For years, legacy planning conversations centered on one question: Would the federal estate tax exemption expire?
Now, that uncertainty has largely been removed. The One Big Beautiful Bill Act permanently set the federal estate and gift tax exemption at $15 million per individual ($30 million for married couples), giving families greater confidence when planning for the future.
With that question settled, it's time to ask a different one:
Why wait to share your legacy?
What Is Lifetime Gifting?
Lifetime gifting is exactly what it sounds like—sharing your wealth with loved ones or charitable organizations while you're still here to see the impact.
Rather than waiting for assets to be distributed through your estate, lifetime gifting allows you to watch your generosity make a difference. You might help a grandchild pay for college, provide a down payment for a child's first home, support a family member starting a business, or make a meaningful gift to a charity that's close to your heart.
The greatest benefit isn't always financial—it's being able to experience the joy of seeing your gift change someone's life.
What Are the Benefits of Giving While You're Living?
Beyond the emotional rewards, lifetime gifting can also offer financial and tax-planning advantages.
Because you're making gifts over time, you have the flexibility to adjust your strategy as family needs change. You can be intentional about who receives your gifts, when they receive them, and how they're used. It also gives you the opportunity to discuss your wishes with your family rather than leaving those conversations for the future.
Common Lifetime Gifting Strategies
There are several ways to incorporate gifting into your overall legacy plan:
- Annual Gifts: In 2026, you can give up to $19,000 per person each year ($38,000 for married couples) without using any of your lifetime exemption.
- Donating Appreciated Investments: Giving appreciated stocks or other investments to charity may reduce capital gains taxes while potentially providing a charitable deduction.
- Qualified Charitable Distributions (QCDs): Individuals age 70½ and older may be able to donate directly from an IRA to a qualified charity, potentially satisfying required minimum distributions without increasing taxable income.
- Donor-Advised Funds (DAFs): These accounts allow you to make a charitable contribution today, receive a potential tax deduction now, and recommend grants to charities over time.
- Charitable Remainder Trusts (CRTs): These trusts can provide income during your lifetime while supporting a charitable cause after your passing.
Why Legacy Planning Is Worth Revisiting
Even if you've already created a legacy plan, changes in tax law make this a good time to review it.
A thoughtful lifetime gifting strategy isn't just about mitigating taxes—it's about making intentional decisions that reflect your values, strengthen your family's future, and leave the legacy you want to create.
The most effective plans are built collaboratively. Your financial professional, tax advisor, and estate planning attorney each bring an important perspective to the conversation.
If you've been wondering whether lifetime gifting makes sense for your family, we'd be happy to help you explore your options and determine how it could fit into your long-term financial and legacy plan.
For specific estate planning or tax planning advice, please consult a qualified estate planning attorney or tax advisor/CPA.