Give Cash Now, Cut Your Estate Tax Later

During this season of giving, take advantage of the annual gift tax exclusion before the year ends.

cash with a red bow on it
(Image credit: Getty Images)

Are you having trouble finding gifts those "hard to shop for" relatives this holiday season? Don't waste any more time trying to find something they might want – give 'em cash! Everyone likes money, right? Plus, giving money to family or friends can also be a smart tax planning move. For wealthier Americans, giving away cash now can help you reduce or even avoid estate taxes when you die. Plus, you can make family and friends very, very happy!

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Rocky Mengle

Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.