The annual exclusion for 2013 is $14,000 per recipient. This amount is doubled if you are married and your spouse consents to split the gift. If your children are married, you can effectively multiply the tax-free gifts by giving gifts to spouses. And you can apply your lifetime gift tax exemption amount ($5.25 million in 2013) to transfer even more tax free. Bottom line: You can make sizable gifts tax free, but talk with a tax or financial advisor to determine the extent of your generosity.
An annual payment of money by a company or individual to a person called the annuitant. Payment is for a fixed period or the life of the annuitant. Tax consequences depend on the type of contract and funding.