A - gift $100,000 in full to an individual, pay gift tax on anything over $15,000. Or, gift currency prior to RV with gift letter. Both DO NOT come with the education you have gained and the recipient may mismanage and even lose this gift.
B - Create a trust for the individual to manage. Create terms that include a salary for this person to manage and go through an educational process of managing money.
C- Utopian way to Give - form a foundation the recipient manages or runs. Same benefits and educational opportunities as a trust, comes with some more requirements AND the one who donates to this foundation ( you) gets to write it off your taxes as a donation.
RAY, PLEASE ADDRESS THE ACCURACIES OR INACCURACIES HERE....WE LOOK FORWARD TO YOUR FURTHER TEACHING.
__________________
Be accountable, embrace righteousness and all will be good.
MY TAKE. I am not a financial advisor so these are just my thoughts. Hire professionals to make sure you do these things right: TNDR’s Example $100,000
A – You might gift $100,000 in full to an individual, and the recipient will have to pay the (current) gift tax on anything over $15,000. CORRECTION: The donor would pay the gifttax, not the recipient. Another less tax way is to give them currency before the RV with a detailed gift letter. This latter way means the value will not break the $15K level at which the donor needs to pay taxes. We have all learned this big difference thanks to the education from Tony and Ray (et al). This is no longer a favored option by me.
B – You can create a trust. Lots of options/types here, so study is mandatory. Can be made with a trustee that could be the individual to manage the trust. You could write terms that include a salary for this person to manage and go through an educational process of managing money. In my case we are using a trust to transfer money across generational lines in the event the RV creates more than the inheritance has-to-be-taxed amount. It’s easy to get lost in the details, so much study is needed. Get an estate lawyer after RV, set up a trust (or trusts), and fund it then. You don't need an estate lawyer, just someone knowledgeable in drafting contracts for estate planning purposes.
C- Another way to give to a cause and have it last for years is via a foundation. You need more than $100K however to make it truly self sustaining IMO. More like two to four million dollars. Invest the money to create annual income for the cause and to fund a small (even one person) staff to run it and disperse earnings. Can have some of the same benefits and educational opportunities as a trust. Comes with lots of requirements, and the one who donates to this foundation (you) might be able to write it off your taxes as a donation. Study is required. Hire a lawyer to do this right and lawfully. You've somewhat missed the point here, the recipient will learn how to make this work in their favor.
All comments in purple are by RayRen98.
-- Edited by RayRen98 on Sunday 25th of March 2018 09:04:29 PM
__________________
We are in the last stretch. Congrats to the Iraqi people for being patient!
Thanks to Ray, Tony, Tish, Babysmom, and the entire TNT team!
C - I believe Rayren also said if you donate through your 401K - IOW, pull money directly out of your 401K to a charity - then it is tax free to you. Versus taking out the money and then donating it to a charity
