Cox, Arthur T.
October 1994
Journal of Financial Planning;Oct94, Vol. 7 Issue 4, p181
Academic Journal
When should taxable gifts be made before death? Conventional wisdom is to delay paying taxes whenever possible, and in many situations this is the appropriate choice. But not always. This paper offers a method for measuring the benefit of making taxable gifts before death by computing an implied rate of return based on the size of the gift. The decision to gift or not thus can be made on whether the rate of return of the taxable gift exceeds the client's expected or desired rate of return, or opportunity cost.


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