Leveraged Gifting

What Is the Power of Lifetime Gifting?

Lifetime gifting can be a powerful tool that allows you to transfer more wealth to your family in a shorter period of time. NFP professionals can structure the right gifting arrangement for you, lowering the estate tax burden on your family at your death.

Making lifetime gifts alone can be an efficient way to transfer assets and minimize gift and estate tax, but the gifts may be leveraged significantly with the purchase of life insurance. Life insurance proceeds are generally not subject to income taxes. If properly structured, life insurance proceeds may also be excluded from estate tax.

Highlights

• Reduces the size of the taxable estate and corresponding estate taxes
• Removes future appreciation and income attributable to gifted assets from estate
• Provides greater privacy and probate avoidance
• May provide creditor protection for gifted assets
• May increase the net amount of wealth transferred to your heirs