No, but if Grandpa gave her more than $10,000 a year, he owed taxes.
Your right except I believe they raised it to 15,000.
That's the old limit; it has since been increased.
In fact, if I'm not mistaken, it would be she who would owe the taxes since she was the recipient.
$20K - Grandma is still around (working 4 days a week );-)