One of the common questions we hear is how to give money to loved ones. In a recent 2025 survey of high-net-worth clients, 57% of respondents plan to gift some amount of their assets in the next five years and 74% plan to do so over the course of their lifetime.[1] During conversations about gifting, questions arise around how much to give, the best way to give it, and if there are tax consequences.
Gifting isn’t always straightforward, but real joy can be found in gifting during your lifetime while you can see the impact firsthand. It might mean helping at a time when the receiver is experiencing hardship, or creating family memories with shared experiences you make possible. There are many ways to give gifts, and we help our clients think through the “how” so that their generosity can be meaningful as well as aligned with their financial plan.
Does Gifting Fit Into the Overall Plan?
Before moving forward, it is important to confirm that your generosity will not put your own financial future at risk. Adult children often appreciate financial help, but they may also worry about whether their parents are adequately prepared for retirement, health care, and other long-term needs.[2]
As part of financial planning with clients, we often evaluate gifting scenarios such as support for a wedding, assistance with buying a house, or giving a large amount annually at the holidays. Building this into a financial plan adds confidence to the gifting strategy, and parents can reassure their children that the gifts are planned and intentional. Once you’ve determined that gifting can fit into your own financial plan, the next question is how to make the gift in a way that works best for everyone.
What Are the Options?
The ideal type of gift depends on both the giver’s goals and the recipient’s needs. There are various strategies and finding the right one requires asking questions such as whether the recipient can manage their finances on their own, whether you want to retain some control, what the total gift amount will be, and what tax bracket the recipient is in.
In most cases, good old-fashioned cash is the simplest. However, for family members with lower income, gifting appreciated stock may provide tax benefits. For education savings, you might open a 529 account or a custodial account. With regard to timing, it’s worth considering whether a large one-time gift is most helpful, or if recurring smaller gifts could be beneficial for the recipient and your own cash flow.
Does Anyone Owe Taxes?
We hear this question quite often. Generally, the answer is no. A gift is not reported on the recipient’s tax return, so the person receiving it does not owe anything.
If any tax is due, that responsibility falls to the person making the gift. In 2026, an individual can generally give up to $19,000 to any recipient without filing a gift tax return.[3] That means a married couple giving jointly to their daughter and her husband could potentially give up to four times that amount in a single year without additional complexity.
Larger gifts, such as help with a down payment, may require an additional step. When a gift exceeds the annual limit, the giver works with their tax professional to file a gift tax return with the IRS to document the gift as part of the giver’s lifetime exemption, which is currently $15 million per person.[4] As long as a person’s lifetime gifting is below that threshold at the time of the gift, generally no tax is due.
Gift and estate tax rules are complex and individual circumstances vary, and anyone considering a substantial gift should consult their tax and estate-planning professionals.
Is the Gift Welcome?
Some family members welcome financial help enthusiastically, some ask for it directly, and for others it can unintentionally complicate their lives.
For instance, a gift to a grandchild might not align with the parents’ plans, creating unintended tension, or, if a recipient relies on certain government assistance programs, an unexpected influx of money could put that assistance at risk. Additional consideration may also be needed when giving to one person in a relationship where the assets are already uneven. Fairness across siblings and extended family also deserves care.
Parents, grandparents, aunts, and uncles often want to make life a little easier for the next generation. To ensure your gift lands the way you intend, it can be valuable to talk with the people you want to help before making a gift. Sharing your intentions behind the gift, especially when the gift is connected to family history, can make the gift feel more meaningful. The ultimate goal is to give gifts in a way that brings families closer together, not one that unintentionally does more harm than good.
Your Planning Partner
Giving well takes more than good intentions. It takes a plan. At North Berkeley, we work with clients to explore how a gift fits into the broader financial picture, coordinate with CPAs and estate attorneys, and think through timing and family dynamics together. The goal is not to hand over a generic formula, but to help each client give in the way that reflects their own values, resources, and family, with confidence that their own financial future remains secure along the way.
Resources:
[1] 2025 Charles Schwab High Net Worth Client Pulse Survey. Gift or Guilt? Navigating Family Money | Charles Schwab
[2] Nearly one in two Americans plan to or have already supported their parents financially in some way, and 53% of Americans who plan to support their parents financially expect to be burdened by it. Research by Choice Mutual.
[3] Annual gift limit for 2026 per IRS.
[4] 2026 Lifetime estate exemption per IRS. This number is periodically adjusted.
