MOTHER ’ S DAY FINANCIAL GIFTS FOR YOUR ADULT CHILDREN |
Mother ’ s Day is almost here . If you ’ re a mother with grown children , you might receive flowers , candy , dinner invitations or some other type of pleasant recognition . However , you might find that you can get more enjoyment from the holiday by giving , rather than receiving . The longest-lasting gifts may be financial ones – so here are a few moves to consider : Contribute to your child ’ s IRA . If your children have earned income , they are eligible to contribute to an IRA , which offers tax benefits and an almost unlimited array of investment options . You can ’ t contribute directly to another person ’ s IRA , but you can write your child a check for that purpose . This could be a valuable gift , as many people can ’ t afford to contribute the maximum yearly amount , which , in 2018 , is $ 5,500 , or $ 6,500 for those 50 or older .
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Give gifts of stock . You know your children pretty well , so you should be familiar with the products they buy . Why not give them some shares of stock in the companies that make these products ? Your children will probably enjoy being “ owners ” of these companies , and if they weren ’ t that familiar with how the financial markets work , having these shares in their possession may greatly expand their knowledge and lead to an even greater interest in investing .
Donate to a charity in your child ’ s name . You might want to donate to a charitable organization that your child supports . In years past , such a donation might have earned you a tax deduction , but the new tax laws , which include a much higher standard deduction , may keep many people from itemizing . Still , it ’ s possible for a charitable gift to provide you with a tax benefit , depending on your age . If you ’ re 70 ½ or older , you must start taking withdrawals from your traditional IRA and your 401 ( k ) or similar employer-sponsored plan , but by moving the withdrawal directly to a qualified charitable group , the money won ’ t count as part of your adjusted gross income , so , in effect , you can get a tax break from your generosity .
Review your estate strategy . Like virtually all parents , you ’ d probably like to be able to leave
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some type of legacy to your children , and possibly your grandchildren , too . So , if you haven ’ t already started working on your estate strategy , consider using Mother ’ s Day as a launching point . At the very least , you ’ ll want to write your will , but you may need much more than that , such as a living trust , a durable power of attorney and other documents . And don ’ t forget to change the beneficiary designations on your life insurance and retirement accounts if you ’ ve experienced a major life change , such as divorce or remarriage . These designations are powerful and can even supersede whatever instructions you might have left in your will . As you can guess , estate planning can be complex , so you almost certainly will want to work with a legal professional to get your arrangements in order .
Mother ’ s Day is a good opportunity for your children to show their love for you , and you can do the same for them by helping bolster their long-term security through financial gifts and legacy planning .
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor . Jason Witcher Edward Jones
Financial Advisor
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