Why More Families Are Gifting Wealth During Their Lifetime

A growing number of families are reconsidering their approach to estate planning. While wills and trusts have traditionally handled wealth transfer at death, more individuals are incorporating lifetime gifting as a strategic element of their overall estate strategy.¹

When implemented thoughtfully, gifting during life can provide greater control over how wealth is used, and help align with personal legacy goals.^1,2

Here are several considerations related to lifetime gifting:

• Annual exclusions: Individuals may gift up to $19,000 per person annually in 2025 ($38,000 for couples) without triggering a gift tax filing. There is no limit to the number of individuals who may receive gifts.^1,2
  
  
• Legacy clarity and control: Gifting during one’s lifetime provides the opportunity to structure transfers intentionally and communicate the rationale behind decisions, which may help with future misunderstandings or conflicts.
  
  
• Use of financial vehicles: Trusts, donor-advised funds, and 529 plans are common tools for structuring gifts in a manner consistent with the giver’s values, tax strategy, and long-term estate management.^1,2,4

While lifetime gifting may not be appropriate for every family, it is an increasingly relevant component of estate discussions, particularly for those who are confident in their own financial position and interested in more proactive legacy strategies.¹ 

If you’re evaluating your estate strategy and want to better understand how gifting might fit in, we’re available to help assess the options in coordination with your legal and tax professionals.

^{1. MassMutual, March 18, 2024}

^{2. Fidelity, January 01, 2025}

^{3. Merril Lynch, May 2025}

^{4. The College Investor, April 4, 2025}