Gift Tax Limits on the Rise: Texas Families Take Note
Disclaimer: This blog post is not legal advice and is for educational purposes only. This blog post does not create an attorney-client relationship. If you would like to speak to an attorney about a legal matter, please reach out to us today!
The annual gift tax exclusion rises to $18,000 per recipient in 2025, providing an effective way to transfer wealth without tapping into your lifetime estate tax exemption.
How the Gift Tax Works
Gift taxes apply to transfers exceeding the annual exclusion amount per recipient. For 2025, Texans can gift up to $18,000 to as many people as they want, tax-free.
Example: Wealth Transfer for a Texas Entrepreneur
A Houston business owner with three children and six grandchildren can gift $162,000 annually without using any of their $13.61 million lifetime exemption. Over five years, this strategy could transfer $810,000 entirely tax-free.
Concerns Under Trump
Trump may push to eliminate the estate and gift tax systems altogether, as outlined in prior proposals. Texans planning multi-year gifting strategies should account for possible changes to ensure compliance.
What to Do Next
Review gifting opportunities within your family or business to minimize tax burdens. An estate planning professional can help structure gifts effectively.
Gifting can be a powerful tool for transferring wealth. Contact Huenefeld Law, PLLC to structure your gifting strategy and make the most of these updated exclusions. Let us guide you in preserving your wealth for the people and causes you care about most.
