The Blubber

"A significant tax incentive is scheduled to expire in 2025, with many wealthy parents rushing to transfer their assets to their children," per YF.

With a major tax incentive set to expire in 2025, many wealthy parents are hurrying to transfer assets to their children, driven by concerns that a new tax law could complicate passing wealth to future generations. As Vice President Kamala Harris gains momentum in the 2024 presidential race and advocates for higher taxes on the rich, these families are taking swift steps to secure their wealth.

Currently, individuals can transfer up to $13.61 million tax-free, while couples can give up to $27.22 million. After 2025, this amount is expected to be halved, prompting wealthy families to act quickly before the tax laws change.

They worry that a potential Democratic presidency could introduce new tax policies that limit their ability to transfer wealth. However, while focusing on their children's financial futures, many parents are also concerned about the emotional impact of such large transfers.

Monika Hengesbach and other wealth advisors are encouraging families to think about the psychological effects on their children. While the tax savings are substantial, it's crucial to consider how sudden wealth might affect a child's mental health and life choices.

Transferring wealth isn't just about money; it's also about preparing the next generation to manage the responsibilities that come with it.