He added that this might be through a donor-advised fund a private foundation, or a charitable trust. “Gifts of low-basis appreciated stock to a charity or private foundation have an income tax savings component, while gifts to a family member of that same stock often mean the recipient can sell that stock in a lower capital gains bracket than a parent or grandparent would be able to,” he said.
Taxpayers can make unlimited tax-free gifts for tuition payments to qualified institutions of higher education and for direct payments of medical bills for a loved one or family friend. “We’re also seeing a lot more intra-family loans,” Goodwin said. “These loans can then be forgiven on an annual basis estate and gift tax-free or in a lump sum at a future date.”
Speaking of future dates, “many believe that Congress will allow the exemption to sunset as scheduled,” Flaum said. “Reacting to all the uncertainty, many clients propose waiting until 2024 to see if we will have an inkling of where the laws are headed.”