Holiday Gifting and Estate Planning: Share Joy, Spread Wealth!

Season’s Greetings! The holidays are a time for twinkling lights, cozy gatherings, and heartfelt generosity. As we celebrate with family and friends, it’s also the perfect moment to reflect on how our giving can create lasting impact. Thoughtful holiday gifting isn’t just about spreading cheer; it can also be a smart way to support your estate planning goals and secure your loved ones’ futures.

One of the simplest ways to give meaningfully is by using the annual gift tax exclusion. For 2025, you can gift up to $19,000 per recipient without incurring gift tax or dipping into your lifetime exemption. Married couples can double the joy by gifting $38,000 per recipient. These gifts can help reduce future estate tax exposure while sharing your wealth in a way that matters most.

Beyond the annual exclusion, the lifetime gift and estate tax exemption; currently $13.99 million per individual in 2025; offers an opportunity for larger gifts. Making significant transfers now can help you share your wealth during your lifetime and secure your family’s future. Think of it as the ultimate holiday surprise!

Holiday gifts don’t always come wrapped in paper and bows. Consider gifting appreciated securities for tax-smart giving, transferring real estate interests to build a family legacy, or passing down treasured heirlooms that carry sentimental sparkle. These thoughtful gifts can create lasting memories while aligning with your estate planning strategy.

The season of giving is also the perfect time to support causes close to your heart. Charitable gifts to qualified organizations are generally tax-free and may provide income tax deductions. Options like donor-advised funds or charitable Trusts allow you to make a gift that truly keeps on giving.

Another meaningful gesture is paying tuition or medical expenses directly for loved ones. These payments do not count toward your annual exclusion and are exempt from gift tax—a heartfelt way to show care during the holidays.

Finally, just as you label your holiday packages, be sure to keep clear records of your gifts. If you’re making significant transfers, consult your estate planning attorney to ensure compliance with IRS rules and alignment with your overall plan.

Strategic gifting can bring happiness today and peace of mind for years to come. Ready to make your holiday gifts part of a smart estate plan? Contact us today and start the new year with confidence!