How can I protect my estate from gift and estate taxes?
Typically, the key to avoiding (or diminishing) estate taxes is to decrease your taxable estate. One commonly used tool for accomplishing that goal is the annual exclusion. This tool allows you to make gifts valued at up to $16,000 or $32,000 if you gift-split with a spouse (as of 2022) to an unlimited number of beneficiaries each year tax-free. Gifts made using the annual exclusion do not count toward your lifetime exemption.