Editor’s Note: This article has been updated with current 2026 estate tax exemption figures.
Here in Savannah, we often see clients concerned about estate taxes taking a big bite out of their legacy. One question we frequently hear at Smith Barid, LLC is, “Can I give gifts to avoid the estate tax?” The short answer is yes, but as with many things in law, it’s not quite that simple. Let’s break it down.
First, some good news for many Georgia residents: you might not need to worry about estate taxes at all. Georgia doesn’t have a state estate tax, and the federal estate tax only applies to estates worth more than $13.99 million per individual (as of 2026). For married couples, that threshold doubles to $27.98 million.
But if your estate is larger than that, or if you’re concerned about future changes to the tax law, gift-giving can indeed be a strategy to reduce your taxable estate. Here’s how it works:
The IRS allows you to give up to $17,000 per person per year (in 2023) without incurring any gift tax. This is called the annual exclusion. For married couples, this amount doubles to $34,000 per recipient. So, if you have three children and six grandchildren, you and your spouse could give away up to $306,000 per year without any tax consequences.
Over time, this can significantly reduce the size of your taxable estate. Let’s say you’re a Savannah couple with an estate worth $30 million. If you start a gifting strategy when your grandchildren are born and continue for 30 years, you could potentially transfer millions out of your taxable estate.
But what if you want to give more? This is where the lifetime gift tax exemption comes in. This is the total amount you can give away over your lifetime, above and beyond the annual exclusion amounts, without incurring gift tax. As of 2026, this amount is $13.99 million per individual, the same as the estate tax exemption.
Here’s the catch: the lifetime gift tax exemption and the estate tax exemption are linked. Every dollar of your lifetime exemption that you use reduces your estate tax exemption by the same amount. So while you can use large gifts to reduce your taxable estate, you’re essentially just moving the tax from after death to during your lifetime.
There are also some special rules that can help you give even more:
While gift-giving can be an effective strategy for reducing estate taxes, it’s not without risks. Once you give a gift, you no longer have control over that asset. And if you end up needing long-term care, large gifts made within five years could affect your Medicaid eligibility.
That’s why it’s crucial to work with experienced estate planning attorneys who understand both the opportunities and the pitfalls of gift-giving strategies. At Smith Barid, LLC, we’ve helped many Savannah families navigate these complex waters, creating comprehensive estate plans that protect their assets and minimize their tax burden.
Ready to explore whether a gift-giving strategy could be right for your estate plan? Give us a call at 912-352-3999 or click here to schedule an initial discovery meeting. Let’s work together to create a plan that preserves your wealth and secures your legacy for generations to come.
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