Gifting and philanthropy.

For 2025, the annual gift tax exclusion is $19,000, meaning a person can give up to $19,000 to as many people as he or she wants without having to pay any taxes on the gifts. Couples are entitled to give $38,000 tax-free to any individual ($19,000 per spouse).

Bottom Line: Annual gifting is an effective tool to transfer wealth to your loved ones or provide financial assistance. Discuss gifting strategies with your financial advisor to ensure gifts are funded in the most tax-efficient manner.

For 2025, the IRS allows a person to give away up to $13.99 million in assets or property over the course of their lifetime and/or as part of their estate. This number will increase to $15 million per person in 2026 (or $30 million per couple).

If a gift exceeds the annual exclusion limit, the difference is simply subtracted from the person’s lifetime exemption limit and no taxes are owed, however a gift tax return should be filed to record the excess gifting amount.

Bottom Line: If your net worth exceeds $13 million, consider discussing estate planning strategies with your financial advisor.