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If your father gives you more than $14000 in a year (by cash or building this for you) he will need to report that gift on form 709. He will not need to actually pay tax on the gift over $14000 but it will reduce his Estate amount.
The gift tax and the estate tax work hand in hand. His annual limit is $14000 and lifetime limit is $5,450,000 (2016). His $4.45 mil is reduced by the amount over the $14000 in the year. Leaving his estate with less to transfer tax free.
26 U.S. Code § 2503 - Taxable gifts