New Money

Give Your Beaten-Down Stocks to the Kiddos

By Katy Marquardt

Posted: December 31, 2008

Got some sad-looking stocks in your portfolio? A story in the WSJ today, "How to Fix Your Life in 2009," offers this creative suggestion:

Consider giving some of that stock to your kids. There's a silver lining to stock prices' descent: You can give away more shares tax free. In 2008, an individual can give as much as $12,000 to each gift recipient before getting hit with gift taxes. That amount will rise to $13,000 in 2009. The gift helps reduce the size of your estate -- probably a good idea since the estate tax isn't likely to go away soon, financial advisers say. It also may allow the recipients to enjoy a nice rebound from today's depressed stock prices over the long haul.

Might make an interesting birthday gift...although they might not appreciate it just yet.

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New Money

Katy Marquardt, a senior editor at U.S.News & World Report, takes a contemporary look at happenings in the financial world and aims to help young investors get going with their portfolios--or just sound cool at cocktail parties. Have a question? E-mail Katy at newmoney@usnews.com

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