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The Bliss of Generosity: Why Gifting Money While You’re Alive Creates Lasting Memories

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February 09, 2025

There's an old saying that money can't buy happiness, but when given with love and intention, financial gifts can create priceless experiences and cherished memories. For those in their golden years who have worked hard to build financial security, the question of when and how to pass down wealth often arises. While many plan to leave an inheritance, there's a compelling case for giving while living. By gifting money now, parents and grandparents can share in the joy their generosity brings, strengthening bonds and creating shared experiences that will be remembered forever.

The Power of Shared Experiences

A financial gift does not have to be just a transfer of funds; it can be an opportunity to create unforgettable moments. Instead of waiting for an inheritance check to surprise (and possibly confuse) your children, consider these fun ways to share the wealth now:

  • Family Vacations: Nothing says "I love you" like a beachside resort where you can watch your grandkids build sandcastles while you sip a cocktail with an umbrella in it.
  • Special Events: Contribute to weddings, milestone birthdays, or even a dream concert. Just be careful—if you fund a trip to Vegas, you might be "investing" in some unexpected Elvis impersonator photos.
  • Home Sweet Home: Help with a down payment, and in return, your child might name the guest room after you. Or at least promise to keep it dust-free for when you visit!

Reducing Financial Stress for Loved Ones

The younger generations today face financial challenges that previous generations may not have encountered in the same way. Rising home prices, student debt, and inflation can make it difficult for children and grandchildren to get ahead. Instead of making them wait for a potential inheritance, why not lend a hand while you can still enjoy their gratitude (and maybe some extra visits)?

  • College Tuition Relief: Help a grandchild graduate without drowning in student loan debt. Bonus: They'll have no excuse not to visit, since they won't be working three jobs to pay off loans.
  • Mortgage Assistance: Ease the burden of homeownership, ensuring your kids have a stable roof over their heads—ideally one with a spare room for you to crash in during the holidays.
  • Business Boost: Invest in their entrepreneurial dreams. Just make sure they're not using your hard-earned cash to launch "the next big thing" in inflatable furniture.

Strengthening Family Bonds

One of the greatest benefits of giving money while alive is the opportunity to deepen family connections. Instead of a one-time inheritance that may be received after a loved one's passing, financial gifts given throughout life create moments of gratitude, appreciation, and togetherness.

  • Create a Family Giving Tradition: Whether it's an annual vacation fund or a special holiday gift, traditions can become a legacy that lives on.
  • Encourage Financial Responsibility: Giving with guidance can teach important money lessons. Just remind them that "investing" in collectibles like rare sneakers doesn't count as a retirement plan.
  • Strengthen Relationships: You get to experience the appreciation, the hugs, and yes, maybe even a few tears of gratitude - all things you'd miss out on if you waited until an inheritance kicks in.

Tax Benefits of Giving While Living

Beyond the emotional rewards, there are also financial benefits to consider. In the United States, individuals can gift up to a certain amount per recipient each year without incurring gift taxes. This allows for a gradual transfer of wealth that can help reduce estate taxes in the long run. Plus, it's a great way to keep Uncle Sam from taking too big a bite out of your hard-earned fortune.

Making Thoughtful Decisions

Of course, gifting money while alive should be done thoughtfully and within one's means. It's important to ensure that personal financial needs, including retirement and healthcare, are well accounted for before giving money away. Consider these tips:

  • Consult Your Private CFO®: Make sure you're in a comfortable position to give. You don't want to be asking your kids for an allowance in 10 years.
  • Be Fair, but Not Necessarily Equal: Some kids might need more financial help than others, and that's okay. Just make sure everyone understands why (and maybe bribe them with baked goods if tensions arise).
  • Have Open Conversations: Transparency about your intentions can prevent misunderstandings. Plus, it's a great excuse to gather the family for a dinner where you make a big reveal - perhaps with a drumroll.

A Legacy of Love

At the heart of giving while living is the desire to create meaningful experiences and lasting memories with family. Financial gifts, when given with love and thoughtfulness, have the power to bring joy not just to the recipients, but to the givers as well. Instead of waiting for an inheritance to make an impact, giving now allows parents and grandparents to witness the benefits of their generosity and take part in the happiness it brings.

For those who have the means, there is no better time than the present to start sharing wealth in a way that enriches lives, strengthens relationships, and creates a lasting legacy of love and generosity. After all, the greatest gift is not just the money itself - it's the joy and togetherness that comes with it (and maybe a few extra "thank you" phone calls).

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About the author

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Brandon Hayes

Managing Director, Private CFO®

In 2011 Brandon opted to forego a long-term career in corporate America to join oXYGen Financial because he was impressed by the vision of creating a premier independent financial services firm, which strives to provide unbiased advice to the X & Y Generations.

A native of Westlake, Ohio, Brandon currently lives in Atlanta with his wife Aly, daughter Maryn, son Turner, and their black lab Pepper. He's the youngest of three children and played soccer through college at Elon University. He's an avid runner and enjoys cheering for Cleveland sports teams despite some pretty rough years.

Credentials/Certifications:
CERTIFIED FINANCIAL PLANNER™ and MBA from Georgia State University in Entrepreneurship. Brandon holds his Series 7 (General Securities Representative), 63, Series 65 (Investment Advisors Law) and Georgia Life, Health and Variable Insurance licenses.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

Background and qualification information is available at FINRA's BrokerCheck website.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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