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18 A Special Advertising Section of Baltimore Sun Media Group | Wednesday, September 24, 2025
FINANCE
How to Leave – or
Give Away – Money
A conversation with a
Certified Financial Planner
By Margit B. Weisgal, Contributing Writer
W
hen we think about leaving – or giving away – money, it’s usually to relatives, but, so you know, it can be to anyone. What is important is how doing
this affects your estate taxes and possibly your recipients’ taxes.
Bradley Crockett, national director of
wealth financial planning at Wilmington
Trust, holds a Juris Master in taxation from
the University of Alabama School of Law,
an MBA from Johns Hopkins University,
and a bachelor’s degree in business management from the University of Delaware.
Additionally, Crockett is a CFP professional having earned the Certified Financial
Planner certification.
What follows is the Q & A chat we had
on the ins and outs of managing one’s
wealth. You are sure to find this fascinating.
MBW: How much can you give each
year without triggering gift tax?
Brad Crockett: Over a person’s lifetime, they can gift money from their estate
up to the Lifetime Gift and Estate tax
exemption, without triggering a tax burden. In 2025, that amount is $13,999,000
– yes, that’s just under $14 million – and
this amount will go up next year. In 2026,
it will be US$15 million. These large gifts
will require you to file a gift tax return with
the IRS, but gifts under this limit will not be
taxed federally.
In addition to the Lifetime Gift and Estate
tax exemption, any individual can give up
to $19,000 on an annual basis (based on
the limit in 2025) per person without being
considered a taxable gift and there is no
requirement to file a gift tax return to the
IRS. This is the Annual Gift Tax Exclusion.
MBW: Is there a limit to how much you
can give to others?
BC: On an annual basis, you can give
up to $19,000 per person in any one
year and not be required to report it. For
instance, let’s say you want to give one
of your children a gift of $19,000 this year.
You can do that. You can also team up
with your spouse (if you are married) and
give that person $38,000. Any gift that
exceeds this amount in a given year will
count against your remaining Lifetime Gift
and Estate Tax exemption or it would be
considered a taxable gift.
MBW: If you want to give money to your
children or grandchildren, what’s the best
way to do that?
BC: There are many ways to gift, but
one of the best ways to provide money
for children or grandchildren is a 529 Plan.
And, before we go any further, an individual can have multiple 529 Plans. These
funds a great for helping with education
costs. Even better, withdrawals are tax
free as long as they are used for a qualified
education expense.
According to SavingforCollege.com,
“You can use a 529 plan to pay for a wide
range of education expenses at elementary and secondary schools (K-12) and at
post-secondary schools, including community colleges, four-year colleges and
universities, graduate schools, and trade,
technical and vocational schools. The definition of 529 qualified expenses has been
expanded to include professional training such as apprenticeships, credentialing
and certification programs, and continuing
education programs.”
BC: “What expenses qualify? This is a
partial list: tuition and fees, books and supplies, computers, software, and internet
access, room and board. Since 529 Plans
have been expanded, certain qualified
expenses are covered for K-12 and others
for post-secondary and up.”
In Maryland, you can get a tax deduction of up to $5,000 when you contribute
to a 529 Plan. Each parent (or grandparent)
can contribute to the plan.
There is also something called a
Superfunding option if you have a large
estate: You can aggregate five years of
contributions into a lump sum and give it
all at once, so it provides an estate planning benefit, too. For instance, you can use
five years of gift tax exclusion (in 2025, it’s
$19,000) so you would contribute $95,000.
You cannot contribute more money for five
years, but it provides a great way to get the
assets out of your estate. As mentioned
above, these funds grow tax deferred.
Better yet, the child does not have immediate access to cash, another benefit.
MBW: I’ve been told that instead of hav-
