Gifts vs. Bequests in Palm Beach County

Gifts and bequests may sound similar, but they represent two very different estate planning strategies in Palm Beach County. If you are creating an estate plan for the first time, it makes sense to acquire a keen understanding of both gifts and bequests. Once you understand the difference, you can decide which strategy makes the most sense for you.

Gifts Occur While You’re Still Alive

A “gift” is something that you give while you’re still alive. You might give a gift in an informal way, or you might do so carefully while keeping proper records. For example, you may decide to give your adult son a car as a reward for graduating from college. You might also give your grandchildren a few hundred dollars during the holiday season or for their birthdays.

In the context of estate planning, “lifetime gifting” is a relatively common strategy. Federal exemptions allow you to transfer up to $19,000.00 per person, without having to pay taxes or even notify the IRS regarding those gifts. Gifting may also help you qualify for Medicaid, as long it occurs well in advance of your application date.

Aside from the annual gifting exemption, there is also a lifetime gift tax exemption to consider. In 2026, this exemption level is at a record high of $15 million per person. Most people will never have to worry about exceeding it, but extremely wealthy families may need to consider the potential threat of federal estate taxes.

Bequests Occur After You Pass

On the other hand, bequests occur after you pass away. People make bequests in their Wills and Trusts. The personal representative or trustee ensures that the necessary asset transfers occur.

Because of the involvement of probate or trust administration, bequests are generally more complex than gifts. With a gift, all you really need to do is transfer the assets and keep basic records. With a bequest, you need to carefully draft a valid Will and/or Trust. Before distribution of the decedent’s assets, , your personal representative or Trustee must pay off your debts before making sure your bequests actually occur.

Which Is Better?

One might argue that because gifts bypass probate, they are inherently better than bequests. On the other hand, it may not be practical to give away all of your assets before you pass away. Remember that aside from a Will, you can also transfer assets to your beneficiaries using trusts. Consider speaking with a lawyer to learn more about trusts.

Can an Estate Planning Lawyer in Palm Beach County Help Me? 

An estate planning lawyer in Palm Beach County may be able to explain the difference between gifts and bequests in more detail. Both strategies are perfectly valid, and you can combine gifts and bequests to achieve your unique estate planning goals. For further guidance, consider reaching out to Kitroser Lewis & Mighdoll today.

Sources:

 floridabar.org/public/consumer/pamphlet026/

cflscouting.org/bequests-and-retirement-gifts/