January 2026 Client Profile

Robert and Linda, a married couple, want to reduce the size of their taxable estate while helping their family financially. They have three children and one grandchild. By using their annual gift tax exclusion, each spouse can give up to $19,000 per recipient in 2026 without triggering gift taxes.

Robert and Linda can each give $19,000 to all four family members, totaling $38,000 per person—or $152,000 tax-free for the year. These gifts can be made in cash, investments, or even directly paying for education or medical expenses.

By making these annual gifts, Robert and Linda gradually transfer wealth to their heirs while preserving their lifetime estate tax exemption. However, they must make the gifts by December 31 to take advantage of the current year's exclusion, since any unused portion does not roll over.

Consistently applying this strategy each year can significantly minimize future estate taxes and ensure their assets are distributed according to their wishes.

Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.