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You can give $18,000 per person per year (2024) completely tax-free. A married couple can give $36,000 per recipient — reducing your taxable estate while helping family.
$18,000
Annual Exclusion (2024)
Per recipient, per year
$36,000
Married Couple
Per recipient (gift splitting)
$13.61M
Lifetime Exemption
Beyond annual gifts (2024)
Gift Tax Rules
| Feature | Rule | Detail |
|---|---|---|
| Annual Exclusion | $18K/person/year | No tax, no reporting required |
| Gift Splitting (Married) | $36K/person/year | Must file Form 709 to elect |
| Direct Medical Payments | Unlimited | Pay provider directly — doesn't count against exclusion |
| Direct Tuition Payments | Unlimited | Pay school directly — doesn't count against exclusion |
| Over the Limit | Counts against $13.61M lifetime | No actual tax until lifetime limit exceeded |
Unlimited Medical & Tuition
Annual Gifts to Children/Grandchildren
Married couple with 3 kids + 6 grandkids = $324K/year gifted tax-free.
Fund 529 Plans
5-year superfunding: $90K at once ($18K × 5 years) per beneficiary. No future gifts for 5 years.
Pay Tuition Directly
Unlimited and doesn't use your $18K exclusion. Pay the school, not the student.
Gift Appreciated Stock
Gift stock instead of cash. Recipient gets your cost basis — avoids your capital gains.
Irrevocable Trust Gifts
Crummey trust allows annual exclusion gifts that stay in trust (not given outright).
Annual Exclusion Resets
Use it or lose it. Can't carry forward unused exclusion to next year.
Form 709 Due
Only required if gift splitting or gifts over $18K to one person.
Lifetime Exemption May Drop
Current $13.61M exemption may revert to ~$6M in 2026 if law expires. Gift now.
2026 Sunset Warning
Key Takeaways