What are annual exclusion gifts?

Video Transcription:

One of our wealth transfer taxes is gift tax. Anything that you gift to a loved one during your lifetime could potentially have a gift tax imposed. But, the government gives us a freebie. They give you $15,000 per person per year that you can annually give to your child or children without any gift tax consequence. Let’s say you had five kids, you could gift $75,000, $15,000 each to each of your five kids, without utilizing any of your unified credit, without having to file a gift tax return. If you’re married, your spouse can do the same. So now, your $75,000 gift to your five children can be increased to $150,000 per year.