Last Writes

Daniel Craig is an actor best known for portraying James Bond, including in the film “No Time to Die.” In a 2021 interview, Craig described leaving large sums to the next generation as distasteful.¹ He explained that his philosophy is to spend or give away his wealth during his lifetime rather than leave it all behind. You do not have to share Craig’s philosophy to appreciate the point: estate planning is not limited to deciding what happens after death.

Lifetime gifting allows you to use your wealth intentionally, see its impact, and help the people and organizations that matter to you now. A lifetime gift might help a child purchase a home, allow a grandchild to graduate with less debt, support a loved one starting a business, or provide assistance during an unexpected hardship. Unlike an inheritance, the gift arrives when it may be most useful—and the donor can share in the experience.

Federal tax rules should be considered before making a gift. In 2026, an individual can generally give up to $19,000 to each recipient without using any federal lifetime gift and estate tax exemption. Gifts exceeding that annual amount do not necessarily produce an immediate tax bill, but they may require a federal gift tax return and reduce the donor’s available lifetime exemption, which is $15 million in 2026.

However, taxes are not the only concern. A direct gift gives the recipient complete ownership and control. The property may become exposed to the recipient’s creditors, divorce, spending decisions, or financial inexperience. A trust can provide more structure by allowing a trustee to manage the property and make distributions for education, housing, health, or other stated purposes. A trust may also protect the gift for future generations, although the terms, tax consequences, and administrative costs require careful planning.

The type of assets being gifted matter, too. A recipient generally receives the donor’s existing income tax basis in gifted property. If appreciated stock or real estate is later sold, the recipient may recognize gain measured from the donor’s original basis. Property inherited at death, by contrast, generally receives a basis tied to its date-of-death value.² Sometimes the asset with the greatest appreciation is not the best one to give during life.

Pennsylvania residents should also remember the Commonwealth’s one-year rule. Certain gifts made within one year before death remain subject to Pennsylvania inheritance tax to the extent gifts to a recipient exceed $3,000 during the calendar year.³

Lifetime charitable gifts can also allow donors to support meaningful causes, witness the results of their generosity, and potentially receive an income-tax deduction, subject to federal requirements.⁴ Finally, gifting should begin with a family conversation. Explain whether a gift is an advance on an inheritance, part of a broader plan, or a response to a particular need. Clear expectations can reduce jealousy and confusion later. The goal is not simply to give everything away—it is to give thoughtfully while preserving enough for your own security, health care, and future.

Bowles Rice’s Estate Planning, Trusts, Wills team can help you evaluate how lifetime gifting fits into your broader estate plan.