Wealthy taxpayers can reduce the size of their taxable estates by giving strategic holiday gifts to family members. For example, under the annual gift tax exclusion, you can give up to $18,000 ($36,000 from married couples) per recipient in 2024, with no federal tax implications. Such gifts don’t deplete your lifetime gift and estate tax exemption ($13.61 million for 2024). 2025 is a new year for gift tax exclusions, consider making tuition or medical debt payments on behalf of loved ones. So long as you pay the institution or provider directly, such payments aren’t considered taxable gifts. Contact us for more tax-smart gift ideas.
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