My dad is giving my sister and me some money this year, b/c he got some tough medical news. The way I interpret the gift tax rule is that nobody pays tax until he gives away $5.4M in his lifetime (a figure he'll never come close to reaching). All he does is file a tax form and the IRS keeps track of his gifts, and I shouldn't have to file any additional forms. For those who have been in similar situations, is this how it worked for you?
