CPA Advantage #7 | Family Wealth Transfer
Published on by Andy Bertke, Ryan Lauer, in Video, Tax Services, Wealth Management
Can’t watch the video? Get the transcript.
Building wealth takes years of hard work, smart decisions, and careful planning. But what happens when it’s time to pass that wealth along to your children, grandchildren, or other loved ones?
Whether you’re considering making gifts during your lifetime or planning how your assets will be distributed after your death, understanding the tax implications can help you make the most of what you’ve built.
In this episode of the CPA Advantage video series, Barnes Dennig CPA/PFSs and financial planning pros Ryan Lauer and Andy Bertke cover critical considerations for transferring family wealth, including annual gift tax exclusions, lifetime exemptions, and the role of trusts.
Understanding the annual gift tax exclusion
One of the simplest ways to transfer wealth is through annual gifting.
For 2026, individuals can give up to $19,000 per recipient without using any of their lifetime gift and estate tax exemption. Married couples can generally combine their exclusions to give up to $38,000 per recipient, subject to applicable gift-splitting rules.
There’s no limit to the number of people who can receive these gifts. That means you can transfer meaningful amounts of wealth over time while taking advantage of the annual exclusion.
For families looking to gradually transfer assets to the next generation, this can be a valuable strategy.
What happens when you gift more than the annual exclusion?
Glad you asked. Here’s something that surprises many people: Exceeding the annual gift tax exclusion doesn’t necessarily mean you’ll owe gift tax.
If you give someone more than the annual exclusion, you may need to file IRS Form 709, the United States Gift (and Generation-Skipping Transfer) Tax Return.
However, the amount exceeding the annual exclusion generally counts against your lifetime gift and estate tax exemption before any gift tax becomes payable.
For example, suppose you want to help your child purchase a home by contributing $100,000 toward the down payment. While that gift exceeds the annual exclusion, it doesn’t automatically create a tax bill.
Another important distinction: Gift tax, when applicable, is generally the responsibility of the person making the gift, not the recipient.
Understanding these rules can help families make significant financial gifts without unnecessary concerns about immediate tax consequences.
When larger estates require more sophisticated planning
Annual gifting can be a great strategy, but it may not be enough for families with substantial assets.
As Andy explains in the video, transferring an estate worth millions or tens of millions of dollars through annual gifts alone can be impractical.
That’s where more sophisticated estate planning strategies come into play.
Trusts, for example, can help families establish clear instructions for transferring assets, determine when beneficiaries receive distributions, and potentially provide additional tax planning opportunities.
The right approach depends on your estate’s size, the types of assets you own, your family circumstances, and your long-term goals.
When should you start planning? Before you need to.
Wealth transfer planning isn’t just about minimizing taxes. It’s about making intentional decisions that reflect your priorities and provide financial security for the people who matter most.
Starting the conversation early gives you more flexibility to evaluate gifting opportunities, coordinate your estate planning documents, and develop a strategy that evolves with your family’s needs.
Your legacy deserves a plan.
The Barnes Dennig Private Wealth Management team works with individuals and families to develop thoughtful strategies for preserving and transferring wealth. From tax-efficient gifting to coordinating broader estate and financial planning, we can help you make confident decisions about your family’s financial future.
Let’s talk.
Have questions about family wealth transfer, gifting strategies, or other wealth management topics and how they might apply to your situation? Contact us today for a free consultation with one of our top wealth management pros. As always, we’re here to help.
Related content
You might also be interested in the full CPA Advantage video series, with new episodes added regularly. You can also download our free estate planning guide, packed with resources to help you make the most of your legacy, or explore market commentary from our wealth management pros and sub-advisors on the Barnes Dennig Private Wealth Management website. Whatever questions you have and whatever your plans, we can help. Let’s build your better, brighter financial future together.
