The end of the year is here again, and it's also the perfect season to "transfer assets for your children without worrying about being taxed".
Many people dread the thought of gift tax, but by making good use of time differences and legal limits, it is possible to achieve tax-free inheritance of tens of millions of dollars in a short period of time through legal means.
The statutory limit is 2.44 million yuan per person per year for tax-free gifts.
The combined value of both parents is 4.88 million yuan.
The key point is that the gift tax is settled on December 31st. This means that as long as you give the gift once at the end of December and once at the beginning of January, you can enjoy a tax-free allowance of 4.88 million × 2 = 9.76 million yuan.
But a smart plan certainly goes beyond that!
If a child in the family happens to get married within six months before or after this period, they can take advantage of the tax-free allowance for "marriage gifts".
According to regulations, each parent can each give an additional NT$1 million as a gift, meaning that in just one year-end period, the parents can legally transfer NT$11.76 million without any gift tax.
This is just the calculation for a single household!
If both sets of parents are willing to do it in the same way, it means that all four elders can complete the gift at the same time.
Based on this calculation, the couple could receive up to NT$23.52 million in tax-free allowance within a short period of one month!
Many people think that asset inheritance is a problem only for the wealthy, but in fact anyone with a house, savings, or insurance assets should plan ahead.
By taking advantage of time differences and legally reducing taxes, one can not only reduce future tax burdens but also ensure that assets flow in the direction one desires.
The end of the year is not only a good time to buy funds or plan your tax return, but also a crucial time to help your children build a tax-free legacy.
Don't let time slip away; a smart move could save you millions in gift tax.
# Gift Tax
If the child is still young, there is a risk that giving too much money will lead to reckless spending. The best approach would be to use 2.44 million to buy a pure life insurance policy for him, and then use another 2.44 million to buy a monthly interest-bearing policy.
Pure life insurance policies have a policy value that can be used as proof of future financial resources. If you really need money in a certain year, you can cancel the policy or take out a loan from the policy, making it extremely flexible in its use.
If the investment-linked monthly interest-paying insurance policy is handled properly, not only will the 2.44 million yuan principal deposited for the child remain intact, but approximately 20,000 yuan will also be paid out each month as pocket money.
The annual passive income gradually increased from 20,000 to 40,000, 60,000, 80,000...
If you're worried that your insurance agent might not understand investment-related products and could lose money due to improper handling, you can also choose a principal-protected plan. This involves depositing money at the beginning of the year and receiving payments at the end of the year, with the payments increasing over time. You can pay the premiums in a short period and receive payments for a lifetime.
By doing this every year, you can not only reduce your future tax burden, but also help your children accumulate more assets.
With the right tools, you can not only legally save on taxes, but also achieve smart financial management and long-term investment, making your leisurely retirement life a step closer to reality.
# Life Insurance
Smart financial planning should be done with the help of a wise broker! 🥰
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