Giving While You’re Living: When Your Legacy Can Start Now

Written By Matt Evans

When families think about transferring wealth to their children, the conversation often begins with an estate plan.

But an inheritance does not necessarily have to begin after someone is gone.

For parents who have accumulated significant wealth and determined that their own retirement needs are well funded, another question may be worth asking:

Could some of this money mean more to my children today than it will decades from now?

The Timing of a Gift Can Matter

Consider when adult children often face their largest financial demands.

They may be buying a first home, raising children, paying for education, building a business, or establishing their own financial foundation.

An inheritance received decades later may still be meaningful. But a thoughtfully planned gift made earlier can arrive at a time when it has the potential to affect an important chapter of life.

There is also something an estate plan cannot provide: the opportunity to see the impact yourself.

Helping with a down payment, funding a grandchild's education, or giving an adult child greater financial flexibility can allow parents to participate in the outcome rather than simply planning for it.

First, Make Sure Your Own Plan Can Support It

Generosity should not come at the expense of your own financial independence.

Before making substantial gifts, it is important to understand what your retirement may require, including lifestyle expenses, healthcare costs, taxes, longevity, and unexpected needs.

Once those needs have been evaluated, families may discover they have more capacity to give than they realized.

That can shift the conversation from, “How much will my children eventually inherit?” to, “What could we thoughtfully give today?”

Lifetime Giving Can Also Be an Estate Planning Conversation

For families with larger estates, gifting may have tax implications as well.

In 2026, an individual can generally give up to $19,000 per recipient without using any of their lifetime federal gift and estate tax exclusion. For married couples, that can potentially mean up to $38,000 per recipient when both spouses make qualifying gifts. Giving more than the annual exclusion does not necessarily mean gift tax will be owed, but it may trigger reporting requirements and use a portion of the donor's lifetime exclusion.

State estate taxes can add another layer. Illinois, for example, has its own estate tax and a $4 million exclusion threshold, making lifetime gifting an important consideration for some Illinois families.

There may also be other planning opportunities. For example, qualifying tuition payments made directly to an educational institution can generally be excluded from gift tax, although this applies specifically to tuition and not expenses such as room and board.

A Legacy You Get to Experience

Estate planning is ultimately about more than minimizing taxes.

It is about deciding what you want your wealth to accomplish.

For some families, the right answer will be preserving assets for the future. For others, once their retirement is secure, giving generously during their lifetime may allow their wealth to serve the people they care about when it can be especially meaningful.

At VestGen Wealth Partners, we believe wealth transfer decisions should be considered alongside retirement planning, taxes, family priorities, and the legacy you want to create.

Sometimes that legacy does not have to wait.

This material is for informational and educational purposes only and does not constitute financial, tax, or legal advice. VestGen Advisors does not provide tax or legal advice. Consult a qualified tax or legal professional regarding your specific circumstances.