How Are Gifts Different From Bequests In Florida?

Gifts and bequests may sound like the same thing and many people do use the two terms interchangeably. However, when planning your estate, these two terms have very different purposes. It is important to understand the differences between the two so you can choose the estate planning strategy that is right for you. Below, one of our St. Petersburg estate planning lawyers explains in further detail.

You Give Gifts During Your Lifetime 

A gift is something you give to someone during your lifetime. For example, you may give your child a car to celebrate their college graduation. Or, you might gift your grandchildren a couple of hundred dollars on their birthday or during the holidays. Gifts can be given informally, or you may choose to document them carefully.

The concept of gifting specific people certain property is a very common estate planning strategy. Under federal law, you are allowed to gift a person a certain amount of property each year. In 2026, the exclusion allows for $19,000 per recipient per year. You can gift this amount to one person without reporting the gift to the Internal Revenue Service (IRS) or paying taxes on it. Giving gifts can also help you qualify for Medicaid, but it must be done well in advance of the date you apply for benefits.

In addition to the annual gift exclusion, federal law also applies a lifetime gift tax exemption. In 2026, the exemption is $15 million per recipient. Most people do not have to worry about ever exceeding this threshold. However, for very wealthy families, it is an important consideration to shield themselves from possible federal estate taxes.

You Leave Bequests After You Pass Away 

While gift-giving happens during your lifetime, bequests take effect after you pass away. Individuals can make bequests in certain estate planning tools, namely their will and trusts. The successor trustee or personal representative then makes sure the necessary transfer of assets occurs.

Due to the fact that bequests often involve trust administration or probate, they are typically more complicated than gifts. They require careful drafting of a trust or will, while gifts can be given very informally.

What is the Right Strategy for You? 

Some people argue that because gifts can avoid the probate process, they are inherently better than bequests. However, it is not always practical to give away all of your property during your lifetime. Many people use a combination of gifts and bequests to realize their estate planning goals. It is important to speak to an attorney who can advise on which strategy is best for you.

Our Estate Planning Lawyers in St. Petersburg Can Provide the Advice You Need 

At Legacy Protection Lawyers, LLP, our St. Petersburg estate planning lawyers can further explain the difference between gifts and bequests and help you devise a strategy that is right for you and your family. Call us today at 727-471-5868 or contact us online to schedule a consultation with one of our experienced attorneys and to learn more about how we can help.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/0732.html