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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

November/December 2023

Want to Share Your Wealth with Grandkids?

Grandparents With Grandchildren Sitting On Sofa And Talking

When grandchildren are young, finding a cool toy or the latest electronics for them during the holidays is easy. But last year’s presents may be long forgotten when the next holiday rolls around. This year, consider giving grandkids gifts that will benefit them for many years. Your financial and tax professionals can help.


Annual Gifts
Wealthy grandparents can reduce their taxable estates by making annual gifts to grandchildren (and others) without paying gift taxes. For 2023, the annual gift tax exclusion allows you to give up to $17,000 per recipient — $34,000 if your spouse joins in the gift. Make sure you are confident that your grandchild will treat the gift responsibly before you gift a large sum.


Pay for Educational or Medical Costs
Beyond what the annual gift tax exclusion allows you to gift tax-free, you can give unlimited amounts to your grandchildren to pay for school tuition or medical expenses. The only catch is that you must pay the school or medical facility directly.


Head Start on Retirement
If your grandchild has earned income, you can contribute up to the lesser of that amount or $6,500 to a Roth IRA for your grandson or granddaughter. Withdrawals are tax-free at retirement, assuming qualifications have been met.


Custodial Accounts
Consider contributing to a custodial account for your grandchild. Under the Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA), up to $1,250 of earnings are tax-free, while the next $1,250 of earnings are taxed at the child’s tax rate. (Additional gains are taxed at the parents’ rate.) However, there are downsides. Your grandchild’s ownership of the account could affect eligibility for financial aid. And your grandchild has full control of the funds at either age 18 or 21, depending on the state.


Life Insurance
Another option is to purchase a life insurance policy and name your grandchild as a beneficiary. Generally, your grandchild will receive the proceeds tax-free when you die.

This may be ideal for any special needs grandchildren. You can combine the policy with a trust to help ensure the money is spent properly, assuming the beneficiary cannot make those decisions.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.