Kiplinger

Be Tax Smart About Leaving Assets to Your Heirs

So, you've planned well enough to be able to leave some money to your children or grandchildren. But have you thought about the tax consequences of your gift?

Recently, I wrote about tax-efficient withdrawal strategies for people looking to spend down their assets in retirement while paying fewer taxes. It may also be helpful to address strategies for a tax-efficient way to leave assets to your heirs -- specifically income taxes (rather than estate taxes, which affect very few people). Here are two factors to consider:

1. Your heirs' tax rates

The decision to draw from Roth or tax-deferred savings depends largely on

You're reading a preview, sign up to read more.

More from Kiplinger

Kiplinger6 min read
5 Top ESG Stocks on RBC Capital’s ‘Best Ideas’ List
If you want to invest with a clean conscience, look no further. RBC Capital has just released a report revealing its favorite stocks for sustainable investing. These are stocks that the firm rates Outperform (the equivalent of Buy) according to its t
Kiplinger4 min readPolitics
5 Reasons a 401(k) May Be the Worst Account to Have in Retirement
Just about every financial expert I know advises savers to contribute to their company's 401(k) plan -- at least enough to receive the employer's matching contribution. I can't argue any differently. That company match is free money -- a bonus from
Kiplinger28 min read
The Berkshire Hathaway Portfolio: All 47 Buffett Stocks
When folks think of the Berkshire Hathaway (BRK.B) portfolio and its collection of holdings, most of which were selected by Chairman and CEO Warren Buffett, the companies that most readily come to mind are probably American Express (AXP), Coca-Cola (