Don’t Miss the $19,000 Gift Opportunity This December

As we head into the holiday season, most of us are focused on gatherings, gift shopping, and closing out the year. But there’s one gift that often gets overlooked — one that doesn’t come wrapped in a bow but can have a lasting financial impact for your loved ones.

 

Each year, the IRS provides individuals with a valuable opportunity to transfer wealth without incurring tax consequences. According to IRS Notice 2024-75, in 2025, you can gift up to $19,000 per person, or $38,000 per person for married couples, without triggering gift tax or dipping into your lifetime estate tax exemption.

 

If you haven’t taken advantage of this by the end of December, that window closes. Let’s look at how it works and why it might be worth taking action now.

The “Use It or Lose It” Advantage

 

The annual gift tax exclusion resets every January. If unused, the opportunity is lost. This makes December the perfect time to act.

 

Gifting within the allowed limit lets you provide meaningful support to family members, reduce future estate tax exposure, and, best of all, avoid extra IRS paperwork when done properly.

How It Works in 2025

 

Here are the essentials:

• Individuals can gift up to $19,000 per person; couples can give $38,000 per recipient
• Gifts can take the form of cash, checks, stocks, or other assets
• As long as you stay within the limit, no gift tax return is needed

Helpful tip: Paying tuition or medical bills directly to a school or provider doesn’t count toward your limit and is also tax-free.

A Quick Example

 

Say you and your spouse have two children and two grandchildren. By giving $38,000 to each of them, you can transfer $152,000 tax-free this year. That’s a substantial amount of wealth moved out of your estate, no strings, no reporting, no hassle.

Special Considerations for California Families

 

While California doesn’t have its own gift tax, real estate transfers can trigger property tax reassessment. Thanks to Proposition 19, even gifts to children or grandchildren could result in higher property taxes unless specific exemptions apply. If you’re considering gifting a home or an interest in property, it’s wise to consult with a California estate planning attorney first to preserve property tax benefits.

When to File a Gift Tax Return

 

You’ll need to file IRS Form 709 if:

• You give more than $19,000 to one person
• You and your spouse split a gift (even if the total is within the annual limit)
• You structure a gift with delayed access, such as through a trust

Filing doesn’t necessarily mean taxes are owed; it simply keeps track of your lifetime exemption use.

Why This Matters More Than Ever

 

End-of-year gifting is a rare opportunity to intentionally share wealth, reduce future estate complications, and offer support when it matters most.

 

At Longevity Law, we guide clients through thoughtful giving strategies, whether you’re making a one-time gift or building a larger legacy. Let’s talk about how to make your gifts go further before the year ends. Feel free to reach out anytime.