As of January 1, 2013, the annual federal gift tax exclusion has changed to $14,000 per donee. This means that during 2013 you can give up to $14,000 per donee without filing a federal gift tax return. So, for example, if you have three children – – you can give each of them $14,000 without any reporting requirement.
The annual gift tax exclusion amount is important to estate planners. It is also important to asset protection planners because gifting is frequently an integral part of many asset protection plans.