You are correct that when she gets the gift any income
will be hers to report and pay tax.
For the donor, after one million dollars has been gifted above the annual exclusion amount then gift tax
is due. For lifetime gifts that are less than one million dollars there is not any gift tax in the year the gift is made; but the amount of lifetime gifts does reduce the amount of the person's estate not subject to estate tax
If you give more than the annual exclusion amount of gifts for the year to one person you must file a gift tax return
; but there is no tax due until the lifetime gifts are more than one million dollars.
For more details see http://www.irs.gov/businesses/small/article/0,,id=108139,00.html
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $13,000 on or after January 1, 2009, the annual exclusion applies to each gift.
What if my spouse and I want to give away property
that we own together?
You are each entitled to the annual exclusion amount on the gift. Together, you can give $26,000 (effective on or after January 1, 2009).
What can be excluded from gifts?
The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts
Gifts that are not more than the annual exclusion for the calendar year.
Tuition or medical expenses
you pay for someone (the educational and medical
Gifts to your spouse.
Gifts to a political organization for its use.
So you can give any amount from the list above plus 13,000 from you (and 13,000 from your spouse) before you have to file a gift tax return for the year and without any tax consequence.
You should not only add her name to the account but document the gift in writing and the fact that she actually does have the rights and benefits
of ownership. That is, it must be a completed gift for her to be the owner of the income on the account.
I have assumed for this answer that your daughter in not your dependent
and that she is not a minor. Please ask if this is not the case.
I hope this helps to know how much and what type of gift you can give with no tax consequence.