Currently, (2009) each person can give away $13,000.00 to any child, grandchild, spouse of your heirs, or for that matter, any other person.  In addition, you have a lifetime exemption of $1,000,000.00 million dollars that can be given away during your life without a tax.  A form 709 must be filed when gifts of over $13,000.00 are made and gift tax returns should be filed whenever a hard to value asset such as a gift of real estate or a closely held business interest is made.