How to Avoid Common Mistakes When Gifting Money to Family, Ep #231

Financial Symmetry: Balancing Today with Retirement

As the holiday season approaches, many of us find ourselves thinking about gifts. While gifts can come in many forms, monetary gifts often cause the most confusion. In this episode of Financial Symmetry, hosts Chad Smith and Grayson Blaszak discuss the intricacies of financial gifting.

Financial gifting generally involves transferring assets, such as cash or securities, from one individual to another without expecting anything in return. This process can have several benefits, including seeing your loved ones enjoy the fruits of your generosity during your lifetime.

Outline of This Episode

• [03:38] Individuals can gift up to $18,000 per recipient annually (increasing to $19,000 in 2025) without it being taxable or reportable.
• [05:17] The tax implications of paying off a loved one’s credit card or bills.
• [06:16] Steps to take if you’re making a big gift, such as a home down payment and how to manage the gift tax return.
• [12:28] Transferring securities can help recipients save and invest more effectively, benefiting from fund growth and potentially minimizing tax burdens when in a lower tax bracket, enhancing wealth transfer and legacy planning.
• [13:43] Giving to 529 plans and how to fit that into your strategy.
• [16:02] Payments to medical providers or educational institutions on behalf of a loved one are not taxable gifts, provided they are paid directly.
• [17:57] Plan carefully to balance wealth stewardship and gifting, ensuring personal financial stability while providing meaningful support to loved ones.

Resources & People Mentioned

• Grayson Blazek on LinkedIn
• The Retirement Podcast Network

Connect With Chad and Mike

• https://www.financialsymmetry.com/podcast-archive/
• Connect on Twitter @csmithraleigh @TeamFSINC
• Follow Financial Symmetry on Facebook

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