How Does Gifting Play Into Your Estate Plan?
Every estate plan contains a space for gifts. Right before someone chooses what gifts to give, and who to give them to, it’s important to understand what gifting is and how it plays into their estate plan.
What Is Gifting?
A gift is “a voluntary transfer of a benefit without the need for any compensation or consideration.” And, in simpler terms, a gift is when one voluntarily transfers something to another, without the recipient being obligated to pay for it or to satisfy a specific obligation.
Many different things can be given as gifts, through an estate plan. Some of the most notable things that can be given as gifts, through an estate plan, are as follows:
- A specific amount of money.
- A car.
- A home.
- A piece of furniture.
- A boat.
Every single one of the above – along with many, many others – can be given as gifts. Just because these things can be given as gifts, though, doesn’t necessarily mean that they should be.
Rather, gifting is an act that requires a certain measure of planning and strategy. Being aware of how to conduct this planning, and how to develop an effective strategy, is essential if one wishes to develop an effective estate plan.
What Is The Best Way To Gift?
The best way to gift is to develop a gifting plan that is outlined within one’s estate plan. Right before one can develop a gifting plan, though, they must consider the following:
- Who will receive a gift?
- What organizations will receive a gift?
- What will these people/organizations most value?
- What do these people/organizations need?
- What can be given?
Every single one of these questions is used to clarify one’s gifting goals. And, when these gifting goals have been clarified, a gifting plan can be developed. Right within this gifting plan, the following points can be clarified:
- The people who will be receiving gifts.
- The assets that will be given to these people.
- The organizations who will be receiving gifts.
- The assets that will be given to these organizations.
All of this brings us to the final question, which involves the ways in which gifting plays into one’s estate plan.
How Does Gifting Play Into Your Estate Plan?
No matter what one wishes to gift, it must be clarified within their estate plan. If their chosen gifts, and those whom the gifts will go to, are not clarified within an estate plan, then those gifts cannot be given.
Given the fact outlined above, gifting is just one component, out of many others, within an estate plan.
None of the components that comprise an estate plan exist on their own, and gifting must be aligned with the other components of an estate plan and, in turn, the goals of that estate plan.
To ensure that the gifts one wishes to give are given, it is of the utmost importance that someone who wishes to give works with an estate planning lawyer. By doing so, they can go over their gifting goals and ensure that these gifting goals are met.
Speak With A Florida Estate Planning Lawyer Today
Gifting is a crucial component of your estate plan. Speak with a Florida estate planning lawyer at the Millhorn Elder Law Planning Group today and we will assist you in developing your gifting goals and achieving these goals through your estate plan.
Sources:
law.cornell.edu/wex/gift
law.cornell.edu/wex/consideration
