With the holidays around the corner, you’re probably making a list (and checking it twice) of which gifts to give your loved ones. Many people take this time of year to make big gifts—money, a car, or another valuable asset—as a way to help a loved one get ahead or simply show gratitude.

While those generous gifts come from the heart, how and when you give them can make a big impact on your taxes and your estate plan. Even donating to your favorite charity can become a win-win situation when done strategically. With new tax laws set to change in 2026, now is the time to plan ahead.

Before you give a big gift this holiday season, here are some strategies for estate planning that can help you reduce taxes and make your generosity go further.

The Benefits of Giving Now

When someone passes away, estate taxes are paid by their estate, not the people receiving the inheritance. That means taxes can take a big portion out of what your loved ones actually receive.

By making gifts while you’re still alive and in control, any taxes that may apply are your responsibility, not your heirs’. Plus, gifting now helps lower the total value of your taxable estate later.

In 2025, you can gift up to $19,000 per person per year without paying any gift taxes. If you’re married, you and your spouse can jointly give $38,000 per person tax-free. You can give it to as many people as you want — children, grandchildren, friends, or any loved one. If you wish to gift more, you will need to report it to the IRS, but you won’t owe taxes right away. Instead, that total amount will count towards your lifetime exemption, which is the total you can give or leave behind in your lifetime without paying federal estate or gift taxes.

For 2025, that exemption is $13.61 million per person, or $27.22 million for married couples. On January 1st, 2026, this exemption is set to increase to around $15 million per person, $30 million for a married couple.  By gifting now, you can reduce the size of your taxable estate and take advantage of the current higher exemption limit.

Gifts that can be considered taxable include cars, properties, land, real estate, stocks, bonds, and business ownership. However, certain types of gifts are not taxable, such as tuition payments, medical expenses, or qualifying donations.

If you plan to gift your home, you can learn more how to strategically gift it in our blog.

Charitable Gift Giving

Donating to a charity can be a powerful way to make an impact and also offers tax benefits. When you give to a qualifying charity, you’re not only supporting a cause you care about, but you are also reducing your taxable income and your estate taxes. Here are a few charitable giving strategies to reduce your estate:

• Donate now: you will reduce your taxable income for life.
• Donate assets: you can donate cash, stock, property, and life insurance.
• Set up charitable trusts: this allows you to receive income from taxes during your lifetime before the remainder goes to charities.

So, how can you include charitable giving in your estate plan? You can make annual donations, name a charity as a life insurance beneficiary, or include a charitable trust in your estate plan. These strategies ensure that your generosity continues to make an impact long after the holidays are over.

Start Planning Today

This holiday season, make sure your gifting is tied to your estate planning strategy. When done thoughtfully and strategically, giving can be a win-win: you support a loved one, reduce your future taxes, and create a legacy that lasts for generations.

If you are planning on leaving a meaningful gift this season, contact us today. Our team is here to help you plan strategically so no money is wasted today or when you are no longer around. Call us at (256) 251-2137, or get in touch with us by completing the brief form below.

Estate planning conversations are usually tough and probably not top-of-mind as families gather for the holidays. Discussing death and finances are often two of the most uncomfortable topics for families to talk about. Not talking about them, however, can lead to severe—and sometimes devastating—consequences.

While it might be difficult to broach the subject, the holiday season actually provides a great opportunity to talk to your family. Everyone is gathered in once place, opening the door to have important, distraction-free, in-person conversations. Many families take this time to share stories from the past, and celebrate what is to come, but these gatherings also provide the perfect canvas for heartfelt, emotional discussions. In fact, when to discuss estate planning during the holidays is a question many families overlook, and yet it is often the moment everyone feels the most connected. 

How to Approach the Conversation

Regardless of age, many adults delay the estate planning process, as it can be uncomfortable to contemplate one’s own mortality. Due to the delicate nature of the topic, conversations should also be approached delicately, and with the utmost respect for privacy and comfort zones. There are many ways to segue into how to talk about estate planning conversations during the holidays. Here are a few ideas to point you in the right direction.

• Start by having smaller conversations with other family members about their estate plans before going straight to mom and dad. This will allow you to test out the topic and determine how to best bring it up in a bigger group discussion.
• Wait for a good time to bring up your own experience with estate planning, or—better yet—ask the group for advice. This will open the door for a collective discussion about what documents your family has already put in place, and what still needs to be done. Do some research ahead of time, so you know what estate planning tools your parents should have in place. This will help direct the conversation, if you find that your parents do not have a comprehensive plan in place.
• Approach the conversation with empathy by leading with reassurance and care instead of diving straight into the details. Try saying something like “I want to make sure we’re prepared as a family if anything unexpected happens. It’s really important to me that your wishes are honored and that we can protect your legacy.”

Key Questions to Cover

When you finally sit down to have the estate planning conversation, it helps to come prepared. Instead of a rapid-fire checklist, think of these questions as a guide to help your parents open up, reflect, and share what they have or haven’t thought about.

• Have you already put together a will or trust? If so, when was the last time it was reviewed?
• Who have you chosen to step in for decision-making roles? Executor, trustee, financial power of attorney, health care agent.
  
• Do you have documents that outline your medical preferences? Advance directives, living will, HIPAA releases.
  
• Are your beneficiary designations up to date on life insurance, retirement accounts, and financial institutions?
  
• Have you thought about where you’d like to live long-term if care needs change?
  
• Where can we find important documents and information? Digital passwords, account lists, legal documents, and insurance policies.
  
• What fears or concerns do you have about the future, and how can we support you?

Documents & Tools to Have in Place

Here’s a straightforward checklist to help guide the conversation and ensure nothing is overlooked when thinking about how to create an estate plan:

Core Legal Documents

• Will
• Revocable or irrevocable trust (if appropriate)
• Durable financial power of attorney
• Health care power of attorney / health care proxy
• Living will / advance directive
• HIPAA authorization

Asset & Financial Information

• List of bank accounts, investment accounts, retirement accounts
• Insurance policies (life, long-term care, disability)
• Property titles and deeds
• Business ownership records
• Safe deposit box info

The goal of these discussions is not to pry or try to obtain information about your inheritance. It is to ensure that your parents have their estate plans in order, so that you and your loved ones aren’t left to contend with a probate nightmare after they pass. If you discover that they are ahead of the game, make them promise that they will revisit it every once in a while, to make sure it stays up to date with their situation and currents wishes.

If nothing has been done, suggest helping them research an estate planning attorney to get started and set up monthly check-ins to ensure everyone stays up to date on what has been done and any changes or updates. Having a plan in place will provide peace of mind that your parents are protected, and that your future won’t include a time-consuming, costly, and emotional probate battle. This is one of the best gifts your parents could give you this holiday season.

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