What if the "best" account for an intergenerational gift isn't actually the one that produces the biggest (potential) tax benefit? In this episode, Kitces.com Senior Financial Planning Nerd Ben Henry-Moreland returns to explore how advisors can help clients consider their goals for the gift alongside tax efficiency considerations before selecting a specific account type when deciding how to give money to their children.
Listen in to learn how to identify the different goals behind lifetime gifting—from childhood expenses and education to home purchases, lifestyle support, retirement, and dynasty planning—and how they can influence the account type chosen. The conversation also takes a closer look at the new Trump Accounts (including where they fit within the broader landscape of intergenerational giving), and why the "return" on a gift shouldn't only be measured by how many dollars remain decades later, but also by how effectively the gift supports the life the parent wants their child to live.
