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Good afternoon. Actually, the lifetime exemption (which has taken the place of the unified credit) for 2012 is $5,000,000. So, you can give the first $13,000 to each child under the annual gift exclusion. And, then the remaining $37,000 to each child would be reported on the gift tax return to show how much of the lifetime exemption you are using. In any event, there would be no gift tax due.
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