Giving to Others While You Live: The Meaningful Impact of Gifting Today

When you think about why giving matters, it isn’t only about the inheritance you’ll leave behind someday. It’s about what your support can do for the people and causes you care about right now—while you’re here to see the difference. Lifetime gifts aren’t just transfers of money; they’re moments, memories, and opportunities that ripple through your family, your community, and beyond.

This piece looks at how to give in ways that balance practicality with personal meaning. You’ll see how to match your resources with your energy and relationships, adopt strategies that keep generosity sustainable, and put up guardrails that protect your own plan.

Why Giving Is Important During Your Life

Proper support at the right time can change everything: a down payment that makes homeownership possible or a contribution that clears high-interest debt. A trip that becomes the anchor of family stories. When you choose to give during your lifetime, you see those results firsthand, and you get to explain the “why,” deepening trust and connection in the process.

Timing often makes all the difference. A gift during someone’s thirties—when they’re building a career, raising kids, or paying off student loans—can have far more weight than the same amount arriving decades later. That boost can redirect their financial path, relieve stress, and open doors at exactly the stage when opportunity matters most.

For a lot of people, giving is measured less in dollars and more in the sense of fulfillment it brings. Money has the power to create lasting experiences—not only for those you help, but for yourself too. Giving while you’re healthy and active lets you create memories together: experiences that often outlast the dollars themselves and become part of how your family remembers you. That’s a form of giving back that lives on in stories and traditions.

Lifetime giving also allows you to target real, immediate needs. Whether it’s covering tuition before a deadline, paying down medical bills that weigh on someone’s mind, or stepping in for opportunities that can’t wait, you’re able to direct your support with precision. Being present to encourage, celebrate, and guide is so important—often even more cherished than the money itself.

Finally, lifetime generosity has another benefit: it teaches. When you give with purpose, others learn how to handle money with responsibility, gratitude, and awareness. Your example becomes a guidepost for children, grandchildren, and even peers who see what it means to use resources thoughtfully. In this way, giving to others in need is more than a single act of kindness; it sets a standard that can influence decisions long after you’re gone.

Gifting Strategies and Tax Considerations

A few key rules shape how gifts are treated for tax purposes, and knowing them up front keeps things simple. The federal system distinguishes between lifetime and estate transfers and provides exclusions that keep most families clear of actual tax. Nevertheless, here are some high-level factors that are worth familiarizing yourself with:

Gift Tax Basics

The federal gift tax covers assets given during your lifetime, whereas the estate tax applies to what’s passed on after death. Rates are progressive, starting at 18% and topping out at 40% for very large gifts.1 In most cases, the giver (not the recipient) pays the tax. Gifts to family or friends aren’t deductible, but contributions to qualified charities can be, if properly documented.

Annual Gift Tax Exclusion

In 2026, you can still only give up to $19,000 per recipient, without dipping into your lifetime exemption or filing paperwork.2 Married couples can combine exclusions to give up to $38,000 per recipient. Gifts can be cash, investments, or property. Staying within this limit keeps records clean and avoids extra filings.

Lifetime Gift and Estate Tax Exclusion

Larger gifts reduce your lifetime exemption, which is set at $15,000,000 per person in 2026 ($30 million for couples).3 This exemption also applies to your estate at death, so it’s important to track usage over time. If you expect to transfer significant wealth, keeping a running tally ensures you know how much exemption remains.

Reporting Requirements

Gifts beyond the annual exclusion—or certain elections like 529 plan front-loading—require IRS Form 709. Filing doesn’t always mean tax is due; it simply records how much of your lifetime exemption you’ve used. Married couples electing gift-splitting also do so on this form. Accurate reporting avoids complications later, both for you and your executor.

Please Note: Recent legislation—the One Big Beautiful Bill (OBBB)—eliminated the 2026 “sunset”. As of January 1, 2026, the newly established exclusion amount will be indexed annually for inflation.4

Additional Gifting Strategies

Once you understand the rules, certain tactics can make your generosity go further. Some approaches allow funds to grow over time, while others let you meet specific needs directly without reducing your exclusion amounts. Here are strategies worth considering, depending on your goals and the needs of those you want to help:

Funding 529 College Savings Plans

A 529 plan provides tax-advantaged growth for education. Contributions count toward the annual exclusion, but you may “front-load” up to five years at once. The main advantage is compounding: an early contribution allows earnings to grow for years, covering tuition, books, or housing. Most plans offer investment choices that can be adjusted to fit the student’s expected timeline. The five-year election does require Form 709, even if no tax is owed, but the benefit is a large boost to education funding when it matters most.

Paying Education Expenses Directly

Qualified tuition payments made directly to the school are outside the gift tax system altogether, no matter the amount. This leaves your annual exclusion intact for additional support such as living expenses or supplies. It’s a simple way to maximize flexibility while helping a student at a crucial moment. Having both routes available—a 529 contribution and direct payments—gives you tools to adapt based on timing and urgency.

Paying Medical Expenses Directly

Payments made directly to hospitals, clinics, or insurers for another person’s qualified care are unlimited and tax-free. This approach can be so important when a loved one faces surgery, long-term treatment, or unexpected medical bills. You can also combine direct payments with an annual exclusion gift in the same year, making it one of the most efficient ways to provide relief exactly when it’s needed most.

Gifting Non-Cash Assets

Transfers of appreciated stock, real estate, or other property come with unique tax implications. Your cost basis carries over to the recipient, meaning future sales may create taxable gains. For example, a stock purchased at $10,000 that is now worth $50,000 would pass along the $10,000 basis. If the same asset is instead transferred at death, a step-up in basis generally applies, resetting to fair market value and often eliminating built-in gains. Families often gift assets with modest appreciation while holding highly appreciated ones for estate transfer. Some assets, such as IRAs and 401(k)s, don’t receive a step-up, so knowing the property type and timing helps avoid tax surprises.

Donor-Advised Funds (DAFs)

A DAF allows you to give cash or appreciated assets, claim a charitable deduction right away, and later suggest grants to the nonprofits you want to support. It offers flexibility, tax advantages, and a meaningful way to bring children or grandchildren into charitable giving. For families who value steady giving to others in need, a DAF can become a long-term hub for charitable activity.

Charitable IRA Transfers (QCDs)

For those age 70½ or older, substantial annual gifts can be directed from an IRA to a qualified charity. With qualified charitable distributions (QCDs), you can satisfy your required minimum distributions (RMDs) by giving directly to charity. The amount won’t be included in your taxable income, which makes them an effective way to reduce taxes while supporting the organizations you care about.

Charitable Remainder Trusts (CRTs)

For larger estates, a CRT offers both income and tax advantages. You can transfer appreciated assets into the trust, receive a partial charitable deduction, and set up an income stream for yourself or other beneficiaries for a set period of time. At the end of the trust term, the remainder goes to a designated charity. This strategy reduces estate taxes, helps avoid immediate capital gains on appreciated assets, and creates a structured legacy of support for organizations you value.

Best Practices for Intentional Giving

You want your gifts to help the people you care about without putting your own path at risk. A handful of practical habits make that far more likely. They’re simple, they’re steady, and they keep your generosity aligned with the bigger picture you’re building:

1. Start with a Plan: Clarify what you’re trying to accomplish and how the gift supports it. Connect amounts and timing to your retirement income strategy, cash reserves, and near-term goals. A clear plan highlights the importance of timing and purpose. When everyone understands “what this gift is for,” follow-through gets easier, and expectations stay healthy.
2. Be Generous, Not Vulnerable: Test gifts against real-life scenarios like a market drop or a health event. If a large transfer today would jeopardize your flexibility next year, scale the amount or stage it over time. Widows and widowers in particular may feel pulled to give quickly; pausing to stress-test the decision protects future choices.
3. Be Fair, Not Necessarily Equal: Every child or grandchild’s situation is different. Tailoring gifts to real needs often does more good than dividing the same amount across the board. Clear communication reduces friction and assumptions. Again, when you can clarify the “why,” fairness is easier to see even when amounts differ.
4. Consider Avoiding Gifting Around Holidays or Birthdays: Linking large checks to emotionally charged moments can create pressure and assumptions. A neutral time and place keeps focus on purpose and avoids an annual “is there a check?” ritual. Treat memorable days as celebrations, not financial checkpoints, and you’ll sidestep awkward expectations next year.
5. Involve Advisors When Needed: When gifts get large or involve property, tap tax and financial professionals to set up the right paperwork and structure. Coordinating details like Form 709, gift-splitting, or a 529 front-load keeps everything clean. Good records today spare your loved ones administrative headaches later and keep your plan on track.

Giving to Others While You Live FAQs

1. Are there different tax implications when gifting cash vs. assets like stock or property?

Yes. Cash is straightforward under the annual exclusion. With appreciated assets, your cost basis usually carries over to the recipient, which can create taxable gain if they sell. That’s different from a step-up in basis at death, so many families gift assets with modest appreciation and keep highly appreciated positions for later estate transfer.

2. Do my spouse and I have to file jointly to give $38,000 per recipient?

No. Each person has a separate annual exclusion. As a couple, you can give up to $38,000 to the same person in 2026, even if you don’t file a joint tax return. Follow gift-splitting rules and keep records so your tax preparer can file correctly if needed.

3. Does a loan without interest count as a gift?

It can. Family loans come with rules that may impose interest and require tax reporting. If you intend to forgive the loan later, that forgiveness may be treated as a gift at that time. Written terms and professional guidance help you avoid unintended outcomes and keep relationships clear.

4. Can a 529 plan be used for more than one student?

Most plans allow you to change the beneficiary. You can generally move the benefit among siblings or cousins in the same generation without tax. Shifting to a person in an older generation may bring tax consequences, so speak with a tax professional before you make that switch. This flexibility lets you adapt as kids’ education paths evolve.

5. What should I know about charitable gifting from my IRA to meet RMD requirements?

A qualified charitable distribution (QCD) can satisfy required minimum distributions when sent directly to a qualifying 501(c)(3) organization from your IRA. The transfer must go straight to the organization to count. Gifts to family members do not qualify. If you’re considering this route, coordinate timing and documentation with your tax preparer and the receiving organization, so everything is handled properly.

6. Can I give in increments up to the annual exclusion, or must it be one lump sum?

You can give in stages throughout the year and still stay within the annual limit. Many families prefer monthly giving to spread support and reinforce purpose over time. Track totals by recipient for the calendar year so you know whether a Form 709 filing will be needed. This rhythm also keeps conversations ongoing and reduces pressure on any single date.

We Help People with Giving to Others During Their Lives

Your giving should consider your values and intentions, rather than simply the size of your bank account. Our approach starts by mapping out your retirement income, reserves, and upcoming plans so each gift fits without creating unwanted tradeoffs. From there, we work with you to choose amounts and timing that feel right and accomplish what you care about most, whether you’re helping with education, health costs, or shared experiences.

When taxes or paperwork enter the picture, we coordinate the details so you can stay focused on the impact. That includes annual exclusion gifts, lifetime exemption tracking, 529 plan front-loading, direct tuition or medical payments, and record-keeping that keeps future filings clean. If gifts involve investments or real estate, we talk through basis, timing, and options so you’re comfortable with each move and the recipient understands what comes next.

If you’re giving to people and also to your favorite charities, we help you decide which dollars go where for the biggest effect. Some goals call for immediate cash support; others benefit from targeted non-cash transfers or education-focused strategies. Matching the tool to the goal is how you turn intention into results you can see and celebrate.

If you’re ready to take the next step, start with a simple question: “Who could this help the most right now?” Whether the answer points to a family member, a friend, or a cause close to your heart, you can design a giving strategy that fits your season of life. Schedule a complimentary consultation with our team, and we can discuss how our advisors can help you create a plan that supports your giving during your life and beyond.

Resources:

1) https://www.kiplinger.com/taxes/gift-tax-exclusion

2) https://www.morganlewis.com/pubs/2025/10/irs-announces-increased-gift-and-estate-tax-exemption-amounts-for-2026 

3)https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax

4) https://taxfoundation.org/research/all/federal/one-big-beautiful-bill-act-tax-changes/