As the year winds down, now is the perfect time to combine effective estate tax planning with potential tax savings through the annual gift tax exclusion. This exclusion allows you to gift cash or property (up to a specified value) to unlimited family members or friends each year without triggering gift tax implications.

For 2024, the annual exclusion amount per recipient is $18,000. 2025 this amount will increase by $1,000, bringing it to $19,000 per recipient. This is a notable change—especially considering that the exclusion was $15,000 for several years (from 2018 to 2021). Beginning in 2022, the amount has increased annually by $1,000, adjusted for inflation.

With year-end approaching, now is an ideal time to make tax-savvy gifts and reduce your estate tax burden. If you have any questions about how these changes affect your financial strategy, contact Brinker Simpson. We're here to help you navigate tax planning and maximize your savings.