Gifting is more than just a kind gesture. Gifting can serve as a powerful tool for estate planning and tax savings with regard to real estate properties and other valuable assets. Today, many forward-thinking individuals proactively carry out their end-of-life planning by working with an estate planning lawyer to provide financial assistance to family members and other inheritors.
By gifting assets or properties, they can ensure that the estate or items pass on to them with little or no taxes. In this post, we’ll dive deeper into the benefits of estate planning.
Gifting in Estate Planning Explained
By definition, gifting in estate planning is the process of transferring a property or another asset to a new owner without repayment or receiving anything of value in return. Today, individuals gift their loved ones several types of tangible and intangible assets, including:
- Real estate
- Collectibles, etc.
Gifting is a popular practice in Nevada for reducing estate taxes upon death. Other benefits include:
- Providing for family members after death.
- Minimizing the burden of post-death asset distribution and estate administration.
- Reducing the time taken to settle an estate by preventing court proceedings.
However, to be considered valid, gifts must meet certain criteria established under Nevada estate laws. For instance, gifting must be done voluntarily. Moreover, anything gifted cannot be taken back. Furthermore, recipients are not expected to pay anything for the gift and must accept it in writing.
Things to Consider Before Gifting for Financial Support or Tax Reduction
While gifting is an excellent way to provide for your loved ones and reduce your tax liabilities, you need to consider some factors before giving, such as:
1. The Gifting Amount
First, you need to ensure that the property, asset, or cash amount you’re gifting is reasonable for your estate plan.
2. Your Asset Profile
Secondly, you need to ensure you have enough assets or funds to cover the gift amount along with any liabilities that come with it.
3. The Recipient
Another factor you need to consider is the gift’s recipient. For starters, you need to determine if they’re responsible enough to manage money. Secondly, you must consider their age, relationship, special needs, and other dependencies.
4. Applicable Laws and Gifting Restrictions
By hiring a Nevada estate planning lawyer, you can research any applicable laws or restrictions related to gifting in Silver State.
5. Impact on Current Lifestyle
If you’re planning to gift away your home, savings, or other assets, you must consider whether you have sufficient funds to cover your recurring expenses and maintain your lifestyle.
Contact a Nevada Estate Planning Lawyer Right Away!
Gifting is undoubtedly an effective way to provide for your loved ones and manage your estate plan. However, you need the expertise of an experienced estate planning attorney to help you with every decision and process.
The experienced Nevada estate planning lawyers at Bourassa Law Group is at your service to create a customized plan encompassing all your financial and non-financial needs. Moreover, we can help you understand the risks and rewards of gifting in estate planning.
So, call us at (800)870-8910 for a free consultation, and let us help you pass on your assets and estate to your loved ones.
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