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As of 2025, the federal government allows individuals to gift up to $18,000 per recipient per year without triggering gift tax reporting. For married couples, that amount doubles to $36,000 per person. This is thanks to annual inflation adjustments to the IRS gift tax exclusion limits.
If you’re thinking about giving gifts to children, grandchildren, or others as part of your estate strategy, it’s important to understand how gift tax rules work—and how they affect your broader estate plan.
Here’s what Georgia residents need to know in 2025.
What Is the Gift Tax Annual Exclusion?
The gift tax annual exclusion is the amount you can give to any individual in a single year without using any of your lifetime gift and estate tax exemption. For 2025, the limits are:
- $18,000 per recipient (individual)
- $36,000 per recipient (married couple splitting gifts)
This means you could gift $18,000 to each of your three children and $18,000 to each grandchild—without filing a gift tax return or reducing your lifetime exemption.
👉 See the IRS’s official gift tax FAQs
2025 Lifetime Gift and Estate Tax Exemption
In 2025, the federal estate and lifetime gift tax exemption is $13.61 million per person. This means you can give away up to $13.61 million over your lifetime before paying federal estate or gift taxes. For married couples, the combined limit is $27.22 million.
Important: This elevated exemption is temporary. Under current law, it’s scheduled to sunset after 2025, dropping back to around $6 million per person in 2026 unless Congress extends it.
Now is the time to plan strategically if you anticipate large gifts or want to reduce the size of your taxable estate.
👉 Read more about gifting and Medicaid look-back risks
What Gifts Count Toward the Exemption?
Not all gifts reduce your lifetime exemption. You can give the following tax-free and without reporting:
- Gifts under the annual exclusion
- Direct payments for someone’s medical expenses (to the provider)
- Tuition paid directly to an educational institution
- Charitable gifts
- Gifts to your U.S. citizen spouse
Only gifts exceeding the annual limit—and not falling into these exceptions—require IRS Form 709 and count toward your lifetime cap.
What About Georgia Gift Tax?
Georgia does not impose a separate gift tax. Only federal rules apply. However, that doesn’t mean you can gift assets without consequences. Large gifts may still:
- Disqualify you from Medicaid eligibility if made within five years
- Trigger capital gains consequences for the recipient
- Cause confusion or disputes if made without a clear estate plan
That’s why gifting should always be part of a coordinated estate planning strategy, not a last-minute decision.
Should You Use Gifting in Your Estate Plan?
Gifting is one of the most powerful estate planning tools available. It can help:
- Reduce your taxable estate
- Shift wealth to younger generations
- Support loved ones while you’re alive
- Avoid probate delays for certain assets
But it can also create unintended tax consequences—or disqualify someone from benefits—if not handled properly.
Consider pairing gifting with:
- A revocable living trust to manage asset transfers
- A Medicaid Asset Protection Trust if nursing home care is a concern
- A structured wealth transfer plan that includes charitable giving or education gifts
👉 Learn how revocable living trusts work in Georgia
Let Hurban Law Help You Gift with Purpose
At Hurban Law, LLC, we help Georgia families build strategic, legally sound estate plans—including smart gifting strategies. Whether you’re planning small annual gifts or major lifetime transfers, we’ll help you reduce taxes, avoid mistakes, and protect your family’s financial future.
Contact us today to make the most of 2025’s gift and estate tax laws—before the rules change again.
