Estate Taxes

• As of 2024, you can give up to $18,000 per recipient ($36,000 for spouses who "split" gifts) to any number of individuals, without incurring a gift tax.
• Anything over the annual limit applies toward a lifetime exemption amount.

What you can do now:

• Get more details on the estate tax and lifetime gifting.

• With a custodial account, you can make gifts to a minor child (tax-free up to the $18,000/$36,000 limits) and manage the account on his or her behalf.
• Withdrawals can be made at any time as long as they are used for the sole benefit of the child.
• The account must be transferred to the minor when he or she reaches a certain age (from 18 to 25, depending on the state).

What you can do now: 

• Get details about a Schwab One^® custodial account.

• With a 529 account, you can give five times more than the annual tax-exempt limit ($18,000 x 5 = $90,000) in a single year, without incurring gift tax, as long as you treat the gift as if it were made in equal payments over five years on your tax return.
• Any gift during the five-year period will be subject to gift tax; however, you can also pay education providers (or medical providers) directly on behalf of another without limit (the annual gift-tax exclusion does not apply in this case).

What you can do now: 

• Compare education accounts side by side.
• Get details about the Schwab 529 College Savings Plan.

• Giving to charity can provide a current-year income tax deduction while removing assets from your taxable estate.
• If you're considering a significant charitable commitment, you may also want to look into strategies such as donor-advised funds, private foundations, or charitable trusts.

What you can do now: 

• Get more details about donor-advised funds and other charitable giving options with DAFgiving360™.