The slower pace of summer is an ideal time to shift your focus to something that’s often overlooked until the end of the year: your long-term tax strategy. By making smart moves now around gifting, charitable giving and estate planning, you can take advantage of time-sensitive opportunities that not only reduce your tax burden – but also help secure your financial legacy.
Here are three high-impact tax strategies to consider before the busy fall season arrives.
1. Start or Continue Annual Gifting Early
The IRS allows individuals to gift up to $19,000 per recipient in 2025 without triggering gift tax or reducing your lifetime estate tax exemption. This exclusion resets every calendar year, so spacing your gifts out – rather than waiting until December – can help make the most of your long-term estate planning strategy.
Why it matters now:
- Gifting during the summer allows for proper documentation and intentional planning before the busy holiday season.
- You can make gifts directly to family members, or to 529 college savings plans, custodial accounts, or irrevocable trusts.
- Strategic gifting reduces the size of your taxable estate over time, which may become more important if the estate tax exemption is reduced in 2026 as currently scheduled.
2. Be Strategic with Charitable Giving
If you regularly donate to nonprofit organizations, don’t wait until year-end to explore your most tax-efficient options. Now is a great time to think beyond cash donations and look at assets that offer greater tax benefits.
Smart charitable strategies to consider this summer:
- Donate appreciated stock instead of cash to avoid capital gains tax while still receiving a deduction.
- Establish or contribute to a Donor-Advised Fund (DAF) to bunch charitable contributions and gain flexibility over how and when funds are granted to causes you care about.
- If you’re age 70½ or older, consider a Qualified Charitable Distribution (QCD) from your IRA to count toward your Required Minimum Distribution (RMD) while keeping it out of your taxable income.
3. Revisit Your Estate and Wealth Transfer Plan
Whether you’ve created an estate plan already or are just getting started, summer is the perfect time to check in. Laws change, family situations evolve and financial portfolios shift. Periodic reviews help ensure your plan reflects your current wishes and uses the most tax-efficient tools available.
Checklist for your summer estate planning review:
- Are your beneficiaries current?
- Do you have the right trustees or power of attorney designations in place?
- Are your trusts funded properly?
- Are you prepared for a potential reduction in the estate tax exemption in 2026?
Families with significant wealth may want to explore advanced strategies now – such as Spousal Lifetime Access Trusts (SLATs), Grantor Retained Annuity Trusts (GRATs), or Irrevocable Life Insurance Trusts (ILITs) – while today’s historically high estate tax exemptions remain available.
Bonus: Consider a Family Financial Meeting
Summer is a natural time for family gatherings. While everyone’s together, consider having an open conversation about wealth planning, your intentions for the future or even basic financial literacy with younger generations. This kind of transparency strengthens family trust and ensures your legacy extends beyond the numbers.
By taking action now, you give yourself and your advisor the time to execute tax-smart moves with intention – not urgency. Whether you’re looking to make gifts, support your favorite causes or refine your estate plan, a little proactive effort this summer can lead to meaningful tax savings.
Ready to make the most of your summer planning window? Our team can help you coordinate gifting strategies, charitable plans and estate updates to ensure everything works in harmony with your broader financial goals.
Source:
Irs.gov
The use of trusts involves a complex series of tax rules and regulations. You should consider the counsel of an experienced estate planning professional or estate planning service before implementing such strategies.