As you have begun to look into developing an estate plan in New Jersey, you have probably heard about all of the options you have for designating how you would like your assets distributed to your beneficiaries. While you are starting to get some clarification on which route you would like to go, you are interested in knowing if you have the option of gifting some of your assets while you are still living.
The benefits of starting to distribute your assets while you are still alive can reduce the amount of taxes that your loved ones are required to pay following your death. Additionally, you can experience the satisfaction of seeing your assets benefit people that you care deeply about. According to Fidelity Investments, some of the ways that you can begin gifting immediately include making contributions to help pay for the education or medical bills of a certain beneficiary.
If you have grandchildren, you may consider starting an educational fund for them and setting aside a monthly contribution to go toward that initiative. Another option is to set the foundation for a retirement account for your children. This groundwork will allow them to have the beginnings of a reliable financial benefit as they grow and are able to contribute to the funds on their own. You can also consider using your gift tax exemption to award money to beneficiaries each year even though you are still living.
The information in this article is intended for educational purposes only and should not be taken as legal advice.