The Graduation Gift that Gives You a Teachable Opportunity

If you want to give a high-school or college graduate a gift with a big financial impact, go beyond writing a check. Giving the gift of investing—with individual stocks, bonds or investment accounts and even some financial planning—will help a young adult get started on the long road to financial security.

If you have a newly-minted graduate in your family, consider givinga gift that will keep on giving to both you and your graduate. 

With the generous $5.12 million gift tax exemption in addition to the $13,000 annual gift  exclusion, 2012 is the year of gifting. Giving a substantial gift while you're living rather than a bequest at death, could well provide you not only with the opportunity to see the fruits of your decision, but avails you the opportunity to serve as thier guide it to the best use of your gift.

A recent article in The Wall Street Journal titled “Give a Graduate the Gift of Becoming an Investor,” discussed the gift of stock to a recent graduate.

You might say there are gifts that provide the means and then there are gifts that provide the tools, or the know-how. If you are there to assist and teach, then a gift of stock may very well be a gift that accomplishes both objectives. The stock itself has value, especially if it has been your own, and it can lead to financial security. Furthermore, teaching the financial secrets behind choosing and maintaining your portfolio is an even greater tool and life lesson.

Choosing the stock to give is another matter. You can work together to buy something and thereby make a direct gift, or you also could give a stock you’ve owned for some time and hope to pass on.

This second route is altogether more rewarding since it kills two birds with one stone. In addition, this move may even help keep the tax-man at bay if you’ve determined the basis and are working with a “temporarily depreciated” stock (i.e., the kind that abound these days).

For more ideas on the kinds of financial assets to give and the lessons to teach, I highly recommend the original article as a prelude to a fuller investigation.

You can learn more about  estate tax planning  on our website. Be sure to sign up for our complimentary e-newsletter to stay abreast of issues like these that could affect you, your loved ones and your estate planning. 

Reference: The Wall Street Journal (June 2, 2012) “Give a Graduate the Gift of Becoming an Investor

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We've been putting together as many resources as possible so that we can continue to help:

  • If you’re a current client with a signing appointment or a prospective client with a consultation and would prefer that meeting take place in your own home, we can accomplish that with a little bit of pre-planning on our part and with the addition of a laptop, smartphone, tablet or other computer in your home to facilitate this virtual meeting. For those of you that need to sign legal documents, that too can be accomplished with the use of a webcam (FaceTime etc.), so that we can witness and electronically notarize all of your important legal documents.
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Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.