Episode Details

1001. On this Finance Friday, I’m clearing up the massive confusion surrounding "gift taxes." Many people are terrified to help their loved ones because they fear a surprise tax bill, but the reality is that the thresholds are much higher than you think.

Whether you're helping with a down payment, paying for a grandchild’s tuition, or simply sharing your wealth while you're around to see them enjoy it, there are a few "golden rules" you need to know to stay on the right side of the IRS.

In this episode, we discuss:

• The 2026 Limits: Why you can likely give away millions without ever owing a penny in gift tax.
• The Annual vs. Lifetime Exclusion: How to use the $19,000 annual limit to your advantage.
• The "Direct Payment" Loophole: How to pay for medical or tuition bills without it counting as a gift.
• The Inheritance Trap: Why gifting a house or stocks now might actually cost your children more in taxes later than waiting for a "step-up in basis."
• IRS Form 709: When you actually need to file it (and why it’s not as scary as it sounds).

Find a transcript here. 

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