Why You Should Start Giving Now

Gifting assets to family members or to charitable organizations has long been a way for estate owners to reduce the size of their estate for tax liability purposes while benefiting loved ones or beloved causes. Currently, the tax code allows for each individual to give $13,000 a year ($26,000 for married couples) to as many people or charities as they want without having to pay a “gift tax”. This “annual gift exclusion” is generally increased each year based on inflation, but there is also a maximum exemption that caps the total amount of gifts a person or couple can give throughout their lifetime.