Get Your Parents to Pay

This podcast might not be a one-size-fits-all, but it is worth a listen in terms of understanding estates and how good financial planning can help ensure that beneficiaries suffer the fewest tax consequences.Matt and I discuss how parents trying to lower estate taxes can take advantage of the rules and start giving money to their adult children and even grandchildren. The benefit of doling out some inheritance before death is two-fold: lower tax responsibility and the ability to watch your loved ones use the money to better their lives.In this podcast, we cover the following:Gifting Rules: DId you know that every person can gift $17k to another person with no tax ramifications? So, if both your parents are living and are so inclined, each could give $17k to every member in YOUR family. For a family of five, that could be $170k per year in tax-free gifts.Education and Medical Expenses: Your parents can also pay your family’s education and medical bills directly to the institutions, tax-free. Not everyone is fortunate enough to have parents with millions looking for ways to pay the least in Federal and State Estate taxes but it is also something to think about with regard to your own portfolio as you get closer to retirement age. Even if your parents can’t do it for you, you might be able to take care of the next generations while you are still alive to enjoy watching the money being spent.Learn more about Mike and my services at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/Are you ready to create your ideal lifestyle?  Let’s Connect.