By Resurgent Financial Advisors
Generosity is often strongest during the holiday season. Families come together. Year-end bonuses arrive. There’s a natural desire to help loved ones or support meaningful causes.
While giving feels good, it also carries real financial considerations. Gifts can affect your tax situation, your estate, and the way your legacy plays out. Done thoughtfully, giving can be both generous and strategic.
Here are a few ways to make sure your gifts work as hard as you do.
Use the Annual Gift Exclusion
For 2025, the IRS allows individuals to gift up to $19,000 to as many people as they like without needing to file a gift tax return. If you’re married, that number doubles to $38,000 per recipient. (https://www.kiplinger.com/taxes/gift-tax-exclusion)
This is one of the simplest ways to transfer wealth. It can help with college tuition, housing costs, or even give a financial head start to the next generation. When used consistently over time, it can also reduce the size of a taxable estate.
Gifts don’t need to be large to be meaningful. A well-timed gift can make a real difference in someone’s life.
Pay Medical or Educational Bills Directly
Payments made directly to a healthcare provider or educational institution don’t count against the gift tax limits. That means you can cover a loved one’s tuition or medical expenses without using any of your annual exclusion.
To qualify, the payment must go straight to the provider. Checks written to the individual won’t qualify. This strategy is particularly helpful when supporting grandchildren or adult children in transition.
Give Through a Donor-Advised Fund
Donor-Advised Funds are charitable accounts that allow you to contribute today, receive an immediate tax deduction, and decide later how to distribute the funds.
This works well if you’ve had a higher-income year or recently sold an appreciated asset. You can contribute cash or investments, get the tax benefit, and then make grants to nonprofits over time.
It’s a practical way to streamline your giving and avoid the year-end rush to select charities.
Donate Appreciated Securities
Rather than giving cash, consider donating appreciated stocks or mutual funds you’ve held for more than a year. This allows you to avoid capital gains taxes and still receive a full deduction for the fair market value.
Charities receive the full value of your gift and don’t owe taxes when they sell. It’s a win-win strategy that’s often overlooked.
You can also pair this approach with portfolio rebalancing, replacing the donated investment with a similar position while resetting your cost basis.
Clarify Gifts to Family Members
Gifts within families can come with emotional complexity. Be clear about your intent. If you expect repayment, structure it as a loan and document the terms. If it’s a true gift, say so.
This helps avoid confusion, sets healthy expectations, and prevents conflict later on. Open communication supports both your relationships and your financial plan.
Giving Is Also Legacy
Every gift tells a story. Whether it’s a check to a charity, a tuition payment for a grandchild, or a generous holiday surprise, giving reflects what matters to you.
When done intentionally, it also becomes part of your legacy. It helps teach financial values. It models generosity. It opens doors for others that they may never forget.
Plan Before the Year Ends
Many giving strategies, especially those tied to taxes, must be completed before December 31st to apply for this year. That makes now the right time to evaluate your options.
Your advisor can help coordinate between your financial and tax strategies, making sure that your generosity delivers both emotional and financial benefits.
If you’ve been thinking about how to give more effectively, now’s the moment to act.
