Three Ways to Give to Your Kids Tax-Free While You’re Still Alive

Parents can see the positive impact of their giving through tax arbitrage, giving cash (within limits) or directly paying for school or medical expenses.

Older parents happily hug their adult son in the living room.
(Image credit: Getty Images)

The days of inheriting utility stocks from your Depression-era parents via a will are gone. Most of the affluent Baby Boomers we work with would rather give during life. They’d rather help their kids with a down payment in an impossible market. They’d rather help fund their grandkids’ education. Simply, they like seeing a positive impact.

The problem? It’s often less tax-efficient to give during life. Perhaps I can help you solve that problem with the following strategies:

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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.