Podcast: Basic Gift and Education Planning - Your Guide to College and Other Savings

Josh Miller, CFP®
Thu Nov 01 14:52:00 GMT 2018

Although giving and receiving gifts is a tradition that most people have participated in their entire lives, you may not often think about how gifting can be beneficial from a financial planning perspective.

Although giving and receiving gifts is a tradition that most people have participated in their entire lives, you may not often think about how gifting can be beneficial from a financial planning perspective. However, gifting can be a great way to transfer assets tax-free during your lifetime to reduce both your taxable estate and the potential estate taxes, thereby increasing the amount of assets your beneficiaries will inherit from you.

In addition to simply writing a check, various methods of gifting allow families to assist younger generations with major expenses like education or purchasing a home without incurring a significant tax bill. Different types of trusts, educational savings accounts, and family loan agreements are effective ways to transfer wealth to loved ones while designating productive uses for the funds.  Understanding the guidelines set by the IRS regarding gifts can help you strategically distribute your wealth—or encourage others to share their wealth with you—while avoiding unnecessary taxes or penalties.

Subscribe to G2G Impact podcasts and learn about the latest market trends and wealth planning opportunities by searching for “The CIBC Private Wealth Management Podcast” through your preferred podcast application such as iTunes or The Podcast App, or go to private-wealth.us.cibc.com/podcasts. Topics include establishing a credit history, understanding investment risk, when to enter into a premarital agreement and many others.

Josh Miller is a managing director and senior wealth strategist in CIBC Private Wealth Management's Boston office. Josh has 15 years of industry experience, counseling high net worth individuals, corporate executives, closely held business owners and multinationals on sophisticated estate plan designs and strategies. He works directly with clients and their advisors to create integrated estate plans, guide client families in evolving a healthy wealth culture and find solutions to develop the rising generation, all part of CIBC Private Wealth Management’s integrated wealth management process.