Once you understand that present
gifting makes tax sense you must determine if gifting makes sense for you- long term!
You must determine the answer to this
question? We must make sure that there's no way we can run out of money for ourselves. I
don't ever want to ask for any of our gifts back-Can
we afford to gift?
To determine your tolerances for
gifting you must analyze your retirement cash flow needs (with inflation) combined with a
study of your estate tax liabilities- including a review of the effects of present
interest gifting vs. a no gifting analysis.
Only then can you have the comfort (tolerance) for
gifting no matter how much tax sense it may make.