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Gifting Doesn’t Have to Be A Tax Headache


Cash Is King

December 11, 2022

With the current lifetime estate tax at an all-time high of $12.06 million per person, you may not be thinking much about your long-term estate strategy. However, history has shown this amount has fluctuated which requires ongoing planning. In fact, the estate tax is set to sunset in a few years to $5 million adjusted for inflation, so this is something that should be on your radar.


Working with clients who have various sizes of net worth, we believe one of the most effective estate planning tactics that is not discussed nearly enough is utilizing the annual gift amount each year. This allows you to gift any person $16,000 in 2022 ($32,000 per married couple) and $17,000 in 2023 without having to file gift tax forms or reducing the amount you can leave behind to your heirs. This amount has increased over the years as the IRS tries to keep pace with inflation. Why is this important? If you would like to transfer wealth over time this can be an extremely effective strategy. Do you want to have money saved for college for a child, or enough money for a down payment on house one day? This could be your answer to get there.

One key piece of information to remember is that the lifetime estate amount of $12.06 million does not include the annual gift amount given. Only when you gift over the annual gift amount is that deducted from the lifetime estate.

As 2022 comes to a close you might want to start considering your family's goals for next year. It's so important to make sure you have an up-to-date estate plan (see tips below). Gifting money to those you plan to help over time may be one of those strategies. In addition, as you set your new year's goals it may be a great time to make sure you've completed or updated your estate plan with a qualified estate planning attorney. Having a will, medical directives, and power of attorney can be extremely valuable to your family. If you don't make this a priority, the state could be left deciding your estate for you.

  • Contact a local attorney to setup your estate plan. If you don't have a contact, ask your current CPA or advisor for a referral. An online service like Legal Zoom is not recommended.
  • Discuss your family's goals and what's important to leave behind, or to gift while alive. Putting money into 529 education plans or custodial investment accounts may be a consideration that could prove extremely beneficial down the road.
  • Make sure someone has a copy of your executed estate plan i.e., your financial planner, executor, or another close family member whom you trust.

If you would like to receive more information on making smart money moves for your future, be sure to contact us today!


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About the author

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Brandon Hayes

Managing Director, Private CFO®

In 2011 Brandon opted to forego a long-term career in corporate America to join oXYGen Financial because he was impressed by the vision of creating a premier independent financial services firm, which strives to provide unbiased advice to the X & Y Generations.

A native of Westlake, Ohio, Brandon currently lives in Atlanta with his wife Aly, daughter Maryn, son Turner, and their black lab Pepper. He's the youngest of three children and played soccer through college at Elon University. He's an avid runner and enjoys cheering for Cleveland sports teams despite some pretty rough years.

CERTIFIED FINANCIAL PLANNER™ and MBA from Georgia State University in Entrepreneurship. Brandon holds his Series 7 (General Securities Representative), 63, Series 65 (Investment Advisors Law) and Georgia Life, Health and Variable Insurance licenses.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

Background and qualification information is available at FINRA's BrokerCheck website.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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