AboutRichard E. Reyes, CFP Expertise I can provide answers to questions relating to retirement especially relating to; income distribution, tax efficiency, long-term care insurance, life insurance, estate planning, asset protection, variable and fixed annuities, alternative investments and prudent portfolio design.
Experience Through the years Richard has built a reputation as one of Central Florida's premier retirement income specialists by providing sound, unbiased wealth coaching.
We believe that Financial Planning is the problem and Wealth Coaching is the solution. The Wealth Coaching process gives you Peace of Mind, so you can stop worrying about your future. It helps you find happiness as it guides you in the TRUTH of investing, by teaching you how to make wise choices as you journey through your life’s stages. It is all about your relationships and what you value, not your net worth.
Organizations Financial Planning Association
Junior Achievement
Publications Seminole Success Magazine “Retirement Planning”
Seminole Success Magazine “Small Business Snapshot”
The Orlando Sentinel – Ask the Expert Financial Section (Various)
Greater Orlando Broker Agent Magazine “The New It”
Senior Market Advisor “Random Reader, Random Questions”
AuthorThe Dirty Filthy Lies My Broker Taught Me and 101 Truths about Money and Investing
Education/Credentials B.S. University of Florida, Gainesville, FL
CFP Certificate, University of Central Florida, Orlando, FL
Awards and Honors 2005,2006,2007,2008 America's Best Financial Planners
2007 Orlando Business Journals "Top 25" Top Financial Planners in Central Florida
Question Hi,
My mother has a lot of money and she is starting to think of giving some to her chidlren. How much can she gift to her children per year without tax consequences to giver or recipient? Is it better to keep it all in the estate to divide when she dies or to start spreading it out now.
Dan thanks for your question. Hopefully I can give you a little help. What I would first say is that I have had this question asked many a times by kids and by parents who stated the same thing, "My parents have a lot of money" or "We have a lot of money". Sometimes the truth is that yes indeed the parents had a lot of money and could begin a responsible plan of gifting without having much impact on there portfolio growth and future needs. However, often times, the parent did have money but not enough to be gifting without a future impact. (This is more true now since we have seen depressed portfolio's as well as lower values for everything while the price to maintain the standard of living one is accustomed too has risen.)
I would first suggest that an assessment is really made to see if your mother does have enough money to begin making annual gifts to her children without it making an impact to her future needs. If the case is true that there is enough money the annual gift exclusion for 2009 is $13000 for gifts to non-spouse. For US Income Tax purposes, any gift received is not income and no income tax is ever owed on the gift. Therefore, your family members will not have to pay any tax on any amount you give to them if these gifts are made within the limits.
For estate tax purposes if your moms estate is above the limits of which estate tax might be an issue, then it is always best to begin a plan of gifting to lower the estate.
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