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    Estate Gifting Planning

    Give while you can see them enjoy it.

    Annual gift exclusion

    • $19,000/year per recipient in 2025. NO tax. NO reporting.
    • Married couples can give $38K/year per recipient ($19K each).
    • Each recipient is separate — give to all kids + grandkids.
    • Family of 4 (2 kids + 2 spouses) = $76K/year tax-free for couple.
    • Stay UNDER limit to avoid filing IRS Form 709.

    Tax-smart gift options

    • 529 College Plan — fund up to $90K at once (5-year acceleration). Grows tax-free.
    • Direct tuition payment — UNLIMITED if paid to school directly. Doesn't count as gift.
    • Direct medical payment — UNLIMITED if paid to provider directly.
    • Roth IRA contributions — for working grandkids (under earned income).
    • Down payment help — limit gift to annual exclusion to avoid issues.

    Charitable giving

    • QCD (Qualified Charitable Distribution) — give from IRA directly to charity. Up to $108K/yr (2025). Counts toward RMD. NO income tax.
    • Donor Advised Fund — Fidelity Charitable, Vanguard. Donate big now, distribute over years.
    • Charitable Remainder Trust — give appreciated stock, get income for life, charity gets remainder.
    • Stock donations — give appreciated stock. Avoid capital gains.

    Heir tax savings

    • Roth conversion — convert traditional IRA to Roth. Heirs inherit tax-free.
    • Step-up in basis — appreciated assets at death get reset basis. Heirs sell with little/no capital gains.
    • Life insurance — proceeds tax-free to heirs.
    • Trust planning — protects assets from heirs' creditors / divorces.

    Watch your own future

    Don't over-gift. Healthcare costs in 80s+ can be massive. Keep enough for yourself + spouse to age in place comfortably with care needs. Generous in retirement = run-out at 88. Plan with fee-only advisor — NAPFA.org.