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How to pass assets to heirs before death in Georgia

On Behalf of | Jul 22, 2024 | Estate Planning |

Ensuring your assets go to your loved ones can be an important part of your financial planning. In Georgia, several methods exist to pass on your assets before death, each with its own advantages and legal considerations.

Gifting assets

One common way to pass assets to your heirs before death involves gifting. You can give cash, property, or other assets to your heirs during your lifetime.

In Georgia, as in other states, you can gift up to a certain amount each year without incurring federal gift taxes. For 2024, this amount is $18,000 per recipient. Gifting effectively reduces the size of your estate and ensures your heirs benefit from your assets while you’re still alive.

Creating a trust

Set up a trust to pass assets to heirs. Trusts offer more control over how and when your assets are distributed. Consider different types of trusts, such as revocable living trusts and irrevocable trusts.

A revocable living trust allows you to retain control over the assets during your lifetime and make changes as needed. An irrevocable trust transfers ownership of the assets to the trust itself, providing potential tax benefits and protection from creditors.

Joint ownership

Add heirs as joint owners of your property. This can include bank accounts, real estate, or other valuable items. When you add an heir as a joint owner, they inherit the property automatically upon your death without the need for probate. However, joint ownership gives the heir immediate access to the asset, which might not always align with your intentions.

Planning ahead ensures smooth asset transfer

Passing assets to heirs before death in Georgia involves several strategies, each with its own benefits and considerations. By understanding these options and working with financial and legal professionals, you can make the best decisions for your unique situation.

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