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Personal Finance (Not Investing) • How much should I leave to nieces/nephews vs. siblings vs. charity I'm passionate about?

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Easy for me since I have enough, maybe not for you. Enough is defined by the government: if my Modified Adjusted Gross Income reaches the threshold for paying additional Medicare IRMAA. Then I must trim my assets before they raise my MAGI for the next year, without raising MAGI, by donating appreciated equity assets. That generates a substantial donation in years following big market gains, but does not diminish my buffer of taxable assets. I will probably have to donate my big stash of tax-deferred assets through Qualified Charitable Donations before they grow to require uncontrollable Required Minimum Distributions adding to MAGI.
Another substantial donation.

My siblings are roughly near my age and don't need money from me. I figure I can give my few nieces or nephews less than the annual reporting limit almost every year, instead of an inheritance when they are too old for it to make a difference. That adds up. But I figure the annual amount is not big enough to have a bad effect on their behavior. But I suppose if my buffer funds last, they would be the inheriting beneficiaries. So they still might inherit a lot when they are old, or maybe not.

Statistics: Posted by ReadyOrNot — Thu Mar 14, 2024 10:00 pm — Replies 13 — Views 794



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