Annual Exclusion Gifts: The Case for Beginning in January, Not December
By Attorney Alexander Bogage
The estate planning process can feel complex at times, but one of the simplest and most effective tools available is something the IRS gives you every year: the annual gift tax exclusion.
Most people know it exists. Very few use it well.
2026 Annual Gift Tax Exclusion
The annual gift tax exclusion in 2026 is $19,000 per person, tax-free, which is the same for 2025 . If you’re married, you and your spouse can combine your annual exclusions, together gifting $38,000 per recipient. Gifting is a simple way to pass wealth to loved ones while you’re alive, helping manage your estate in a thoughtful and controlled way.
To illustrate, a married couple with three children can give $114,000 in 2025 and again in 2026. This amount is calculated as $38,000 per child, utilizing the $19,000 annual gift exclusion of each spouse. Married couples should make these gifts from a joint account to ensure proper treatment.
If you plan to gift more than the annual exclusion amount, you will need to file a gift tax return (Form 709).
Use It or Lose It
Many families wait until the end of the year to make gifts. The problem?
If you hold off until the holidays to use the annual exclusion, you’re assuming one important thing – that everything will go exactly as planned.
Life, of course, is unpredictable. If you pass away before completing the gift, that year’s exclusion is lost. You cannot make it up next year, and your estate misses out on a valuable opportunity.
That’s why it can be much smarter, and a lot less stressful, to make gifting a first-quarter tradition instead of a last-minute scramble. A great way to get started is by scheduling a consultation with one of our experienced estate planning attorneys early in the year.
Get Ahead on Gifting: Why Early-Year Planning Pays Off
The annual gift exclusion is one of the most powerful, yet underused tools in estate planning. It only works if you use it, and once the year is over, the opportunity is gone forever.
So instead of rushing in December, shift your strategy:
- Plan your gifting in January.
- Execute in the first quarter.
- Let the benefits compound for decades.
We’re Here to Help!
Give us a call to explore gifting strategies that could be right for your unique situation.
Alexander Bogage
Attorney
What is your all time favorite movie?: This is an impossible question: The Little Prince.
Most memorable place you have vacationed?: Maine. I can still taste the clam chowder and lobster rolls.
What do you enjoy doing in your spare time?: Exercising! I love going to the gym after work followed by a quick sauna session.
Smoked (or Roasted) Salsa
Ingredients:
- 20 Roma tomatoes
- 5-10 jalapenos
- 5 tomatillos
- 2 white onions
- 1 bulb of garlic
- 1 bunch of cilantro
- Olive oil
- 3 tablespoons of salt
- 3 tablespoons of MSG (you can substitute 3 tablespoons of salt)
- Chips!
Directions:
- Cut the garlic in half, pour a tablespoon of olive oil on the garlic, a sprinkle of salt, and roast the garlic at 400 degrees for 30-45 minutes.
- If using a smoker,
- Set smoker to 225 degrees.
- Chop vegetables in half. Place on a wire rack.
- Smoke for 90 minutes, up to 2 hours (watch to ensure the vegetables don’t burn).
- Once the vegetables are done, work in batches to blend them up, adding the salt and MSG as you go (you can use a blender or a food processor).
- Tear the cilantro, add the roasted garlic, and blend it up with the vegetables.
- Let cool in the fridge for a few hours in an airtight container.
- Add fresh lime and enjoy!
- If using an oven (work in batches if you need to),
- Chop the vegetables in half and stick them on a tin foil lined baking sheet.
- Broil for 10 minutes until slightly charred.
- Once the vegetables are done, work in batches to blend them up, adding the salt and MSG as you go (you can use a blender or a food processor).
- Tear the cilantro, add the roasted garlic, and blend it up with the vegetables.
- Let cool in the fridge for a few hours in an airtight container.
- Add fresh lime and enjoy!
Meet Alexander
Estate Planning & Peace of Mind
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Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing.
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