Under federal gift tax law, each person, annually, can give up to $10,000 to as many people as desired, tax-free. Married persons may combine their annual gift tax exclusion and may make "split gifts" of $20,000 per year to as many other individuals as they choose, tax-free.
The unified credit against estate and gift taxes also applies as a credit to reduce or eliminate gift tax. However, to the extent this unified credit is used during lifetime, it will not be available to apply at death against federal estate tax.
Estate Planning is a highly complicated subject which should be attempted by you only in consultation with your attorney. Prior to consulting with your estate planning attorney, you should locate and organize a current financial statement, income tax returns for three immediate prior years, gift tax returns, divorce decrees, business agreements, partnership agreements, and any existing wills and trusts. This and additional information will be necessary for your estate planner to efficiently plan for accommodating your dispositive wishes as well as maximizing tax savings.
There are multiple complex technical rules regarding the execution of wills and trusts. The lay person who attempts to draft an estate plan does so at his or her peril.