The holiday season isn’t just about giving presents under the tree — it’s also one of the smartest times of year to give financial gifts that strengthen your estate plan. Whether you’re sharing part of a holiday bonus, giving to loved ones, or supporting charity, the right strategy can reduce taxes and protect your family’s legacy.
Here’s how to make your generosity count — both emotionally and financially.
1. Take Advantage of the Annual Gift Tax Exclusion
The IRS allows you to give up to $18,000 per person per year (2024 limit) without triggering federal gift taxes or using any of your lifetime exemption. Married couples can combine gifts and give up to $36,000 per recipient.
This means you can transfer wealth to children, grandchildren, or anyone else completely tax-free — and lower your taxable estate in the process.
Example: A Georgia couple with three children could gift each $36,000 in 2025, transferring $108,000 out of their estate with zero tax consequences.
For IRS updates, visit the IRS Gift Tax Overview.
2. Use Your Holiday Bonus Strategically
If you’re receiving a year-end bonus, consider how it fits into your estate plan. You can:
- Contribute to 529 college savings plans for children or grandchildren.
- Make charitable donations for an immediate tax deduction.
- Gift appreciated stock to avoid capital gains taxes.
- Fund a trust or life insurance policy to protect future generations.
Learn more about your options with our Georgia Estate Planning Services.
3. Give to Charity — and Save on Taxes
November and December are peak months for charitable giving. By contributing before year-end, you can:
- Reduce your taxable income for 2025.
- Support causes that reflect your family’s values.
- Build a philanthropic legacy through a charitable remainder trust (CRT) or donor-advised fund (DAF).
Our Georgia charitable trust planning services can help you set up gifts that make a lasting difference.
4. Help Family Members the Smart Way
If you’re gifting to help with big expenses — like a down payment, tuition, or medical bills — structure those gifts properly:
- Direct tuition and medical payments made to the institution are not counted toward your annual gift limit.
- Avoid mixing cash gifts with joint accounts that could blur ownership or trigger complications later.
Keeping good records ensures gifts are documented clearly for both tax and estate purposes.
5. Consider Larger Gifts Before 2026
The federal lifetime estate and gift tax exemption (currently over $13 million per person) is scheduled to drop by half in 2026. That makes 2025 a key year for strategic gifting. If you’re planning to transfer substantial wealth, consider acting now while the higher exemption is still available.
Learn more about these coming changes in our post on Preparing for the 2026 Estate Tax Sunset.
6. Review and Update Your Estate Plan
Every major financial move — including holiday gifting — can affect your overall plan. Review your:
- Will and trust provisions
- Beneficiary designations
- Charitable commitments
- Tax strategy and liquidity needs
Our Georgia estate planning attorneys can help ensure your plan stays aligned with your goals and the latest tax laws.
Final Thoughts
The holidays are about generosity and connection — but they’re also the perfect opportunity to build a stronger financial future for your family. With thoughtful planning, your holiday gifts and bonuses can reduce taxes, grow wealth, and create lasting impact.
If you’d like to incorporate charitable giving, gifting strategies, or trusts into your estate plan, contact Hurban Law to start planning before year-end.
