Gifting Up The Family Tree
Sometimes the Smartest Move Is Giving Money Up, Not Down
Estate planning conversations almost always focus on money moving down the family tree, to children, to grandchildren. Occasionally, though, the more interesting opportunity runs the other direction.
In certain situations, adult children can gift funds to parents, who then use that money to cover the tax bill on a Roth conversion, potentially at a lower rate than the adult child would have paid on the same income. Down the road, those Roth assets can pass back to the next generation.
This kind of strategy is not for every family, but it is a good reminder that some of the most valuable planning ideas are not the obvious ones.
If advanced retirement or estate strategies like this are on your radar, our 2026 Retirement Tax Checklist is a solid starting point, download it at InterlockFinancial.com under “Slott Into Retirement” and reach out to our team today.
Gifting Up The Family Tree
