Rewards and Benefits of Lifetime Gifts

Many estate plans include a program for making lifetime gifts. So, why is it sometimes better to leave assets this way than to bequeath them in a will or trust? Lifetime gifts can offer important rewards and benefits. Here are some you may wish to consider:

• May Reduce Probate Costs and Taxes
  Lifetime gifts, especially of income-producing assets, can potentially reduce the size of your estate. A smaller estate may mean decreased probate costs and may also reduce or eliminate income and estate taxes.
• Avoids Uncertainty
  Lifetime gifts are a sure thing. You can rest assured the assets will go to those you intend, for instance, your children or grandchildren, and not a former spouse or creditors. In the worst cases, a will may be challenged or creditors' claims may take precedence over your wishes.
• Protects Privacy
  Lifetime gifts are private. Only you, the recipients, and possibly the tax authorities, need to know the details. In contrast, anything that goes through probate is a matter of public record.
• Gives Pleasure
  Making gifts during your lifetime allows you to experience the pleasure of seeing your loved ones enjoy them. It may also give your heirs the benefit of the assets when they may need them most.

A program of lifetime gifts may make good sense as part of your estate plan. The rewards and benefits can extend to you and your estate, as well as your heirs.

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