[Quilla]

Excellent recommendation. I believe the figure has been raised to $11,000 and monies can be gifted to offspring and their spouses. If I'm not mistaken, a parent with say, four married daughters, can gift $88,000 annually.

[KansasGirl]

I believe, and somebody please correct me if I am wrong, that even the amounts gifted to your offspring are considered when figuring the lifetime exemption for calculating estate taxes. For example, if you have gifted $200,000 to you children within your lifetime, you will only get a one-time estate exemption when you die of $800,000 (based on a lifetime exemption amount of $1,000,000). That is why you have to report gifts to the Gov't even if no taxes are owed on those gifts.

Please someone correct me if this is incorrect.