Kiplinger released a 10-question quiz designed to help you assess your gift-giving and legacy planning strategy. The quiz evaluates whether you're taking full advantage of opportunities to transfer wealth to family members across generations.
Smart gifting involves understanding tax implications and timing. The federal gift tax allows you to give $18,000 per person annually without filing requirements (as of 2024). Married couples can double that amount. Gifts beyond these limits reduce your lifetime exemption.
Grandparents face unique planning decisions. They can fund 529 education savings plans with lump sums of up to $235,000 per child without gift tax consequences, provided they elect to spread the gifts over five years. They can also pay medical bills and tuition directly on behalf of grandchildren without counting against gift limits.
The quiz helps identify gaps in your current approach. Many families leave money on the table by not coordinating gifts with other estate planning tools like trusts or life insurance policies. Taking the assessment reveals where your strategy needs strengthening.
You don't need a complex plan to start. Begin by understanding annual exclusion amounts and documenting your intentions. Then adjust your gifting accordingly.