When people think about passing on wealth, they often imagine it happening after they’re gone. But what if I told you that gifting wealth during your lifetime might be one of the most powerful financial and emotional moves you can make?
Whether you live in Boca Raton, Tampa, or anywhere along Florida’s beautiful coast, chances are you’ve worked hard to build your wealth. And if you’re like many of my clients at Manna Wealth Management, you’re thinking not just about how much you’ll leave behind—but how and when to give it.
There’s no one-size-fits-all answer. So let’s walk through the real pros and cons of gifting wealth while you’re still alive—so you can make a decision that reflects your values and protects your financial future.
What Is Lifetime Gifting?
Lifetime gifting means transferring money, assets, or property to someone—usually children or grandchildren—before your death.
This can be done informally (writing a check to help with college), or formally through legal and financial structures like:
- Annual exclusion gifts
- 529 college savings contributions
- Irrevocable trusts
- Family limited partnerships
- Gifting shares of a business or property
It’s not just about generosity—it’s a smart estate planning move for many high-net-worth individuals in Florida.
The Pros of Gifting Wealth While You’re Alive
1. You Get to See the Impact
There’s something deeply fulfilling about watching your loved ones benefit from your gift in real-time. Whether it’s paying off student debt, buying their first home, or launching a business—you get to be part of that journey, not just a memory.
2. You May Reduce Estate Taxes
While Florida doesn’t have a state estate tax, federal estate taxes still apply for larger estates. In 2025, the federal estate tax exemption is projected to drop significantly (potentially to around $6–7 million). Gifting during your lifetime can help reduce the size of your taxable estate, which could save your heirs a serious chunk of money later.
3. Use the Annual Gift Tax Exclusion
You can give $18,000 per person (in 2024)—or $36,000 for a married couple—per recipient, per year, without using any of your lifetime exemption or filing a gift tax return. That adds up quickly and can transfer significant wealth over time.
4. Financially Educate the Next Generation
Gifting during your lifetime gives you the chance to teach financial responsibility, share investment insights, and build healthy money habits in your family.
At Manna Wealth Management, we often sit down with families to create a strategy where gifting becomes a tool for generational empowerment, not entitlement.
The Cons (and Considerations) of Gifting While Alive
1. You Could Need That Money Later
The biggest risk? Outliving your wealth. With inflation, rising healthcare costs, and longer life expectancies, it’s crucial to make sure you have enough for your own needs—especially in retirement. Once you gift money, it’s out of your control.
This is why we create cash flow projections with our clients at Manna Wealth Management to test different scenarios before they start giving large sums away.
2. Loss of Control Over the Asset
Once a gift is given, it’s gone. Your child or grandchild now legally owns that money or asset—and they may choose to spend it in a way you wouldn’t approve of. That’s why structured gifts (like placing assets in a trust) may be a better option.
3. Potential Tax Filing Requirements
If you gift more than the annual exclusion amount, you’ll need to file IRS Form 709, and the excess applies against your lifetime exemption. It’s not necessarily a tax problem, but it’s a paperwork reality you need to track carefully.
4. Uneven Gifting Can Create Family Drama
Giving generously to one child but not another can stir up resentment—even if the intentions were good. When gifting during your lifetime, transparency and communication are key. This is something I guide families through often to help avoid unnecessary tension.
Gifting Strategies We Recommend in Florida
Here are a few lifetime gifting ideas that can work particularly well for Florida families:
- 529 College Savings Plans: Contributions grow tax-free when used for qualified education expenses.
- Irrevocable Life Insurance Trusts (ILITs): Use gifts to fund a life insurance policy outside of your estate.
- Family Limited Partnerships (FLPs): Transfer business or real estate ownership while retaining some control.
- Charitable Gifting: Support a cause you care about while getting potential tax deductions.
All of these strategies should be guided by a comprehensive financial plan. Our team of Florida financial advisors can help ensure your giving aligns with both your heart and your long-term financial goals.
Final Thoughts from David Kassir
As someone who has helped countless families in Florida manage, grow, and transfer their wealth, I believe lifetime gifting is one of the most personal and powerful financial choices you can make. But it’s not just about generosity—it’s about doing it the right way.
A poorly timed gift or lack of planning can actually create more harm than good. That’s why I always encourage clients to approach gifting as part of a comprehensive wealth management strategy.
If you’re wondering whether gifting wealth now is right for you, let’s talk. You can learn more about me here, and I invite you to explore everything we offer at Manna Wealth Management.
Whether you’re thinking about helping your kids with a down payment, funding a grandchild’s education, or reducing your estate tax bill—let’s build a smart, secure plan together.
Ready to make a lasting impact—while you’re here to enjoy it?
Contact us today and let our Florida-based team help you design a gifting strategy that fits your life, your goals, and your legacy.
