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EPISODE 118 – Should You Give While You’re Living? The Financial and Emotional Case for a Warm-Hand Legacy

Many people plan to leave an inheritance to their family, favorite charities, or both. But what if there were benefits to giving while you’re still alive?

In Episode 118 of Last Paycheck, Archie Hoxton and Jimmy Sutch unpack the increasingly popular strategy of “giving while living”—sometimes called “giving with a warm hand.” Rather than waiting until death to transfer assets, this approach allows donors to see the impact of their generosity in real time.

Why People Choose to Give While Living

For some, it’s about timing: helping a child buy a first home, funding a grandchild’s 529 plan, or making a meaningful charitable gift during their lifetime. Others are motivated by the emotional reward—watching loved ones thrive or seeing a cause they care about move forward.

Key motivators include:

  • A strong financial foundation and guaranteed income
  • A desire to reduce future estate complexity
  • A wish to avoid probate or family conflict
  • The emotional fulfillment of seeing a gift make a difference

The Financial Upsides

Archie and Jimmy highlight several financially strategic ways to give:

  • Annual Gift Tax Exclusion: In 2024, individuals can give up to $18,000 per recipient tax-free (double for couples).
  • Direct Payments to Institutions: Paying medical or tuition expenses directly to providers avoids gift tax and offers simplicity.
  • Appreciated Stock Gifts: Donating appreciated investments can reduce capital gains taxes.
  • Qualified Charitable Distributions (QCDs): For those 70.5 and older, QCDs allow IRA assets to be donated directly to charity, reducing taxable income.
  • Donor-Advised Funds (DAFs): These vehicles let donors receive an upfront deduction while distributing the funds over time.

But It’s Not for Everyone

The episode is clear: giving while living must be done with caution. If your own retirement plan isn’t secure, or if you could one day face expensive health care or long-term care needs, giving prematurely could put you at risk.

The best way to determine readiness is through comprehensive financial planning. Archie notes that one of the greatest gifts you can give your heirs is not becoming a financial burden in the future.

Next Steps: Should You Start Giving?

If you’re thinking about giving while living, ask yourself:

  • Have I secured my financial future?
  • Are there opportunities to reduce taxes now through smart giving?
  • Is there a legacy I’d like to see come to life today?

Generosity can be powerful, especially when planned wisely. With the right strategy, you can give with confidence and impact.

Is Giving While Living Right for You?

Download our warm-hand legacy worksheet and see if you’re financially—and emotionally—ready to share your wealth to evaluate your current investments, or schedule a planning consultation with our fiduciary advisors today.
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