Smart Tips for Parent-Child Family Finances

March 4, 2011

Hyman G Darling EsqHyman G. Darling, Esq.

Figuring out smart ways to convey money and assets to family members does not require a huge estate or sophisticated trusts. Especially during these hard economic times, it can make sense to use some basic tools to help the folks you love, while paying Uncle Sam as few tax dollars as possible.

Gifts. Before exploring more extensive ways to transfer wealth, make sure you've taken full advantage of gift tax rules. You can give up to $13,000 a year to as many individuals as you wish, and what they receive will not be taxed as income. Your spouse can do the same, providing the easiest way to convey family assets to relatives without creating tax liabilities for them. For details, check out IRS Publication 950: Introduction to Estate and Gift Taxes.

Family Loans. It's also possible to structure loans among family members that are very flexible and totally compliant with IRS tax rules. For example,...

You may read more at the link below. Hyman G. Darling, Esq. is quoted within this article.

by: Philip Moeler

US News & World Report Money
March 4, 2011