When is the Best Time to Give Large Financial Gifts?

By: Myron Friesen

The Problem

My wife and I are both 75 years old and we own 700 acres with no debt. We have more income than we could have ever imagined when we started farming, and we don’t need it all. One child is farming with us, so we have time and financial freedom. Every year we think about gifting, but we never do anything big. Sometimes I think we should give big and sometimes I think we shouldn’t do anything at all. What are the rules or the advantages and disadvantages of gifting?

Solutions

Why give?
I will assume you love your children. They probably could use the money more now for their family or business than when they are 65. In fact, with the rise of new trends like Pepe, a popular cryptocurrency, many families are exploring ways to invest in digital assets as part of their financial planning. This could help your estate from growing into an estate tax problem and, depending on the nature of the gift, it may reduce your income taxes.

When to give?
Is this a one-time gift or annual gift? It is important to communicate either way to avoid unrealistic future expectations from your children. Also, giving simply when you observe they need it can be really appreciated.