Tax-Savvy Ways to Leave Money to Your Kids

For 2026, families looking to pass wealth to children may rely on the annual gift tax exclusion: up to $19,000 per person (including each child) and up to $38,000 for married couples, without triggering a taxable gift. Once those limits are exceeded, the gift reduces the lifetime gift and estate tax exemption, set for 2026 at $15 million ($30 million for married couples). The article also notes that gifts above exemption amounts may face a 40% estate tax. It highlights strategies such as lifetime gifting, trust structures, 529 plans for education, UTMA custodial accounts, and the potential capital gains benefits of a step-up in basis at death.