GiftingÂ
GIFTS AND ESTATE TAXES
Spouses have the right to make unlimited gifts between them during their during their lifetimes without incurring gift taxes.
When giving gifts to family, if you exceed the yearly exclusion amount to any one individual, the overage is taxable. For example, if you give your brother $50,000, the first $19,000 (the 2025 annual gift tax exclusion) does not incur Federal taxes. However, the remaining $31,000 is taxable to your brother.
The Tax Cuts and Jobs Act (TCJA) increased the lifetime exemption amount to $13,990,000 in 2025, and unless Congress acts, this will expire at the end of 2025. For married couples, this means that together they can gift $27,980,000 without incurring federal estate taxes.
Charitable gifts can be made in unlimited amounts, as can gifts for tuition and medical expenses if they are given directly to the institution providing the education or medical care.
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