash for your family members.
  The IRS rules on gifting are relatively generous, allowing each person to gift up to $13,000 per year. If you are married, that means that you and your spouse could give your children (or anyone else for that matter) up to $26,000 every year. At this rate it would be quite easy for many people to transfer a large portion of their estate to their loved ones before they die.
  
  

Set Up Accounts for Minor Children

• Another way for people to transfer accumulated wealth is to use some of the money to set up mutual fund accounts for each of your grandchildren. With the price of college rising faster than inflation, it makes sense to set up a college fund as soon as a baby is born. An account from grandma or grandpa is a great way to get started.
  The great thing about this strategy is the money you put away in the child's name will have decades to grow, so putting in a little bit of money could mean a big nest egg by the time that newborn is ready to head off to college.
  
  

Get the Right Advice

• It is important to have an estate plan, especially if your estate is a large one or if there is a family business or large piece of real estate involved. Estate taxes could place a big burden on your heirs, so it is important to reduce them as much as you can.
  In order to produce an effective estate plan, you will need professional help. While many specialists, including tax consultants, CPAs and even some tax preparers, might offer help in this regard, it is important to find a professional who specializes in estates and estate planning. An expert who specializes in estate planning will be up on new laws and be better able to guide you effectively. This is one area where finding the right expert is absolutely essential.