If you are ready to plan your estate, you may be surprised to learn about the federal government’s right to tax your property upon your passing. However, with strategic estate planning and gifting assets, you may be able to avoid these taxes so your beneficiaries can obtain all the assets you intend to leave them. If you’re unsure what it means to gift assets or how this can help, you’ll want to keep reading. The following blog also explores the importance of reaching out to St. Louis estate lawyers to help guide you through these matters.
Why Should I Consider Gifting Assets?
One of the primary benefits of gifting assets is to reduce or avoid estate taxes. When your estate is over a certain value, which as of 2025 is $13.99 million, the federal government will issue a tax on your estate. It’s imperative to understand that Missouri is one of many states that does not impose its own estate taxes on residents. As such, if your estate is over this limit, you may wish to gift assets to beneficiaries before your death to help avoid the tax on your estate.
Another benefit to gifting assets is that it can help you qualify for Medicaid. Many assume that Medicaid and Medicare are the same thing, which is far from the truth. In reality, you’ll find that Medicaid is an option that helps those in need receive placement in a long-term care facility. However, to qualify, you must have less than $2,000 in assets, as this is a need-based program. As such, you may wish to gift assets to help reduce the value of your estate so you qualify for Medicaid. You should note that you must plan early if you anticipate needing to qualify for Medicaid, as there is a five-year “lookback” period.
What Must I Know Before Giving Away Property?
Before you break out your checkbook to start giving funds away to your beneficiaries, it’s important to understand the gift tax. In the United States, as of 2025, you are able to give up to $19,000 per person annually, without facing tax consequences on the transfer. There is also a lifetime gift exemption, which is currently set at $13.99 million. This means over the course of your life, you can gift up to $13.99 million without being taxed.
As such, if you wish to give a beneficiary, $30,000, you’ll be able to gift them $19,000 and the remaining $11,000 would be counted toward your lifetime exemption.
If you are interested in gifting assets, it’s generally in your best interest to discuss these matters with an experienced attorney. Not only can they assist you in determining the best way to navigate this issue, but they can also guide you through the whole estate planning process.
At Stobie Family Law Group, we understand that estate planning can be an incredibly complicated issue. That’s why our team is ready to guide you through these challenging matters to help you receive peace of mind that your estate and beneficiaries will be protected upon your passing. Contact us today to learn more.
