After a lifetime of building wealth, one couple I work with—let’s call them Mark and Ellen—recently crossed into the next phase. Retired in their mid-60s, they have a well-funded lifestyle, a strong investment portfolio, and an estate approaching $20 million. They’ve done the hard part. Now, they’re focused on enjoying what they’ve built—and beginning to transfer it with intention.
With four kids, eight grandkids, and a deep network of extended family and causes they care about, Mark and Ellen aren’t looking to wait until the reading of a will. They want to give while they’re still around to enjoy the results.
And like many affluent families approaching the estate tax cliff in 2026, they’re exploring their options.
Gifting With Purpose: The Simplicity of the Annual Exclusion
The 2025 annual gift tax exclusion is now $19,000 per recipient—or $38,000 per couple. With 20 potential recipients (kids, grandkids, nieces, nephews, godchildren), that’s $760,000 they can move out of their estate every year—without even filing a gift tax return.
More importantly, it’s a chance to:
It’s not just a tax strategy. It’s a family values strategy.
As Mark put it: “We’d rather write smaller checks every year than one massive one at the end. This way, we get to see the impact.”
Why Not Go Bigger With Trusts?
We’ve modeled more aggressive estate reduction strategies—Spousal Lifetime Access Trusts (SLATs), Irrevocable Life Insurance Trusts (ILITs), and Grantor Retained Annuity Trusts (GRATs). These can be powerful tools, especially with the current estate tax exemption of $13.99 million per person set to drop by half in 2026.
But the couple isn’t ready to part with $10 million overnight—and we don’t blame them.
Instead, we’re using their gifting strategy to layer in additional impact, while keeping things flexible:
The RITE Framework in Action
What I appreciate about Mark and Ellen is that they aren’t just looking at taxes or investments in a vacuum. They’re thinking holistically. That’s where our RITE framework shines:
A Gentle Reminder: The Clock Is Ticking
If the estate tax exemption does sunset as scheduled, every dollar over ~$7 million per person ($14M per couple) will be subject to a 40% federal estate tax. Mark and Ellen don’t need to commit to a 10-year estate freeze—but they also don’t want to look back and wish they had done more.
Our approach isn’t to rush or overcomplicate. It’s to map out options—like trust funding, 529 front-loading, Roth conversions, and annual gifts—and implement the ones that align with your comfort level.
Whether you’re ready to “chunk it out” through a trust or just want to use the gifting rules to your advantage, the key is action. And action, when paired with intention, is the difference between a reactive estate and a strategic legacy.
If you’re in a similar stage—retired, secure, and wondering how much is enough—we should talk. Not just about how to preserve your wealth, but how to use it meaningfully, in every next phase.
The strategies described above are complex legal structures that must be tailored to each family’s circumstances. Always consult with your own estate planning attorney and tax advisor before implementing any trust, gifting, or insurance strategy. Members’ Wealth does not draft legal documents and works alongside your legal counsel to support and coordinate your estate planning efforts.
These examples are for illustrative purposes only and do not represent actual client experiences. Individual results will vary based on personal financial circumstances and tax laws.
Stu Caplan is Senior Wealth Strategist at Members’ Wealth, a boutique wealth management firm that offers a comprehensive approach to serving individuals, families, business owners, and institutions.
The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of industry experience, Stu and the Members' Wealth team thrive on bringing clarity and confidence to clients' unique situations.
Stu received his MBA from The Robert H. Smith School of Business at the University of Maryland and his bachelor’s degree from the Eller College of Management at the University of Arizona. Stu resides in Bucks County, PA with his wife and two sons. He’s an avid golfer and is thrilled that his boys have embraced the game. He also volunteers his time as a board member of the PKD Foundation and Abrams Hebrew Academy.
To get in touch with the Members’ Wealth team today, I invite you to email info@memberswealthllc.com or call (267) 367-5453.
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