Should You Start Giving Money to Your Heirs Now or Leave a Bequest?

November 14, 2022
Giving away assets in one's lifetime might make sense tax-wise, but the issue is deeply emotional and personal for most people.

Listen on Apple Podcasts, Google Podcasts, Spotify or copy to your RSS reader.

Transcript Open new window

After you listen

Taxes are a big issue for any investor. For people likely to incur federal estate tax, does it make sense to give away assets to family members sooner rather than later? The answer to that question can be fraught with all kinds of psychological and emotional issues. But it's important to contemplate the details of different lifetime gifting strategies if you want to maximize what you leave for your heirs.

To understand more, Mark Riepe speaks with Susan Bober, a director in Schwab's Wealth Strategies Group in Indianapolis. Mark and Susan discuss why the idea of giving money to family members can cause so much fear and anxiety, the annual exclusion gifting strategy, and the importance of finding an advisor you trust.

Follow Financial Decoder for free on Apple Podcasts or wherever you listen.

Financial Decoder is an original podcast from Charles Schwab. 

If you enjoy the show, please leave us a rating or review on Apple Podcasts.

Learn about tax-smart strategies. 

Understanding Your Tax Withholding

Find out how the concept of withholding works and the important role it plays in managing your taxes efficiently.

Can You Give Stock as a Gift?

Giving stock can be both a financial gift and a personal finance lesson. But get the details first.

Taxation Nation: Which State Taxes Matter to You?

Your overall tax liability is heavily dependent on where you live. Here's your state-by-state guide to who charges what.

This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner or investment manager.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

Investing involves risk including loss of principal.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

There are minimum requirements to work with a consultant and the Wealth Strategists Group. Wealth management refers to products and services available through the operating subsidiaries of The Charles Schwab Corporation, of which there are important differences including, but not limited to, the type of advice and assistance provided, fees charged, and the rights and obligations of the parties. It is important to understand the differences when determining which products and/or services to select.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.