Gifting Phase


DEFINITION of 'Gifting Phase'

The stage in an investor's life where he or she seeks to use his or her accumulated wealth to provide for the current and future needs of family and friends, as well as to leave a mark on the world by funding charities of his or her choice through philanthropy. The investor's concerns during this phase shift from matters of capital accumulation to estate planning and tax minimization.

BREAKING DOWN 'Gifting Phase'

While investing is indeed all about making money, the gifting phase of a successful investor's life can be the most personally fulfilling reward for a commitment to long-term investing. Many prominent investors who were aggressive capitalists in their heyday have gone on to be great philanthropists: for example, the infamous Michael Milken, who made a fortune in the junk bond market in the 1980s but now donates large amounts of money to support prostate cancer research.

  1. Gift Letter

    Written correspondence to a lender stating that money received ...
  2. Gift Tax

    A federal tax applied to an individual giving anything of value ...
  3. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  4. Income Tax

    A tax that governments impose on financial income generated by ...
  5. Bequest

    The act of giving personal property or money such as stocks, ...
  6. Gift

    Property, money or assets that one person transfers to another ...
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  1. Why is the Cayman Islands considered a tax haven?

    The Cayman Islands is one of the most well-known tax havens in the world. Unlike most countries, the Cayman Islands does ... Read Full Answer >>
  2. Why is Luxembourg considered a tax haven?

    Luxembourg has been the tax haven of choice for many corporations and mega-rich individuals around the world since the 197 ... Read Full Answer >>
  3. Why is Panama considered a tax haven?

    The Republic of Panama is considered one of the most well-established pure tax havens in the Caribbean due to extensive legislation ... Read Full Answer >>
  4. Why is Andorra considered a tax haven?

    Andorra is one of many locations around the globe considered a tax haven because of its relatively lenient tax laws. However, ... Read Full Answer >>
  5. Can I put my IRA in a trust?

    You cannot put your IRA in a trust while you are living. You can, however, name a trust as the beneficiary of your IRA and ... Read Full Answer >>
  6. How does the trust maker transfer funds into a revocable trust?

    Once a revocable trust is created, a trust maker transfers funds or property into the trust by including them in a list with ... Read Full Answer >>

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