A Trio of Financial Gifts that Show Great Thoughtfulness - and May Reduce Taxes

  A Trio of Financial Gifts that Show Great Thoughtfulness - and May Reduce
                                    Taxes

PR Newswire

Dec. 3

This time of year, many people start to wonder about two questions: what kind
of gift can I give a loved one that will never wind up in a garage sale, and
how can I prepare for my annual check-in with the Internal Revenue Service
(IRS) on April 15, 2014?

(Photo: http://photos.prnewswire.com/prnh/20131203/NY26777-INFO)

Charitable giving could be the answer. While the most cherished gift might be
one that's hand-made, AXA Equitable has some ideas for people who can't sew,
bake holiday morsels, or write music or poetry, but still want to show
extraordinary thoughtfulness and generosity (while sometimes helping to reduce
taxes!).

Monetary Gifts Tax-Free up to $14,000

  oCurrently, the IRS will allow gifts up to $14,000 (or $28,000 if you give
    jointly with a spouse) per calendar year to as many people you have on
    your holiday list in cash, investments, and/or property without regard to
    the recipient's age and without triggering a mandatory filing of Gift Tax
    Form 706.

Custodial Account for a Child

  oThis can allow you to establish a savings or investment account in a
    child's name to help him or her with college costs that are already
    running into the five figures annually. The money also can be used for
    expenses such as marriage or buying a house. These gifts can be very
    beneficial for adults looking to minimize their estate taxes.
  oYour options for a custodial account include savings accounts, Series EE
    U.S. Savings Bonds, mutual funds, or securities, the latter including
    stocks, T-bills, and zero-coupon bonds. These benefits are provided under
    the Uniform Gift to Minors Act (UGMA) and Uniform Transfers to Minors Act
    (UTMA). If you are considering establishing such a custodial account,
    please read this article on financial gifts and consider consulting with a
    tax advisor about your financial situation.

Additional Considerations Before You Act

  oSome drawbacks exist to these gifting vehicles, such as reducing the
    amount of financial aid a student may be eligible for. In addition, once
    the child reaches the age of majority under state law, he or she may have
    access to the entire UGMA/UTMA account and may not be legally obliged to
    use the money for educational expenses.
  oIf you suspect that your child or grandchild might not handle education
    savings responsibly and therefore hesitate to give a large gift directly
    to a recipient, the IRS allows you another avenue: you may pay a person's
    college or other expenses, such as medical costs, on a gift-tax-exempt
    basis and with no dollar limits attached. Simply make out a check directly
    to the institution.
  oAnother thing to keep in mind is that an adult gift recipient is fully
    responsible for payment of any capital gains tax on the appreciation of
    the gift's value.

Life Insurance Charitable Legacy Rider

  oIf you are thinking of leaving money to charity, AXA Equitable offers
    clients a Charitable Legacy Rider with certain permanent life insurance
    policies that provide an additional 1 percent death benefit to a
    recognized charity of the donor's choice. The rider, which can be attached
    to policies of $1 million or more, is flexible and can be changed and
    spread across multiple qualified charities. In addition, the rider adds no
    additional costs to the policy, does not increase the premium, and does
    not reduce cash values or cause a reduction in the death benefit. Read
    this article on charitable giving to learn more, and consult your
    financial professional.

Charitable Giving around the World Infographic
Click here to download an infographic on the state of charitable giving around
the world:
http://www.axa-equitable.com/email-attachments/w/lif/2013/152672-ChrtblGvng-Infogrphc-FA2.pdf

More information on charitable giving can be found under on the AXA Equitable
website at:
http://www.axa-equitable.com/learning-center/estate-planning-articles.html

About AXA Equitable

In business since 1859, AXA Equitable Life Insurance Company (NY, NY) is a
leading financial protection company and one of the nation's premier providers
oflife insurance,annuity, and financial products and services. The company's
products and services are distributed to individuals and business owners
through its retail distribution channel, AXA Advisors, LLC (member FINRA,
SIPC) and to the financial services market through its wholesale distribution
channel, AXA Distributors, LLC.

AXA Equitable, a subsidiary of AXA Financial Inc., is part of the global AXA
Group, a worldwide leader in financial protection strategies andwealth
management with 102 million clients in 57 countries as of December 31,
2012."AXA Group" refers to AXA, a French holding company for an international
group of insurance and financial services companies together with its direct
and indirect consolidated subsidiaries. Find AXA Equitable
onFacebookandTwitter. For more information, visitwww.axa-equitable.com.

AXA Equitable and AXA Advisors do not provide tax or legal advice. Please
consult with your professional tax and legal advisors regarding your
particular circumstances.

Media Contact:
Discretion Winter, 212-314-2968 or discretion.winter@axa-equitable.com

/PRNewswire -- Dec. 2, 2013/

SOURCE AXA Equitable

Website: http://www.axa-equitable.com
 
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