When many people make an estate plan, they are just thinking about what will happen to their assets after they pass away. They want to make sure that both financial and tangible assets get distributed to family members, although they also plan to keep those assets while they’re still alive.
But it is possible to give gifts beforehand, meaning that they don’t have to be included in your estate plan. In fact, part of your estate planning may include making these early distributions. What are some of the benefits of doing so?
It can help your family
In some cases, giving financial assets early can be very beneficial for family members. For instance, someone may need money to buy a home as they start a new family. Giving them that money when they need it may be far more appreciated than making them wait.
It can give you more control
Another potential benefit is if you want to control how the money is used. You can have discussions with adult children or other beneficiaries. You may talk to them about how they’re going to use the money or what your goals are, and the two of you can work together.
It may avoid some disputes
Finally, giving gifts in advance can be helpful for avoiding estate disputes. For one thing, it is very clear what you actually want, so there won’t be as many disputes over your intentions. Additionally, you can address things like sentimental items, which are sometimes difficult to include in an estate plan.
These are just a few reasons to consider giving gifts beforehand. Make sure you consider all of your legal options when doing estate planning.