When deciding which type of assets to gift, it is important to consider the asset’s basis. If you decide to gift low basis assets, the recipient will pay the taxes which thereby reduces the value of the gift. This will also use up your gift tax exemption. There are many ways to gift assets, but some of them have unintended consequences for the donor and/or the recipient. Consult with your attorney prior to making any sizeable gifts.
-Emily A. Helmick, Esq.