 Helpful Articles
from David Vollrath,
Union County Foundation Executive Director
The Foundation encourages you to work closely with your professional advisor(s)
as you develop your estate plan and consider your present and future charitable goals. |
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What Makes for a “Good Inheritance”? (Part 2)
(Part of a series of articles on charitable giving and the Union County Foundation
by David Vollrath - Exec. Dir.)
There is a big difference between simply leaving an inheritance to your children and
leaving a "good inheritance." Our last article talked about the right time to transfer assets. This week
we will discuss what is the "right amount" to leave as an inheritance.
In regards to the right amount it is important to first recognize that usually an inheritance is most effectively
transferred over a period of time, not all at once. The easiest and most direct way is through incremental gifts
during your lifetime. Currently an individual can gift up to $11,000 in cash or assets to any one person in any
given year. This provision is termed the annual gift exclusion. You can gift up to $11,000 to as many beneficiaries
as you wish. For example a husband and wife can legally gift $22,000 ($11,000 from each spouse) to each of their
children each calendar year. This can be a very simple, efficient, and effective way to gradually transfer wealth
tax-free.
Another method of wealth transfer commonly occurs when an individual dies and transfers wealth directly to their
children. As discussed in previous articles depending on the children’s ages and levels of financial accountability
this sudden windfall inheritance may not be in the heir’s best interest.
A third method to pass along an inheritance would be to include a trust in the estate plan. A trust for example
might pay income for a fixed number of years to your children and then at a future time (when financial accountability
is reached) transfer the remaining principal. Always a key goal should be to try to transfer the right amount at
the right time to your heirs. The transfer of the right amount to a family member may be more productive and important
then trying to transfer the greatest amount possible.
Modeling charitable giving to your children during your lifetime, and through your estate plan after your lifetime,
is an important parental responsibility. Helping others through your charitable gifts should be an important consideration
in any estate planning you consider.
Next time we will discuss the "right property" component of a "good inheritance."
The Union County Foundation is equipped to help you achieve your charitable goals by providing pertinent information
and assisting you with planned giving. Please call us at 937-642-9618, email info@UnionCountyFoundation.org, reference our website at www.emarysville.com/unioncountyfoundation, or stop by our Marysville
office at 126 N. Main St. We are committed to helping you.... “preserve your footprint in time.” |
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