🧮 Why Waiting to Gift Assets Costs You Money



@baldridgecpa

ISSUE 39


Tax Saving Estate Planning Strategies

It's not how much money you make, it's how much money you get to keep.

And if the Big Beautiful Bill passes as planned, keeping more of your hard earned money gets a massive upgrade—especially when it comes to transferring wealth to family.

Estate Tax Exemption Jumps to $15 Million

Remember when everyone was panicking about the estate tax exemption dropping back to $5-7 million in 2026?

That's dead.

The new bill would increase the exemption to $15 million per person ($30 million for married couples), effective after December 31, 2025.

This isn't just an extension—it's an enhancement.

The Timeline That Matters

The Senate is aiming to pass this through budget reconciliation. If they miss that window, this gets a lot more complicated.

But here's the thing: even if you're nowhere near estate tax territory today, your growing business could push you there faster than you think.

Estate planning for the most part begins at a 10-20MM and growing net worth. But if you're building something real, that number can sneak up on you.

Here's How Smart Money Plays This

1. Annual Gifts Are Still Your First Move

Even with the higher exemption, annual exclusion gifts remain the most efficient wealth transfer tool. At $19,000 per person per year for 2025, these gifts require no forms, no fuss—just systematic wealth transfer that compounds over time.

If you've got three kids and you're married, that's over six figures moving out of your estate annually without touching your lifetime exemption.

2. Lock In Asset Values While They're Low

With a $15 million exemption, strategies like GRATs (Grantor Retained Annuity Trusts) and sales to defective grantor trusts become the perfect weapons for wealth transfer.

Example: Transfer $10 million of real estate or business interests today that grow to $30 million over 20 years. You've just moved $20 million of appreciation completely outside your taxable estate.

With interest rates where they are, the math on these strategies is incredible.

3. Family Limited Partnerships Are Back in Play

Despite years of IRS threats, valuation discounts are still alive. Transfer $1 million worth of assets into an FLP, and with proper structuring, you might only use $700,000 of your exemption.

Now multiply that efficiency by the new $15 million limit.

The Hidden Gotcha That Trips Everyone Up

Your gift exemption and estate tax exemption are THE SAME BUCKET. Every dollar you gift during your lifetime reduces what you can pass tax-free at death.

But here's where people mess up: they wait too long.

If you've got appreciating assets—real estate, a growing business, crypto—it often makes sense to gift them now and let the appreciation happen outside your estate.

The Compliance Reality

Look, proper estate planning isn't cheap. Between legal fees, appraisals, and ongoing compliance, you're looking at real costs.

But when the alternative is paying 40% of everything over the exemption to the IRS, the ROI is obvious.

Good estate planning can save you millions in your life and death, through death tax savings and asset protection. Beyond that, trusts and family partnerships combined with a will ensure your wishes are carried out.

You maintain control and gain protection. That's the whole game.

Your Next Moves

  • Start gifting sooner rather than later: Don't wait. Whether it's annual exclusion gifts or using your lifetime exemption on appreciating assets, time in the market beats timing the market.
  • Get your estate plan reviewed: With the exemption jumping to $15 million, your old plan might be leaving millions on the table. Find a board-certified estate attorney who gets it.
  • Run the numbers on advanced strategies: GRATs, family partnerships, and dynasty trusts hit different with a $15 million exemption. The setup costs that seemed expensive at $12 million look like rounding errors at $15 million.

Get the foundation right first. Then we can talk about the fun stuff.

Find Your Team NOW

You need:

  1. A qualified CPA who understands business and estate planning
  2. A board-certified estate planning attorney
  3. A CFP for the holistic view

This isn't TurboTax territory. And with these new limits, the cost of bad planning just went way up.

Remember: We currently have the largest estate exemption we'll likely ever see in modern estate tax. If your estate is growing and you haven't done any planning, you have a (very good) problem that isn't getting better on its own.

Don't wait to figure this out. The best planning happens when you have time to think, not when you're racing against a deadline.

As always, it's not just about the money you save—it's about making sure your wishes are carried out and your family is protected.


WEBINAR RECORDING NOW AVAILABLE

How To Pay Less Tax With Nick Huber

Missed our tax planning workshop? The recording covers 20+ ways to save on taxes, the Big Beautiful Bill changes, and powerful retirement strategies—but it's only available until Monday, June 30th at midnight EST.

Watch the recording


Mitchell Baldridge, CPA, CFP®

P.S. - The reconciliation process is going to be wild, and details could still change. I'll keep you updated as this moves through Congress. The math on these planning strategies only gets better with time, so start having these conversations now.

Forwarded this email? Click here to subscribe to The General Ledger.

Unsubscribe​ · ​PO Box 130844, Houston, TX 77219

Mitchell Baldridge - America’s Accountant

I work with hundreds of high net worth business owners and real estate investors and spend all my time thinking about how they can give less money to Uncle Sam

Read more from Mitchell Baldridge - America’s Accountant

@baldridgecpa ISSUE 41 FINAL: House Passes Bill 216-213 It's Done. Here's What Actually Made It Through. After months of rumors and "sources close to negotiations," we finally have the real deal. After the Senate's dramatic 51-50 vote earlier this week (with VP Vance breaking the tie), the House just delivered the final version 216-213. President Trump signs tomorrow (July 4th at 5pm ET). For those who read my Senate analysis, here's what changed - and what stayed the same: THE WINNERS: WHAT...

@baldridgecpa ISSUE 40 Senate Passes "Big Beautiful Bill" in dramatic 51-50 vote After a record-breaking 24+ hour vote-a-rama, the Senate passed the Big Beautiful Bill on Tuesday morning in a 51-50 vote, with Vice President JD Vance casting the tie-breaking vote. Three Republicans broke ranks – Senators Rand Paul, Thom Tillis, and Susan Collins voted against the bill, creating the dramatic tie that required the Vice President's intervention. The marathon session set a Senate record with 45...

@baldridgecpa ISSUE 38 Breaking Down the Senate's "Big Beautiful Bill" The Senate just dropped their version of the Big Beautiful Bill, and it contains major wins for business owners. While this version still needs to go through reconciliation with the House bill, there are key provisions that are worth reviewing. Let's look at what's on the table and what it could mean for your tax strategy. 100% Bonus Depreciation: Back and PERMANENT This is huge. While the House bill included a phase-out...