Four Ways to Give Money Tax-Free to Your Kids When You Die

If you’d prefer that your estate not pay more taxes than necessary, then these strategies are for you.

A father and son smile at each other as the son hands his father a cup of coffee.
(Image credit: Getty Images)

“I just want to make sure I don’t go broke and that I leave as much behind as I can.” That’s a line I have heard countless times from people all over the wealth spectrum. Most retirees focus on the number at the bottom of the balance sheet, not necessarily what that number will be after taxes. Some don’t care. Who can blame them? Others would rather not have their kids or their estate pay more than necessary to Uncle Sam. If you fall in the latter group, this one is for you. Below, I will explain four strategies to leave more by paying less (in taxes).

1. Leave behind real estate.

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Evan T. Beach, CFP®, AWMA®
President, Exit 59 Advisory

After graduating from the University of Delaware and Georgetown University, I pursued a career in financial planning. At age 26, I earned my CERTIFIED FINANCIAL PLANNER™ certification.  I also hold the IRS Enrolled Agent license, which allows for a unique approach to planning that can be beneficial to retirees and those selling their businesses, who are eager to minimize lifetime taxes and maximize income.