You can gift $17,000 per person per year without triggering gift tax. The giver pays any tax owed, not the recipient. Gifting assets now shrinks your taxable estate and cuts future estate-tax bills.
Gifting money to people is a way to reduce taxes. Now, that's not an immediate, I get to reduce taxes that year, but because I can gift right now in '23 up to $17,000 a year tax-free, I can get $17,000 out times however many people I gift outside of my estate. So now I would have less taxes in the future. And because it's a gift, the person receiving the gift doesn't pay taxes. I don't know if you guys knew that. The tax issue when sending gifts is the gifter, the one sending the gift, is the one who the IRS wants to make them pay taxes on it, not the one receiving the gift.
