In 2012, you can give up to $13,000 of assets to any number of recipients. You can give $13,000 to your son, $13,000 to your daughter, $13,000 to your neighbor, etc., with no gift tax consequences.
However, making outright gifts can be dangerous. The recipient might spend the money foolishly or be lured into a fraudulent investment. If the recipient is divorced, half the assets you’ve given away might be awarded to an ex-spouse.
To prevent such events, you can make gifts in trust. Then you can give up to $13,000 per trust beneficiary this year. With two beneficiaries, for instance, you can give up to $26,000 to the trust in 2012.
To qualify for the annual gift tax exclusion, the trust beneficiaries must have immediate access to the gifts. The trustee should write to each trustee, informing them of a $13,000 gift. Each beneficiary might have 30 days to withdraw their gifts. If that right is not exercised, the money can stay in the trust and no gift tax will be triggered.