Give with Warm Hands
Has anyone given regular gifts up to the tax reporting limit to their kids over a decade? I’m looking for lessons learned.
My spouse and I are in year 3 of giving with warm hands in the amount of the annual limit for tax reporting to our kids 18-24 ($38,000 each total with both of us giving $19,000). The money is put into a brokerage account that we can view and manage, but it’s in their name. They know about it, they view it from time to time, but they are busy with school and early adulting. Current values are around $180k each. We tell them that this money is for a house down payment, investing in a business or letting it ride to retirement. They also know that our wealth is more than my spouse and I would ever spend, so they will have a significant inheritance when the last of us dies.
Looking to hear someone else who made a similar decision to be generous in this way, but further down the road by a decade. Did it create another level of generational wealth?