Annual Gift-Giving

Bryce J. Bergey, Vice President, Institutional Investments, Univest Bank and Trust Co.

It is better to give than to receive – particularly if your assets are substantial and you're seeking ways to potentially reduce gift and estate taxes. By giving away some of your assets now to your children or other loved ones, you can dramatically reduce your future taxable estate.

By choosing to give away assets now instead of waiting until after you've departed, you can see the benefits of your gift-giving. Imagine the help and happiness you could provide by assisting a friend in immediate financial need or a family member who could benefit from gaining greater long-term financial security.

Long-term Financial Benefits

If your assets are substantial, a single gift of up to $13,000 may not dramatically affect your long-term tax situation. For greater impact, you might consider creating an annual gift-giving program – perhaps in conjunction with your spouse.

For instance, if you and your spouse each give $13,000 ($26,000 combined) to a single recipient for 10 consecutive years, you will decrease your taxable estate by $260,000. And this tax-saving benefit is magnified if you give away assets that may appreciate in value, such as stocks.

For more information and tools to help with estate planning, schedule a confidential appointment with one of the trust and estate planning professionals at Univest Bank and Trust Co. at 215-721-2446. We're here to help.

Note that this financial institution does not give tax advice. Consult a qualified tax advisor for guidance about your situation. Investment products offered by Univest Bank and Trust Co.'s Wealth Management and Trust Division and Univest Investments, Inc., member FINRA and SIPC, a licensed broker dealer and investment advisory subsidiary of Univest Corporation of Pennsylvania, are not insured by the FDIC or any federal government agency, are not a deposit or other obligation of or guaranteed by the depository institution, and are subject to risks, including the possible loss of principal amount invested.

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