Use the $19,000 annual gift exclusion each year to reduce a taxable estate

Full analysis

For estates likely to exceed the federal estate tax threshold — currently about $15 million per person, though lower in some states — Adam M. Grossman recommends making full use of the annual gift exclusion each year. In 2026, the exclusion is $19,000 per donor per recipient. These annual gifts are on top of the lifetime estate and gift tax exemption and do not carry over if unused. Gifts do not have to be cash: contributions to a 529 college savings account or a trust for the recipient's benefit also count toward the annual exclusion.