The letters M and G were the first two letters in the English language I was able to recognize. They always appeared on a package of some sort and were always written on a card that read, “To: David, From: M & G.”
M & G stood for Margaret & George, my grandparents. It appeared to us kids that they spent most of their time looking for ways to give to us.
At Christmas our eyes were glued to the driveway as we anxiously awaited the arrival of their four-door sedan from Dallas. The traditional opening of the trunk was an event that, for about 10 seconds, left us speechless. For us kids, that was long time.
Generosity was their hallmark. Not just with their stuff, but with their lives.
Why give
Why are we so inclined to give of our time, skills, and resources, especially as we gain years? One reason may be that we are image-bearers of the One who knows no limits to his giving. Another is that as we get older we gain clarity about the past, a greater understanding of the present, and an ever-increasing eternal perspective on the future and all that God has placed in our care. As Churchill said, “We make a living by what we get; we make a life by what we give.”
Giving to your children and grandchildren is an important aspect of passing on one’s heritage. Of course, legacy is about what today’s actions will bring about in future generations.
What to give
The most important and rewarding gifts to give are your time and influence. In God’s economy, both the supply and value of time increases as we get older. Passing on a heritage is a blessed opportunity.
You may also be blessed with the ability to give financial resources to your grandchildren. Helping with tuition for college or attending a Christian camp may be a double blessing for your children and them. Giving a family vacation can reap wonderful rewards. You might also consider giving to introduce your grandchildren to the opportunity of giving and/or investing.
But, remember, your children have been given the responsibility of raising your grandchildren. Before you make a monetary gift to your grandchildren, ask their parents about the amount, timing, and purpose of the gift.
Some of the first words my children learned were “Don & SuSu” as the heritage of giving continues. Those, of course, are the names of my parents … their grandparents.
Here are a few tax-wise details to consider, as you foster a generous spirit in your own children and grandchildren:
- Consider the amount you are able to gift tax-free each year. Right now, it’s $19,000 per year per recipient. So, a couple can give $38,000 per year per recipient.
- Remember that, generally, gifts for the purpose of medical care and college tuition, if paid directly to the service provider, are not taxable gifts and don’t count against other limits.
- Explore the new state and private college tuition programs and the educational IRA and 529 plans. They have become more attractive recently.
- Trust and custodial accounts may also meet particular objectives.
- Setting up a Giving Fund for yourself, your children, or your grandchildren and giving together is a great way to teach those coming behind you.
Please consult a financial advisor when considering your gifts.
Contact your local NCF team for more family giving ideas.
