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.
About Huenefeld Law, PLLC
Huenefeld Law, PLLC is a Texas law firm based in Longview, Texas, dedicated to helping individuals and businesses with their legal needs. We specialize in estate planning, business planning, asset protection, elder law, tax litigation, and business formation services.
Whether you prefer in-person consultations or the convenience of online meetings, we tailor our services to fit your busy schedule. Ready to plan for the future or protect your assets? Contact us today to schedule your free consultation and let us help you navigate your legal journey with confidence.
