Give Money to Your Family Members
In general, few people have to worry about the federal estate tax since most Americans have a credit big enough to let them pass up to $11.58 million to their heirs in 2020 and $11.7 million in 2021. And of course, when it comes to married couples, the amount doubles.
However, if you think that the estate tax is somewhere in the near future, at least make sure to benefit from the annual gift tax exclusion. This exclusion allows you to give up to $15,000 per year to any family member without worrying about the gift tax. Your spouse can give the same amount of money to the same person, too (your only child, for instance).
See also: Can You Believe These 16 Insane Tax Breaks?
