The annual exclusion gift amount remains at $14,000 for 2017. The annual exclusion gift is the amount that you can give to any recipient during the calendar year without gift tax consequence. For example, in 2017, if husband and wife have two children, they each can give $14,000 to each child, total of $56,000. Upon their deaths, they could still leave $10,980,000 million to their children without any federal estate tax. (State estate tax may differ.) There generally is no tax reporting regarding the annual exclusion, however, there are exceptions depending on the type of gift and the recipient. (See prior posts on "Crummey" Trusts.)
The annual exclusion is a simple but straightforward way for wealthy grandparents and parents to reduce their taxable estates, along with paying tuition and medical bills. If gifts exceed the annual exclusion, the transfer may erode the $5,490,000 exemption amount available per person upon death. Decedents who die in 2017 have an exclusion amount of $5,490,000, an increase of $40,000 from decedents who died in 2016.