Plan of present gifting to reduce future taxes The law provides that one can give away $11,000 per year, per person, gift and estate tax-free. This amount will increase slowly in the future with inflation. 
Gifts of $11,000 per year are gift tax exempt.
A grandparent can give to children and grandchildren
to reduce a taxable estate.
Where an individual is married and his wife joins in the transfer, that amount is increased to $22,000 per year. If a spouse is to join in the gift, he or she must indicate so on a gift tax return, which must, therefore, be filed. Family trusts as vehicle to receive gifts and bequests Sometimes, though gifting might be a good idea, children or grandchildren are either too young or inexperienced to receive the money directly. Additionally, sometimes it is feared that a child's spouse might file for divorce and claim a share. Creditors are another concern. To deal with this, a client can establish trusts to receive gifts, for descendants' benefit: 
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