Aug 06, 2026, 10:56:57 AM IST

With people living longer, children often inherit assets only in their 50s or 60s. By then, many major life expenses, such as buying a home, raising children or starting a business,may already be behind them. This is why some experts believe transferring part of your wealth earlier may have a greater impact.

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Giving assets while you are alive lets you see how your wealth is being used and allows you to guide your children in managing it. It can also simplify the transfer process, avoiding issues such as probate, delays and uncertainty over your intentions after your lifetime.

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Before gifting assets, estimate how much money you may need for the rest of your life. One suggested approach is to plan conservatively, even assuming you could live up to 100 years. Only after securing your own retirement and healthcare needs should you consider passing on surplus assets.

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According to the article, cash and liquid financial assets are generally easier to transfer and use than property. If you own multiple properties, you may consider retaining the one you need and gifting others through a properly executed and registered gift deed, after evaluating your own financial security.

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In India, gifts to specified relatives, including adult children, are generally not taxable for either the giver or the recipient. However, gifts made to a spouse or minor child may attract the clubbing of income provisions, where income generated from the gifted asset may continue to be taxed in the giver's hands.

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If your children are tax residents of another country, such as the US, gifting assets during your lifetime may have different tax implications. The article notes that US residents may lose the benefit of a stepped-up cost basis if they receive certain assets before inheritance. Cross-border estate planning may therefore require professional tax advice.

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The article suggests thinking carefully about which assets to pass on. Property may involve more paperwork and transfers, while financial assets such as mutual funds, deposits and shares often have nominations and may be easier for beneficiaries to access or liquidate, particularly if they live overseas.

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A will remains an important estate planning tool, but the article argues that it should not always be the default choice. If your own financial future is secure, consider whether gifting part of your wealth during your lifetime could help your family more, while also allowing you to see the benefits your assets create.

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