On January 1st, 2026, the existing U.S. lifetime gift tax exemption will drop from U.S. $12.92 million to U.S. $5.49 million. But there is solution-oriented good news. You can still take advantage of the two-year window of time before the rule goes into effect. In addition, there is another exemption that lets you gift up to U.S. $17,000 a year to an individual − without triggering any gift tax − whether you are a U.S. or Canadian taxpayer. You can do this annually, so it can be incorporated into your long-term financial planning as a proactive strategy. In some cases there may be tax reporting requirements or other important considerations, and you have to be careful not to exceed the tax-free cap on financial gifts. But helpful answers and useful strategies for various scenarios are covered in this informative article, “How Cross-Border Clients Can Utilize the U.S. Gift Tax Lifetime Exemption before Rules Change.” The article can be viewed below.
