Chuckrox

The $13,000 is a U.S. gift exemption, it's value typically is increased periodically for inflation. Each person has a maximum amount they are able to gift in a lifetime without being taxed, but this $13K per year does not subtract from that. A person could gift $100K and just fill out the form, which essentially is subtracted from their lifetime allowance. The $13K per year is a great estate planning technique for many families.

My explanation is not specific, but that is the basic idea.