Client Q&A: Should I Make Large Gifts to My Kids or Grandkids Now, or Wait?

One advantage of gifting during your lifetime is that you’ll have the opportunity to see the impact of your generosity firsthand. A gift made today can help fund a grandchild’s education, help an adult child buy a home, support a business venture, or simply provide greater financial security during a stage of life when the money may be especially meaningful. For many people, witnessing the impact of a gift is the most rewarding part of giving. 

There may also be tax and estate planning considerations. Gifts can reduce the size of a taxable estate, and future appreciation on gifted assets generally occurs outside the donor’s estate. Depending on your circumstances, this could create meaningful long-term benefits for both generations. 

However, gifting should never come at the expense of your own financial security. People are living longer than previous generations, healthcare costs remain unpredictable, and retirement may last 30 years or more. Assets that seem like excess today may be needed later. 

Another consideration we often encounter is fairness. Large gifts can affect family dynamics, particularly if children have different financial needs or circumstances. Some families address this by communicating their intentions openly or documenting how future inheritances may be adjusted. 

Ultimately, the decision is less about whether to give a gift now or later and more about whether your financial plan can comfortably support either choice. A thoughtful gifting strategy should balance your desire to help loved ones with your own long-term goals, cash flow needs, and legacy objectives.  

Before making substantial gifts, consider reviewing the potential tax, estate, and financial planning implications with your financial and tax advisors.