Gift Tax Exclusion Remains at $19,000 for 2026

Part of the estate planning process for many residents of Summit and the surrounding area in New Jersey involves strategizing about ways to minimize estate taxes. Changes made through the One Big Beautiful Bill Act (OBBBA), which was passed in 2025, set the federal estate tax exemption for 2026 at $15 million per person, or $30 million for married couples. That threshold represents an increase from last year in which the exemption amount was $13,990,000 for individuals. If your estate is likely to be valued at an amount that exceeds the exemption of $15 million, it is important to consider your options for minimizing potential estate taxes and liabilities. One way of doing this is gifting assets to your loved ones during your lifetime. The gift tax exclusion for 2026 remains at $19,000 — as it was last year — and our estate planning lawyers in New Jersey can explain how you can take advantage of the annual gift tax exclusion in order to potentially minimize estate tax.

Why Gifting During Your Lifetime Can Minimize Estate Taxes

Why can gifting during your lifetime help you to minimize estate taxes? Rather than leaving assets to various loved ones and charitable entities upon your death — at which point estate taxes can be assessed — you can gift annual amounts, tax free, during your lifetime. Your intended beneficiaries will still receive the assets you want them to have, but they can receive them, tax free, up to a certain amount each year while reducing your total estate.

Accordingly, if you make regular annual gifts up to the exclusion amount, you can reduce the total taxable amount of your estate while avoiding taxes on the gifts you are giving.

What the $19,000 Gift Tax Exclusion for 2026 Means for You

As we noted above, the 2026 gift tax exclusion amount has not increased from last year — it remains at $19,000. What this means for you is this: you can gift up to $19,000 per person this year without tax. While the limit is at $19,000 per person, you can gift up to this amount to as many individuals or entities as you wish without incurring tax.

Contact a Summit, New Jersey Estate Planning Attorney for Assistance with Gift and Estate Tax Planning Today 

The gift tax exclusion can be extremely beneficial to residents of the Summit area who have significant estates that will likely be subject to the federal estate tax. Even though New Jersey no longer has an estate tax in the state, the federal estate tax can result in significant money being owed. You can often minimize your federal estate taxes by making gifting a priority during your lifetime, up to the amount of the gift tax exclusion every year. Although the gift tax exclusion has not increased for 2026, the $19,000 amount is still substantial and can allow you to begin minimizing your estate taxes.

To find out more about the benefits of gifting assets up to the federal exclusion limit and other strategies for minimizing your estate taxes, you should get in touch with one of the experienced Summit estate planning attorneys at Dempsey, Dempsey & Sheehan. Contact our firm today to learn more about the estate planning services we provide to clients in the Summit area, including asset protection, minimizing estate taxes, and more.

Source:

irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill