If your estate may exceed the federal estate tax exemption—or you simply want to give more during your lifetime—strategic gifting can be one of the most effective tools in your estate plan.
And with the federal exemption scheduled to drop significantly in 2026, now is the time to take action.
What Is the Gift Tax Annual Exclusion?
In 2024, you can give up to $18,000 per recipient per year without using your lifetime exemption or triggering gift tax reporting.
That means a married couple with three children could gift up to $108,000 per year tax-free ($18,000 x 2 spouses x 3 kids).
Why Gift During Life Instead of Waiting?
- Reduces your taxable estate
- Allows you to see your loved ones benefit from your generosity
- Helps younger family members with education, home purchases, or business startups
Popular Gifting Strategies
- Pay tuition or medical bills directly (these are unlimited and tax-free)
- Fund a 529 college savings plan (can front-load five years of gifts)
- Transfer minority business interests at discounted values
- Gift into irrevocable trusts to retain some control or protect from creditors
How the 2026 Sunset Could Impact You
The current lifetime estate/gift tax exemption of $13.61 million per person is expected to drop by about half in 2026. That means many more families may face estate taxes unless they lock in gifts now under the higher threshold.
Louisiana Bonus Tip
Because Louisiana is a community property state, gifts made from joint assets need to be carefully tracked to ensure proper tax reporting.
We’ll Help You Give with Purpose and Precision
At Oak Grove, we’ll coordinate with your CPA and financial advisor to structure a gifting plan that aligns with your goals—and protects your family’s future.
