Don't Make Your Kids Wait for the Funeral: The $19,000 Gift Rule for 2026

Some parents spend decades saving so their children can inherit. By then, the children may be in their 50s or 60s, past the college and first-home years.

There may be a better rhythm. It is called giving while living, and the tax code may be more friendly to it than you expect.

• Annual gift exclusion: $19,000 per recipient for 2026. You can give up to that amount to as many people as you like without using any of your lifetime exemption and generally without filing a gift tax return. (Source: IRS)
• A married couple can each give $19,000, so $38,000 per recipient. If spouses "split" gifts that come from one spouse's funds, a gift tax return (Form 709) is generally required. (Source: IRS Instructions for Form 709)
• Basic exclusion amount for estates of people who die in 2026: $15,000,000 per person. (Source: same IRS release)
• Payments made directly to a school for tuition or directly to a medical provider for someone's care are not counted against the annual exclusion. (Source: IRS Gift Tax FAQ)

With a $15,000,000 per-person basic exclusion in 2026, federal gift tax may not be the main obstacle for your family. The real question is a heart question.

"A good man leaveth an inheritance to his children's children" (Proverbs 13:22, KJV). Leaving something behind is honorable. But notice Proverbs 20:21 (KJV): "An inheritance may be gotten hastily at the beginning; but the end thereof shall not be blessed." Money given without wisdom or character can do harm.

Giving while living lets you do something a will cannot: watch, teach, and bless. You can help with a down payment and see the house. You can fund a grandchild's education and attend the graduation. "It is more blessed to give than to receive" (Acts 20:35, KJV), and it can be a joy to see it happen.

We also believe a gift is different from a subsidy. Scripture honors work (2 Thessalonians 3:10). A gift that rewards responsibility can build a family. A gift that replaces responsibility can weaken it.

1. Can we afford it? Your own retirement and long-term care come first. 1 Timothy 5:8 calls us to provide for our own household, and that includes not becoming an unplanned burden later.

2. Which asset should we give? Cash is simple. Giving appreciated stock passes your cost basis to the recipient, while assets held until death may receive a step-up in basis. The right choice depends on the facts.

3. Is it fair, and does it feel fair? Unequal gifts among children can be wise, but talk about them openly.

4. Should it go through a structure? Direct gifts are simplest. 529 plans, trusts, and other tools have their own rules. Work with an estate planning attorney when needed.

5. Is the church in the plan too? A family giving plan can include your local church and ministries alongside children and grandchildren.

Year-end is a natural time to review this, since the annual exclusion resets each calendar year. Gifts made by December 31, 2026, count toward 2026.

If you would like to see whether giving while living fits your retirement income plan, start with the free Retirement Paycheck Readiness Scorecard at scorecard.matt25capital.com, or call our office at 620-670-9455. For legal documents, please work with a qualified estate planning attorney.

• QCDs: charitable giving from your IRA
• A Christian legacy planning framework
• The biblical case for estate planning

I'm Will Snodgrass, CFP®, with Matt25 Capital, serving Christian pre-retirees and retirees in The Woodlands, Houston, and across Texas.

• IRS IR-2025-103
• IRS Form 709 instructions
• IRS gift tax FAQ
• Proverbs 13:22, Proverbs 20:21, Acts 20:35, 2 Thessalonians 3:10, 1 Timothy 5:8 (KJV)