Maximize Your Impact: Strategic Gifting and Charitable Giving for a Lasting Legacy


 Your desire to give back should be a powerful force for good, not a source of tax anxiety. We work with you to craft a thoughtful and impactful gifting and philanthropic strategy. From establishing donor-advised funds to structuring charitable trusts, we help you align your generosity with your financial goals. Our guidance ensures that your gifts are not only meaningful but also executed in the most tax-efficient way possible, maximizing the reach of your contribution.

Tax Savings for Strategic Gifting and Charitable Giving in 2025


Strategic Gifting: Maximizing Wealth Transfer

Annual Gift Tax Exclusions

The annual gift tax exclusion for 2025 is $19,000 per recipient, an increase from $18,000 in 2024. For a married couple, this exclusion doubles to $38,000 per recipient.

  • Example: A married couple with three children and six grandchildren can gift a total of $342,000 completely tax-free in 2025 ($38,000 per person x 9 people).
  • Direct Payment Exemption: Unlimited payments made directly to educational institutions for tuition or to medical providers for qualified expenses are exempt from gift tax.


Lifetime Gift and Estate Tax Exemptions

The lifetime gift and estate tax exemption for 2025 is $13.99 million per individual and $27.98 million per married couple.

  • The One Big Beautiful Bill Act (OBBBA): This law provides permanent increases to these exemptions starting January 1, 2026:
  • $15 million per individual
  • $30 million per married couple
  • This change eliminates the previously scheduled reduction to approximately $7 million per person that was set to occur in 2026, providing greater certainty for long-term planning.

Advanced Gifting Strategies

  • Gifting Appreciated Assets: Donating appreciated assets like stocks or real estate removes their current value and all future appreciation from your estate, potentially saving significant estate taxes.
  • Family Limited Partnerships (FLPs): Using FLPs can provide valuation discounts, typically 20-40%, allowing you to transfer more value while using less of your annual or lifetime exemption.


Charitable Giving: New Rules and Opportunities

Changes in Charitable Deduction Rules (Starting in 2026)

The OBBBA introduces significant changes to charitable giving that will take effect in 2026.

  • Universal Charitable Deduction: A new permanent universal deduction will allow all taxpayers, including non-itemizers (who make up approximately 90% of taxpayers), to deduct cash donations.
  • $1,000 deduction for single filers
  • $2,000 deduction for married couples filing jointly
  • New Rules for Itemizing Donors:
  • AGI Floor: Charitable deductions can only be claimed if total annual giving exceeds 0.5% of your Adjusted Gross Income (AGI).
  • 35% Cap: Taxpayers in the 37% bracket will see their charitable deduction benefits capped at 35%.


Tax-Efficient Charitable Strategies

  • Donating Appreciated Assets: Gifting appreciated securities or real estate to charity provides a double tax benefit: you avoid capital gains taxes on the appreciation and receive a charitable deduction for the full fair market value.
  • Qualified Charitable Distributions (QCDs): Individuals aged 70½ or older can donate up to $108,000 per year directly from a traditional IRA to a qualified charity. This distribution is not included in taxable income and can satisfy Required Minimum Distribution (RMD) requirements.
  • Bunching Strategies: Given the new 0.5% AGI floor, donors can "bunch" multiple years' worth of donations into a single year to exceed the threshold and maximize deductions.


Integration with Estate Planning

  • Charitable Remainder Trusts (CRTs): Allows you to transfer appreciated assets to a trust, receive an immediate charitable deduction, and obtain lifetime income payments. The remaining assets go to charity, removing them from your taxable estate.
  • Charitable Lead Trusts (CLTs): Provides income to charity for a specified period, with remaining assets passing to family members, helping reduce gift and estate tax liability.


Important Considerations and Professional Guidance

  • Loss of Step-Up in Basis: Gifting assets means the recipient receives the donor's original cost basis, which can lead to higher capital gains taxes upon sale compared to inheriting the same assets with a "stepped-up" basis.
  • Professional Advisors: Due to the complexity of the laws, it is essential to work with a team of professional advisors, including estate planning attorneys, tax professionals, and financial advisors.