How to use U.S. gifting laws to quietly move assets down the line.

Most people think “estate planning” happens at the reading of a will.

In reality, a lot of the smartest wealth transfer happens years before that — through quiet, structured gifting while you’re very much alive, in control, and watching your family benefit.

This isn’t about loopholes. It’s about understanding how U.S. tax law already lets you:

• Move wealth out of your taxable estate

• Fund kids and grandkids now

• Keep the IRS out of the middle as much as possible

At Alejos Capital Group, we think of this as structured wealth transfer: turning confusing tax rules into a clear plan for your family.

The Gifting Rules in Plain English (2025)

Let’s strip the jargon out.

1. The annual gift tax exclusion

• In 2025, you can give up to $19,000 per person, per year without owing gift tax or using any of your lifetime exemption.

• You can do this for as many people as you want — kids, grandkids, parents, friends.

• If you’re married, you and your spouse can “split” gifts and effectively give $38,000 per recipient in 2025.

These gifts are usually not taxable to the recipient and don’t require them to report anything.

2. The lifetime gift & estate tax exemption

Separate from the annual exclusion, there’s a big “lifetime bucket”:

• In 2025, you can transfer up to about $13.99 million per person over your lifetime and at death, combined, before federal estate or gift tax kicks in.

• That’s roughly $27.98 million for a married couple.

Every time you give more than $19,000 per person in a year, the extra amount simply chips away at that $13.99M lifetime bucket. You usually file Form 709 to report it, but most people still pay no actual tax until the bucket is used up.

And looking ahead, that exemption is set to increase to $15 million per individual in 2026, unless the law changes again.

3. Special “tax-free boost” gifts

Certain payments are completely outside the gift tax system if done correctly:

• Tuition paid directly to a school

• Medical bills paid directly to a provider

These don’t count against your $19,000 annual exclusion or your lifetime exemption at all.

Done right, that’s an enormous lever for grandparents and parents who want to help with education or health costs andreduce their taxable estate.

Gifting as “Off-Balance Sheet” Family Growth

Here’s the mental model we like:

• Your personal balance sheet = assets in your name, potentially exposed to estate tax later.

• Your family’s balance sheet = assets held by your kids, grandkids, and trusts for their benefit.

Structured gifting is how you quietly move assets off your personal balance sheet and onto the next generation’s balance sheet, on purpose and on schedule.

You’re not just writing random checks. You’re:

• Picking which assets to move (often higher-growth or discountable ones)

• Choosing who gets them (individuals vs. trusts)

• Deciding when and how often (annual exclusion, larger lifetime gifts, or both)

A Simple Example: The $19,000 Rhythm

Imagine you’re a married couple with:

• 2 adult children

• 2 grandchildren

In 2025:

• You can each give $19,000 to each person.

• Together, that’s $38,000 per person.

So in one year, you could move:

• 4 recipients × $38,000 = $152,000 out of your estate

Do that for 10 years (ignoring growth, just for simplicity), and you’ve moved $1.52 million to your family without touching your lifetime exemption and without owing federal gift tax.

Meanwhile, if that $1.52M is invested and grows on their balance sheets — not yours — you’ve shifted not just assets, but all future growth and potential estate tax on that growth, away from your estate.

That’s structured wealth transfer.

Going Beyond the Basics: Structured Gifts

For families who want to be more intentional, gifting can plug into a bigger strategy:

1. Funding long-term vehicles

Use your annual exclusion or lifetime exemption to fund:

• Investment accounts for kids (UTMA/UGMA, where appropriate)

• 529 college savings plans

• Irrevocable trusts designed to hold growth assets for future generations

These vehicles can:

• Keep assets out of your taxable estate

• Let growth compound for decades

• Control how and when beneficiaries can access the money

2. Using your lifetime exemption strategically

Sometimes it makes sense to make a larger gift now, especially if:

• Your net worth is in the high 7+ figures

• You expect significant future growth (business owner, concentrated stock, real estate, etc.)

You can use part of your $13.99M lifetime exemption to move a big asset into a trust or to heirs now. If that asset doubles or triples later, that growth happens outside your estate.

3. Direct-pay education and medical strategies

If your kids or grandkids have:

• Private school or college tuition

• Significant medical expenses

You can pay those directly to the school or provider, with no gift tax consequences and no hit to your exclusions.

That’s like getting extra “free” gifting capacity on top of your other limits.

Who Should Care About This?

You don’t need $50 million to make gifting worth it.

Structured wealth transfer is especially important if:

• Your net worth is climbing into the high 7 or 8 figures (or higher)

• You want kids or grandkids to benefit now, not just “someday”

• You’re worried about future tax law changes reducing exemptions

• You’d rather see dollars go to family and causes, not just the IRS

Even if you’re well below the estate tax line, gifting can:

• Help children avoid debt

• Seed their investing early

• Create a culture of responsible wealth, not surprise inheritance

How Alejos Capital Group Helps with Structured Gifting

We’re not your attorney or CPA — and we’ll always tell you to keep them in the loop — but this is exactly the kind of planning we live in.

For our clients, we help:

• Map the family balance sheet
  Who exists now? Who’s likely to exist later? What vehicles already exist (accounts, trusts, businesses)?

• Design a gifting rhythm
  Annual exclusion gifts, occasional larger lifetime gifts, direct tuition/medical support — all built into your cash flow.

• Coordinate the investment side
  We help decide what to gift:

  • Cash vs. appreciated stock

  • Growth assets vs. income assets

  • When to use vehicles like covered calls, structured notes, or lending strategies inside gifted structures, where appropriate

• Stress-test the plan
  What happens if laws change? Markets drop? Your liquidity needs shift? We want your gifting plan to be generousbut also durable.

The goal is simple:

Move wealth down the line intelligently, keep you secure, and avoid surprises from the IRS.

Important Note (Because We Take This Seriously)

This piece is for education, not individual tax or legal advice. Gifting rules interact with:

• Your state’s laws

• Existing trusts and agreements

• Business structures

• Future law changes

Before making large gifts or setting up trusts, always coordinate with a qualified estate planning attorney and tax professional.

If you’d like Alejos Capital Group to review your current gifting and wealth transfer plan, we can help you see:

• How much you could be gifting under current law

• Where your assets sit today (and where they should sit)

• How to align your generosity with a clear, tax-aware strategy

Smart Money for Real People isn’t just about investments — it’s about how your money moves through your family for decades.