‘Tis the Season for Luxurious GiftsSubmitted by Bellwether Wealth on December 5th, 2017
Giving the gift of investment can be a thoughtful and responsible way to prepare a child or relative for their future. But even with the best intentions, this gift can put stress on the recipient when trying to decide how to responsibly utilize the asset. ‘Tis the Season for these luxurious gifts, so we’d like to help you prepare to give the best investment gift.
- Assess your current financials and decide what type of gift you’d like to give, and what you can afford to give.
- Will you be giving a cash gift, property, savings bond or stock?
- Understand the cost basis of the gift for tax purposes.
- If you gift a cash gift of $500, the cost basis of this gift is $500. However, if you bought a stock at $500, and that has now appreciated to $15,000, the cost basis of this gift would be $500.
- When giving a gift of this kind, a gift tax may or may not come in to play.
- It’s best to discuss this with your financial planner to be sure you’re prepared for any taxes on your gift.
Gifting an asset or large sum to a relative or child is a great way to transfer wealth and provide financial assistance to those you love. But it’s important to consult your financial advisor before making a decision to ensure your future financial goals are still in reach. We would be happy to discuss your options as the giving season approaches. You may contact our office at 402-476-8844 or email firstname.lastname@example.org.
This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed by Kestra Investment Services, LLC, (Kestra IS), member FINRA/SIPC, as to accuracy and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Past performance does not guarantee future results Bellwether Wealth is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. Kestra IS and Kestra AS and Bellwether wealth are not affiliated with Albers Communications LLC.