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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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Thanks for allowing meto be of service to you. Please be aware that the information provided here isnot legal advice. Rather it is simply general information. All states have intricacies in their lawsand any information given is simply information only and specifically is notintended to be, nor does it constitute, legal advice. This communication doesnot establish an attorney-client relationship with you. I hope this answer has been helpful to you.