Passing on one’s liquid assets to family members is a fine art that requires careful consideration before action. For 2025, the individual exemption is $13.99 million, and for couples it rises to $27.98 million.  These are thresholds most of us don’t have to worry about. There are tricks to this transfer process that can smooth out sending money to your family.  Here are five lesser-known practices that may work for you:

Split gifting.  The annual gift tax exclusion is $19,000 for individuals and $38,000 for couples.  By splitting the gifts between spouses, a retired couple with three children and six grandchildren could gift up to $342,000 without filing a gift tax return.

529 Super funding.  The tax code allows for the front-loading of five years’ worth of gifting to a 529 college savings plan.  That’s $95,000 for an individual and $190,000 for married couples.

Qualified Tuition Payments.  Don’t have a 529 plan, but you do have a college picked out?  You can make payments to that institution in the name of a grandchild.

Qualified Medical Expenses. Similar to the tuition exclusion, medical payments made directly to a medical provider are non-taxable.

Life Insurance.  Transferring life insurance policies to trusted family members, or to an irrevocable trust, has the effect of removing the policy from the estate of the insured, freeing up precious exemption space.

These legal transfer practices can help you transfer wealth to family members tax-free.  Call me if you’d like to discuss them in greater detail.

Great News! The Indiana Legislature passed HEA 1226, and our governor signed it into law on April 10, 2025. The new legislation takes effect on January 1, 2026, allowing individuals 65 or older to have 63 days of GUARANTEED ISSUE each year from their birth date to change (or get) their Medigap Plan. I’ll have more information for you as that time draws near. Is this an option for you? Let’s talk!

Have you heard about SEA 215?   It’s an Indiana law creating guaranteed Medigap issue opportunities for Medicare beneficiaries under 65.  However, it has a short window of opportunity that started on January 1 and ends on June 30, 2025. Anyone under 65 who becomes eligible for Medicare during this window will have their own 6-month guaranteed enrollment period starting from the month their Medicare Part B begins and lasting six full months into the future.  Is this you?  Let’s work together to enroll you in this new healthcare coverage opportunity!