Question From Fellow Church Member on Planning

[Super Mom]

A lady at church asked me about her Mom's tax situation. She's evidently elderly and has a fairly high income between deceased husband's pension and SS (she has to pay taxes) The lady wanted to know what the mom could do to relieve some of her tax burden, such as donating--that I understand. But what my knowledge is limited on is should she be gifting amounts now? And is there anything she can do for tax benefits now other than donating to charity? My limited knowledge on the gifting is that it may come in handy for estate tax planning?? Any advice is appreciated!!!!

Thanks!!!!

[Snaggletooth]

Tax Professional

Yes, you can help her quite a bit.

Tell her to see a local tax professional. If she's too elderly to get out, have this family member see a tax professional.

Gifting and estate planning is arguably the most complex (and unpredictable) part of tax planning. If she goes to an attorney, she should go to a tax attorney. A "certified financial planner" can help with investments, but will be making a commission on financial products sold.