Considering contributing to a 529 plan for their college education, or making them your life insurance beneficiary. But when that generosity comes at the cost of depleting your own retirement savings, the prospect becomes a lot less compelling. At current levels, most American families will have absolutely zero interaction with federal estate taxes. Amorello explained: "Gifting money actually can help grandparents lessen their own net worth to lower estate taxes. Because if you're leaving behind an inheritance, but half of it is going to the estate taxes, that can be a daunting realization."

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Persons: Kathryn Amorello, Don, It's, Amorello, you've, they're, we've, — Organizations: Service, Financial, Internal Revenue Service Locations: Wall, Silicon, Amorello