I want to share something that often catches people off guard, making gifts. Believe it or not, giving a gift can sometimes come with tax consequences. Here's why. Federal gift and estate tax laws are designed to tax the transfer of wealth, whether you're giving during your lifetime or leaving something behind. Now the good news, most families won't owe this tax. Starting in twenty twenty six, the law allows up to fifteen million dollars per person to be passed on tax free. But here's the catch. How you gift matters. If it's done the wrong way, it could create issues for your heirs. There are smart ways to give, like using the annual exclusion. You can gift up to nineteen thousand dollars per person per year tax free. If you're helping with someone's tuition or medical bills directly, those gifts are unlimited and also tax free. But once you go beyond those limits, you'll need to file a gift tax return, even if no tax is due. And if you're not keeping track, it can get complicated fast. Remember, gifts aren't just checks. They can be contributions to a five twenty nine plan, or even paying premiums on a life insurance policy held in a trust. That's why planning ahead is so important. If you're curious about the impact of gifting, reach out to your Truist advisor.