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FYI, gift tax wouldn't really be 'paid'. What is it is that every dollar over the annual exemption reduces your 'unified gift & estate tax credit'.

For instance, if you have a $2 million unified credit, then if you go over $12K in gifts, you have to start reducing that. Meaning $100K to each of you, minus $36K (3*$12) would leave $300K-$36K = $264K exceeding the limit.

*If* anything was to be paid, it would be paid by your dad (the giver), not the recipients. But instead, he'd just have to file a gift tax form and reduce his unified credit by $264K, meaning he has that much less exemption on his estate from estate taxes.

If he is looking at paying estate taxes when he passes, and if he doesn't need the money, then it wouldn't be a bad idea to give each of you gifts up to the annual limit each year, but preferably not from things like savings bonds that would cause interest income in addition.

But going over the limit wouldn't help avoid estate taxes - which is exactly the point of the gift tax.
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