Lawyer clarifies myth about gifting assets to avoid inheritance: 'It's a mistake'

It is common for elderly people to consider gifting all their assets to prevent their children from inheriting them, but according to lawyer Laura Lobo, this practice is a frequent mistake with significant implications.

The professional warns that this strategy, whilst it seems straightforward, can create legal and tax problems for both donors and recipients. Lifetime gifts do not eliminate tax obligations and can prove more costly than a traditional inheritance.

Furthermore, gifting all one’s assets leaves the donor in a vulnerable position, losing control over their estate and becoming financially dependent on the beneficiaries. Experts recommend seeking legal advice before making decisions about transferring assets.

Source: informacion.es