"Strategic Estate Giving: Minimize Taxes with Timely Contributions"

Wealthy families should consider making changes to their estate plans to reduce their tax exposure before the federal estate-tax exemption reverts to pre-2018 levels in 2026. Currently, the exemption limit is $12.92 million for individuals and $25.84 million for married couples, but it is set to halve to less than $7 million for individuals and about $13 million for married couples. Benefactors can start by gifting cash or other valuable items annually to heirs, taking advantage of the annual gift-tax exclusion limit of $17,000 per recipient from individuals and $34,000 from married couples. Other strategies include creating and funding 529 college savings plans, establishing spousal lifetime access trusts, creating qualified terminable interest property trusts, and transferring life insurance policies out of the estate. It is advisable to consult with estate planners, financial advisors, or tax professionals to navigate these changes effectively.