There are two popular ways to do so.
1) Gift dividend-paying stocks or funds
You can gift your dividend-paying stocks or stock funds to your parents. The payouts of dividend-paying stocks usually are qualified dividends, on which you might owe 15% or 20% in tax. In the hands of taxpayers — including retirees — with 2020 taxable income up to $80,000 on a joint return ($40,000 for single filers), such income falls into a 0% tax rate. Ultimately, you might inherit them in the future with a basis step-up, effectively removing any tax on all prior appreciation.
2) Gift appreciated stocks
Another plan is to give appreciated securities to seniors, who can sell them for needed cash. Again, if taxable income is up to the amounts mentioned previously, there will 0% tax on profits treated as long-term capital gains. Helping your parents with their financing can be vital, as many retirees live on tight budgets. This creates a win-win situation and reduces taxes.