One of the most common questions we get asked in estate planning meetings is how to minimize estate taxes. The good news is that, for most, gift and estate taxes never come into play.

For 2025, in New York State, you can gift up to $19,000 per year, per person tax free. Neither the giver or receiver pay taxes on the gift. Each year, when you file your personal income tax return, you’ll keep track of any gifts given. Over your lifetime, so long as you don’t gift more than $7,160,000 (yes, 7 million) total, you will never pay any estate or gift tax.  The federal government also has an estate and gift tax exclusion amount nearly double New York State’s (currently at $13,610,000). These numbers will continue to be adjusted for inflation and increase incrementally over time.

The important thing to remember is that not just traditional cash distributions count as gifts. For example, if you “sell” your house to a child for no money, that can count as a gift. So, in the year you complete that transaction, you may have technically gifted more than $19,000. Again, this doesn’t mean you will pay any gift taxes on the proceeds, it just means a gift tax return must be filed at the end of the fiscal year, and the amount of the gift must be deducted from your lifetime exemption amounts.

If you anticipate making a gift in the near future, it is a good idea to consult your attorney, accountant, or other tax professional.