You can make annual gifts to your children and other beneficiaries of $15,000 per individual, without having to file a gift tax return or pay gift tax. This means that a married couple can gift $30,000 to each child and grandchild, annually. You may gift more than $15,000 to an individual, but you will not have to pay gift tax until you have exceeded your lifetime exemption amount. In 2021, the federal gift, estate and generation skipping transfer tax exemptions are set at $11,700,000, indexed for inflation. This means that a couple can pass wealth of $23,400,000 over their lifetime to their heirs free of federal gift and estate tax in 2021. New York State does not impose a gift tax but will add gifts made within 3 years of death into the New York State estate tax base.