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Year-End Gifting Strategies

Posted November 1, 2018  |   Topics: Savings Tips, Investing

The tax year will be ending on December 31. If you have plans to make charitable gifts to family members, it’s last call to make those donations for 2018.

The Basics

If you have the financial ability and devotion to make lifetime gifts to family members, consider making them annually. The inflation adjustment for 2018 has increased the amount you can gift without being subject to a per-individual gift tax – $15,000 individual, or $30,000 for married couples. Keep in mind that gifting decisions should reflect any additional wealth transfers or estate planning steps you already have in place.

What are the best assets to gift?

An appreciated stock or mutual fund is a great way to maximize tax benefits. Many investors face combined long-term capital gains tax rates of close to 30%. That includes federal, state income taxes and health care surtax. But college grads often have a long-term capital gain rate of close to 0% on most investments until they start earning over $38,700 (for 2018). This creates the opportunity to make a tax-advantaged gift.

It’s almost always best to gift an asset that has appreciated in value instead of cash. It allows you to avoid paying tax on the unrealized gain of the donated assets, and increases your gifting while decreasing your tax burden.

Consider a Donor Advised Fund (DAF)

You can make a large gift now to take advantage of the 2018 tax deduction without having to commit to naming specific beneficiaries. These choices can evolve over time, and a DAF allows you to earmark assets now, while putting off final beneficiary decisions until later.

LMIS has officially become MaxWealth Management located at Lake Michigan Credit Union. Contact us today at (616) 234-6358 or visit to schedule a free, no-obligation portfolio review.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.


Securities and Advisory Services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.

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Lake Michigan Credit Union and MaxWealth Management – Located at Lake Michigan Credit Union are not registered broker/dealers and are not affiliated with LPL Financial. The LPL Financial registered representative associated with this site may only discuss and/or transact securities business with residents of the following states: Colorado, Florida, Ohio, Iowa, Pennsylvania, Kansas, California, Indiana, Michigan

Topics: Savings Tips, Investing