Perhaps, but it is still literally millions of dollars we are talking about. Two parents giving to two kids for 20 years at long-term S&P 500 growth rates is almost $3M in real terms, saving over a million dollars in taxes. Certainly seems worth the effort to get the trusts set up and start making the gifts ASAP. If there are some grandkids in the near future, now we're talking real money.At this level annual exclusion gifts do not move the needle much on getting assets out of your estate. It is good to do them, but they are a drop in the bucket compared the totals listed here.
Another popular strategy is to make large gifts up front to get the growth out of the estate. A million dollars now is easily two to four million (real) in 20 years. By utilizing a grantor trust, they can continue to pay the same taxes as they did when they owned the assets (and, in fact, the taxes are effectively another gift tax-free gift to the children.)
Statistics: Posted by toddthebod — Sat Aug 30, 2025 9:44 am — Replies 9 — Views 577