Then you have to worry about kiddie tax!I didn't know that. Thank you. I thought carryover basis also got the step-up, but it seems I was wrong. That's why this forum is great! Guess that means the best option for the kids is to sell immediately if they are in the 0% capital gains bracket, or to hold onto it if they're not.No step up if you gift before you die.I am wondering about many of the same things. I don't know how you are gifting, but my understanding, and I could be wrong, is that it makes more sense to gift appreciated securities from a taxable account rather than simply writing a check. Two benefits: 1) If your kids are in a low tax bracket, unlike you, they could sell without incurring any capital gains. If not, they could just hold on to it and take the step-up basis when you pass away, assuming step-up doesn't get canceled. 2) If you have "won the game" then perhaps you want a more conservative asset allocation, and this helps you get there more quickly without selling anything and taking a tax hit.
Concerning the reduction in the estate tax exemption, I've read a couple articles that argued for either "go big or don't bother" approach when it comes to gifting. https://www.pnc.com/insights/wealth-man ... osing.html
Statistics: Posted by toddthebod — Sat Sep 28, 2024 8:00 pm — Replies 18 — Views 1774