The annual gift exclusion allows donors to give up to a specified amount to any number of recipients each year without incurring federal gift tax and without reducing their lifetime gift/estate tax exemption.
2025 amount: $19,000 per donee (recipient) per year. Indexed for inflation in $1,000 increments.
Historical amounts: $15,000 (2018–2021), $16,000 (2022), $17,000 (2023), $18,000 (2024), $19,000 (2025).
No limit on number of recipients: A donor can give $19,000 to 100 different people in the same year with no gift tax — total of $1,900,000 gifted with no gift tax consequence.
Gift splitting (married couples): A spouse can "split" a gift, allowing the couple to give up to $38,000 per recipient per year from community. Requires consent on Form 709.
529 superfunding: Donors can front-load 5 years of annual exclusions ($95,000 per donor per beneficiary in 2025) into a 529 plan in one year, with no additional gifts to that beneficiary for 5 years.
What counts as a completed gift: - Gift is complete when the donor gives up dominion and control. - A revocable trust does not constitute a completed gift (donor still controls it). - An irrevocable trust does constitute a completed gift (donor gives up control).
Crummey powers: Add withdrawal rights to an irrevocable trust so contributions qualify for the annual gift exclusion (otherwise, gifts to trusts are future interests and don't qualify).
> Exam tip: The annual exclusion is $19,000 (2025) per recipient — not per donor. A married couple can give $38,000 per recipient. Superfunding a 529 uses 5 years of exclusions in advance.