Within your Last Will and Testament document, you may direct how your assets should be distributed amongst your named beneficiaries upon your unfortunate passing. However, you may start early and gift your desired beneficiaries with these assets while you are still alive. For this, please continue reading to learn whether you should consider gifting assets before your death and how an experienced estate planning attorney in Putnam County, at the Law Office of Andres D. Gil, PLLC, can help you plan accordingly.

Why should I consider gifting assets before my death?

Firstly, you should know that, as of 2025, the federal gift tax exemption for unmarried individuals and married couples is $19,000 and $38,000 per year per individual. This means that you could gift up to this amount annually to several of your intended beneficiaries without having to report it on your federal tax return.

This strategy works to reduce your estate’s overall value, which is important given New York State’s estate tax exemption. Specifically, as of 2025, if your estate is valued at $7.16 million or more upon your death, your taxable estate may be taxed anywhere between 3.06 percent and 16 percent.

In addition to its tax benefits, gifting assets before your death may bring the following pros:

  • Your beneficiaries may receive their inheritances at a time when they need it or when it is most useful to them.
  • You may receive the instant gratification of witnessing your beneficiaries enjoy and reap the benefits of their inheritances.
  • You may allow yourself the time to support your beneficiaries in handling, maintaining, and using their inheritances wisely.
  • You may alleviate yourself from the challenges of ownership over certain assets that are depreciating or require constant upkeep.

How many assets should I give away before my death?

Initially, you may assume that it is best to gift the maximum amount of assets per year to all the beneficiaries you have in mind before having to report it on your federal tax return. However, while you may care deeply about your beneficiaries and the benefits you can provide for them, you must sometimes put yourself first in your estate planning.

For one, you must calculate the assets and income to support yourself throughout your retirement needs. Plus, the funds you need to put away in the unfortunate situation you require intensive medical care, residency at a nursing home facility, and more. Overall, by taking care of yourself in this way, you give your beneficiaries less of a headache in the long run.

How else can I strategically reduce the size of my estate?

Say your strategy is to give your intended beneficiaries smaller gifts throughout your lifetime than a larger inheritance after your death. You may similarly reduce the size of your overall estate by placing some funds in a trust account. Or, you may contribute considerably to your retirement accounts and life insurance plans and declare your beneficiaries accordingly. Of note, these assets may avoid the probate process and subsequent tax implications.

To conclude, a skilled estate planning attorney in Putnam County, at the Law Office of Andres D. Gil, PLLC, is willing to offer further clarification on this issue. So please do not hesitate to seek out our services. We look forward to helping you.