Giving your loot to your little treasures

My family is my number one priority. With hard work, careful planning and a little luck, I’ve provided security for Gisella and our kids. We all want to provide for ourselves and our children, but once they’ve flown the coop, how can we keep-on giving?

Here are some tips on sharing the love with your adult children.

1. Cold hard cash

My daughter is only 11 but one-day she’ll be all grown-up and driving her first car. While an occasional tank of gas will be nice, one-day I’ll just want to give Nathalia cold hard cash towards the insurance or maybe even a new car.

But there’s a limit to our generosity, and folk often fall foul of the IRS, when they gift too much money to their children. At GDS Wealth Management, I can help you give to your kids and not the taxman!

2. Is loaning the new gifting?

Parental loans are great because you dictate the duration of the loan. It’s important to be transparent, so ensure there’s a legal contract, fixed repayment schedule and details reflecting the loan terms.

Consider a 20-year loan, which keeps repayments at a manageable level and by the time you retire, you can cancel the remaining debt. But remember, it’s OK to forgive the loan in the future, just don’t put it in writing!

3. Magically intangible

My kids, Lucas and Nathalia, love Mickey and Donald. If you have grandchildren, consider a Disney vacation for the whole family. It will cost upwards of $20,000 and you’ll be making forever memories, together.

But gift giving doesn’t stop when you have adult children. Gisella and I will still want to share our love – possible more so – so intangible gifts will be a great way to spurge on our adult children. I’d love to take the family to Wimbledon but I’m sure my son Lucas would probably prefer Raptors tickets.

Avoid large purchases, instead buy smaller gifts that won’t interest the taxman. Be wary of bank-to-bank transfers and regular payments. Focus on occasional payments such as a credit-card balance or a visit to Whole Foods.

Final thoughts!

Your family will always be your number one priority. There are hundreds of ways to share your wealth without leaving yourself short of cash or incurring the wrath of the taxman.

But it takes time to organize your finances and can be very stressful so let our team and I take that weight off your shoulders. Together, we’ll personally analyze all your finances. We’ll present all the different options, their pros and cons, and our recommendations so you can pick the best possible solution for your needs. Click here for more info.