There is an old phrase about giving with a warm hand versus a cold hand. A cold hand gift is the one that happens after you are gone, through your will. A warm hand gift is the one you make while you are still here to watch it land.
The money can be the same either way. The experience is not. Give with a warm hand and you get to see the help actually do something, the grandchild through school, the down payment made, the cause pushed forward. You can guide it, answer questions, and enjoy it. That is worth something a bequest cannot buy.
There is a planning side too. Gifting during your lifetime can move growth out of your estate and, done thoughtfully, use the tax rules to pass more to the people and causes you care about. It has to be balanced against your own security, because you should never give away money you might need later. But for people who are clearly in good shape, waiting until the very end is not always the most generous or the most satisfying choice.
Hosted byNick GeorgeCFP®, ChFC®, CLU®, IWA™FounderView bio →
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