Financial Tip of the Week with Steve Sexton: Gifting Money to Your Children

The San Diego Entertainer’s own financial expert, Steve Sexton, provides the Channel 6 San Diego Living Show with a financial tip every Tuesday. We are thankful to be able to share his financial expertise with our readers in the clip below.

This week, Steve Sexton talks about how to gift money to your children and grandchildren. During the holidays many parents and grandparents are looking for wise ways to financially invest in their offspring.

Sexton shares 3 ways to do this:

1. The IRS allows parents to give 13K per year, per parent, per child.  So one child can receive $26,000 from both parents, tax free in a given year!

2. Another way to give smart is by capitalizing on the government’s permission to gift 1 million to your child, tax free, throughout their lifetime.

3. But if you don’t want to give up the benefits from gifting that 1 million, you can set up a family corporation, have Dad and Mom be the managing shareholders and dole out the remaining 98 shares to the children.

So, for example, if you have a 3 million dollar real estate property in your family corporation that grows to, say, 8 million dollars over the course of time, the kids will only have to pay $180,000 at the 2% share in estate taxes vs. 3 million at the 98% share.

Make sure to watch Steve Sexton below as he gives insight on smart gifting of money to your family!

Steve Sexton is a financial expert who personalizes each individual’s financial plan on their unique circumstances and goals. He has over 15 years experience in the financial services industry and holds multiple licenses and designations including being a Better Business Bureau member and a National Ethics Bureau Member.

If you would like to learn more about securing your financial wealth and freedom, planning for your retirement or to reserve a spot in one of Sexton’s free financial workshops you can visit www.sextonadvisorygroup.com. Or you can reach the Sexton Advisory Group by contacting Steve Sexton at [email protected] or by calling 951-695-8810.

Don’t forget to watch Steve Sexton on the Channel 6 San Diego Living Show every Tuesday for more financial tips!