Compare gifting an asset now with retaining it and transferring it later. Using editable growth and tax-rate assumptions, the calculator estimates the age when cumulative transfer-tax savings from a present gift overtake the modeled gift cost and opportunity cost. It is a sensitivity analysis, not legal or investment advice.
At year n, cumulative savings = sum of annual savings grown at the entered rate. Cost opportunity value = upfront cost × (1 + opportunity return)ⁿ. Break-even is the first year cumulative savings ≥ cost value.
The displayed age is a scenario milestone, not a life-expectancy prediction. It depends entirely on realized savings and opportunity return.
Tax law, asset ownership, basis, mortality, and legal effectiveness are outside this simplified comparison.
At age 55, a $50,000 cost, $6,000 first-year savings growing 4%, and 5% opportunity return are projected year by year until cumulative savings first meet the compounded cost.
It is the modeled age when projected transfer-tax savings equal the gift tax or transaction cost plus its opportunity cost.
No. Carryover basis, step-up rules, and capital-gains tax should be analyzed separately.
Growth increases the future transfer value and therefore the modeled tax savings from removing the asset earlier.
Yes. If modeled savings do not catch the compounded cost within 100 years, it reports no break-even.
No. Enter rates that fit the jurisdiction, year, and scenario you are testing.
| Series | Projection rule |
|---|---|
| Annual savings | First-year savings grown annually |
| Cumulative savings | Sum through each year |
| Cost value | Upfront cost compounded annually |
| Break-even | First whole year savings meet cost |