Giving can be one of the most rewarding aspects of financial success, whether it’s helping a child buy their first home, supporting a charitable cause, or simply surprising someone you love. But giving without a plan can lead to unintended consequences, including tax surprises, family tension, or even jeopardizing your long-term financial security. In this blog post, we’ll explore how to give meaningfully while still protecting your financial future.
Why Thoughtful Gifting Matters
Too often, generosity is spontaneous, but in today’s financial landscape, unstructured gifting can create real complications. Whether it’s writing a large check to family or supporting a non-profit, aligning gifts with your broader plan makes all the difference.
Key Considerations for Strategic Giving
- Start With Your Own Plan
Before you give, make sure your own financial foundation is solid. Work with your advisor to review your retirement plan, cash flow needs, and potential long-term care costs. When you know what you need, it becomes easier to decide what you can give.
- Use the Annual Gift Tax Exclusion
The IRS allows you to gift up to $18,000 per person per year (as of 2024) without triggering a gift tax or requiring any paperwork. Married couples can gift up to $36,000. This can be a powerful way to transfer wealth over time without any tax implications.
- Consider Donor-Advised Funds
If you give to charity regularly, a Donor-Advised Fund (DAF) lets you make a large, tax-deductible donation now and decide later where to send the funds. It’s a flexible, strategic tool for long-term philanthropy.
- Gift With Purpose
Whether you’re helping children with college, buying a car, or covering a down payment, make sure your gift aligns with your values and theirs. Encourage open communication, especially with family, to ensure your gift is received in the spirit you intend.
How Feliciano Financial Group Helps
At Feliciano Financial Group, we help clients integrate giving into their holistic financial plan, without guilt or guesswork. We make sure your generosity doesn’t derail your retirement goals or put you at risk. With our guidance, you’ll understand the tax implications, documentation requirements, and family dynamics at play, so you can give confidently.
If you’ve been thinking about giving, whether to your kids, church, alma mater, or a cause close to your heart, let’s make sure you do it wisely.
Schedule a no-obligation conversation with our team to explore smart, tax-savvy ways to give that still honor your long-term goals. and build a financial blueprint you can trust.
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This content is for educational purposes only and does not constitute legal advice. Please consult a qualified attorney for legal recommendations.
Tax and legal services are not offered by Lion Street Financial, LLC, or Lion Street Advisors, LLC.
