The $75K Gift That Beats a $400K Inheritance
Executive Summary
Parents often focus on leaving a large inheritance, but the truth is, timing can matter more than the amount. Helping your children financially at the right moment, while they’re building their lives, can create far greater long-term impact than a larger inheritance decades later. Keith Demetriades, CFP®, CKA®, explains when and how to give, how much you can share without affecting your own retirement, and why a well-timed gift can set the next generation up for success.
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The $75K Gift That Beats a $400K Inheritance
Most parents spend years working hard, saving, and protecting what they’ve built with the idea that they’ll pass their wealth to their kids someday. But giving your kids a smaller gift today can often create a much bigger impact on their lives than leaving them a large inheritance down the road.
If you wait until you die to hand off your money, you may miss a huge opportunity, because the timing of a gift can matter more than the amount.
When is the best time to give your adult children money?
Is it when they’re 25, trying to pull together a down payment while paying rent that eats up 40% of their income? Or is it when they’re 55, established in their careers, kids grown, and likely already homeowners?
Most parents would say the 25-year-old needs help more. But our money doesn’t follow that logic. We save and protect our assets until the end, then hand them over when our kids need them the least.
The reality: your adult children’s early career years — roughly ages 25 to 35 — are when money has the greatest leverage. Helping them build a financial foundation at that stage can shape their entire trajectory.
Why is giving young adult children money so valuable?
Your adult children are at the highest leverage point of their lives. Every decision in that window — buying a first home, paying down debt, building a career — compounds over time.
Every dollar you invest in them during this stage can have more lifetime impact than several times that amount later.
Example:
Imagine you retire with $1 million and plan to leave your daughter $400 000 at age 55. It’s a meaningful inheritance, but by then, she’s already stable. She owns her home, her kids are grown, and her career’s on track. The inheritance is appreciated, but it doesn’t really change her life.
Now, picture a different version.
When she’s 27, you help her with $75,000 toward a down payment. Instead of renting, she starts building equity right away. Her home appreciates, her loan balance drops, and her net worth grows year after year.
When she later inherits $325 000 instead of $400 000, the lesser amount doesn’t matter, because the earlier $$75,000 helped create far greater opportunity, stability, and confidence.
How much can parents give their children without paying gift tax?
In 2025, you can give up to $19,000 per year per child without any gift-tax implications. Married couples can give $38,000 per child.
If you have two children, you and your spouse could transfer up to $76,000 in one year without touching your lifetime exemption.
If you want to give more, you simply file a gift-tax return so the IRS can keep track. The extra amount counts against your lifetime exemption, which is $13.99 million per person in 2025.
Beginning January 1, 2026, the lifetime exemption increases to $15 million per person, with future inflation adjustments.
For most families, that means gift taxes still won’t be an issue.
How can you support your kids financially without hurting your own retirement?
Before giving, start with the Safety Check: never give money that jeopardizes your own retirement or healthcare needs. Your financial security comes first — always.
Next, run the Leverage Test: will the money go toward something that builds long-term stability, like a down payment, education, or debt elimination? Or is it funding lifestyle upgrades or vacations? The right gifts create growth, not dependency.
The timing also matters. The ideal window is when your kids are financially responsible but facing a major hurdle. Too early and they may not appreciate it, too late and the impact fades.
Finally, communicate clearly. Be open about what the money is for and what it isn’t. A gift paired with accountability becomes a lesson in stewardship, not entitlement.
What’s the right way to give money without creating dependence?
The goal isn’t to hand out blank checks. It’s to empower the next generation to make strong financial decisions. Strategic gifts target leverage points: homeownership, education, business capital, or eliminating high-interest debt.
When you pair generosity with clear expectations, it reinforces confidence and responsibility. You’re not just transferring money — you’re transferring values.
A smaller gift today may do more for your children than a much larger inheritance decades from now, and you’ll get to see the difference it makes! Helping your kids during their highest leverage years can change their entire path forward.
Real wealth starts with real life. Don’t just plan the numbers. Plan the life.
Contact Information
Keith Demetriades, CFP®, CKA®
Kingsview Partners — Pampa, Texas
(806) 223-1105
www.kingsview.com/advisor/keith-demetriades/
Keith believes real wealth starts with real life. He created the 4D Client Experience to help guide decision-making and ensure your money works as a tool to support your life. If you’re ready for a financial plan that reflects how you live and what you’re building toward, contact Keith at the number above or visit Kingsview Partners.
Disclaimer
The information provided in this blog is for educational purposes only and should not be considered financial advice. Please consult a qualified financial advisor to discuss your specific situation and needs. Past performance does not indicate future results, and all investments carry risks, including potential loss of principal. Any financial product or strategy references are purely illustrative and should not be construed as endorsements or recommendations.
Investment advisory services offered through Kingsview Wealth Management, LLC (“KWM”), an SEC Registered Investment Adviser. Insurance products and services are offered and sold through Kingsview Trust and Insurance Services (“KTI”), by individually licensed and appointed insurance agents. KWM and KTI are subsidiaries of Kingsview Partners. KWM is an investment adviser registered with the Securities and Exchange Commission (“SEC”).
