Gift Planning Basics

In legal terms, a gift is something that is given by a donor to a grantee. The grantee may be an individual, group of individuals, or an organization that is given a gift. There are many ways that a person can donate a gift to a person or entity, such as a charitable organization. One popular way to donate a gift is to state the gift in your will. Planning gifts into your will now allows you to control your assets during your lifetime and also what will happen to your estate when you pass away.

There are many advantages to including a future gift in your will. First and foremost, throughout your life you remain in control of the assets that will be given, and you can change the specifications of the gift at any time. In many cases you can specify not only the person or organization that will be the grantee, but you can also include details about what you want the gift to be used for. This gives you maximum control over how your donation will be used.

Planning to include gifts in your will can also be a smart financial move. Whether the gift is a sum of money, a valuable item, or real estate, it can be given tax-free. Gifts are taken out of an estate before estate taxes or inheritance taxes are calculated, so a gift can significantly reduce the portion of your estate that is taxable. There is no limit to how much you can deduct from your taxable estate for charitable gifts.

Contact Us

For sound legal advice and assistance with gift planning and drafting your will, please contact the experienced Austin estate planning attorneys of Slater Kennon & Jameson, LLP today at 512-338-1100.