How the Gift Tax Exclusion Works for 2026

Lucas and Luna dive into the federal gift tax exclusion for 2026, which allows you to give up to $19,000 per person per year without filing a gift tax return. They explain how married couples can double that amount via gift splitting, why paying someone's tuition or medical bills directly doesn't count toward the limit, and the surprising catch: gifts that exceed the exclusion eat into your lifetime estate tax exemption. Luna shares a real example of a listener who accidentally triggered a filing requirement by gifting a down payment to their child. Lucas clarifies the difference between the annual exclusion and the lifetime exemption, currently over $13 million per person but set to drop after 2025 unless Congress acts. They also touch on the 'Crummey power' strategy for irrevocable trusts and why most people never owe gift tax despite the paperwork. #GiftTax #AnnualExclusion #EstatePlanning #TaxStrategy #WealthTransfer #IRS #CrummeyPower #LifetimeExemption #TaxSplitting #GiftTaxReturn #Form709 #FexingoBusiness #BusinessPodcast #Finance #TaxPlanning #Inheritance #FamilyFinance #2026Tax Keep every episode free: buymeacoffee.com/fexingo