At the Alchemia Group we are helping our clients think & act differently in regards to their wealth and its impact on thier family - because we know it is more than just numbers and plans, it's the Balance of Art & Science with Pragmatism and Vision.

The Ritual of Annual Gifts (October 19, 2016)

As we move toward the end of 2016 many advisors, as they have done for many years, are recommending clients take advantage of the ability to make tax free gifts to children and grandchildren. In 2016 this is $14,000 per recipient and a couple can give $28,000 to each child and grandchild. If the same gift is made to spouses of children and grandchildren this can add up to a significant amount of wealth transfer over the years.

But to what end?

A check with the memo line ‘2016 Annual Exclusion Gift’? Is this really a gift? Is this the real intention? To turn what should be something that enhances the relationship between the giver and the recipient into nothing more than a tax transfer? I’d like to suggest a new paradigm for annual gifts.

I’ve linked an excerpt (HERE) from my book, The Middle Way, which tells the story of a family that decided to act differently when it came to using their annual exclusion amounts as gifts to their children. I encourage you to take a few minutes (it is fairly short) to read and reflect on it. The idea of an annual gift can be powerful moment between giver and recipient or it can be an expectation grudgingly satisfied.

No matter what form the ‘Annual Exclusion Gift’ takes, from direct cash gift or to a trust (this happens often) it is another opportunity to enhance your relationship with your family. Don’t miss that opportunity.

Thank you for reading,



The Ritual of Annual Gifts (October 19, 2016)